Top 10 international shipping news stories 2016

High 10 Worldwide Delivery Tales of 2016


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That is it! Common Cargo’s final weblog of 2016. What higher approach to shut out the 12 months than with a glance again on the highest worldwide transport tales of 2016.

Beneath you’ll discover a record of the highest tales with a brief recap and hyperlinks to blogs on the subject.

You understand how we prefer to rely them down David Letterman fashion, so listed here are the most important worldwide transport information tales from 10 to 1.

Drum roll please…

2016 noticed document low freight charges for shippers importing and exporting items.

This may need made it larger on the record if carriers within the worldwide transport business hadn’t already been fighting low freight charges, prompted largely by overcapacity, for the final a number of years. Nonetheless, the influence of those low freight charges is critical.

In fact, low freight charges seem to be excellent news to shippers, however the competitors pool the place carriers are struggling to swim is shrinking. The worldwide transport market is altering earlier than our very eyes. Enjoying a key position in which can be these low freight charges.

RECORD LOW FREIGHT RATES FOR SHIPPERS

ARE LOW FREIGHT RATES BAD FOR SHIPPERS IN LONG RUN?

This information merchandise flies below the radar of many, however it’s massive, massive information with regards to U.S. agricultural exports.

China has had a ban on importing U.S. beef for 13 years due to a Mad Cow Illness scare. In 2017, U.S. exporters must be transport beef to China once more. As Donald Trump would describe that market, it’s HUGE.

CHINA ABOUT TO HAVE BEEF WITH U.S. EXPORTS, & THAT’S A GOOD THING!

I discussed above that the competitors pool is shrinking with regards to carriers within the worldwide transport business. Right here’s a giant instance:

Japan’s three main carriers introduced plans to merge.

That is solely the primary three examples of shrinking service competitors to make this record. Nonetheless, there are extra examples than three that could possibly be pointed to from 2016 worldwide transport information headlines.

SHRINKING CARRIER COMPETITION: JAPAN’S 3 BIG CARRIERS MERGING

It was 2015 when tragedy struck. The container ship El Faro, together with its crew, was misplaced in Hurricane Joaquin. In 2016, the stays of the ship and its black field have been discovered.

This was the most important worldwide transport largest involving a U.S. ship in many years. The lack of the 33 crew members is devastating.

The black field gives audio that helps perceive precisely what occurred main as much as the lack of the ship. A transcript of the audio was lately launched. A hyperlink of the 52 web page doc will be discovered on the Nationwide Transportation Security Board web site. Sebastian Kitchen does a superb job of highlighting key moments from the center wrenching doc in an article on Jacksonville.com.

Hopefully, classes shall be realized from the El Faro and adjustments shall be made to maintain a tragedy like this from ever occurring once more.

EL FARO’S BLACK BOX FOUND

A brand new, and lengthy awaited, verified gross mass (VGM) rule went into impact in 2016 that required shippers to supply licensed weights of loaded transport containers earlier than they could possibly be loaded onto a cargo ship.

With the panic about process adjustments, enforcement, and interpretation of the rule, you’ll have thought the sky was falling. For some time, it appeared each story in worldwide transport was about VGM.

Issues actually obtained furry when controversy hit over the Coast Guard’s place on the rule.

VGM would make it even larger on the record, apart from essentially the most half all of the panic was a lot ado about nothing. Nonetheless, this VGM rule has had an impact on some procedures and produced some controversial charges.

COAST GUARD RAISES CONTROVERSY ON NEW CONTAINER WEIGHT RULE

HOW PORTS TAKE ADVANTAGE OF SOLAS VGM RULE CHANGE

COAST GUARD SAYS U.S. LAWS EQUIVALENT TO NEW VGM RULE

ARE YOU READY FOR VGM RULE GOING INTO EFFECT NEXT MONTH, SHIPPERS?

SHOULD IMPORTERS WORRY ABOUT VGM RULE TAKING EFFECT TOMORROW?

