Los Angeles/Long Beach Port Strike Ended

With the help of the federal mediators harbor employers and striking clerical workers were able to agree to a 6-year contract. Details of the agreement are still vague, and the contract still requires the acceptance of the union rank and file.

All striking workers put down their pickets and returned to work this morning, Wednesday, December 05, 2012. Longshoremen will start off loading cargo, but congestion is likely to be a problem as they work through a week-long backlog of freight. Port officials estimate that it may take up to two weeks for port operations to return to normal.

Associated Press: LA ports reopening after crippling strike
Journal of Commerce: Deal Reached to End LA-LB Strike

General Harbor Status Updates:

Marine Exchange of Los Angeles Long Beach Harbor, Harbor Vessel Traffic Update
Marine Exchange of Los Angeles Long Beach Harbor, Master Queuing List

News Highlights and Updates (11/3-11/10)

Veterans’ Day Port Closures

**LOS ANGELES TERMINAL / LONG BEACH TERMINAL HOLIDAY SCHEDULE**	1ST SHIFT 8AM TO 5PM	2ND SHIFT 6PM TO 2AM
TERMINAL / CARRIER	1ST SHIFT	2ND SHIFT
EAGLE MARINE SERVICE (300) / APL	OPEN	OPEN
SEASIDE TERMINAL (233) / EVERGREEN	OPEN	OPEN
TOTAL TERMINAL (PIER-T) / HANJIN	CLOSE	OPEN
CALIFORNIA UNITED TERMINAL (E-20) / HYUNDAI	CLOSE	CLOSE
ITS TERMINAL (234) / K-LINE	OPEN	OPEN
LONG BEACH CONTAINER TERMINAL (F-10) / OOCL	CLOSE	OPEN
APM TERMINAL (PIER 400) / MAERSK	CLOSE	OPEN
PACIFIC CONTAINER TERMINAL (246) / POSA, TS LINE, COSCO, PIL	CLOSE	CLOSE
SSA TERMINAL(PIER A) / MSC, MAERSK	CLOSE	CLOSE
TRAPAC TERMINAL (136) / MOL	OPEN	OPEN
WEST BASIN CONTAINER TERMIANL (126) / CHINA SHIPPING, YANG MING, COSCO	CLOSE	OPEN
YUSEN TERMINAL (214) / NYK, OOCL	CLOSE	CLOSE
SSA TERMINAL (PIER C-60) / MATSON	CLOSE	CLOSE

New York & New Jersey Terminals Holiday Schedule			Baltimore Terminals Holiday Schedule
Terminal			Terminal
Maher	OPEN		Dundalk Marine Terminal
PNCT	OPEN		Amports	OPEN
Global	Closed		Balterm	CLOSED
NYCT	Closed		Ceres Marine Terminal	CLOSED
APM	Closed		Mid-Atlantic Terminals	CLOSED
			Ports America	CLOSED
Port of Oakland			Ports America Packaging	OPEN
			U.S. Customs	OPEN
SSA	Closed		WWIB	OPEN
BENT	Closed		WWL Vehicle Services	OPEN
Trapac	Closed		Seagirt Marine Terminal
TTI Oakland	Open (K-Line Only)		ICTF-CSX Corporation	OPEN
Ports America	Open (Horizon Line Only)		Ports America Chesapeake	OPEN
OICT Berths (57-9)	Closed		North Locust Point
			Firestone	OPEN
			Project Stevedoring	OPEN
			Westway	OPEN
			South Locust Point
			Balterm	OPEN
			Masonville
			Mercedes Benz	OPEN

Hurricane Sandy Recovery

The New York Times A Storm-Battered Supply Chain Threatens Holiday Shopping While the ports of NY/NJ have reopened, it will still take some time before operations return to normal. Additionally, there has been a ripple effect throughout the region and the supply chain.

Carrier News

The Loadstar Maersk makes startling turnaround – and wins the reliability test Maersk reports that its 3Q profits were nearly half a billion dollars despite the economic turmoil in Europe, the sluggish US economic recovery and China’s economic slow-down. Additionally, Drewry Maritime Research’s Carrier Performance Index relates that 90.5% of all Maersk sailings arrived on time.

Regulatory News

American Shipper U.S. finalizes tariffs on Chinese solar panel imports The US International Trade Commission (ITC) unanimously agreed that Chinese government subsidized solar panels harms the local US solar industry. In response, the US Commerce Department will levy anti-dumping duties on imports of Chinese manufactured solar panels.

Port of Virginia (Norfolk) Post-Hurricane Sandy Update

We at the Topocean Group are monitoring the situation on the east coast very closely and wanted to provide our customers with some information regarding the Port of Virginia where much of NY/NJ bound container ships have been diverted.

For further clarification or with any questions at all about this situation, please contact your Topocean Service Representative.

• Potential Trucking Shortage: With most carriers diverting shipments from the Port of NY and NJ to Norfolk, Virginia, trucking capacity along the east coast has begun to tighten dramatically.

• Depending on final destination and other factors, shippers may incur additional costs.

• As an answer to minimal trucking capacity Maersk proposes to ship containers via barge back up to New York/New Jersey for distribution. Additional fees are likely to be charged.

• Additional Delays: Because of the volume of container ships and shipments diverted from NY/NJ and flooding the Norfolk port, shippers are cautioned that significant delays are possible while the port adapts to this new influx of containers as upwards of 3,000 additional containers will be offloaded.

• Rail lines are operational throughout the east coast. CSX estimates that the delay will last upwards of 72 hours. Rail is operating around the clock to expedite emptying the terminals to allow for the next containers to be unloaded.

• The US Customs and Boarding Patrol has resumed normal operations at the Port of Virginia.

News Highlights and Updates for the Week of 10/28-11/2

Port of New York and New Jersey Post-Hurricane Sandy Updates:

Currently the Port of New York and New Jersey is still without power and will remain closed until power is restored and damage to terminal buildings and equipment can be assessed and repaired.

The US Coast Guard is surveying the waterways into the harbor to ensure vessel safety. The port is open to “fuel barge and tug traffic,” but waterways are still closed to most commercial traffic as “other deep draft vessels are allowed to enter waterways on a case-by-case basis in coordination with the Captain of the Port” (USCG News)

The US Customs and Border Patrol is gradually resume operations as airports reopen for passenger travel and trade. Once seaports reopen and the CBP has reviewed the functionality of equipment and exam stations, customs inspections and procedures will resume. At present, the inspections and filing backlogs are hard to estimate. Even after ports reopen, it may take a while for normal port/terminal operations to restart. (CBP Operating Status)

General Operational Information Resources:

APM Terminals: http://www.apmterminals.com/aboutus.aspx?id=20643

Port Authority of New York and New Jersey: http://www.panynj.gov/alerts-advisories/inclement-weather.html

Port Newark Container Terminals: http://www.pnct.net/MessageUpdates.aspx#1

US Coast Guard: http://www.uscgnews.com/go/site/4007/ (scan side-bar on left for most recent press releases)

US Customs and Border Patrol: http://www.cbp.gov/xp/cgov/trade/trade_outreach/bus_resumption/sandy_status.xml

Carrier Rates and News

Transpacific Stabilization Agreement Carriers Announce GRI for 2013-2014 Sailing Seasons

On October 30, 2012 the Transpacific Stabilization Agreement (TSA) published an announcement that contract rate hikes for 2013-2014 would go into effect on December 1, 2012. As part of their strategy “to establish a more compensatory rate baseline” TSA carriers “recommend a dry cargo general rate increase (GRI) of US $400 per 40-foot container (FEU) to the U.S. West Coast, and US $600 per FEU for all other destinations” (TSA GRI). Additional coverage is available at JOC Sailings.

