High 10 Worldwide Transport Information Storylines of 2022
2022 is almost over, so it’s time to look again on the yr and digest what occurred. Right here at Common Cargo, we wish to depend down the highest worldwide delivery information tales we lined from quantity ten to 1 a la David Letterman. We understand we might now have readers who don’t keep in mind Letterman and his High 10 Checklist. Let me guarantee you, it was a lot funnier and extra entertaining than this checklist.
Our checklist has developed a bit over time. It has gone from prime blogs to prime tales to now prime storylines, as worldwide delivery information gadgets typically are typically ongoing issues by the yr (and past). We’re additionally not above reverting to hottest, most entertaining, or most considered posts on the finish of the yr both. However I digress. Let’s get into the highest worldwide delivery information storylines of the yr as we are saying goodbye to 2022…
#10 Port Charges Hold Piling Up
Simply squeaking onto the checklist is ports implementing extra charges. Due to the large worldwide delivery information tales occurring, all the brand new port charges of 2022 didn’t make it into Common Cargo weblog posts. Plus, it looks as if shippers are all the time seeing new, and generally unfair, charges at ports. Nonetheless, port charges are impactful for U.S. importers and exporters, so the couple charges that managed to get weblog posts this yr handle to sneak onto the highest 10 checklist whereas different charges did get talked about in different posts, although not their very own, all year long.
NY-NJ Port Terminal Taking Away Weekend/Vacation Free Time
New Payment on the Ports of Los Angeles & Lengthy Seashore to Fund Zero Emissions Vans
#9 Suez Canal Toll Improve
Sticking with charges, subsequent on the checklist is a big story for worldwide delivery that received majorly overshadowed in 2022. That is an impactful price improve in worldwide delivery that impacts not solely U.S. importers however shippers around the globe. It appears every thing received dearer in 2022 with out-of-control inflation, however freight charges really went down. That shall be talked about later, however decreased freight charges additionally helped bury the story of a toll hike on the Suez Canal.
A significant toll improve at one of many prime gateways for ocean freight delivery will impression worldwide delivery shifting ahead. Thus, it managed to earn a spot on the highest 10 checklist.
New Suez Toll Hike Vital for U.S. Importers
#8 Carriers Hit with Fines
For years, shippers have complained about unfair charges from carriers. Lastly, there appears to be some momentum in curbing these because the FMC levied a nice towards Hapag-Lloyd over unfair detention charges. 2022 additionally noticed carriers get hit with value collusion fines (which is definitely one thing that has occurred in earlier years too). Nevertheless, carriers appeared in a position to shrug off even thousands and thousands in charges as over the pandemic, they made billions.
FMC Lastly Acts on Unfair Charges with Hapag-Lloyd Superb
Carriers Fined Tens of millions for Value Collusion Name Fines Insignificant as They Make Billions
#7 Blame Lies with Unhealthy Authorities Coverage Not Provide Chain
These accountable for authorities coverage pushed narratives that offer chain issues had been inflicting the financial issues we’ve been seeing, inflation specifically. Nevertheless, analyzing the causes of the availability chain disaster and inflation rapidly make it clear that narrative was, and nonetheless is, a lie. Lockdowns and authorities stimuli had been the largest components in surging delivery demand to ranges ports and the availability chain couldn’t deal with. Large spending and cash printing by the federal government has additionally been the largest think about pushing up inflation. The narrative of excessive freight charges inflicting inflation actually fell aside when there wasn’t even correlation between rising and falling freight charges and inflation ranges to attempt to assist a causation argument.
Excessive Ocean Freight Charges Are Not the Explanation for Inflation
Authorities Making Provide Chain Disaster Worse
#6 AB 5 Goes Into Impact
The complete implications of this story might not be recognized for fairly a while. In 2022, California’s Meeting Invoice 5 (AB 5) made it by authorized challenges to enter impact. The invoice mainly makes using unbiased truckers unlawful in California, forcing them to change into workers of trucking corporations or cease trucking within the state. This upends the trucking system within the provide chain, at the very least by California, the place roughly 40% of U.S. imports enter the nation by the Ports of Los Angeles and Lengthy Seashore alone and there are 70,000 unbiased truck owner-operators.
