Capacity Cuts, AI in Action, Appeal in Progress, and EVER MAX’s Arrival.
Your weekly All-Ways round-up of Supply Chain news.
Blank Sailings
Throughout August, ocean carriers have been keeping up their blank sailing programs in the trans-Pacific. Carriers are set to blank 38 sailings to the West Coast, just a little bit more than July’s 36 cancellations. If import demands remain uncertain, the current amount of canceled sailings will be maintained.
Just last month, however, Asian imports into the US reached an 11-month high causing freight rates to increase by 50% since mid-summer. But this might be because of cargo diversions from the ports of Vancouver during the longshore strikes. Plus, a temporary uptick will occur to move cargo out of China before the celebration of the Golden Week holiday at the beginning of October.
“Volumes are going up at this particular time, but no one is more than cautiously optimistic,” Marc Bibeau, president of freight forwarder OEC Group said. “The US West Coast is doing well. But I don’t see anything robust in my crystal ball.”
Some services have even been suspended like Zim Shipping’s North Pacific (ZNP) and the THE Alliance’s Pacific South Loop 5 (PS5).
“Demand for consumer goods is not where it needs to be, especially durable goods — televisions, refrigerators, furniture,” Bibeau said. “Inventories are still high, and people are tightening their belts.”
If there’s one positive change post-pandemic, it’s that ocean carriers are able to respond more efficiently to changes in demand than ever before. For businesses, however, this means that more potential delays can be expected.
The Future with AI
AI will change the face of the supply chain industry as we know it. Or is it just all a hype?
Many companies, both big and small, are expecting to reduce the number of employees as a result of AI tools.
As of now, a vast majority of companies have already started using AI for support pricing, shipping operations, sales, and customer support, amongst others. And if they haven’t started using AI, most have plans to.
AI will also help streamline systems, such as forwarders having the ability to upload quote requests from clients and automatically search for air cargo rates.
Are you jumping on the bandwagon and implementing AI systems in your company?
FMC Ruling Appealed
In an effort to overturn a ruling, the Evergreen Shipping Line is taking the Federal Maritime Commission to the US Court of Appeals for the District of Columbia Circuit.
Evergreen believes it did not wrongfully assess detention charges against a drayage provider TCW over Memorial Day weekend at the Port of Savannah in 2020.
In 2021, TCW filed a small claims dispute over a $510 charge in detention fees. Last December, the FMC voted 4-1 in favor of TCW on the grounds that detention fees should not apply over a weekend or holiday when a terminal is closed.
Evergreen filed for an appeal on June 2 on the grounds that the FMC didn’t factor that:
➡️ TCW was notified amply of the closure
➡️ The container had been in detention for weeks prior to the holiday
➡️ Per diem charges were reimbursed by TCW’s customers
Since the FMC has not completed its final rulemaking in general, Evergreen believes that the agency wrongfully ruled.
On October 20, oral arguments will be heard by the appeals court.
EVER MAX on the East Coast
The largest EVERGREEN vessel arrived at the Port of New York and New Jersey. On Sunday, August 13, EVERGREEN EVER MAX was welcomed at the Maher Terminals at the Elizabeth– Port Authority Marine Terminal.
Constructed in 2023, the 15,432 TEU container ship traveled along the Asia U.S.-East Coast (AUE) line of service. It started out in Xiamen and then passed through the Panama Canal to arrive at the US East Coast.
To celebrate the occasion, a ceremony took place and Captain H.M. Yang was presented with a plaque.