BRi USA NEWS - Sally Intensifies into Hurricane, Moves Towards Gulf Coast
Dear all Valued Customers
After the recent hit of Hurricane Laura, the Gulf Coast is bracing for another round of dangerous winds and heavy rains as Sally has strengthened into a hurricane, the National Hurricane Center said.
Sally has quickly intensified into a hurricane as it tracks toward the northern Gulf Coast, where it will bring an extremely dangerous storm surge, flooding rainfall and damaging winds early this week. Sally will also pose a threat of flooding rainfall farther inland across parts of the Southeast.
Sally is centered over 100 miles east-southeast of southeast Louisiana. Maximum sustained winds are 90 mph, making Sally a strong Category 1 hurricane. Water levels have also risen on the coast from southeast Louisiana to the western Florida Panhandle. Logistics operations in the affected areas will likely experience delays due to closures related to the storm.
In response to Sally's upcoming threat, the U.S. Coast Guard (USCG) has set restrictions on vessel movement and cargo operations at some Gulf Coast ports. The following ports in Mississippi, Alabama, and Florida are already closed: Biloxi, Gulfport, Mobile, Pascagoula, and Pensacola. The Port of New Orleans remains open with restrictions at this time. For live updates on port operations, visit the USCG links below:
• USCG Mobile, Alabama sector
• USCG New Orleans sector
BRi USA will continue to provide updates as it relates to cargo movement and delays caused by Hurricane Sally.
Carriers Impose Restrictions as Container Shortages in Asian Ports Worsen
All the major carriers are experiencing equipment shortages at Asian ports with popular 40ft high cubes in particular short supply at Chinese depots.
Reports suggest CMA CGM currently has a shortage of equipment at all of the main Chinese ports, while other carriers are advising of shortages at some docks and “near normal” availability at others.
In an effort to address the shortages of equipment, many carriers have introduced restrictions on the release of empty containers prior to the intended shipment.
With surprising robust export demand, particularly on the transpacific, expected to continue into the traditional slack season and beyond the Chinese Golden Week holiday, the equipment shortage looks unlikely to improve for some time.
The shortage of equipment in Asia comes on top of rocketing spot rates on several trade lanes, especially from Asia to the US west coast, where after seven GRIs the current Shanghai Containerized Freight Index (SCFI) reading stands to break the all-time record per 40 ft before the month end.
Updated Equipment Shortages at China Ports
The BRi USA Team is reporting that nearly all carriers are experiencing varying equipment shortages at major China ports due to a recent surge in cargo. Below is a recap on the current capacity equipment status:
• Shanghai: 20GP supply is normal; 40GP supply is tight for APL/CMA, 40HC in short supply for APL/CMA/ONE/ZIM has a critical shortage, 45HC supply is normal
• Ningbo: 20GP & 40GP supply is normal, 40HC supply is tight for APL/HSUD/COSCO and CMA/ZIM/ONE have critical shortages, 45HC in short supply for all carriers
• Qingdao: 20GP supply is normal; 40GP supply is tight for HMM, 40HC supply is tight for ONE/COSCO/ZIM/HMM and CMA has a critical shortage, and 45HC in short supply for APL/CMA/COSCO
• Shenzhen: 20GP supply is normal; 40GP is tight for EMC/HPL/Maersk, 40HC & 45HC in short supply for all carriers, with Maersk having a critical shortage of 40HC.
• Wuhan: 20GP supply is normal; 40GP supply is tight for ZIM/CMA/APL/MSC, 40HC supply is tight for ZIM/MSC/CMA/COSCO/EMC as well, and no 45HC equipment for call carriers
Our Team is also reporting that with the extra loaders being deployed into schedule to ease space pressure, port congestion and vessel delays are occurring for 1-2 days on average, and 2-4 days in some cases at all major Asia-based ports. Also, we have received reports of some carriers altering port rotations and skipping severely congested ports.
BRi USA is working closely with all offices to minimize the effects of equipment shortages to our customers.
Air Cargo Carriers Prepare for a Tight Peak Season
Shippers are securing air cargo capacity for the fourth quarter, anticipating a tight peak season as rates start to rise again.
A massive upswing in air freight demand has been reported, with retailers and businesses moving air freight and trying to beat the approaching Golden Week holiday in Asia.
Indicators suggest we are heading for a peak season, in which the impact of summer and winter schedule changes will not be the same as in the years before. We will likely see changes to cargo capacity, as airlines are deciding faster on flights and the number of rotations to be added or reduced.
While some passenger airlines have resumed operations, the situation in the air freight market remains volatile – especially as belly capacity is still tight.
As reported above, it is not just the air freight market having capacity issues: ocean freight is currently seeing ‘a perfect storm’ of high demand, container shortages, record high rates and service disruption.
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As a valued customer, we hope that you will continue to trust us to source the best options for your supply chain needs now and into the future. Should you have any questions regarding USA News, please feel free to contact your Customer Solutions Representative.
Keeping you updated,
BRi Customer Solutions Team.
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