Global Logistics Update

Happy summer! We hope everyone in the USA enjoyed a much needed long weekend over the 4^th of July holiday. As we enter Q3, the good news is that we do not have a strike on the USA west coast, and we are seeing more stability in the logistics market in terms of rates and capacity. Vessels are still sailing at full capacity in most beverage alcohol trade lanes, but the schedule disruption is not as bad as it was 3 months ago. We are seeing port omissions in the most congested ports, with carriers choosing to skip NY or Oakland to keep schedule integrity on their strings. However, the situation is better overall and we hope to see this continue over the next months and into Q4. Below is the latest update on key issues around the world:

Italy:  Effective July 1, 2022, there is a congestion surcharge of approximately 150 euro for carrier and merchant haulage for containers moving into La Spezia port. This applies only to truck moves; rail moves are exempt. Rail remains congested in Italy, leading to much of the cargo moving to the port via truck.

Germany: Fortunately, strike action has not been ongoing, but container handling at CTA terminal in Hamburg is extremely restricted due to a defective crane. Repairs will be taking place through July 11 creating a backlog in the port. 

Ireland: There is a change in the port of Cork as the feeder vessel operators are moving from the city terminal at Tivoli to Ringaskiddy—approximately 20 km further to haul cargo. The Irish hauliers are adding additional charges for the drayage to Ringaskiddy so if you ship from Cork, plan on an increase in your trucking charges.

New Zealand: Equipment is becoming sporadically scarce on the South Island and in Auckland port area. 20’ equipment is currently the most problematic and we expect challenges in the upcoming weeks with equipment availability. Please send us forecasts to plan for bookings. 

Chile: Winter weather conditions create delays with road closures from Argentina, including cut and run situations at the ports. Plan for extra time for potential delays in getting cargo from Argentina to the port during the next months.  

MSC Boston Express:  MSC launched multiple new services on the transatlantic in the last year.  There are rumors that some are temporary, including the Boston Express service. As of now, this service is continuing and we will keep you updated should we receive further information from MSC.

Mediterranean/USA West Coast service:  MSC remains the only carrier offering all water service to the US West Coast from Med port. For the month of July, it is reported that there will be no vessel call in the port of Seattle, thus booking via Oakland or Vancouver can be considered.  Alternative services are available via rail from the US East Coast as well as transloading services from other ports. Please let us know if you need further information.

NY/NJ container returns:  Truckers continue to have issues returning empty containers to the terminals. When this occurs, fees accrue for the trucker to bring the container back to their yard, store the container, and of course, additional chassis and per diem charges accrue. Please be aware of this situation. We will see how OSRA22 rules will affect how these charges are levied. For now, the importer must pay the fees despite the fact the situation is not in their control—just a factor in the overall import costs due to the ongoing congestion. 

USA West Coast/ILWU contract: So far so good as the ILWU workers continue without interruption or slowdowns despite the expiration of the contract. Contract talks continue behind closed doors. We will keep you updated with any news.

California legislation (CA AB5):  The Supreme Court refused to hear this case thus making AB5 the law, effective immediately. This legislation will basically make all independent contract truckers considered as company employees if contracted by a trucking company. This situation is quite complicated right now but the expectation is that there will be higher costs and potentially fewer truckers. This comes on top of the upcoming enforcement of the CARB legislation, prohibiting use of older truck engines, potentially reducing the amount of available trucks in California by 28%. We will keep you posted on the impact.

CBMA/Craft Beverage Modernization Act: We will continue to send updates on the upcoming change in process on CBMA filings for importers effective January 1, 2023. Should anyone have any questions, please reach out to us.

TTB Proposal to eliminate standards of fill: The proposal was made in May 2022 and the public comment period is open until July 25, 2022. Should anyone want to provide specific input to oppose or support the proposal, let us know and we can provide the feedback to TTB. If you need more information on this topic, let us know and we will send it along.

Should you have any question or like additional information on the above please contact us.