Bangladesh freight interrupted, 44,000 containers backlogged, supply chain in disarray, US East Coast ports shrouded in strikes | Foreign Trade News Express
50 ships are stranded and more than 44,000 containers of cargo are piled up!
Bangladesh's supply chain is in serious disarray as the country's unrest worsens again due to ongoing protests, with factories shut and exports almost forced to a halt.
It all culminated in Sheikh Hasina's resignation after 15 years as she led Bangladesh, and she fled when protesters stormed her palace in Dhaka. The army took over an interim government, butThe Asian country remains in chaos.
The government has declared Monday to Wednesday a national holiday and all offices will remain closed. Mobile internet services have been disrupted and only broadband is available with an unreliable connection.
The factory will remain closed until further orders. From the warehouse in Chittagong, only a few hundred boxes can be transported to the port for shipment. The freight process was affected on Monday morning when the internet connection was interrupted for several hours.
Linerlytica, an Asian container shipping consultancyAnalysts at the Institute of International Business and Economics said that Chittagong, which handles more than 90% of Bangladesh's international trade, is currently the port with the worst berthing delays in the world, with about 50 ships waiting in line within 25 nautical miles of Chittagong, and many ships are forced to wait in the Bay of Bengal for more than a week.
On August 5, the port cleared only 1,175 TEUs of containers, a sharp drop from the usual daily volume of up to 8,000 TEUs.
"We did not deliver containers to the port on Monday night due to security concerns," said Ruhul Amin Sikder Biplob, secretary general of the Bangladesh Inland Container Depot Association.
Omar Faruk, a spokesman for the Chittagong Port Authority, said that as of the morning of August 6, only 329 TEUs had been delivered from the port yard. Normally, the country's main port transports more than 4,000 TEUs. He added: "It is expected that the total volume on the 6th may increase to about 1,000 TEUs."
On August 5, the port unloaded about 2,409 TEUs of import containers from ships and loaded 1,265 TEUs of export containers. On the morning of August 6, there were 44,117 TEUs in the port yard, occupying about 80% of the area, hindering the loading and unloading of containers.
Kuehne + Nagel, the world's largest ocean freight forwarder, has issued a warning about the continued severe congestion in Chittagong. Kuehne + Nagel mentioned that the container freight station (CFS) has also become more crowded due to the backlog of goods and the influx of goods to be processed.
They are facing difficulties, especially in terms of network-based communications and connectivity.
In recent years, Bangladesh's port cargo volume has been soaring, which is related to Bangladesh becoming an important exporter, especially clothing exporter.
Chittagong also provides sea access to landlocked Nepal, Bhutan and northeastern India.
The delay in Chittagong is a direct result ofA large amount of goods cannot be loaded, unloaded and transported on time.This increases the waiting time and operating costs of ships in ports, and may also increase the risk of cargo damage or deterioration.
For businesses that rely on Chittagong for imports and exports, delays could lead to supply chain disruptions, affecting production and sales plans.
The Bangladesh Garment Manufacturers and Exporters Association said the industry has suffered losses of about $270 million.
Regarding the situation in Bangladesh, a spokesperson for the Chinese Ministry of Foreign Affairs said on the 6th that China is paying close attention to the situation in Bangladesh. As a friendly neighbor and comprehensive strategic partner,China sincerely hopes that Bangladesh will restore social stability at an early date.
On August 5, local time, Zaman made a televised speech saying that an interim government would be established soon to govern the country. Zaman called on the people to remain calm and work together to maintain peace and order in the country, and stressed that he would investigate the recent violent incidents in Bangladesh.
The strike shadows over the eastern U.S. ports
The International Longshoremen's Association (ILA), which represents 45,000 longshoremen on the U.S. East and Gulf Coast, will revise its final contract demands next month and prepare its members for a strike in early October.
