Loading and unloading is at a standstill! German seaport strike! US line rises by another $2,000! Freight rates will break through the 10,000 yuan mark in mid-July丨Foreign Trade News Express
Loading and unloading came to a standstill! German seaport strike
On June 17, several major German seaports were paralyzed as thousands of dock workers went on strike, causing the loading and unloading of cargo and containers to almost come to a standstill.
The strike was initiated by Ver.di, a German service industry union, and aims to put pressure on the Dock Employers Association through large-scale demonstrations and to win more favorable conditions for the upcoming third round of wage negotiations.
Ver.di, the second largest trade union in Germany, has more than 2.2 million members. The strike began at 5 a.m. on the 17th at the two major container ports of Hamburg and Bremen, and then quickly spread to Bremerhaven, Brake and Emden.
The strike may continue until late at night on the 18th. Global shipping giant Maersk issued a warning that the strike will have a wide-ranging impact on its shipping network, disrupting and delaying the sailing plans of many ships.
It is expected that container delivery and retrieval will face severe congestion after the terminal resumes operations on June 18.
The container terminal operations of the Port of Hamburg, Germany's largest seaport, are almost paralyzed, with long queues of trucks on the bridge leading to the Port of Hamburg.
Vesselfinder, a ship tracking service, reported that five large container ships were affected by the strike. The Ver.di union said the situation escalated further after the employers did not make a negotiable offer in the second round of talks.
The union called for an increase of 3 euros per hour from June 1, and a corresponding increase in shift allowances, to ease the economic pressure on low-income groups. Union representatives stressed that inflation in recent years has hit low-income groups hard, and a real pay increase is needed to ease their burden.
Let us briefly explain why strikes occur frequently in Germany from a legal perspective.
In Germany, the right to strike is a fundamental right protected by the Constitution. As an important part of freedom of association, it is clearly reflected in Chapter 9, Section 3 of the Basic Law. This clause grants citizens the right to form associations to protect and promote the improvement of working conditions and economic conditions, and also allows trade unions to organize strikes for these purposes.
Strikes in Germany are usually carried out under the leadership of trade unions, and individual employees are not allowed to organize strikes on their own without the support of trade unions.
During the labor-management negotiation process, the union may organize a warning strike to show the determination of union members to achieve their demands. However, a "real" strike usually occurs after the labor-management negotiation breaks down, and according to the union constitution, it can only be implemented with the approval of more than 75% of the members.
During a strike, the work obligations of the employees participating in the strike are suspended, and the employer's obligation to pay wages also ceases.
In order to protect the livelihood of members, the union will pay wages during the strike, the specific amount of which depends on factors such as the striking members' current income, membership fees paid, etc. However, strike wages usually cannot fully compensate for employees' income losses.
Therefore, if a labor dispute lasts for a long time, a decrease in strike participation may occur because unions cannot force their members to participate in strikes.
According to the German legal system, the government cannot interfere in strike activities, but instead acts as a "peacemaker" and tries its best to find a balance and solution between labor and management.
Although the government does not interfere directly with strikes, it has a duty to ensure public order and safety. During a strike, the government may deploy the police to maintain public order and prevent strike action from turning violent or damaging public property.
If a strike leads to serious social unrest or economic losses, the government may take measures to mediate or encourage labor and management to return to the negotiating table.
Based on the current ship forecast, Maersk expects that all ships will be affected. Global freight forwarding giant Kuehne + Nagel also issued a reminder,Given the limited space availability and the impact of previous strikes, container shipping and deliveries may be further impacted this week, with container ship operations being delayed.
The US route has increased by another 2,000 US dollars! The freight rate will exceed 10,000 yuan in mid-July
Although there were 11 overtime ships on the US route in the second half of June, COSCO Shipping and Singapore's SeaLead have launched new routes directly to the West Coast of the United States.But this did not change the plan to increase the price of US$1,000 per large container on Europe-US routes, which was originally scheduled to be implemented on the 15th.