Asia-Europe Spot Container Rates Soar Ahead Of Annual Contract Talks Drewry reports on huge spot rate increases over the month of October.

ILA/USMX Negotiations Updates

On October 24, the US Federal Mediation and Conciliation Service (FMCS) released a statement from their director reporting on the progress of contract talks between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA). The statement reports (without detail) that “the parties met … and discussed a number of major issues. As a result of these discussions, the parties will have their respective committees review their positions and analyze associated costs” (FMCS Statement).

Important Update for Zim Shipping

Zim Shipping recently updated shippers about the status of the situation in New York/New Jersey both at the ports and railroads as well as current state of their vessel operations out of the Ports of New York/New Jersey in the wake of Hurricane Sandy. Reproduced below are Zim’s vessel updates as well as customer service information for concerned shippers. The entire Zim brief can be found here. Updates from Maersk and OOCL/NYK are available.

Vessel Operations

ZIM CONSTANZA 16/W will call at the Port of Halifax where all inbound cargo destined to New York will be discharged for temporary storage awaiting the re-opening of terminals at New York/New Jersey.

ZIM PANAMA 44/W currently positioned at anchor outside New York/New Jersey will now proceed to the Port of Halifax where inbound cargo destined to Halifax following which the vessel will load New York cargo discharged from ZIM CONSTANZA and then proceed to New York/New Jersey provided terminals are re-opened (ETA 6 November).

Important Customer Service Information:

As a result of the conditions in New York and New Jersey you may experience difficulties in communicating with our Staten Island office. Our staff in Norfolk, Virginia is available and ready to assist you. Please contact the Norfolk, Virginia office at 866-744-7046.

Hurricane Sandy Updates

Currently our offices in New York are closed because of Hurricane Sandy related power outages and flooding. The earliest date anticipated date for reopening would be Friday, November 2, 2012; however, this date is currently not confirmed. Customers will be notified as soon as a date certain for our NYC offices reopening is established.

The most up to date information from the Ports of New York and New Jersey indicates that significant damage to port areas has been sustained and at present all NY/NJ terminals are without power. Terminal closures will continue at least through Thursday, November 1, 2012.

Below is a summary of conditions throughout the Northeast and Mid-Atlantic regions. While NY/NJ has sustained significant damage, other ports up and down the East Coast are reopening for business as usual on October 31, 2012.

Port, Marine Terminal, and Rail Updates:

• New York

• New York Container Terminal (NYCT) and Global Terminals

• There are damages to grantry motors on all cranes. Actual impact will be known after final technical inspections.

• Terminal operations in New York for Grand Alliance are unlikely to be back to normal soon. RCC and NAG will start discussing the options when the actual damages are to be known. Ship rotation and schedule may be seriously affected.

• Impacted service with NYC02 call: NCE and SCE.

• Impacted service on NYC11: PAX and AEX.

• Port Newark Container Terminal (PNCT)

• No power at the port and PNCT remains closed on Wednesday. Likely the PNCT gate and vessel operations will not be resumed before Friday.

• Impacted service with NYC03 call: IEX.

• Port Authority staff has been on-site today to assess the damage as a result of Hurricane Sandy:

• Ports remain closed. No electrical power and no time frame for repair. Channels closed. 

• Roads covered with debris and traffic signals out of service.

• Rail track has been compromised. Fence lines widespread disrepair.

• Port Authority staff is working to clear roads and is communicating with the container terminal operators and major tenants to coordinate the clean-up and reinstatement of service. Only select essential personnel are permitted on port at this time. All non-essential personnel will be denied access by PAPD at port entrances.

• Norfolk, Baltimore, Philadelphia, Boston

• Norfolk: Gates open, Hampton Roads now open to vessel traffic.

• Baltimore: Gates open 31 Oct. Normal hours.

• Philadelphia: Gates to open 31 Oct.  Normal business hours.

• Boston: Normal operation.

Resources for port updates:

Ports of New York and New Jersey The Port Authority website is the best source for information about conditions on the ground.

US Coast Guard Their news brief section is a good resource for on the water and coastal conditions after the storm. Currently, all waterways heading into the NY/NJ port areas are closed, but port restrictions will be eased once waterway conditions are considered safe.

Carrier/vessel status updates:

Maersk Line customer update:

Customer service contact information and timely updates can be found here.

According to Maersk, “refrigerated containers are all running well on genset power with plenty of fuel to continue running, and affected dry containers were minimal and customers will be notified as soon as we have the information” (Hurricane Sandy Update 3)

Maersk vessel update: Below is some information regarding how shipping will be redirected after ports reopen.

Vessel Update:
Please note, containers affected by storm and vessel operations have been processed and customers have been notified by Maersk Line Customer Service.

 

MECL Service	Maersk Carolina	Will reverse rotation to first call Charleston and Newark Last.   Tentative schedule is Charleston(11/2) , Norfolk (11/4) and Newark (11/6)
TA2	S/L Mercury	Sailed from Norfolk on 10/31.  Eta into Rotterdam is 11/7
TA2	S/L Champion	Vessel discharged in Newark prior to the storm.  The vessel proceeded to Charleston (10/30), Savannah(10/31) and is departing for Houston for tonight.
MECL2	Maersk Iowa	Current ETA Newark 11/2, based on tentative opening of Newark.
SAE Service	Maersk Roubaix	Due to berth congestion was not able to commence cargo operations in Norfolk until 10/31.
AMEX	Maersk Wakamatsu	ETA Newark now 11/2, based on tentative opening of Newark.
OCEANIA	Maersk Batur	ETA Philadelphia 10/31.  Cargo Operations scheduled to commence 10/31.
WESTMED	Holsatia	Vessel had to depart Newark prior to completing cargo operations to avoid storm.  Vessel scheduled to return to Newark and complete vessel operations on 11/2,   based on tentative opening of Newark.
TP3	Axel Maersk	ETA Newark 11/2, based on tentative opening of Newark.
MEDGULF	Barcelona Express	Vessel partner elected to omit Charleston because of the storm.  Charleston cargo discharged in Port Everglades and we are now making arrangements to move all Charleston shipments to Charleston.
TA5	APL Indonesia	Vessel partner elected to omit Newark because of the storm.  Newark cargo discharging in Norfolk on 10/31. Newark imports are being railed to Newark.
TA5	MOL Destiny	Vessel delayed calling Newark.  Vessel partner yet to advise if they will wait for terminal to open or omit and discharge in Norfolk.