Two shipping company sources familiar with the negotiation process told the media that the longshore union hopes to reach an agreement with East Coast and Gulf Coast maritime employers during the next six-year contract period.Salary increase of nearly 80%
The International Longshoremen’s Association (ILA) is seeking an almost 80% wage increase over the life of its next six-year contract with maritime employers on the East and Gulf coasts
The union said it will present final contract demands to delegates at a wage standards committee meeting in New Jersey on Sept. 4 and 5, where delegates will review demands the ILA will present to the employer group, the United States Maritime Union (USMX). But Harold Daggett, the union's president and chief negotiator, stressed thatThe meeting will also allow the union to prepare for a possible coast-wide strike on October 1 if a new deal is not reached.“The union plans to spend time coaching the local on strike strategy and what would happen if the ILA went on strike in early October.” Daggett added: “With less than 30 days until our current master contract expires,We must prepare local employees and International Longshoremen’s Association members for a strike on October 1.”
He noted that there have been two generations of the International Longshoremen's Association in the industry since 1977, and the last strike was more than 45 years ago.
“My members support the ILA leadership team 100 percent and they know we want to get them the best contract possible,” he said."They are ready to 'take to the streets' (strike) if our demands are not met"Last week, the International Longshoremen's Association (ILA) notified the U.S. government that the current agreement between the two parties will expire on September 30 and will not be extended. According to Section 8 of the U.S. Labor Management Act of 1947, 60 days' advance notice is required. However, contract negotiations have not yet begun due to disagreements over port automation in Mobile, Alabama. In early June, the union interrupted the main contract negotiations because it claimed that APM Terminals, a port company under Maersk, used the "Auto Gate" IT system for truck registration at the Port of Mobile, Alabama, which violated the existing agreement. Faced with the deadlock in the negotiations, 161 trade groups representing American shippers, including the U.S. Chamber of Commerce, the National Retail Federation (NRF), the Sulphur and Fertilizer Institute, and the Halloween and Costume Association, jointly wrote to the White House in late June, asking the Biden administration to "provide any and all support to the negotiating parties so that they can reach a final agreement before the expiration of the current contract."
But the shippers' requests do not seem to have made any progress. The union rejected the call from U.S. shippers for the federal government to intervene in contract negotiations and said that union members will not continue to work after the current contract expires. Harold Daggett said: "WeNo discussion of extending the current contract will be considered, we also do not want outside agencies to help us interfere in negotiations with USMX. This includes the Biden administration and the Department of Labor.”
But one large U.S. shipper said: “I don’t think a strike will start.” “The timing coincides with the (U.S. presidential) election and probably means the issue should be resolved. I expect ports will be forced to compromise.” But the shipper did warn that if no deal could be reached, “the impact on the U.S. economy will be considerable and felt quickly.”
Hurricane is coming! Many ports in the East and Gulf regions of the United States have announced closures
Due to the impact of Hurricane Debby, several ports, including Savannah in Georgia and Jacksonville in Florida, have announced closures.
According to the Associated Press, "Debbie" made landfall in the Gulf Coast of Florida, the United States on the 5th local time as a Category 1 hurricane, and then weakened to a tropical storm. It has so far killed at least 5 people.
It is reported that "Debbie" will slowly pass through northern Florida and then stop in the coastal areas of Georgia and South Carolina. Mayor Van Johnson of Savannah, Georgia, issued a curfew for the city from 22:00 on August 5 to 6:00 on August 6 to prepare for the severe flooding that the storm may cause.The Georgia Ports Authority said that due to the severe weather brought by "Debbie", Georgia's major ports are scheduled to close this week.The Georgia Ports Authority issued an announcement at 10 a.m. local time on Monday that the Garden City Terminal and Ocean Terminal at the Port of Savannah will operate until 3 p.m. that day and will be closed at 3 p.m. on Monday until Wednesday morning (7th). The specific reopening time will be determined on the 6th.
Savannah: Garden City Terminal; Ocean Terminal
Monday, August 5
Terminal and gates are open and working until 3:00 pm today.
Terminal will close at 3:00 pm.
We will receive cargo up to 2:00 pm today.
Tuesday, August 6
Terminal closed. No vessel activity at these locations.