Large cargo companies recently pointed out that the strike in the eastern United States may have brought additional profit opportunities to shipping companies. Some shipping companies such asSouth Korea's HMM and Japan's ONE have proposed plans to increase the freight rate per container on the US route to US$2,000 on July 15.also,Starting from July 13, Evergreen Marine will also adjust the peak season surcharge for the US route, increasing it from the original US$600 to US$1,200.
Last week, Drewry predicted that freight rates outside China would continue to rise next week due to the arrival of the early peak season. The industry speculated that this might be related to the US imposing tariffs on some goods starting August 1. However, on Thursday night (13th), Drewry revised its view.It pointed out that freight rates from China will continue to rise next week due to congestion problems at Asian ports.
In addition, on Monday, the International Longshoremen's Association (ILA) announced that it had suspended negotiations with the United States Maritime Union (USMX) on a new labor contract for port workers on the East Coast and Gulf of Mexico. The reason for the suspension was that the automation of Maersk's dedicated terminals had an impact on workers' rights. Currently, the existing labor contract agreement will expire on September 30.
Xeneta Chief Analyst Peter Sand pointed out:Shippers have front-loaded import cargoes for the traditional peak season in the third quarter amid concerns about the ongoing impact of the Red Sea conflict on supply chains.He further said that if the U.S. East and Gulf Coasts face significant risk of damage later this year,Shippers may expedite this practice.
Although the industry generally believes that the government is unlikely to allow a strike in view of the upcoming US presidential election, shippers are still taking necessary precautions, among which early shipment is a direct response strategy.
However, some shipping company executives believe that US President Biden will work hard to promote a ceasefire between Palestine and Israel to support his election prospects. Under this expectation, shippers may choose to delay shipments to avoid the current high freight rates. At the same time, due to the longer voyage distance of the European route, the peak season starts earlier than the US route and may end earlier.Freight rate increases are expected to slow in the third quarter and decline in the fourth quarter.
Regarding the current price increase trend in the shipping market, the heads of two super-large cargo collection companies hold different views. Company A believes that the price increase trend will continue in the third quarter, and the difficulty of the Israeli-Palestinian ceasefire is high. As for whether the price can be increased by two thousand US dollars at one time, it remains to be seen. Company B holds a different view, believing that the US tariffs will lead to a decrease in market volume, thereby reducing the increase in freight rates. At the same time, it is noted that overtime ships and new routes continue to appear. For example, the 2M Alliance, to which the world's top two shipping companies Mediterranean Shipping and Maersk belong, announced on July 7 the opening of a new US West Coast route, calling at Yantian, Ningbo, Shanghai and the Port of Long Beach in the United States. In addition, small and medium-sized shipping companies that joined the US West Coast route during the epidemic also plan to re-enter the market, and a large amount of new capacity may shake up freight rates.
However, the two companies agree on one point:Freight rates will fall in the fourth quarter.Company A expects freight rates to start falling from November, while Company B believes that they will start falling in October. Although both companies expect freight rates to fall rapidly in the fourth quarter, they also admit that shipping companies have made considerable profits in the first three quarters.
Shipping companies plan to raise prices on the 15th, and it is expected that the freight rates for the US West Coast will rise to US$7,100-7,400, the US East Coast to US$8,300-8,400, and the European route to US$7,400-7,500. In addition, there are plans to increase the price of each large container by another US$1,000 on July 1st. However,It is still unpredictable whether the increase will double to 2,000 USD on July 15. If it does rise above 2,000 USD, the freight rate will exceed 10,000 USD.
Large cargo companies pointed out thatwhenThe previous high freight rates have already had an impact on shipments on the Middle East and Africa routes. As low-value products cannot bear the high freight costs, the freight rates on these routes have fallen.
Confirmed sunk! Houthis sink another ship!
According to the latest reports from Houthi armed social media and CCTV News: On June 20, local time,The Yemeni Houthi armed forces released for the first time the on-site video of them sinking the Greek cargo ship "TUTOR" in the Red Sea.