Also of interest may be this video Maersk produced explaining how big container ships weather storms at sea: http://vimeo.com/52383530

OOCL customer update:

OOCL/NYK vessel rescheduling: Below is some information regarding how shipping will be redirected after ports reopen.

Service	Vessel Voyage	Schedule Updates	Recovery Plan Updates
AEX	Italy Express (ILX) 059E	ETA NYC on 2 Nov with a delay of 3 days (72 hours).	ILX will be phased out at SIN. LFX will be phased in at VUT.
	OOCL Antwerp (OAW) 048W	ETA ORF on 30 Oct and NYC on 1 Nov, with a delay of 3 days (72 hours).	RCC is checking with NYK. Might be omitting JED/CLB for schedule recovery.
PAX	Hoechst Express (HOE) 016W	ETA NYC 2 Nov and ORF 4 Nov, with a delay of more than 2 days (57 hours).	Overall delay situation on PAX service has been raised up to OPSCOM level. Will further update.
	Seoul Express (SOX) 003W	ETA ORF 1 Nov, with a delay of more than 5 days (139 hours). CY cutoff for SAV is extended.
	Kobe Express (KBX) 072E	ATD NYC on 28 Oct, with a delay of 7 days (179 hours).
	Duesseldorf Express (DUX) 003E	ETA NYC 28 Oct, with a delay of 2 days (48 hours).
	Rotterdam Express (ROX) 076E	ETA SAV 3 Nov, with a delay of 4 days (96 hours).
IEX	Mare Atlanticum (MTT) 011W	ETA NYC 31 Oct, with a delay of at least 2 days.	Possible recovery plan options under review : (i) Port rotation to ORF>NYC>SAV>CHS; (ii) Skip NYC call; (iii) Slide one week.
	NYK Kai (NKI) 026W	ETA NYC 8 Nov, with a delay of more than 2 days (56 hours).	RCC is checking with NYK. Might have possibility of slide one week as recovery.
NCE	NYK Romulus (NRO) 015E	ETA NYC 1 Nov, with a possible delay of 1 day.	RCC is checking with NYK.
	NYK Rumina (NRU) 014W	ATD ORF 27 Oct. ETA SAV 1 Nov with a delay of more than 3 days (74 hours).	RCC is checking with NYK. There is buffer at SAV-PUS. ETB PUS 1 day. Will request NYK to speed up as recovery action.
SCE2	Virginia (VRG) 003E	ETA KIN 29 Oct and SAV 4 Nov, with 4 days delay. SAV and CHS cutoff have been extended.	Vessel will be phased out at Pusan.
SCE	OOCL Kobe (OKB) 044W	ATD NYC 28 Oct, with 1 hour delay. ETA ORF 31 Oct, with a delay of 43 hours. CY Cutoff SAV and MIA extended.	Vessel will be phased out at HKG.

On October 1, 2012 with the launch of its Shanghai logistics facility, the Topocean Group opened its sixth and largest warehouse in China. Close to the Shanghai Container Port and with ready access to inland transportation hubs, our Shanghai warehouse plays a significant role the exceptional logistics solutions and services that are the Topocean standard.

Labor News

ILA/USMX Talks Continue (usmxlaborupdates.com) On October 14, 2012, Federal Mediation and Conciliation Service (FMCS) Director George H. Cohen released a statement commending both the International Longshoremen’s Association (ILA) and the United States Maritime Association (USMX) on the “productive negotiations” that concluded on Saturday (10/13/12). According to the press release, due to progress made, these contract talks would continue over the course of this week.

Per FMCS policy neither the location nor the substance of the talks have been released to the public; however, this statement indicates that the discussions between both parties are productive and may very well result in an effective master contract for the 14 East and Gulf Coast ports managed by the USMX group.

The 90 day extension of the East and Gulf Coast master contract expires on December 30, 2012. It is hoped that a new contract will be agreed upon prior to this deadline. Both the USMX and ILA’s agreement to continue talks after September 30th brought much relief to shippers, retailers and others throughout the logistics industry concerned about a major port closure during the height of shipping’s peak season.

JOC Coverage of ILA/USMX Negotiations(some articles will require a subscription)

USMX Labor Updates and Press Releases

Economic and Industry Reports

Georgia Logistics Monthly Market Snapshot (October 15, 2012) Just how strong will the 2012 peak season be? What is the import/export volume of container shipments within the US market? From the US unemployment rate to the Shanghai Containerized Freight Index this report gives a comprehensive picture of the state of the US shipping industry across all modes of cargo movement. Released monthly and with a slight focus on the Georgia logistics market, this report provides a thorough synopsis of leading market indicators from over the past 30 days. Sign up for the report at http://www.georgialogistics.com/logistics-resources/snapshot.aspx

Federal Reserve “Beige Book” of Current Economic Conditions This is the September 2012 report of economic activity and conditions throughout the Federal Reserve’s 12 districts. This report provides a detailed review of the state of the US economy in general as well as complete portraits of economic activity within each Federal Reserve District.

Shipping News

UPDATE 1-Maersk Cuts Asia to Europe Capacity as Growth Stalls (Reuters) Due to the declining import market in Europe, Maersk has decided to reduce capacity on Asia-Europe trade lines.

Industry Calls on Shippers to Switch Modes as Driver Shortage Worsens (The Loadstar) The US driver shortage and its implication for US logistics: “Domestic intermodal volume rose 12.5% in the second quarter, year on year, in the third straight quarter of double-digit growth. According to the Intermodal Association of North America, intermodal rail volume accounts for about 10 to 15% of all US surface transport and the sector is seeing steady volume growth, rather than peaks.”

China's Top Two Shippers Join Forces in Domestic Container Trade (Reuters) In response to China’s economic slowdown, Cosco and China Shipping are consolidating their services on China’s domestic container shipping routes. Together the two shippers will cover 80% of China’s domestic shipping market.

Transpacific Stabilization Agreement (TSA) Rate Increase

On September 25, 2012, the members of the Transpacific Stabilization Agreement (a group of 17 major ocean carriers) announced its 2013-2014 contract guidelines, which will be applied to “all new and renewed service contracts, from all Asian origins, to become effective with those contracts, from mid-October going forward” (2013-2014 Contract Guidelines). These new rate guidelines seek to correct the losses the carriers experience in 2011 and early in 2012 and to stave off future losses.

TSA members support the following increases and changes:

• US $800 per FEU for cargo bound to the US West Coast
• US $1000 per FEU for all-water cargo bound to the US East and Gulf Coasts
• US $1,200 per FEU for all intermodal cargo via all coasts
• Fuel cost recovery measures: a single bunker charge, which will replace the existing three-tier inland fuel surcharge (starting January 1, 2013)

Additionally to maintain these increases through the leaner winter season and spring-time contract negotiations, TSA members intend through slow steaming and route consolidation to keep capacity at level able to sustain higher rates and to allow carriers to continue their financial recovery from the significant industry losses of 2011-2012. Interestingly, this tactic has been effective because carriers have focused less on preserving or even increasing their individual market shares as they have attended to increasing their profitability by insuring the rates they charge are “compensatory” (Pricing Discipline).

