The major port of Yantian in Shenzhen, China has been partially shut due to a recent outbreak of COVID-19.  American Shipper reports that the event is expected to reverberate globally causing delays for trans-Pacific, as well as Far East-North Europe, and Euro-N. America shipping trade routes. Shipping delays with terminal congestion is predicted for the coming week along with impact on prices. (See link for American Shipper: "Viewpoint: Is Yantian Next ...", June 1, 2021, Lori Ann LaRocco)

Data from U.K. Drewry Maritime Research indicates that over 96% of the world’s cargo containers are currently being produced by three Chinese companies, reported American Shipper this week. As production shifted to China from S. Korea in the1990’s, large Chinese market share has since grown particularly in the past two decades leading to the present day dominance. Data shows that China’s quarterly production has more than tripled from 1Q2020 to 1Q2021. (See link for American Shipper: 'How three Chinese Companies ...", May 24, 2021, Greg Miller)

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In the midst of stiff Republican opposition responding with their much lower offer of $568 billion for the infrastructure package, the White House came back with a counter-proposal reduced by 25% at $1.7 trillion. FreightWaves reported Friday that while this counter reduced commitment in traditional infrastructure investments such as roads and bridges, other “nontraditional” (Psaki) infrastructure investments involving clean energy, clean drinking water and climate change projects remained in the plan. (See link for FreightWays: 'White House Cuts Size ...', May 21, 2021, John Gallagher)

American Shipper reported this week that while container rates were breaking records last August/September, rates continued climb since and they now have spiked again. The unfavorable pricing environment of demand surpassing supply is leaving importers with a poor choice of spot rates at new highs or fixed annual contracts coming in at prices 50%-100% more than last year. Drewry has calculated that current Shanghai-Rotterdam spot rates have increased by about 539%, and Shanghai-Genoa rates by 471%yr/yr. (See link American Shipper: 'Container Shipping Spot Rates ...', May 13, 2021, Greg Miller)

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Cargo owners continue to struggle with managing alternative options for providing a supply of goods to their customers, as the Ever Given remains currently under arrest by the Suez Canal Authority. Sources privy to the ship’s manifest have revealed basic categories of products on board to include household goods, along with electronics, machinery/parts, furniture and footwear. The option to unload and reload cargo to another ship offers extremely difficult logistics and high costs. (See link for American Shipper, "Ever Given’s arrest and manifest ...", April 26, 2021, Lori Ann LaRocco)

US Senator Mitt Romney explained today that a group of senators have begun discussions for a less costly infrastructure proposal as a counter to the president’s $2.25 trillion spending plan. It was suggested that the new potential proposal could be about one third the cost in the range of $600 to $800 billion, focusing more specifically on roads, bridges, airports and broadband, while depending on an increased gas tax and other user type fees to pay for the national project. (See Transport Topics)