Trucker strikes and protests over AB 5 created some port disruption, notably on the Port of Oakland. Trucking has change into a bit tougher in California, however there’s nonetheless dispute occurring over the invoice and uncertainty on its enforcement. California tends to lean within the course of overregulation, which has prompted many companies to depart the state. My expectation is AB 5 shall be one other web unfavorable for the state, including to the checklist of regulation that has turned out to be problematic. It could have been good if AB 5 ended up #5 on this checklist, but it surely simply missed it, touchdown at #6.
Port of Oakland Working However AB 5 Provide Chain Risk Continues
Truckers, with ILWU Help, Disrupt Port of Oakland Over AB 5
19 Legislators Name on Gov. Newsom to Cease AB 5 from Hurting Truckers & Provide Chain
Californian Legislation Assaults Truckers & Provide Chain
#5 Risk of Rail Strike
This storyline was excessive drama in worldwide delivery information in 2022, and I imagine it received extra Common Cargo weblog posts than anything this yr. The U.S. confronted a rail strike menace that may have screeched provide chains to a halt throughout the nation. This storyline would have gone even greater on the checklist, besides the rail strike by no means occurred. Nonetheless, the menace was very actual and narrowly averted.
Rail Strike Averted as Senate Passes Invoice & Biden Indicators
Home Acts to Avert Rail Strike That Would Halt U.S. Provide Chains
Rail Strike Watch: SMART-TD Rejects Tentative Labor Settlement
Rail Strike Watch: One other Union Rejects Tentative Labor Settlement
Rail Strike Watch: Potential Strike Pushed Again to December
seventh Union Ratifies Rail Employee Deal, However Strike Risk Nonetheless Looms
November Rail Strike Seems Probably After Railroads Rejects Union Supply
Risk of Rail Strike Is Not Over
Railroads & Unions Attain Tentative Settlement Stopping Strike
Railroad Unions Could Strike This Week w/ $2B-a-Day Penalties
Railroads Attain Deal w/ 3 Unions – Extra to Do to Keep away from Strike
How Probably Is a Rail Strike?
#4 Russia Ukraine Battle Impacts Transport
Russia invading Ukraine was clearly an enormous information story in 2022. In fact, it could make it into the highest worldwide delivery information storylines of the yr. Ensuing embargoes in addition to service selections to take away providers from Russia definitely impacted worldwide delivery. China seemingly serving to shippers get round sanctions on Russia additionally has important political implications. It’s no shock this storyline made it fairly excessive on the checklist.
The Russia and Ukraine Struggle’s Impacts on Imports to the U.S.
Is China Serving to Shippers Get Round Russian Sanctions?
What?! Russia/Ukraine Battle May Ease U.S. Port Congestion & Freight Charges?
Russia Invading Ukraine Probably Means Shippers Paying Even Extra for Their Worldwide Transport
#3 Cargo Transport Growth Ends and Charges Lastly Fall
The worldwide delivery growth lastly ran out of steam in 2022. That is one thing I predicted as possible firstly of the yr with hovering inflation serving to to deliver down delivery demand. With a fall in cargo quantity got here a fall in freight charges that even service alliances blanking (cancelling) sailings couldn’t cease.
With delivery demand and freight charges skyrocketing to document highs over the earlier couple years, seeing these issues come again to earth is a giant deal, making the storyline of freight charges and demand a prime three merchandise on this yr’s checklist.
What Does Worldwide Transport Look Like for Importers Proper Now?
Ocean Imports Drop, Trucking Jobs Plummet, Air Freight Peak Season Disappears
Freight Charges Down, Clean Sailings Up, Inflation – Yikes
Has the Worldwide Transport Bubble Lastly Popped?
Submit-COVID Outlook on Ocean Transport
Congestion, Delays, & Clean Sailings, Oh My
What’s Really Taking place with Freight Charges Proper Now
Slowing Economic system Ought to Decrease Freight Charges However 3 Elements May Hold Them Excessive
Ports Get Congestion Reduction However It Could Be Solely Momentary
Freight Charges Falling – However How Far & How Lengthy?