MUCH ADO ABOUT VGM

Right here’s one other massive instance of that shrinking service competitors pool.

China’s two massive transport corporations, China Cosco Group and China Delivery Group, merged into one large service known as China Cosco Delivery Company Restricted that shook up the service alliances.

You’ll get extra about that shakeup later within the record…

HERE COMES CHINA COSCO SHIPPING CORPORATION, SHIPPING LEVIATHAN

BIG CARRIER ALLIANCE SHAKE-UP IS COMING!

It lastly occurred! The Panama Canal enlargement was accomplished in 2016.

The newly enlarged model of the Panama Canal made the previous Panamax ships out of date, swung transport visitors from the Suez Canal again to Panama, but in addition makes shippers and carriers nervous as ships hold hitting its onerous to navigate partitions.

This undertaking fell years not on time, costing greater than initially deliberate whereas seeing scary issues like water leaking by means of its locks.

Nonetheless, the Panama Canal has the potential to shift a big quantity of cargo visitors from West Coast ports to East and Gulf Coast ports within the U.S.

TOP 3 NEWS STORIES HIGHLIGHT BIGGER IS BETTER TREND IN INTERNATIONAL SHIPPING

5 REASONS THE EXPANDED PANAMA CANAL MAY BE TOO RISKY FOR SHIPPERS

PANAMA CANAL MAKES COMEBACK ON SUEZ CANAL

SHIPS KEEP HITTING WALLS OF NEWLY EXPANDED PANAMA CANAL

I promised that service alliance shakeup could be talked about extra on this record. Alliances needed to change with the formation of China Cosco Delivery as a result of the businesses that merged to kind it belonged to 2 separate however main service alliances.

Boy, did that shakeup come.

All the foremost carriers have now consolidated to a few main alliances: 2M, Ocean Alliance, and THE Alliance.

Many 2017 information tales will concentrate on these alliances, particularly as shifting and altering amongst them can nonetheless be anticipated. Only recently, for instance, 2M introduced Hyundai Service provider Marine onboard and the one main service not in certainly one of these alliances, Zim, simply entered right into a restricted cooperation take care of THE Alliance.

What that you must know is that when all is claimed and achieved, these three alliances are dominating the waters of worldwide transport.

AND THEN THERE WERE 3… CARRIER ALLIANCES

THE ALLIANCE TEAMS UP WITH ZIM

Maersk’s strikes are at all times price a headline. However this one climbs all the best way to the quantity two place of prime tales of 2016.

Maersk cut up into two divisions, with its transport division targeted on buying different carriers within the worldwide transport business. The primary massive acquisition introduced is that of Hamburg Süd. I actually don’t count on that to be the final.

Maersk is the most important service within the business, and because it does, the remainder of the carriers comply with. When Maersk began ordering megaships, it rapidly turned a pattern amongst carriers and drove overcapacity to uncontrolled ranges. Now that Maersk is buying competing carriers, count on extra carriers to attempt to do the identical.

It’s a canine eat canine world in worldwide transport. And Maersk is the most important canine.

DIVIDE & CONQUER: MAERSK SPLITS TO GO AFTER COMPETITION

MAERSK ACQUIRING HAMBURG SÜD!

Lastly, the highest story of 2016 may solely be the collapse of Hanjin Delivery.

The world was shocked when a serious service really failed. It shouldn’t have been that a lot of a shock, however by some means the overall perception was that these carriers have been too massive to fail regardless of years of billion greenback losses.

Hanjin’s chapter has rippled by means of the worldwide transport business. Hanjin was a counted on service alliance member whose collapse prompted its companions to scramble. Congestion, delays, and costs hit shippers. Some shippers nonetheless have cargo stranded on the market!

However in the end, Hanjin’s collapse weakened shippers’ belief in carriers’ stability as a complete and underscores simply how tough this business has been for main transport corporations lately.

HANJIN COLLAPSES – HOW BADLY WILL IT HURT U.S. SHIPPERS?

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