That is it! Common Cargo’s last weblog of 2017. This 12 months actually appears to have passed by quick.
Final 12 months, we started a brand new custom of ending the 12 months within the weblog with a glance again on the prime worldwide transport information tales of the 12 months (click on right here for 2016’s Prime 10)
That is your likelihood to get a fast recap of what the 12 months seemed like when it comes to worldwide transport information.
Under you’ll discover the highest 10 tales listed with brief summaries, hyperlinks to the blogs that lined the story, and infrequently Common Delivery Information movies on the story.
We like to rely it down David Letterman model, so we’re going from 10 to 1. Let’s get it began.
Drum roll please…
#10 — Freight Charges Improve for a Whereas Then Slip
In fact, freight charges are all the time a part of the information cycle with regards to worldwide transport. 2016 noticed file low freight charges, however carriers had some success in 2017 rising these unsustainable transport costs. Nevertheless, by the top of the 12 months, freight charges started slipping once more, and 2018 may find yourself seeing even decrease charges than 2016.
There are a pair movies and 4 weblog hyperlinks under to get you caught up on all of the freight charge drama surrounding 2017.
#9 — Automated Cargo Ships On the Manner
Utterly automated cargo and container ships are being constructed and deliberate to be placed on worldwide waters. This could in all probability be larger on the record if the ships truly began crusing this 12 months. These automated ships aren’t scheduled to be on the water till 2019.
However nonetheless, this can be a recreation changer in worldwide transport.
#8 — Maersk Out-Shipped by Cosco
Maersk has been the #1 provider for therefore lengthy that it appeared just like the provider was untouchable. Nevertheless, within the third quarter of 2017, China Cosco Delivery Company (Cosco) moved extra TEU of cargo than Maersk—5.49 million TEU to five.26 million TEU—and it seems like Cosco will be capable to proceed loading extra cargo than Maersk within the foreseeable future.
#7 — South China Sea Tensions Intensify
Round $5 trillion of cargo is shipped by means of main transport lanes within the South China Sea yearly. The significance of these waters to worldwide transport has precipitated the US to get entangled in disputes between China and its neighbors over conflicting claims on the South China Sea. Tensions had been getting fairly excessive between China and the US over the waters below the Obama administration. When Trump took over the presidency, these tensions intensified.
A later information story on this record reveals enhancing relations between China and the US below the Trump administration. Nevertheless, that doesn’t imply the problems within the South China Sea are resolved.
#6 — China Air pollution Crackdown Shuts Down 1000’s of Factories
Throughout peak transport season, China cracked down on enforcement of anti-pollution legal guidelines. Native officers overreacted and shut down all potential air pollution sources, which meant tens of hundreds of factories, disrupting the availability chain on the supply for a lot of US importers. Regardless of the setback for shippers, this might be chalked up as a win for the atmosphere.
#5 — Hurricanes Hitting US Cities & Ports
Hurricane season hit exhausting within the US this 12 months. Hurricane Harvey and Hurricane Irma each precipitated intensive harm, claimed lives, and interrupted provide chains. Hurricane Harvey was particularly devastating in Houston. Restoration remains to be an ongoing course of.
Whereas the impression these hurricanes had on worldwide transport is newsworthy, the extra necessary tales listed below are the individuals who misplaced lives, buddies, relations, and houses.
#4 — China Cuts Tariffs
This one is large for US exporters. China is taking steps in opening its market to international items from nations just like the US. China reduce tariffs on near 200 items with common drops from 17.3% to 7.7%.
That is additionally a significantly better story for US-China relations than #7 on this record was.
#3 — 3 Mega Service Alliances Take Over
In April of 2017, the reshuffling of carriers into simply 3 alliances that dominate worldwide transport formally launched. Ocean freight transport is now managed by the Ocean Alliance, THE Alliance, and 2M.
In March, many had been apprehensive about potential disruptions that may happen within the adjustment interval to the brand new alliance association. Whereas there have been a number of minor disruptions and hiccups right here and there, the transition went fairly easily. Nevertheless, that doesn’t allay the ominous feeling so many shippers have over so few alliances controlling transport.
#2 — ILWU Agrees to Early Contract Extension
That is unprecedented information. The Worldwide Longshore & Warehouse Union (ILWU) truly agreed to a contract extension in 2017 effectively earlier than the present contract expires. This implies shippers don’t have to fret about West Coast port disruptions brought on by slowdowns, strikes, or lockouts throughout contentious contract negotiations as is the norm every time the dockworker contracts expire on the ports.
The ILWU agreeing to a contract extension creates hope that the Worldwide Longshoremen’s Affiliation (ILA) will do likewise on the East and Gulf Coast ports.
#1 — Shrinking Service Competitors
2016’s #1 story was Hanjin’s Chapter. In 2017, it’s the continued shrinking of provider competitors in worldwide transport. We’re seeing provider competitors proceed to shrink by means of buyouts and mergers of carriers. What’s scary is Maersk predicts provider competitors will shrink all the best way down simply 3 international carriers.
What Do You Assume?
What do you concentrate on this record? Are there any huge worldwide transport tales we didn’t embrace that you simply assume ought to have made the highest 10? Would you alter the order?
Tell us within the feedback part under.