Unfortunately, these changes have impacted NVOCCs and 3PLs more directly than they have shippers who negotiated contracts with the carriers prior to the 2012 rate increases. However, with the implementation of these new contract guidelines, these rates should no longer be levied disproportionately among NVOs and 3PLs as the burden will be shared with shippers working directly with carriers.

Analysis and Commentary:

TSA Press Release: Transpacific Carriers Announce 2013-14 Contract Guidelines

Journal of Commerce: Trans-Pacific Carriers Plan Rate Hikes and Carriers’ Pricing Discipline Paying Off (subscription may be needed)

Reuters: Transpacific liners back $800/FEU rate increase

New Warehouse Space in Shanghai -

On October 1, 2012, Topocean Consolidation Service China, LTD is pleased to announce the launch of a new state-of-the-art warehousing facility in Shanghai, China. This upgraded “Five-Star” warehouse, located in the Waigaoqiao port area, will provide exceptional storage and logistics facilities managed with Topocean’s typical care and attention to detail. Likewise its location is convenient to all Waigaoqiao container terminals and most local vendors and factories.

With a 20,000 m² (215,280 sq ft) yard, 16,000 m² (172,200 sq ft) of available indoor warehousing space, and as many as 30 docks for loading and unloading, this warehouse complex has the capacity needed to manage even the most complicated and the largest of shipments. Both yard and warehouse are protected by an advanced surveillance system and outfitted with a first-rate sprinkler system and top-quality fire extinguishers throughout the facility.

Managed by supervisors with over 20 years of warehousing experience, this warehouse not only offers a convenient location and exceptional facilities, but also well trained operational staff and skill workers. This warehouse is, therefore, more than a place to store cargo prior to shipping; here our customers can consolidate or deconsolidate shipments, manage freight from multiple suppliers, assemble components, insure that their customs filings are accurate and complete, and finally load containers for shipping.

This dynamic warehousing facility is the cornerstone of Topocean China’s first mile service for China exports and last mile service for imports. With warehousing now available not only in Ningbo, Shen Zhen, Xia Men, Qingdao, and TianJing but also in Shanghai, Topocean is able to deliver on its promise of exceptional service and to meet the needs of all customers regardless of the challenge.

Upcoming Capacity Challenges:

China’s “Golden Week” Holiday Service Cancellations China’s National Holiday or “Golden Week” (October 1-7, 2012) will see container shipping services severely curtailed with Maersk and the G6 Alliance (a group of European and Asian carriers, APL, Hapag-Lloyd, Hyundai Merchant Marine, MOL, Nippon Yusen Kaisha and Orient Overseas Container Line) suspending services throughout the holiday week. JOC reports that Maersk will also suspend 5 Asia-Europe sailings starting October 1st through the 14th. While some ships will still sail, capacity and space onboard will be at a premium.

“Winterization” Recently, the G6 Alliance announced the temporary closure of their “Loop 3” services, which represents a 15% reduction in their capacity. This “loop” calls at Shanghai – Ningbo – South China – Singapore – Tangier – Rotterdam – Bremerhaven – Gdansk - Gothenburg – Rotterdam – Jeddah – Singapore – South China – Hong Kong – Shanghai. The final sailing will be the OOCL Hamburg departing Shanghai on October 6, 2012. After week 40, therefore, normally anticipated winter capacity will be reduced by at least 4,000 feu as the Grand Alliance and Zim Integrated Shipping Services consolidate some of their routes:

But the industry is starting to take out capacity, with some carriers beginning their winter schedules early. The CKYH alliance of Cosco, “K” Line, Yang Ming and Hanjin took the initiative by dropping some Asia-North Europe sailings. The G6 Alliance has suspended an Asia-Europe loop that cut overall capacity by 15 percent in a telling turnaround from the early spring when its member lines — Hapag-Lloyd, NYK, OOCL, APL, Hyundai Merchant Marine and MOL — fast-forwarded the launch of a new service in response to strong demand. The Grand Alliance and Zim Integrated Shipping Services plan to merge two of their joint trans-Pacific services to the U.S. East Coast. And Maersk, the Asia-Europe market leader with a near 18 percent share of traffic, said it would reduce capacity out of China in October, a prelude to what it called significant cuts later in the year. (Journal of Commerce)

While carriers have not announced such an aggressive suspension of trade lines between North America and Asia, TransPacific trade lines are being consolidated in anticipation of the post-Christmas slowdown.

USMX/ILA Update

ILA and USMX Agree to a 90 Day Extension to Master Contract Negotiations. For now, a strike in October has been averted. Despite what appear to be significant disagreements on compensation and royalty rules, both sides have agreed to continue negotiating a new contract beyond the 9/30 deadline. This continuation is a major step forward in avoiding potentially damaging industrial action as several ILA local branches had already authorized a strike if a contract had not been agreed upon by the deadline. Comprehensive coverage of this ongoing situation is available from the Journal of Commerce.

Shipping Rate Information and Analysis

SCFI - Shanghai Containerized Freight Index (subscription may be required for entire article) The Journal of Commerce reproduces the September 14th “Shanghai Container Freight Index,” which shows how shipping rates have grown over time: “The index was 265.25 points or 26 percent higher than a year ago and 338.05 points or 35.7 percent higher than year-end.”

The China Containerized Freight Index (CCFI) weekly bulletin describes current market conditions and their effect upon ocean container freight volumes. This week’s bulletin reports that while USWC & USEC traffic remains stable, this demand is insufficient to offset the 8000 TEU decline in European container shipments.

ILA/USMX Agree to Extend Contract Negotiations another 90 Days

Earlier on Thursday, September 20, 2012, Director of the Federal Mediation and Conciliation Service (FMCS), George H. Cohen released a statement revealing that both the ILA and USMX agreed to extend the collective bargaining period another 90 days. His announcement posted both on the USMX labor updates page and on the FMCS’s homepage brings significant relief to the retail and shipping industries anxiously anticipating a potential longshoremen strike on October 1st and substantial disruption of supply chains.

While this is good news and eases concerns about a strike at the height of the peak season, the fact that neither side is confident in their ability to quickly reach an agreement does, according to the Journal of Commerce’s Peter Tirschwell, “perpetuate uncertainty.”

Given the confidentially required by the FMCS during ongoing mediation, it is unlikely that much significant news about the talks will be released until an agreement is reached or talks breakdown beyond repair. The schedule of these discussions, their content and their location will not be publically known.

Aside from the immediate benefit for shippers no longer needing to scramble to re-route shipments, this extension also delays implementation of the “congestion fee” ocean carriers were intending to levy in the event of an East and Gulf Coast strike.

Further Information and Resources

http://usmxlaborupdates.com/

http://www.portofvirginia.com/outreach/east-coast-labor-action-information.aspx

Related Articles

http://www.baltimoresun.com/business/bs-bz-longshoremen-extension-20120920,0,5763881.story

http://usmxlaborupdates.com/static/uploads/general-images/AA_USMX-ILA_Release_Draft-_9-20-12.pdf

http://www.joc.com/labor/ila-usmx-agree-90-day-extension

http://www.joc.com/labor/retailers-welcome-ila-extension

http://www.joc.com/container-lines/carriers-strike-surcharges-%E2%80%98prudent%E2%80%99-step

Port and Labor News & Reports

The Waterfront Commission of New York: Special Report to the Governors and Legislatures of the states New York and New Jersey. This report describes the commission’s findings from public hearings held in 2010 and finds that ILA hiring and work practices are inefficient, discriminatory and borderline corrupt. The Journal of Commerce reports that “the commission report recommended elimination of round-the-clock pay, and changes to require shop stewards to be elected by secret ballot, paid the same as co-workers, trained in responsibilities for representing union members.”

