COMPANY NEWS

Continued high rates on the horizon

June 21, 2021 – Container shipping will see an extended peak season this year, with no signs of a slowdown in demand, believes Hapag-Lloyd CEO Rolf Habben Jansen, warning that if demand picked up in the traditional third-quarter peak season it would extend beyond the traditional Golden Week slowdown. “People will start to ship early and it will probably last longer than usual,” he said. “Inventories are low, which is why people are eager to get stuff shipped; but even once we are beyond the pandemic, it’s not unlikely that people will want more inventory.” He expects demand “will stay robust for an extended period of time,” exacerbating the current delays in the supply chain. “The theme remains congestion,” he notes. “The U.S. is improving a little bit, but there are still ships waiting and we have not made the progress we wanted to in the second quarter. We need to have a not-too-strong peak season there to get out of the difficulties, which is not what we foresee at the moment.”

Air Canada announces first freighter flights

June 14, 2021 – Air Canada Cargo today announced the initial list of planned routes for the Boeing 767-300ER freighters scheduled to enter into service this fall. The first 767 freighter will operate on routes linking Toronto to Miami, Quito, Lima, Mexico City and Guadalajara, the first time Air Canada Cargo will serve this destination. As more freighters enter service, additional flights in January of 2022 will further expand the network with the addition of Halifax and St. John’s to Madrid and Frankfurt.

Port of Yantian delays causing ripple effect

June 13, 2021 – Long-suffering cargo owners face another wave of pain as the terminal congestion from the coronavirus outbreak in southern China threatens to ripple around the world. The ports of Yantian, Shekou and Nansha have been affected to varying extents by a spread of infection that has led to reduced handling capacity at terminals since the end of May, when a six-day stop on export containers entering Yantian was imposed.

Carriers have already announced significant disruptions to sailings and schedules due to the outbreak, with the Alliance cancelling or transferring 29 calls since the end of May and confirming omissions running up to June 25. We will continue to advise our customers of any relevant events but we ask for patience during this time.

New container service between Hamilton and Montreal

June 7, 2021 – A new container shipping service is operating between Hamilton, Ontario, and Montreal. Hamilton Container Terminal (HCT), in partnership with the Hamilton-Oshawa Port Authority (HOPA Ports) and shipping line Desgagnés, is developing the container feeder service. Docking at Hamilton’s Pier 14, the M/V Sedna Desgagnés is due to make the new service’s first voyage June 10. The first sailing is expected to be followed by a second Hamilton-Montreal voyage in July, building up to 20+ sailings in 2022.

Yantian port continues its embargo

May 31, 2021 – Yantian International Container Terminal (YICT) extended its export suspension until today from Friday, as port congestion worsens throughout China. The suspension started last Tuesday evening and was supposed to last two days.

Yantian port halts export activity for 2 days

May 26, 2021 – The Port of Yantian said it will stop taking in loaded containers as congestion at the export hub in Southern China increases. The restriction was implemented from 2200 hrs local time on May 25 to 2359 hrs on May 27 and will be partly lifted afterwards only for export boxes with their vessels expected to arrive at the port within the next four days. Pickups of import or empty containers, however, will still be allowed over the period. “The serious delay in ship schedule has led to extremely high density at Yantian’s storage yard and has severely affected the operational efficiency at terminals,” a port statement said.

CARM Client portal is now open

May 25, 2021 – As of today, the CARM Client Portal is open for business. This does not mean that you need to register immediately, but it will be open and ready when you are set to register.

To set up your account, you will need to know:

• The 9-digit BN and importer RM extension registered to your legal entity;

• The exact corporate name and complete address;

• The answers to 2 of 3 following affinity questions:

1. What is the transaction number and total duties and taxes of one of your recent transactions? This is a recent transaction for the RM importer account that you are using to register your account.

2. What is the exact value of your most recent payment? This is the most recent payment for your RM importer account that you are using to register your account.

3. What is the balance of your last statement of account? This is the last statement of account for your RM importer account that you are using to register your account.

You need to enter only one importer RM extension when registering your business. If there are any other RM accounts registered to the same 9-digit BN, they will automatically populate and be displayed on the portal under the BN9 account. If you require assistance from the CBSA, you can contact the CARM Client Support Helpdesk (CCSH) by completing the web contact form available directly on the portal, or by calling 1-800-461-9999, menu Option 2 – Business Importation/Exportation, Option 6 – CBSA Assessment and Revenue Management. The CCSH has indicated that their service standards are 2 business days for straightforward questions and 10 business days for more complicated financial information, but they will endeavour to answer more quickly.

Transpacific rates will only increase in the short term

May 17, 2021 – Hapag-Lloyd has just announced a $3,000 per 40ft GRI on Asia to the US and Canada services from June 15. A year ago, the Shanghai Containerized Freight Index U.S. west coast component stood at $1,686 per 40ft – 12 months on, and shippers are paying up to $14,000 to ship the same cargo on the same route in the same ships. Typically, quotes for the route, after inclusion of equipment and space guarantees, are near $10,000, with some carriers wanting up to $14,000 for an early June shipment. Even some BCOs that have signed new annual contracts with carriers are reported to be scrambling to get their products shipped as the lines foll back on start dates and volume commitments in favour of abundant lucrative spot and short-term business.

Ocean rates continuing to increase

May 10, 2021 – Ocean carriers are said to be preparing big increases in short-term rates as cargo-rolling becomes the norm. On the transpacific, carriers are ‘sold out’ for the rest of May and into June, with last week’s spot rate increases from Asia to the U.S. west and east coasts described by one shipper as “academic.” For the transpacific tradelane, last week’s FBX recorded a 3.5% increase for Asia to the U.S. west coast, to $5,015 per 40ft, and a 5.5% uplift to spot rates for the east coast, to $6,584 per 40ft. And there is no let-up in sight in the demand for imports from Asia, the U.S. National Retail Federation predicting that the restocking of low inventory levels by retailers will continue for several more months and into the peak season.

Port of Montreal re-opens today

May 1, 2021 – As expected, the Senate adopted Bill C-29, the Port of Montreal Operations Act, Friday night and the legislation received Royal Assent. Now that the port is open again, they will begin to work on the delays in availability of your Import Cargo scheduled to arrive at the Port of Montreal and for your Export Cargo previously scheduled to depart from the Port of Montreal. Cost Recovery measures may be necessary to cover any/all additional charges resulting from the congestion and increased dwell times at the port. Diversion fees may also apply if/when carriers divert Vessels. Canaan Transport welcomes the return to work and looks forward to a final resolution to this matter.