$23.34 per ton! Shipping rates rise as Mississippi River drops
NO.1 CMA CGM will collect new PCS at Mersin Port
CMA CGM has announced a new Port Congestion Surcharge (PCS) from the port of Mersin to several destinations around the world due to the current delays at the Turkish port of Mersin.
The company said it would impose a surcharge of 0/TEU on dry, hazardous and refrigerated containers shipped to Mersin from the Mediterranean, Adriatic, North Africa (including Morocco) and the Black Sea.
The new PCS has come into effect on August 29, the export payment will be prepaid, and the import payment will be collected.
NO.2 New Jersey transportation workers vote to strike
New Jersey Transit's locomotive engineers voted Thursday to authorize a strike after years of contract negotiations stalled, but any potential stoppage or disruption to service could be months away as mediation efforts unfold.
While the strike is authorized, there will be no immediate disruption to the service, which carries about 147,000 people between New Jersey and New York on an average weekday.
Federal law, the Railroad Labor Act, prohibits employees from striking at this time, so a real shutdown is still months away. The last time New Jersey Railroad workers went on strike was in 1983, when the strike lasted more than a month.
NO.3 UPS plans to reduce the number of pilots
Recently, UPS said that due to the weak air cargo market and rising labor costs, the company has proposed the early retirement of some pilots.
On Aug. 8, the company lowered its full-year revenue and profitability targets, citing lower package volumes, higher labor costs and a loss of business from its chaotic contract negotiations, but has now completed a deal involving the International Fraternity of Truckers. Represented approximately 340,000 workers in contract negotiations.
NO.4 The Mississippi River increased freight rates due to the drop in water level
Barge freight rates on the Mississippi River, a key shipping route for U.S. crops from the Midwest to the rest of the world, have risen due to falling water levels, meaning the cost of U.S. farm exports has also soared.
As of August 29, the spot freight rate of St. Louis barges in the United States has increased by 49% compared with last week and 42% year-on-year, reaching US.34 per ton. Barge rates are now 85 percent higher than the average for the past three years, according to USDA data Wednesday.
NO.5 Container Giants Take Blank Flights to Manage Supply
Sea-Intelligent reports that with Prime Day in October still around a month away, container giants are likely to take blank flights to manage supply as shipping demand plummets.
"Carriers have not reported a significant reduction in capacity so far this year," said Alan Murphy, Sea-Intelligence's chief executive. A decrease of 2.2%.
In addition, groundings needed to maintain market stability may exceed 2017-2019 levels due to slowing peak season demand, putting additional pressure on airlines' grounding strategies in October 2023.