American Shipper: ILA strike threat aids August U.S. inbound volumes Given the uncertainty about whether or not the USMX and the ILA will be able to negotiate their contract renewal by the 9/30/2012 deadline shippers wanting to insure adequate supply in advance of the US Christmas shopping season have increased the volume of their orders in the months of August and September. Likewise this increase in shipping volumes indicates retailers’ confidence that 2012 holiday shopping in the US likely to be robust.

JOC Sailings: ILWU Clerical Workers, Employers to Keep Talking At the ports of Long Beach and Los Angeles, ILWU (the International Longshore and Warehouse Union) clerical workers have agreed to continue contract negotiations with port/terminal management. The contract has long since expired and ILWU workers and management are sticking to the terms of the old contract as they negotiate the terms of a new one.

Carrier Rates & News

Agriculture Transportation Coalition (AgTC): Chart Comparing Liner Surcharges for Port Strike This is a very handy break-down of what surcharges the individual carriers will charge in the event of a strike and their levying their “congestion surcharge.” The AgTC Newsletter update on this situation breaks down the issues in the conflict between the ILA and USMX without the competing rhetoric from management and labor spokespeople.

The Global Economy

Journal of Commerce: Maersk CEO: China’s Changing Economy Slowing Export Growth and The Economist: Boxed in Both comment on the apparent slowdown of the global economy as well as the causes and potential effects on the international shipping trade.

The Federal Mediation and Conciliation Service (FMCS) has requested that the ILA and USMX return to the negotiating table in order to avoid a potentially disastrous strike. Both parties have agreed and talks will resume the week of September 17th. The location and meeting agenda are currently undisclosed per FMCS’s requirement.

This is a hopeful sign that both sides will be able to resolve their differences and pull together an acceptable contract. The biggest item still under debate seems to be compensation stipulations like container royalties, particularly for ILA workers at the port of New York/New Jersey. USMX management wants to reform what they consider outmoded income protections, while the ILA wants to maintain these decades old wage concessions. The government’s intervention is timely, and hopefully both parties will be able to iron out their differences before the September 30th deadline.

If a work stoppage is prevented, the carriers’ proposed congestion fee would also be rescinded. The month of October is the height of the peak shipping season as US retailers need to stock shelves for holiday shoppers. Any delay in the supply line from a strike could cause significant harm to the US economy and its still fragile recovery from the economic downturn.

Additional News Resources:

The Star-Ledger: Shippers, longshoremen to resume talks under mediators, feds say

Businessweek.com: Ga. ports chief 'hopeful' strike will be avoided

The Journal of Commerce: Complete ILA-USMX Negotiations Coverage

American Shipper: Special Coverage

Yesterday, 09/04/2012, many of the major ocean carriers announced a “congestion” surcharge on cargo effective if US East and Gulf Coast ports close because of a strike. As reported in the Journal of Commerce , the carriers provided their obligatory 30-day notice of this rate increase, which they will rescind if an ILA strike does not occur.

• Maersk – US/Canada shipments (inbound and outbound)
  • 20-foot: $800; 40 -foot: $1000; 40-foot high-cube: $1,125; and 45-foot: $1,266
• Cosco – Between Asia & the US and Canada; also cargo from the US and Canada
  • 20-foot: $800; 40- foot: $1000; 40-foot high-cube: $1,125; and 45-foot: $1,266
• NYK Line – US bound shipments from Asia, the subcontinent & Australia
  • $1000 per container
• Hanjin – US/Canada shipments (inbound and outbound)
  • $800 per 20-foot and $1,000 for all other sizes.
• Westbound Transpacific Stabilization Agreement (WTSA) – urged members to increase rates
  • $200 for a 40-container and $160 per 20-foot container.

Should East and Gulf Coast ports not close due to a strike, then this surcharge will be revoked. The Topocean Group is following this news carefully and is working to keep our customer’s informed of events as they unfold.

Resources:

Journal of Commerce, Complete ILA http://www.joc.com/labor/complete-ila-usmx-contract-negotiations-coverage (some articles will require a subscription)

American Shipper, Special ILA Coverage http://www.americanshipper.com/Main/News.aspx?taxonomy=SpecialCoverage (some articles will require a subscription)

With a September 30, 2012 deadline looming and talks between ILA and USMX suspended, shippers, carriers and ports are beginning to review their contingency plans in the event of a strike.

The Virginia Port Authority (VPA) and its operating company, Virginia International Terminals (VIT), are getting ready for a work stoppage on October 1, 2012. Among their contingency plans are expediting as much cargo as possible through the port and terminals prior to the contract deadline. Additionally, VPA and VIT are meeting with multiple stakeholders who share in the day to day operations of the Hampton Roads Port. These meetings will hopefully produce a strategy for efficiently managing as much freight as possible prior to the deadline.

The National Industrial Transportation League (NITL) has begun calling for the US Department of Transportation Secretary, Ray LaHood to take steps to get both the ILA and USMX to resume contract talks. NITL CEO Bruce Carlton raises concerns about the potentially disastrous impact that a work stoppage in these ports would have on the US & Global economy.

Both the Retail Industry Leaders Association (RILA) and the National Retail Federation (NRF) have added their voices to calls for a resumption of talks.

The Journal of Commerce reports that cargo traffic is already being diverted from East Coast ports to West Coast, Canadian and Mexican ports, which has already caused some significant shortages in capacity. Carrier rates are on the rise, and capacity is at a premium. Cargo is already being “rolled.”

Joseph Bonney and Peter Tirschwell’s commentaries in the Journal of Commerce go into great detail about the implications of a strike, the likelihood of government intervention and the possible impact to the industry. Both Bonney’s and Tirschwell’s analysis of the situation is positive on government intervention under the Taft/Hartley Act: “With the Sept. 30 contract expiration just five weeks before Election Day, a work stoppage will quickly become a political issue. The threat of economic disruption would put the Obama administration under pressure to seek a Taft-Hartley Act injunction that would force dockworkers back to work for an 80-day cooling-off period” (Bonney).

At this point, it is difficult to fully predict what direction the ILA will take and whether or not both sides will be able to resume talks productively. With very little time now before the deadline, a prudent execution of contingency plans may very well be warranted.

