East Bound Trans-Pacific Container Rates at Record Highs
Despite the persistent global pandemic, the container rates for transit from China to U.S. West Coast continue to dramatically increase to record breaking rates, as reported by FreightWaves (American Shipper) this week. The report points to information explaining that the increase is due to the rise in retail online buying in the U.S. in recent weeks. The Shanghai Containerized Freight Index (SCFI) rate (China to U.S. West Coast) broke historic records for the past two weeks moving above $3,000 per forty-foot equivalent unit (FEU).
industry news
Unprecedented 33% Plunge in Q2 U.S. Economy
The U.S. commerce Department estimated that the economy contracted by a historic record breaking 32.9% in the second quarter, as reported today by Transport Topics. This pull back in the economy is primarily due to the decrease in consumer spending (34.6% decrease) associated with a frozen travel industry, a major shutdown in much of the retail industry, and tens of millions of jobs lost.
Major Flooding from China’s Yangtze - Potential International Commercial ImpactIncluding U.S. Trucking
On July 26th, after continuing record deluge of rainfall, the Yangtze River overflowed for the third time during the 2020 rain and flood season, challenging the structural integrity of the 1.5 mile Three Gorges Dam, upstream of the now well-known industrialized city of Wuhan. The Three Gorges Dam is the world’s largest hydroelectric power station. With fears of potential catastrophic dam breaches, there have already been reports of 200 people missing or dead, leaving 24 million affected in 24 provincial regions. If this most current disaster escalates in severity, FleetOwner reported that future availability of truck parts and other related supplies sourced from China may be impacted even though trucks and equipment are produced in the U.S.
U.S. TRANSCOM Confirms HHG Contract
After a review of allegations presented against ARC, U.S. TRANSCOM officials have declared the allegations “unsubstantiated” and have now re-awarded their multibillion dollar contract award for military HHG moves, to American Roll On Roll Off Carrier Group (Parsippany, N.J.) as reported by the MilitaryTimes this week.
Worldwide ERC® Symposium Goes Virtual
Worldwide ERC has announced that they have shifted the Global Workforce Symposium to a virtual event. The live event in Washington DC has been cancelled. This action is in response to the restrictions around large-group events in Washington, DC, along with concerns of safety for all, and continued desire to offer an experience and value as normally provided. The plan now offers a virtual Global Workforce Symposium as a month-long mobility event, from October 28 through November 20.
WORLDWIDE ERC
https://www.worldwideerc.org/
TRANSCOM Reviewing Household Goods Contract
The MilitaryTimes has reported that TRANSCOM pulled back the multibillion dollar contract for military household goods moves awarded to American Roll On Roll Off Carrier Group (Parsippany, N.J.) back in April, after receiving a number of protests.
Panama Canal Emerges from one of Worst Drought Period in 70 Years
The Panama Canal Authority announced recently that it can “ensure a competitive draft, and thus steady operations for months to come”, as water saving actions were taken early in 2020 after the canal experienced the fifth driest year in the past 70 years. Water supply has been a challenge since 2018 watershed levels were 20% lower than the historic average. The severe draught highly impacted water levels at Gatun and Alhajuela lakes as sources for the canal. Learn more about how the PCA is dealing with water supply and usage, click the link below.