Wednesday, August 7
We plan on reopening Wednesday morning with a delayed start.
The time of the reopening will be confirmed on Tuesday.
On Monday (5th) local time, there were no ships docked at the Colonels Island Terminal and Mayor's Point Terminal in Brunswick Port, Georgia. The Port Authority said that it would not accept incoming ships until the Coast Guard lifted the alert after the storm passed. At the same time, Florida's largest container port,The Jacksonville Port Authority also announced that it would close the port on Monday afternoon local time and prohibit inbound ships from entering., but the port's land freight operations continue.
In addition, the Port of Tampa Bay, which is the largest port in Florida and handles 33 million tons of cargo annually, closed its waterway last Saturday (3rd) in anticipation of the storm and remained closed on Monday (5th). Currently, the port's non-ship operations have been opened.
Forecasters predict Debbie could dump up to 18 inches of rain and cause flash flooding in parts of Florida and North Carolina by Saturday, with up to 30 inches possible in parts of Georgia, South Carolina and North Carolina.
"I am very concerned that the Savannah, Charleston and Myrtle Beach areas could face catastrophic rainfall in the coming days, especially if Debbie lingers longer than we expect," said Alex DaSilva, AccuWeather's chief hurricane specialist.
In addition, influenced by "Debbie",U.S. flight cancellations and delays increaseData showed that more than 1,600 flights have been canceled across the United States, many of which are flights to and from Florida airports.
Latest! Foreign trade statistics for the first seven months are released
Yesterday (August 7), the General Administration of Customs released my country's import and export data for the first seven months of this year.
Data shows that in the first seven months of 2024, the total value of my country's import and export of goods trade (hereinafter referred to as "import and export") was 24.83 trillion yuan, a year-on-year increase of 6.2%; among them, exports were 14.26 trillion yuan, an increase of 6.7%; imports were 10.57 trillion yuan, an increase of 5.4%; the trade surplus was 3.69 trillion yuan, an increase of 10.6%
In terms of US dollars, in the first seven months, my country's total import and export value was 3.5 trillion US dollars, an increase of 3.5%; of which exports were 2.01 trillion US dollars, an increase of 4%; imports were 1.49 trillion US dollars, an increase of 2.8%; the trade surplus was 518 billion US dollars, an increase of 7.9%
The main characteristics of my country's imports and exports in the first seven months of 2024 are as follows:
1. Growth in imports and exports of general trade, processing trade, etc.
In the first seven months, my country's general trade imports and exports amounted to 16.08 trillion yuan, up 4.9%, accounting for 64.7% of the total value of China's foreign trade. Among them, exports amounted to 9.4 trillion yuan, up 8%; imports amounted to 6.68 trillion yuan, up 0.9%. During the same period, processing trade imports and exports amounted to 4.33 trillion yuan, up 3.2%, accounting for 17.4%. Among them, exports amounted to 2.73 trillion yuan, down 0.2%; imports amounted to 1.6 trillion yuan, up 9.7%.
In addition, bonded logistics imports and exports totaled 3.5 trillion yuan, up 16.9%, of which exports totaled 1.34 trillion yuan, up 13.2%; imports totaled 2.16 trillion yuan, up 19.3%.