Articles:

http://www.joc.com/labor/nit-league-urges-lahood-seek-ila-usmx-talks

http://www.logisticsmgmt.com/article/nitl_calls_on_dot_secretary_lahood_to_intervene_in_ila-usmx_labor_dispute/#.UECwOZ6WZWM.twitter

http://www.joc.com/portsterminals/rush-ship-space-west-coast-ports

Websites:

http://usmxlaborupdates.com/news-and-updates/newsflash-management-calls-on-ila-to-meet-discuss-work-rules/

http://www.nitl.org/press.htm

http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1421

http://www.joc.com/labor/complete-ila-usmx-contract-negotiations-coverage

As reported in the Journal of Commerce, the ILA has come one step closer to authorizing a strike if a new contract is not negotiated in time for the September 30, 2012 deadline. Compensation, work day guarantees and job elimination are the heart of the ILA’s reasons for walking out of talks last week and the decision of Local 1804-1 to authorize a walk out if ILA leadership calls for a strike.

USMX argues that many of these provisions are archaic and unnaturally raise costs. According usmxlaborupdates.com, compensation packages such as container royalties stem from the 1960s and were instituted to help insulate dock workers from the changes that containerization brought in. USMX reasons that these provisions are no longer needed to protect workers as the labor force and shipping industries have long since adapted to the efficiencies and workflow changes brought about by containerization.

In response to the breakdown in negotiations last week, retail industry leaders are urging both parties to reopen contract talks and to avoid a strike by all means necessary. The economic and supply chain ramifications should a strike occur during the height of the peak season would be disastrous.

The master contract USMX and the ILA were negotiating would affect 14 ports along the East and Gulf Coasts. This will impact not only the port of New York & New Jersey, but also: Boston, the Delaware River Ports, Baltimore, Hampton Roads (Virginia), Wilmington, Charleston, Savannah, Jacksonville, Port Everglades, Miami, Tampa, Mobile, New Orleans, and finally Houston.

Resources and Coverage:

http://www.joc.com/press-release/nrf-asks-labor-and-management-resume-port-contract-talks

http://www.joc.com/labor/daggetts-ila-local-authorizes-strike

http://usmxlaborupdates.com/news-and-updates/backgrounder-container-royalties/

http://www.nj.com/news/index.ssf/2012/08/possible_longshormens_strike_c.html

According to a report in the Journal of Commerce , talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) broke down today, August 22, 2012. ILA representatives abruptly left the talks after receiving what they called a “take it or leave it” proposal from USMX leadership.

In a statement released on USMXLaborupdates.com, USMX Chairman, James Capo, advises the ILA to return to the negotiation table and address the compensation issues that brought talks to a standstill. Citing a history of successful negotiations and compromises that have “ led to agreements without any disruption to the supply chain and port operations on the East and Gulf coasts,” Capo urges the ILA to work through these disagreements to come to a mutually beneficial contract and avoid a potentially catastrophic peak season work stoppage and disruption of the supply chain.

ILA Considering a Strike

UPDATED (8/22/2012): Further comments from ILA President Harold Daggett on the breakdown of negotiations between ILA and USMX indicate that industrial action is increasingly likely. The Journal of Commerce’s follows up on its initial report with further detail from both sides on the reasons for the suspension. A resolution before the September 30, 2012 contract expiration date is becoming increasingly unlikely.

Resources

http://www.joc.com/labor/ila-contract-talks-break-down

http://usmxlaborupdates.com/news-and-updates/usmx-urges-ila-to-engage-in-meaningful-contract-negotiations/

http://www.joc.com/labor/daggett-ila-strike-likely-after-talks-collapse

USDA Ocean Shipping Container Report Weekly update of USDA’s new OSCAR program. Check this report to see a snapshot of where the containers available for the westbound transpacific trade lanes are.

Carrier Rates & News:

Reuters.com: Africa's pirates have demands - and letterhead, too While piracy has been on the decline in recent months, evidence shows that piracy is becoming a big business in the region.

Journal of Commerce: Erasing Shipping's Capacity Glut While currently carriers have more capacity than containers, this article projects that by 2015 there will be a substantial space shortage.

Washington Post: FedEx to offer buyouts to some US employees in effort to cut costs Despite its cost cutting measures, the recent slump in air freight has had a very strong impact on FedEx’s profitability.

Asia:

The Economist: The masala Mittelstand Is India poised to begin taking over China as a global manufacturing powerhouse. The potential is there, but local conditions are far different from China’s.

Maerskline.com: Update of Tropical Storm Kai-Tak Even though, several major Chinese ports closed temporarily as Kai-Tak approached the country’s south-eastern coast, Maersk reports that shipping has recommenced and is working to bring their line back on schedule.

US Industry News:

Journal of Commerce: Portland Dispute Isn’t Over, ILWU Says Currently the negotiations between the USMX group and the ILA over contract renewals has shippers concerned over a peak season work slowdown or stoppage at eastern US ports; however, eyes are on this ongoing jurisdictional dispute between labor unions that could affect productivity at the Portland port.

Businessweek: The Van Indicator Signals Recovery on Main Street US economic growth is slow; however, certain, informal, indicators may shed positive light on the state of small/mid-sized business in America.

Typhoon Kai-Tak approaching landfall in Guangdong Province

Typhoon Kai-Tak, the year’s thirteenth typhoon, is expected to make landfall around noon local time on Friday, August 17, 2012. Late in the evening on the 16th, authorities in Hong Kong issued a Number 8 storm signal and suspended port services. As of 4:00pm, the Hainan Maritime Safety Administration suspended all activity in ports throughout the region to be affected by the approaching storm.

Likewise the ports of Yantian and Chiwan/Shekou have closed down the ports for the duration of the storm. Shipping activities will resume once the winds have died down and work can proceed safely.

Topocean is still reviewing the situation and what delays it may have on shipping schedules.

Resources

Maersk Line: Update of Tropical Storm Kai-Tak

Businessweek.com: Hong Kong Closes Ports, Shuts Schools as Typhoon Kai-Tak Nears

English.news.cn: Typhoon Kai-Tak halts S China transport services

New Reports and Analyses:

USDA Ocean Shipping Container Report Weekly update of USDA’s new OSCAR program. Check this report to see a snapshot of where the containers available for the westbound transpacific trade lanes are.

Bloomberg’s China Import Trade YoY Here’s a useful snapshot graph showing the movement and volume of China’s import trade. Users can track import volumes over 5 years, 3 years, 1 year, 6 months and 3 months.

Carrier Rates & News:

SupplyChainBrain.com: World's Container Fleet Continues to Grow, Report Finds This piece summarizes the Drewry Maritime Research report that came out this week.

Bloomberg.com: Maersk to Add Prius Of The Seas With Fuel-Saving Ships Maersk has ordered 20 cargo-box carriers from Daewoo Shipbuilding. These ships with distinctive rounded hulls mark shippers continued shift from wanting ships to go as fast as possible to desiring greater fuel economy and reduced environmental impact.

Cargo Business News: Six shipping lines sign on as inaugural participants in Port of L.A.'s environmental ship index

Supply Chain Management Review: State of Ocean Cargo 2012 and Beyond This is the first in a three part series covering the ocean cargo industry. Each article in the series features an interview with a different industry key player.

gCaptain.com: Pedestrians Get Quite a Show as Maersk Containership Sneaks Under the Bayonne Bridge [VIDEO] While not quite news, the 2 minute video is quite stunning. The ship in question is one of Maersk’s larger container ships.

