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Shippers face rising fuel surcharges
Rising bunker fuel prices promise significant increases to container freight rates. This comes at a time when shippers already face record spot prices in the trans-Pacific and elevated rates globally.
Therefore, shippers will feel the impact of higher fuel prices via bunker adjustment factors (BAFs) that typically lag fuel prices by one to two months. According to Sea-Intelligence Maritime Analysis, if bunker fuel prices remain at their current level all year, the industry will incur an additional yearly cost of $7 billion, resulting in an average fuel cost per TEU of $39.
White House taps supply chain stakeholders to build national data portal
The Biden Administration said it is working with a group of 18 shippers, container lines, ports, terminal operators, logistics providers, and chassis lessors on a data portal linking US containerized gateways.
The project, called Freight Logistics Optimization Works (FLOW), is an information-sharing initiative intended to connect supply chain participants. The pilot group plans to develop a “proof-of-concept information exchange” by the end of the summer.
Retail companies discuss supply chain disruptions
Retail companies are dealing with an environment marked by supply chain delays, heightened transportation costs, inflation, and decisions about product prices. Although many companies have successfully navigated these challenges, but pressures will not let up anytime soon.
Trucking delays & ship queues grow in China
Forwarders are warning of landslide logistics disruptions in China due to new Covid lockdowns. Maersk said that a major lockdown in Shenzhen, home of the Yantian container terminal, would see warehouses and container stations closed until at least Sunday.
Additionally, Seko Logistics said that there was “potential impact on ocean freight due to trucking restrictions if picking up from outside Shenzhen or a locked-down area.” Lastly, Aphaliner said that the lack of terminal handling staff and expected trucking delays could force carriers to “skip a number of Pearl River Delta calls, or keep vessels waiting.”
US lawmakers overreach in bid to bring ocean carriers to heel
A regulatory reform agenda that began last year to reshape detention and demurrage billing practices and help exporters obtain space on ships has turned into a crusade against the container shipping system. If successful, it could forever change the industry by eliminating the antitrust immunity that allows carriers to share vessels through alliance agreements.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain by delivering exceptional service and optimizing your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