2. Growth in imports and exports to ASEAN, the EU, the United States and South Korea
In the first seven months, ASEAN was my largest trading partner. The total trade volume between China and ASEAN was 3.92 trillion yuan, an increase of 10.5%, accounting for 15.8% of my total foreign trade volume. Among them, exports to ASEAN were 2.36 trillion yuan, an increase of 13.7%; imports from ASEAN were 1.56 trillion yuan, an increase of 5.9%; and the trade surplus with ASEAN was 793.55 billion yuan, an increase of 33.2%. The EU was my second largest trading partner. The total trade volume between China and the EU was 3.22 trillion yuan, an increase of 0.4%, accounting for 13%. Among them, exports to the EU were 2.1 trillion yuan, an increase of 1.5%; imports from the EU were 1.12 trillion yuan, a decrease of 1.5%; and the trade surplus with the EU was 985.08 billion yuan, an increase of 5.1%. The United States was my third largest trading partner. The total trade volume between China and the United States was 2.72 trillion yuan, an increase of 4.1%, accounting for 11%. Among them, exports to the United States were 2.04 trillion yuan, up 5.1%; imports from the United States were 683.91 billion yuan, up 1.2%; the trade surplus with the United States was 1.35 trillion yuan, up 7.2%. South Korea is my fourth largest trading partner. The total trade value between China and South Korea was 1.32 trillion yuan, up 8%, accounting for 5.3%. Among them, exports to South Korea were 600.47 billion yuan, down 0.6%; imports from South Korea were 720.11 billion yuan, up 16.4%; the trade deficit with South Korea was 119.64 billion yuan, up 7 times.
During the same period, my country's total imports and exports with countries participating in the construction of the "Belt and Road" reached 11.72 trillion yuan, an increase of 7.1%. Among them, exports were 6.56 trillion yuan, an increase of 7.7%; imports were 5.16 trillion yuan, an increase of 6.3%.
3. Private enterprises' imports and exports grew by double digits
In the first seven months, private enterprises' imports and exports totaled 13.67 trillion yuan, up 10.9%, accounting for 55.1% of China's total foreign trade, 2.3 percentage points higher than the same period last year. Among them, exports totaled 9.22 trillion yuan, up 10%, accounting for 64.7% of China's total exports; imports totaled 4.45 trillion yuan, up 12.8%, accounting for 42.1% of China's total imports. During the same period, foreign-invested enterprises' imports and exports totaled 7.28 trillion yuan, up 1%, accounting for 29.3% of China's total foreign trade. Among them, exports totaled 3.92 trillion yuan, up 1%; imports totaled 3.36 trillion yuan, up 1.1%. State-owned enterprises' imports and exports totaled 3.82 trillion yuan, up 0.7%, accounting for 15.4% of China's total foreign trade. Among them, exports totaled 1.1 trillion yuan, up 1.8%; imports totaled 2.72 trillion yuan, up 0.3%.
4. Mechanical and electrical products accounted for nearly 60% of exports, among which automatic data processing equipment and its parts, integrated circuits and automobile exports increased
In the first seven months, my country exported 8.41 trillion yuan of mechanical and electrical products, up 8.3%, accounting for 59% of the total value of exports. Among them, automatic data processing equipment and its parts were 815.88 billion yuan, up 11.6%; integrated circuits were 640.91 billion yuan, up 25.8%; automobiles were 462.86 billion yuan, up 20.7%; mobile phones were 454.74 billion yuan, down 1.3%. During the same period, exports of labor-intensive products were 2.43 trillion yuan, up 5.1%, accounting for 17%. Among them, clothing and clothing accessories were 632.29 billion yuan, up 1.6%; textiles were 574.53 billion yuan, up 6%; plastic products were 437.21 billion yuan, up 10%. Exports of agricultural products were 403.12 billion yuan, up 4.6%.
five,Iron OreImports of major commodities such as coal and natural gas increased
In the first seven months, my country imported 714 million tons of iron ore, up 6.7%, with an average import price of 826.1 yuan per ton (the same below), up 5.4%; 318 million tons of crude oil, down 2.4%, at 4,322.3 yuan per ton, up 8.1%; 296 million tons of coal, up 13.3%, at 713.9 yuan per ton, down 14.9%; 75.442 million tons of natural gas, up 12.9%, at 3,477.7 yuan per ton, down 9%; 58.333 million tons of soybeans, down 1.3%, at 3,658.2 yuan per ton, down 15.4%; 28.32 million tons of refined oil, up 4.6%, at 4,387.3 yuan per ton, up 10.3%. In addition, imports of primary-shaped plastics were 16.77 million tons, up 1.6%, 10,800 yuan per ton, down 1.1%; unwrought copper and copper products were 3.201 million tons, up 5.4%, 66,800 yuan per ton, up 9.9%
During the same period, imports of electromechanical products totaled 3.88 trillion yuan, up 10.7%. Among them, integrated circuits totaled 308.18 billion, up 14.5%, with a value of 1.51 trillion yuan, up 14.4%; automobiles totaled 402,000, down 2.5%, with a value of 163.19 billion yuan, down 7.4%
Another price increase? The five major shipping companies are planning to raise freight rates
According to industry sources, major global shipping companies, including COSCO, MSC, CMA CGM, Evergreen and ONE, are planning to increase freight rates on their US West Coast and East Coast routes from August 15, with the expected increase ranging from 9% to 15%.