China & Southeast Asia:

Bloomberg.com: China Export Growth Slides as World Recovery Slows China’s weak export growth in July fuels fears that the global economy is continuing to sink into recession.

US Logistics Industry News:

JOC Sailings: Container Traffic Up 3 Percent at West Coast Ports Despite recessionary pressures from the ongoing Eurozone crisis, US ports are still busier this year than last.

Shanghai and Ningbo Container Ports Closed

On Wednesday (August 8, 2012), Typhoon Haikui (the third typhoon to hit China’s eastern coast in a week) made landfall between Ningbo & Wenzhou. On August 7th, the Shanghai port was closed in preparation of the storm’s arrival, and the port will remain closed through August 8th. It is hoped that the port will reopen on the 9th, but as the forecast predicts that strong rain and winds will persist throughout the 8th (Wednesday) and potentially into the 9th (Thursday) the outlook for reopening is uncertain. Similarly, the port of Ningbo has closed and will reopen once weather conditions permit.

Because of these closures, Automated Manifest System (AMS) paperwork cannot be filed. Until the port and terminals reopen, all outbound departures are delayed. All vessel schedules will be changed and are unknown at present. It normally takes a few days to return to normal operations.

For more information on closures and the situation in Shanghai and Ningbo:

http://www.maerskline.com/link/?page=lhp_news&path=/asia/china/Tropical_Storm_Haikui&lang=en_GB
http://www.shanghaidaily.com/nsp/Metro/2012/08/08/Every%2Bprecaution%2Btaken%2Bas%2Bcity%2Bwaits%2Bfor%2BHaikui/

ILA and USMX Labor Negotiations to Resume in August

With a September 30, 2012 deadline looming, negotiators from the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) will be meeting from August 22nd to the 24th to continue working on a new labor contract.

Talks between both parties have been occurring frequently over the past several months and progress is being made toward an acceptable contract.

For more information and further updates: http://usmxlaborupdates.com/

International Logistics News Highlights (July 28-August 3, 2012)

New Reports and Analyses:

USDA Ocean Shipping Container Report Weekly update of USDA’s new OSCAR program. Check this report to see a snapshot of where the containers available for the westbound transpacific trade lanes are.

The Federal Maritime Commission: Study of U.S. Inland Containerized Cargo Moving Through Candian and Mexican Seaports Depending on which side of the border you live, this report could be good news or bad news. Further coverage of this report: Report is ‘good news’ for Canadian ports.

Carrier Rates & News:

Journal of Commerce: Trans-Pacific Carriers Secure Small Portion of Aug. 1 Rate Increase & Hanjin Reverses First Quarter Loss

Bloomberg: Orient Overseas First Half Net Drops 33% on Fuel Costs Even with their rate recovery plans, many ocean carriers are seeing profits reduced as the Eurozone crisis and economic softening in the US and China impacts are being felt.

China & Southeast Asia:

Business Week: China Reiterates Growth Chief Priority

US Logistics Industry News:

USMX: USMX-ILA Negotiations Continue Both parties return to the bargaining table later this month in order to avoid industrial action.

US Anti-Dumping Duty on Solar Panels: Update

On June 1, 2012 the US Commerce Department issued a preliminary investigation report affirming its decision to impose anti-dumping tariffs on the import of solar cells manufactured in the People’s Republic of China (PRC).

Of critical importance are the stipulations that the duty is levied upon “crystalline silicon photovoltaic cells, whether or not assembled into modules, from the PRC.” To date this duty is only being levied upon solar cells manufactured in China. No duty is being levied on solar cells manufactured outside of the PRC.

Importers of such cells are required to maintain and provide (upon request) certification and documentation concerning the country of original manufacture of the cells of a “thickness equal to or greater than 20 micrometers, having a P/N junction formed by any means, whether or not the cell has undergone other processing.”

For solar products manufactured in the PRC but using solar cells imported from a 3rd country, the exporter and the importer are required to maintain and provide (upon request) certification concerning the country of origin where the cells used were manufactured.

Certification statements for importers and exporters are available in full in CBP Message Number: 2153302.

Certification statements are required, but should only be provided upon the request of the CBP. They do not need to be included as part of the shipment’s entry documentation package.

For more information on this tariff, please visit the CPB’s AntiDumping and Countervailing Duties search engine and search for the following AD/CVD messages: 23153302, 2158303, 2087303 and 2163303. The CPB’s AD/CVD search engine : http://addcvd.cbp.gov/index.asp?ac=home

Sources

CPB’s AD/CVD: http://addcvd.cbp.gov/index.asp?ac=home

US CBP: New Requirements for All Importers of Solar Panels

The New York Times: US Slaps High Tariffs on Chinese Solar Panels

New Reports and Analyses:

USDA Ocean Shipping Container Report Weekly update of USDA’s new OSCAR program. Check this report to see a snapshot of where the containers available for the westbound transpacific trade lanes are.

Where are all the ships? This is a handy tool for staying on top of maritime traffic. It is searchable and uses the AIS system to give fairly up to date information about ship locations.

Carrier Rates & News:

Shippingonline.com: Transpacific peak season surcharges hit spot rate using NVOCCs hardest With the global trade slowing down, carriers are trying to mitigate their losses and excess capacity with these surcharges and GRIs; however, the effect of these changes are felt unevenly across the shipping industry.

Time Business: UPS Sees Global Economy Getting Worse UPS in response to its forecast that global trade growth will slow is decreasing its earnings projections and trimming its business.

China & Southeast Asia:

Forbes.com: The End of Chinese Manufacturing and the Rebirth of US Industry The author argues that advances in robotics, 3D printing, nanotechnology and artificial intelligence will revolutionize manufacturing and bring industry back to U.S. soil.

Global Times: Water inflow into the Three Gorges Dam recedes Stunning images of China’s 3 Gorges Dam in action as it controls Yangtze River flood waters; the flood peak was 71,200 cubic meters per second of water rushing through the dam’s spillways.

Reuters: Flood risk rampant across Asia’s factory zones In light of this week’s flooding in Beijing, this article serves as a timely reminder of an important risk to the supply chain.

US Logistics Industry News:

HSToday.us: Lawmakers Pan DHS Waiver of Maritime Cargo Scanning Mandate Coverage of the congressional hearing lawmakers in Washington, DC had with DHS Director Janet Napolitano regarding her department’s decision to waive for 2 years the 100% scanning of cargo coming into the US.

CNNMoney: US economy slowed in second quarter With consumer spending down, the US economy grew at a 1.5% annual rate.

Los Angeles, July 25, 2012 - The Topocean Group was among 34 area businesses recognized by the Asian American business community for “setting the example for excellence throughout Greater Los Angeles” in the 2nd annual Los Angeles Business Journal Asian Business Awards.

Fellow honorees included First Choice Bank, Niner Bikes, OhCal Foods, LLC/Subway, Korean Air, Fresh Events Company, Hana Financial, Inc, among many other exceptional Los Angeles area companies. We are grateful for the recognition and are pleased to have been included in such an august group of finalists.

The awards event, held at the Omni Hotel in Los Angeles, was hosted by the Los Angeles Business Journal. Event sponsors were Cathay Pacific, California Bank & Trust, The Asian Business Association, The South Asian Business Alliance Network and Wells Fargo.

