Ocean carriers losing pricing power in trans-Pacific
Last week, we warned that the “peak” of peak season had already arrived for U.S. containerized import volumes and that demand was likely to decline from here to reach a “new” bottom in the back half of this year (forecasting a 10%-20% decline below second-half, 2019 levels). While container volumes from all ports of origin around the world were peaking last week, container volumes from Chinese ports specifically actually peaked this week. So when trying to understand how these changes in demand are likely to impact container spot rates on the trans-Pacific eastbound, it is important to look at China to the U.S. in isolation.
ILWU Canada revokes July 22nd strike notice
The International Longshore and Warehouse Union Canada has revoked a 72-hour strike notice that alerted maritime employers of a work stoppage at the country’s British Columbia ports on July 22.
On Tuesday, the union announced it had rejected a tentative agreement that had been proposed by federal mediators, and resumed a strike. By the next morning, though, the Canada Industrial Relations Board ordered the union to cease its work stoppage, and re-issue a 72-hour strike notice.
Read More Here Supply Chain Dive
Wheat prices continue to rise amidst threats to Ukraine bound ships
Since July 18, wheat prices have increased for three straight days after Russia threatened to treat ships destined for Ukrainian ports as military targets.
Russia has been bombarding Ukrainian grain facilities in Odesa and other cities for the last three nights. Since the attacks began the evening of July 17, over 20 people have been injured , according to BBC News.
Wheat prices grew by 8.2% on the European stock exchange from July 18 to July 19 to €253.75 (about $284) per ton. Meanwhile, U.S. wheat futures increased by 8.5%, representing the largest single-day jump for the commodity since just after Russia invaded Ukraine in February 2022.
Read More Here Supply Chain Brain