2022 Provide Chain Outlook for U.S. Shippers
#2 ILWU Negotiations Stall & Flip Disruptive
Quantity two on the checklist is a global delivery information story that may proceed on into the brand new yr. Worldwide Longshore & Warehouse Union (ILWU) contract negotiations have a historical past of bringing disruption to West Coast ports. The present negotiations are not any totally different.
Shippers diverted an excessive amount of cargo from West Coast ports to East and Gulf Coast ports in anticipation of the inevitable disruption of labor slowdowns that are actually a standard a part of ILWU negotiations. That elevated cargo to East and Gulf Coast ports introduced some congestion there, however union actions at West Coast ports proved shippers proper in diverting cargo.
The large difficulty that was anticipated to carry up and switch negotiations contentious was automation. Nevertheless, the true difficulty that stalled negotiations was union jurisdiction, notably a combat over jobs on the Port of Seattle’s Terminal 5 (T5). There’s a relationship between this union jurisdiction combat and automation. The ILWU claims it conceded the Pacific Maritime Affiliation (PMA) the suitable to automate for backing in all job jurisdiction fights it has with different unions. The union says the PMA has not adopted by on this, claiming employers don’t even have the official proper for the automation already carried out at ports.
Negotiations don’t look even near decision six months after the ILWU grasp contract expired. Count on this to tug on for months into 2023.
Strap In Shippers: ILWU Contract Negotiations Look to Be Lengthy & Bumpy Highway
Extra ILWU Port Disruption & Terminals Chopping Man-Hours as Contentious Contract Negotiations Drag
ILWU Slows Oakland & Seattle Port Operations
ILWU Labor Motion Happens as Contract Negotiations Look Unhealthy
ILWU Contract Negotiations Stalled Over Union Jurisdiction
ILWU Contract Negotiations Suspended
What’s Taking place at Ports Throughout ILWU Negotiations?
ILWU & PMA Communicate About Contract Negotiations
Shippers Beg Biden to Assist Make ILWU Contract Negotiations Go Easily
UH-OH – ILWU Contract Negotiations Suspended Until June
SHIPPERS BEWARE: ILWU & PMA Automation Struggle Already Beginning
#1 China’s Loopy Covid Zero Coverage Hurting Folks & Provide Chain
When many of the world lastly accepted the truth that lockdowns and shutdowns don’t assist save lives from COVID-19, China continued these sorts of practices within the excessive. At the start of the yr, it seemed just like the nation may lastly be letting up on its Covid Zero, or Zero-Covid, coverage, however rapidly it grew to become obvious that was not the case. This ended up being a serious story in each worldwide delivery and human rights all year long.
The Chinese language Communist Social gathering (CCP) locked down complete cities, welding individuals into their condominium complexes, kicking others out of theirs to show their houses into Covid camps, leaving individuals shouting from their balconies for an absence of meals, arresting different individuals, and, after all, disrupting the availability chain.
Folks in China typically confirmed resistance to those authoritarian acts of the CCP solely to be met with violence. When individuals, who possible may have been saved if not for Covid Zero coverage, died in a hearth, outrage unfold to large protests, the scale of which haven’t been seen for the reason that Tiananmen Sq. bloodbath. China’s authorities did seem to tug again a bit of on the Covid Zero coverage instantly after the large protests, however solely a bit of bit whereas the CCP deflected blame to native authorities for among the outrageous actions perpetrated towards its individuals.
It’s arduous to think about placing a storyline forward of this one the checklist.
China’s Covid Zero Insurance policies Worsen Provide Chain Issues
Shanghai Lockdown Not Actually Over
WARNING: 4 Main Fallouts from China’s Contemptible Covid Zero Lockdowns
Shanghai Lockdown Inflicting Outrageous Disruption
It’s Time to Take a look at What China’s “Covid Zero” Actually Is (with Movies)
Large Chinese language Lockdowns Current Extra Provide Chain Disruption
Maybe China Is Loosening Its Insane Covid Zero Insurance policies… a Little
Ocean & Air Transport Delayed by China’s COVID Restrictions