On September 30, 2012, the labor contract between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) is set to expire. Should this contract fail to be renewed work slowdowns or stoppages are likely to occur at 14 major ports along the US Atlantic and Gulf Coasts. The impact to shippers and retailers “would be,” according to RILA President Sandy Kennedy, “devastating to the retail industry.” Kennedy’s letter continues by urging both sides to come to a contract agreement prior to the September 30th deadline to avoid costly delays or supply chain redirection.

Fortunately, the contract talks, which resumed on July 16, 2012, have been going well with both parties reviewing each other’s proposals and coming to important agreement on issues concerning automation and chassis. There is still some ways to go before a contract is agreed to by both groups’ leadership; however, it appears that significant progress is being made, and this momentum toward a new contract is a good sign that the peak shipping season will avoid significant disruption.

RILA Urges East Coast Ports and Longshoremen to Avoid Work Stoppage
ILA, USMX resolve automation, chassis issues
USMX July Labor Updates

New Reports and Analyses:

USDA July 18th Ocean Shipping Container Report Weekly update of USDA’s new OSCAR program. Check this report to see a snapshot of where the containers available for the westbound transpacific trade lanes are.

ILA and USMX Announce Progress in Contract Negotiations While the September 30th contract deadline is looming, it does appear that negotiations are going smoothly and that a new contract may be agreed upon without any industrial action and portside disruption.

International Port Technology:Compulsory weighing of containers a false remedy, say shippers

Carrier Rates & News:

Journal of Commerce: Maersk Sets Rate Hikes on Major Trades

Bloomberg.com: Container Punctuality Shows Signs of Improvement, INTTRA Reports and Shipping Recovery Seen Delayed at Fearnley on Slowing Demand

Logistics Management:Ocean cargo carrier performance gaps outlined in new report

MarineLink.com: Maersk Ships Save US$ 90-million on Energy Using KPI

China & the Global Economy:

The Economist:Chinese checkers: The spectre of big-power rivalry spoils an ASEAN gathering

Business Week: China Profits Sinking May Pressure Wen to Reduce Taxes

Reuters: Global economy hobbled by Europe, 2013 promises more: poll

US Logistics Industry News:

MarineLink.com: North American Emission Rules for Ships Enter Force

Los Angeles Business Journal: L.A., Long Beach Ports Report Improved June

Journal of Commerce: Railroads Face Bigger Threat in Price-Fixing Suit

Supply Chain Brain: Retail Container Imports Expected to Increase 1.6 Percent in July

Journal of Commerce: Obama Fast-Tracks Reviews of East Coast Port Projects

Asia Times: Republicans sink law of the sea, for now

Carrier Rates and News:

The carriers represented under the Transpacific Stabilization Agreement (TSA) will be announcing significant rate increases to start as early as the first week of August: Asia-U.S. Container Lines Stay Focused on Freight Rates as Market Improves

Marinelink.com: Containershipping: When will the Comeback Commence?

Reuters: Transpacific liners plan August freight rate hikes

Journal of Commerce: Trans-Pacific Spot Rate Declines 2.9 Percent and Container Lines Could Turn Profit This Year, Drewry Says

Travel News: IATA Reports Slowdown of Global Air Traffic

China’s Economy:

The Eurozone crisis decreases demand for Chinese exports and economic stressors continue to slow down China’s economic growth. What is the regional outlook for the 2nd half of 2012?

Global Times:Changing market threatens to capsize ship making industry

Reuters: China second quarter economic growth around 7.5 percent: government think-tank

Asean Regional Forum

This week in Phnom Penh, Cambodia the Association of Southeast Asian Nations (Asean) Regional Forum convened. Among the many topics addressed, the South China Sea is perhaps the most controversial.

Reuters:U.S. urges China to open talks on South China Sea

USA Today: Tiny Island in South China Sea is stirring up tensions

New York Times: Asian Leaders at Regional Meeting Fail to Resolve Disputes Over South China Sea

Logistics Industry News:

Below are some good resources for tracking recent developments within the supply chain and logistics industry: from potential work stoppages in September at East Coast ports to the first ever USDA report on where the empty containers are. It has been a busy week.

US Maritime Alliance:RILA Urges East Coast Ports and Longshoremen to Avoid Work Stoppage

USDA:Ocean Shipping Container Availability Report (OSCAR) Report Abstract: “A weekly snapshot of the availability of marine shipping containers at 18 different intermodal locations for the westbound transpacific trade lanes.”

CargoNews Asia: China logistics sector its own worst enemy

Special Report:

Ball State University’s: 2012 Manufacturing and Logistics National Report ranks each state against its peers in several areas of the economy that important to the manufacturing and logistics industries: manufacturing and logistics industry health, human capital, cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, tax climate, and global reach.

Economic Forecasts:

Below are some very useful analyses of the current state of the US economy, the effects of the Eurozone crisis on China and the trans-Pacific trade:

Bloomberg.com:China Beige Book Shows Pickup Unseen In Official Data

Reuters:China rate cut a gamble that banks will boost economy

Logistics Industry News:

Below are some good resources for tracking recent developments within the supply chain and logistics industry: from information about the US intermodal transportation industry to the latest on US transportation policy to the potential for new trade corridors.

The Economist: Short and sharp: Arctic sea routes have been a long-standing dream; now they are becoming a reality and Melting Arctic sea-ice and shipping routes: Northern exposure

American Shipper: U.S. intermodal traffic reaches new heights

Eye for Transport: The top 10...or make that the top 12 thoughts for supply chain in 2012

The New York Times: Cargo, the Terrorists’ Trojan Horse

Carrier News:

Here are some interesting analyses of the current state of the carrier industry:

The Economist: A fragile truce: Container lines make peace after a bloody price war

Forbes: FedEx Hints At Future Course Through Grim Asia, U.S. Growth: Analyst

Ningbo, China, June 6, 2012 -- Topocean’s Ningbo office is moving.
As of 6/11/2012, the new address is:

Room 1504, Hengtai Building , No.69 Che Jiao Street,
Ningbo, China 31500
Tel: 86 574 87170777
Fax: 86 574 87174525
E-mail: sales.list@topoceannb.com

San Francisco, June 4, 2012 -- Topocean’s San Francisco office is moving. As of 6/4/2012, the new address is:

1350 OLD BAYSHORE HWY, SUITE 910,
BURLINGAME, CA 94010
TEL NO: (650) 685-8808 FAX NO: (650) 685-8898

The office phone and fax numbers as well as email addresses will remain the same.

Los Angeles, June 1, 2012 -- The Topocean Group proudly unveils its new website. Clients will find the shipping resources they have come to depend upon are even easier to access. All of Topocean’s shipment management resources have been consolidated to one location, so finding your shipment’s information and tracking it from its point of origin to its final destination becomes a matter of a simple point and click.

Over the weeks to come, the website will undergo further fine-tuning as more detailed information and client resources come online. These new resources coupled with the robust Topocean suite of online shipping tools makes our website the clients’ preferred place to stop for all their up to the minute supply chain queries.