ISSUE 6 2019

Feature: Air Cargo Pharma Option get sophisticated p.12

Feature: Intermodalism Port relationships p.22

Cargo containers at the Port of Los Angeles. (Port of Los Angeles photo.)

In this Issue

Port of Los Angeles breaks June FY records

The Port of Los Angeles moved 764,777 TEUs in June, the busiest June in the port’s 112-year history. marked the

previous fiscal year. “Completing the busiest

The month end of Fiscal

Year 2018-19 in which the Port moved 9,688,252 TEUs, a 5.7% improvement over the

12-month period in the Port’s history makes me proud of our extraordinary capabilities and grateful to all our stakeholders,” said Port of Los Angeles Executive Director

Gene Seroka. “With container exchange per vessel at record levels, we will continue to enhance and optimize our port complex in the coming months.

Creating a universal

truck reservation system, moving chassis off terminals

and further refining the Port Optimizer™ are top priorities.” June 2019 imports increased

3.5% to 396,307 TEUs compared to the previous year. Exports decreased 5.6% to 139,318 TEUs while empty containers increased 19% to

229,153 TEUs. Combined, June overall volumes were 764,777 TEUs. Six months into 2019 overall

volumes have increased 5.3% compared to 2018, when the port set an all-time cargo record.

Features News

Port of Virginia p27

Record-breaking reefer order for Hapag-Lloyd p2

Midwest Inland Portsp18 Middle East p21


SC Ports handles

record cargo volumes in FY19 p6

Today’s container market is confronting more than its fair share of headwinds. The recently published Container Forecaster from global shipping consultancy, Drewry, highlights concern of a slowing global economy stoked by the ongoing US- China trade war (albeit paused for the moment), escalating geo-political tension in many regions of the world and an industry grappling with challenging new emission regulations. Beyond these, however,

a series of existential fears are also beginning

to present themselves that

could dent demand

for shipping in the future; namely, the regionalization of manufacturing supply chains and growing momentum behind a low carbon, environment-first campaign that has the potential to fundamentally change global consumption habits. It is for all these reasons that Drewry has downgraded its forecast for global port throughput growth in 2019 to 3.0%,

from our

previous prediction of 3.9%. “We remain confident that

world trade will rebound in 2020, but much will depend

on developments outside of carriers’ control,” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster. “Further spreading of

protectionist policies could stunt growth, particularly if the US aims its at

other trading

tariff target partners.

However, there could be some upside for trade if more manufacturing production is relocated outside of China. The Asian export powerhouse has progressively reduced its requirement for foreign inputs, choking off demand

for intermediate goods, so any shift to less self-reliant economies should give trade a bit of a kick-start,” Heaney said.

In such unpredictable times,

Drewry believes the risk of temporary supply disruption is heightened. In the Transpacific market,

for example, differences of opinion over the strength of the third quarter peak season have led to divergent strategies from carriers. Some lines are placing extra loaders into the trade, indicating they expect a repeat of last year’s cargo rush, while

others are more circumspect, announcing blanked sailings to protect load factors and spot freight rates. “Carriers can be forgiven for

not having all of the answers in such times. One suspects that even Nostradamus would throw his hands up in despair; such is the volatility of the leading characters. There will undoubtedly be some errors along the way and the risk

of temporary supply

issues has undoubtedly been raised, either from too many cancelled sailings or misplaced capacity transfers between trades,” said Heaney.

Korean Air

awards ULD manage- ment agreement to Unilode p11

+ our regular From the Editor p.4

Logistics Roundupp.2 Shipping Roundupp.7 Airfreight Roundup p.8 Road & Rail Roundup p.9

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