On June 12, local time, the Houthis announced that they had attacked the "TUTOR" cargo ship in the Red Sea with unmanned speedboats, drones and ballistic missiles. On the evening of the 18th, local time, according to the UK Maritime Trade Operations Office (UKMTO) of the British military, the "TUTOR" cargo ship, which had been attacked by the Houthis, sank 66 nautical miles southwest of Hodeidah, Yemen.
This is another cargo ship sunk since the Houthi armed forces announced attacks on the Red Sea and other shipping routes.
It is reported that the cargo ship that sank after the attack was named "TUTOR" (IMO: 9942627), operated by a Greek shipping company. The specific location of the cargo ship was about 67.7 nautical miles from Hodeidah. When it was attacked, the ship was hit by a small boat loaded with explosives. The small boat exploded at the rear of the cargo ship, causing the cargo ship's hull to rupture and water to enter.
The freighter reported that one crew member was missing after the explosion and there were 21 crew members from different countries on board.
According to the information, the "TUTOR" (IMO: 9942627) was built in 2022, flies the Liberian flag, and is operated and managed by the Greek shipping company EVALEND SHIPPING CO SA.
Earlier, the British cargo ship Rubi Mar sank in waters near the coast of Yemen on March 1 after being hit by a Houthi missile.
After the outbreak of a new round of Israeli-Palestinian conflict in October last year, the Houthis used drones and missiles to attack targets in the Red Sea several times. Since January 12 this year, the United States and Britain have launched air strikes on Houthi targets several times, causing casualties. Some countries condemned the actions of the United States and Britain, believing that this was an infringement on Yemen's sovereignty and would exacerbate regional tensions.
DJI may face a complete sales ban in the United States
The U.S. House of Representatives passed a bill last Friday to counter Chinese drones, which would ban the sale of Chinese drones made by DJI in the United States in the future. The bill is currently awaiting review by the Senate.If it can be passed by the Senate and then signed by the US President, it will officially take effect, which also means that DJI is currently facing the risk of being completely banned from sales in the United States.
According to data from the Association for Unmanned Vehicle Systems International,Chinese drones account for 92% of the US emergency drone marketBRINC, the second largest drone manufacturer in the United States, said that labor costs, production scale and the cost of customized chipsets are the main obstacles for American companies to lower prices. Several US officials and drone dealers said that even if they cannot provide the same level of technology, the cost of US drones is still three to four times that of Chinese models.
EU to impose tariffs on Chinese titanium dioxide
The anti-dumping investigation launched by the European Union against Chinese titanium dioxide companies last year has made new progress.
On June 13, the official website of the European Commission released the latest progress of the anti-dumping investigation conducted against my country's titanium dioxide companies last year. Longbai Group (002601) and its subsidiaries will be subject to a 39.7% tariff, CNNC Titanium Dioxide (002145)'s wholly-owned subsidiary Venus Titanium will be subject to a 14.4% tariff, Anada (002136), Huiyun Titanium (300891) and Nanjing Titanium Dioxide and other 23 partner companies will be subject to a 35% tariff, and other companies will be subject to a 39.7% tariff.
The news has attracted widespread attention in the titanium dioxide industry. It is understood that the anti-dumping duty document released by the European Commission on Chinese titanium dioxide enterprises is a preliminary ruling, and the final result has not yet been determined. It is worth noting that this year, India and Brazil have also launched anti-dumping investigations against Chinese titanium dioxide.
India imposes temporary anti-dumping duties on Chinese PVC paste resin
On June 13, the Taxation Bureau of the Indian Ministry of Finance issued Notification No. 09/2024-Customs (ADD), stating that it accepted the preliminary anti-dumping ruling recommendation made by the Indian Ministry of Commerce and Industry on April 26, 2024 on polyvinyl chloride paste resin (Poly Vinyl Chloride Paste Resin) originating in or imported from mainland China, South Korea, Malaysia, Norway, Thailand and Taiwan, and decided to impose a temporary anti-dumping duty on the products involved in the above-mentioned countries and regions for a period of 6 months, as follows: Mainland China is US$115-600/ton, South Korea is US$0-41/ton, Malaysia is US$317-375/ton, Taiwan is US$118-168/ton, Thailand is US$195-252/ton, and Norway is US$328/ton.