It is said that the specific situation is that several large container shipping companies have notified customers that the prices of both the West Coast and East Coast routes of the United States will increase by US$1,000 on August 15, but Maersk's online freight rates have not increased until the end of this month, and non-shipping alliance rates have dropped to US$4,500-4,600, making it quite difficult to raise prices.
Although the container shipping market has shown a mixed trend of bulls and bears recently, the most intuitive reflection is that the Shanghai Containerized Freight Index (SCFI) has declined for four consecutive weeks, with a monthly correction of 10%. In the most recent week, it fell by 3.3% to 3332.67 points.
Specifically, the freight rate from the Far East to the West Coast of the United States fell sharply by 6.3% to $6,425/FEU, becoming the route with the largest drop among the four major indexes, mainly due to the influx of small ships into the market, which intensified competition. At the same time, the freight rate from the Far East to the Mediterranean also fell by 5.2% to $4,997/FEU, ranking second in the decline.
Although freight rates have fallen back for a month, the shipping market is still facing serious shortages of containers and ships, given that the SCFI has risen for 13 consecutive weeks and it is currently the traditional peak season for global container shipping.
Freight rates on the Far East to West Coast route fluctuate greatly, partly because the freight rates on this route are too high, which attracts short-sea route operators to invest in small ships to join the competition, thereby lowering freight rates.
In addition, the tense situation in the Middle East and the gradual increase in cargo volume after mid-August were also important factors that prompted the five major shipping companies to decide to increase freight rates.
However, it is worth noting that despite the expectation of price adjustments, the current peak season for container shipping is relatively stable, and the Panama Canal's capacity is gradually returning to normal, and is expected to be fully restored in September, which will drive the total capacity to 1.6 million TEUs. These negative factors will further put pressure on freight rates.
It is difficult to raise freight rates, and shipping companies are actively preparing for price increase plans
Major freight forwarding companies have different views on the market freight rate trend, but they generally pay attention to the impact of factors such as cargo volume, market demand and shipping company strategies on freight rates. Among them, two large freight forwarding companies clearly pointed out that it is difficult to support an effective increase in freight rates due to insufficient cargo volume. Another company took a wait-and-see attitude, believing that whether the price increase can be successful depends on the actual support of cargo volume: if some shipping companies have sufficient supply, they may be able to achieve price increases, but once a ship fails to reach the scheduled loading rate, the freight rate will quickly fall back.
Another freight forwarding company stressed that the current market demand is not growing fast enough to directly drive up freight rates, and unless there are unexpected events such as strikes by Canadian railway workers and ports in the eastern United States, there is insufficient motivation for freight rates to rise. The last freight forwarding company believes that there are both opportunities and risks for price increases, and large shipping companies may try to increase freight rates by reducing the number of flights.
In addition, the current market situation shows that freight rates are still high. Compared with last year, the freight rate data released by SCFI in August showed that the US West Coast line rose from US$2,002 to US$6,245, and the US East Coast line soared from US$3,013 to US$9,346, both of which increased by more than three times, showing a very high level of profitability. However, shipping companies are worried about the rapid decline in freight rates and are actively planning price increase strategies in order to slow down this trend.
Freight rates on the US East Coast route have fallen significantly recently. Industry analysts believe that this is mainly due to the fact that companies such as Mediterranean Shipping Company and CMA CGM have added overtime ship services on this route and launched a special price of US$7,500 per container. In addition, the Panama Canal's capacity has gradually increased and the ship turnover rate has accelerated, which have jointly increased the decline in freight rates.
