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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In recent months, the Red Sea has transformed from a major maritime passage to a battleground, with Houthis rebel attacks on cargo vessels threatening global commerce and regional stability. The sinking of the Rubymar on March 2, the first vessel lost to Houthi attacks since November 2023, has caused environmental hazards and raised concerns about the security of this vital trade route. While Houthi attacks have introduced complexity and risk, their impact on commerce may be diminishing. Although sustained elevated container spot rates impose costs on shippers and consumers, benefiting container lines, the Drewry World Container Index Global Composite price has dropped more than 10% since late January, suggesting a potential easing of trade disruptions. (See FreightWaves, “The Houthis sank a ship. But their attacks may be less disruptive for now” Joe Antoshak, 3/5/2024)

Mexico largest trading partner with U.S.

- Canada No.2 at $773 Billion

- China No.3 at $575 Billion

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The U.S. Coast Guard is implementing new cyber-risk management requirements for owners and operators of over 200 Chinese-made container cranes at U.S. ports. This move aims to mitigate the risk of China spying on America's domestic supply chains. China-manufactured STS gantry cranes constitute almost 80% of such cranes at U.S. ports and can be controlled, serviced, and programmed remotely, making them susceptible to exploitation. The Coast Guard emphasizes the need for additional measures to prevent security incidents in the national transportation system, considering the prevalence of these cranes, intelligence on China's interest in disrupting U.S. critical infrastructure, and the inherent vulnerabilities for remote access and control. (See FreightWaves,“ US targets Chinese-made container cranes in spy crackdown” by John Gallagher, 2/21/2024)

Despite concerns about the dry season in Panama impacting trade through the Panama Canal, the situation isn't as grim as initially feared. Following a wetter-than-expected November, daily transits increased in January, with 24 transits forecasted, up from the previous estimate of 20. In fiscal year 2023, 12,638 vessels crossed the canal, averaging 34 oceangoing vessels daily. However, for the current fiscal year 2024, 3,233 transits occurred so far, mainly Panamax vessels, indicating a run rate of 9,700 vessels for this year, 23% lower than the throughput in fiscal year 2023. (See more at FreightWaves, “Water level projections threaten future Panama Canal transits” Tony Mulvey, 2/8/2024)