Chinese companies grow investment in Mexicoalong with expanded transpacific shipping routes

Cosco Shipping Lines inaugurated a new sea route, marking its initiation into the Asia-to-Mexico trade alongside other major carriers like Mediterranean Shipping Co. and CMA CGM. This move aims to capitalize on increasing container traffic and Chinese investments in Mexico. The newly launched Transpacific Latin Pacific 5 (TLP5) line, operated by Cosco Shipping Lines and its subsidiary OOCL, directly connects China, South Korea, Japan, and Mexico. OOCL expressed enthusiasm about expanding its network coverage in emerging markets through the TLP5 service, aiming to provide extensive port access across the Asia-Latin America corridor. (See more at FreightWaves, “New shipping routes highlight growing Asia-to-Mexico trade” by Noi Mahoney, 5/08/2024)

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The Panama Canal Authority (ACP) anticipates increasing vessel traffic as Panama's dry season nears its end. After experiencing historically low water levels in Gatun Lake due to drought, the ACP plans to move towards normalizing operations as indicated by their action last month as they allocated three additional transit slots for Panamax vessels, totaling 27 per day. Recent rainfall has replenished the lake, boosting canal traffic, which is currently at 60% of 2022 levels. While the ACP remains cautious, it expects operations to return to normal by 2025, contingent upon weather conditions. The drought has impacted U.S. East Coast ports, notably delaying shipments to the Port of Savannah, whose expansion is closely linked to Panama Canal traffic. (See more at FreightWaves, “Panama Canal’s future …” Michael Rudolph, 4/15/2024)

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Denmark closed part of its airspace and the Great Belt strait, a crucial maritime route and main access to the Baltic Sea, following a failed missile test near the Danish coast. The incident occurred during a navy vessel's mandatory test, where a technical error left the missile launcher activated and unable to be deactivated, posing a risk of accidental firing. The warning advised vessels to avoid the area, covering five to seven kilometers around the Great Belt bridge. Despite the closure, the bridge remained open to traffic. The incident coincided with a naval exercise in the region. Authorities implemented precautionary measures to ensure safety amid the ongoing situation. (More at Independent, “Denmark shuts shipping lanes …. “ Matt Mathers, 4/5/2024)

Built in 2015, the MV Dali was also involved in a collision at the Port of Antwerp in 2016 and sustained hull damage but no injuries. The vessel underwent repairs in Antwerp before deemed safe for travel (Newsweek). Last year, it faced propulsion deficiencies during an inspection in Chile, with issues related to gauges and thermometers. However, no detention resulted from this deficiency (gCaptain). Three months later, a follow-up inspection by the U.S. Coast Guard found no deficiencies. Additionally, the ship's owner and operator faced several lawsuits for work-related injuries since 2018. (More at FreightWaves, “5 things to know about cargo ship …” by Noi Mahoney, 3/28/24)

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Early Tuesday, Baltimore's Francis Scott Key Bridge collapsed after a container ship known as the Dali (Singapore-flagged) struck a support column, causing at least seven cars to plunge into the Patapsco River. A search-and-rescue operation ensued, with authorities actively searching for missing individuals. Gov. Wes Moore declared a state of emergency. Baltimore Fire Dept. Chief James Wallace stated the search is ongoing, with sonar detecting submerged vehicles. The cause remains undetermined, though U.S. Sen. Ben Cardin suggests the vessel lost power, impacting steering. FreightWaves reported that the Dali vessel carried approximately 4,900 containers during the collision. Authorities are conducting a full investigation into the incident. (See more at The Baltimore Sun, “Key Bridge collapses into Patapsco River ….” By Hayes Gardner, 3/26/2024) SEE VIDEO (WRAL, @brick_suit5223)

Chairman of the House Committee on Homeland Security, Rep. Mark Green, raised serious concerns in a letter to Shanghai Zhenhua Heavy Industries Co. (ZPMC), the world's top ship-to-shore gantry crane producer. Nearly 80% of U.S. ports use ZPMC cranes. The letter accuses ZPMC of secretly installing communication devices in cranes bound for the U.S., posing spying and remote control risks. The accusations stem from a congressional investigation into strategic competition with the Chinese Communist Party, initiated in June 2023. The suspicions of CCP leveraging maritime infrastructure for spying date back to 2021. Recent arrests of a U.S. Navy officer and an army intelligence analyst, highlight concerns about Chinese espionage involving U.S. ports, as well as, national defense and U.S. military plans. (More: FreightWaves, “Is China spying on American ports?” John Paul Hampstead, 3/13/2024)

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