The Indian customs codes of the products involved are 39041010, 39041020, 39041090, 39042100, 39042200, 39043010, 39043090, 39049000, 39044000 and 39049090. The products involved do not include the following products: polyvinyl chloride paste resin with a K value below 60K, PVC blended resin, copolymers of PVC paste resin, battery separator resin, polyvinyl chloride paste resin with the brand name "Biovyn" produced by Innovyn Europe Ltd. The measure will take effect from the date of publication of this notification in the Official Gazette.
Indonesia Indonesia cracks down on illegal import of electronic products on a large scale
The Indonesian Ministry of Trade has recently taken severe action to conduct large-scale crackdowns on illegally imported electronic products in an effort to maintain market order and consumer safety.
During the operation, a total of 4,282 items that did not comply with Indonesian regulations were confiscated and planned to be destroyed, with a total estimated value of IDR 6.7 billion.This batch of electronic products includes speakers, hair dryers, electric massagers, etc., due to the lack of necessary safety certification, environmental registration, national standard marks and legal registration numbers, it is considered to be illegally entering the market.
Japan's May exports post biggest increase in nearly 1-1/2 years
As the yen continues to remain at a low point, Japan's exports have achieved the largest increase since the end of 2022. Data released by the Japanese Ministry of Finance on June 19 showed thatThe country's exports rose 13.5% in May from a year earlier, marking the sixth straight month of growth. The increase exceeded economists' consensus forecast of 12.7% and was the biggest gain since November 2022.
By region, Japan's exports to the United States grew by 23.9%, exports to China grew by 17.8%, and exports to the European Union fell by 10.1%. In terms of export products, automobile exports grew by 13.6%, including semiconductor manufacturing equipment and electronic components.
The better-than-expected exports were mainly driven by the weak yen exchange rate. The Japanese Ministry of Finance pointed out that the average exchange rate of the yen against the dollar in May was 155.48.The yen has depreciated by 14.9% year-on-year.。
Iraq raises steel import duties
The Iraqi cabinet meeting decided to impose an additional 20% tariff on all imported steel bars (10-32 mm), Shafaq News reported. The new tariff will be effective from October 3, 2024, for four years, and will apply to tariff code 72142000.
China to unilaterally exempt Australia and New Zealand from visas
Recently, China announced that Australia and New Zealand will be included in the scope of unilateral visa-free countries.This is another powerful measure taken by China to promote high-level opening-up after it implemented the visa-free entry policy for 12 countries twice in December last year and March this year.
Data shows that after the announcement of China's unilateral visa exemption for New Zealand, the search volume of New Zealand tourists for keywords related to China increased by 65% overnight. And half an hour after China announced that Australia would be included in the scope of unilateral visa exemption countries, the search volume of Australian tourists for keywords related to China increased by more than 80% compared with the previous day.
Chile formally applies to join the Regional Comprehensive Economic Partnership Agreement
On June 15, local time, Chile's Deputy Minister of International Economic Relations, Sanuesa, submitted Chile's application to join the Regional Comprehensive Economic Partnership (RCEP). The Chilean Ministry of Foreign Affairs recently issued a statement saying that it looks forward to becoming the first Latin American country to join the RCEP.
Sri Lanka to implement new tariff policy in 2025
Sri Lanka's Morning Post reported on June 13 that Sri Lanka announced that it would implement a new tariff policy in three phases starting from January 2025, aiming to optimize Sri Lanka's trade and investment environment. The National Tariff Policy aims to establish a clear, simple and predictable tariff system, aiming to solve the problems caused by the frequent revision of tariffs by previous governments.
Source: Foreign Shipping, Focus Vision, Today's Shipping, etc.
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