Faced with this situation, European shipping companies are actively preparing for the price increase plan on August 15, and its success or failure is expected to gradually become clear in the next few days. Asian shipping companies have expressed a more resolute attitude, emphasizing that even if the price increase on August 15 fails, they will definitely increase the freight rate on September 1 to cope with the current situation of rapid decline in freight rates.
Three departments: Optimize and adjust drone export control measures
According to the website of the Ministry of Commerce, the Ministry of Commerce, the General Administration of Customs, and the Equipment Development Department of the Central Military Commission issued an announcement to optimize and adjust the export control measures for drones, which will be officially implemented from September 1, 2024. The announcement mentioned that for all unmanned aerial vehicles that are not included in the export control list or not subject to temporary control, if the export operator knows or should know that the export will be used for the proliferation of weapons of mass destruction, terrorist activities or military purposes, it shall not be exported. The export of items listed in this announcement that have a significant impact on national security shall be reported to the State Council for approval by the Ministry of Commerce together with relevant departments. If the license is approved after review, the Ministry of Commerce shall issue an export license for dual-use items and technologies.
Original announcement:
https://www.mofcom.gov.cn/zcfb/zc/art/2024/art_1af03af1231d4d04b87ae53e44e8de78.html
EU plans to impose tariffs on all postal and express parcels from third countries
Latvian TV reported on July 21 that the EU plans to impose import tariffs on goods worth less than 150 euros purchased from non-EU e-commerce platforms. According to current EU regulations, goods worth less than 150 euros purchased online from non-EU countries are tax-free.
The EU's proposed new rules will apply to all online goods shipped from outside the EU to EU consumers. The move is intended to ensure that all goods entering the EU market are treated fairly and reduce tax losses that may result from duty-free policies for low-value goods.
Chip demand is hot, South Korea's export growth hits a 6-month high
South Korea's exports in July increased by 13.9% year-on-year to $57.49 billion, the fastest growth since January this year, according to South Korean customs data. Chips are clearly the main driving force behind South Korea's exports: driven by the AI boom, South Korea's semiconductor exports have grown for nine consecutive months, with a year-on-year increase of 50.4% in July. Other IT product exports also increased: South Korea's exports of computers and smartphones in July increased by 62% and 54% respectively compared with the same period last year.
In terms of destination, South Korea's exports to the United States grew for the 12th consecutive month, with a year-on-year growth rate of 9.3%; while South Korea's exports to China increased by 14.9% year-on-year to US$11.4 billion, the highest level in the past 21 months.
Argentina cancels labeling requirements for imported textile and footwear products
The Argentine Secretariat of State for Industry and Trade reported on July 16 that the Argentine government issued Resolutions No. 156/2024 and 159/2024 in the Official Gazette on the 16th, announcing the cancellation of regulatory requirements for labeling of incoming textiles and footwear products at the import stage, and the Deputy Secretariat of State for Consumer Protection will conduct post-event supervision to ensure that relevant products have corresponding product labels before they are put on the market.
Up to now, any imported product must be labeled in the country of origin or apply for re-labeling from the State Secretariat of Industry and Trade before entering Argentina and flowing into marketing channels. This adjustment will effectively shorten the import process of textiles and footwear products, save import costs, and improve import efficiency. It is one of the important measures taken by the Argentine government to promote trade development.
Grenada introduces duty-free measures for imported goods
The website of Grenada Today reported on July 22 that the Grenada government launched the first phase of preferential policies after the hurricane disaster - the "duty-free barrel" plan. From July 22 to December 31, 2024, residents will be exempt from customs duties, customs service fees, port fees and stamp duties on food, clothing, small appliances, bedding, toiletries, adult and child hygiene products, and household cleaning products imported into Grenada in the form of boxes, barrels and crates. Imported items must not be used for commercial purposes or resale, and each household can import a maximum of 2 barrels.
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