According to Germany’s Kiel Institute for the World Economy (IFW) expert, Vincent Stamer, more than 2% of the global freight capacity remains at a standstill in Europe’s North Sea, putting European ports in a “very unusual” situation.

The global supply chain disruptions seem to be dragging far longer than expected, with shipping container shortages and sea ports’ bottlenecks spreading beyond Chinese hubs.

The pandemic and later repercussions have largely impacted the global supply chain and associated sectors, with snowballing logjams at major seaports and corresponding workforce and shipping container shortages driving record hikes in ocean freight rates and lengthy shipping delays across the world.

Over recent months, the global supply chain was subject to yet another crippling wave of disruptions, fuelled by China’s zero-COVID strategy and the lockdown in the country’s largest port, the Port of Shanghai, as well as the ongoing conflict in Ukraine and the subsequent upsurge in fuel prices, which hindered the flow of goods and instigated a series of cost increases and product shortages.

The Saudi supply chain initiative will leverage the kingdom’s resources, infrastructure, and location to bring greater resilience to economies and companies across Europe, the Americas, and Asia, while further enhancing Saudi Arabia’s position in the global economy.

Saudi Arabia’s Crown Prince and Prime Minister, HRH Prince Mohammed bin Salman launched on Sunday the Global Supply Chain Resilience Initiative to attract $10.64 billion (SAR 40 billion) investments to the kingdom’s supply chain sector, in line with the Saudi Vision 2030 programme objectives to position the country as a leading logistics and supply chain hub.

According to Container xChange’s monthly container logistics report, the global container shipping industry is set to experience the typical boom and bust cycle in October, with overall slowed-down demand and a corresponding oversupply of containers.

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According to Container xChange’s data, the price of a cargo-worthy 40 ft HC container in Ho Chi Minh City on September 22 was $3,643, the third highest on the platform.

This indicates a high demand for 40 ft HC containers at the port. Not just the prices, the average pick-up rate of a cargo-worthy 20 ft from the port of Ho Chi Minh to the US dropped from $321 to $117 as well.

The prices for cargo-worthy 40 DC boxes in the ports of China have seen a steady decline in 2022, nearly a 50% drop compared to the beginning of the year.

While the ports of India and Vietnam have seen a similar decline, the trading prices seem to have stabilised over the last two months showing an increase in demand for these boxes at the ports of Mundra, Nhava Sheva, and Ho Chi Minh City, according to the report.

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Europe, on the other hand, has experienced an oversupply of 40 ft HC containers, driving a significant drop in container prices.

“As of September 21, 2022, the general average pickup and delivery (PU) charge for a 40 ft HC cargo-worthy box in the ports of Europe fell from $2,996 in August to $2,773 in September. The prices for the same were $3,281 in July this year,” the report revealed.

Estimated $1 billion deal accelerates shipping line’s movement into port and logistics operations.

German container shipping line Hapag-Lloyd AG is stepping up its push into inland logistics with the acquisition of the shipping terminal and logistics businesses of Chile’s Sociedad Matriz SA AM SA for around $1 billion.

Under the agreement unveiled Tuesday, the German shipping company will acquire SAAM Ports SA and SAAM Logistics SA, as well as a real-estate portfolio from Sociedad Matriz. The ports business comprises terminals in Chile, as well as other countries in South and Central America and in Florida.

The logistics business is concentrated at five ports in Chile, Hapag-Lloyd said.

The acquisition follows Hapag-Lloyd’s purchase last month of a 49% stake in Italian terminal operator Spinelli Group and an investment a year ago in Germany’s JadeWeserPort Wilhelmshaven, which operates port and rail facilities.

The Sociedad Matriz deal is in line with Hapag Lloyd’s strategy to expand involvement in the terminal sector, the shipping line said.

“The purchase agreement that has today been signed will further strengthen Hapag-Lloyd’s business while building up a robust and attractive container terminal portfolio,” the company said.

A congressional advisory body is urging legislators to strengthen U.S. defenses against China’s growing control of digital information related to global shipping and cargo, warning it could undermine national security and businesses, reports The Wall Street Journal.

The U.S.-China Economic and Security Review Commission, in a report to be issued before the end of September, focuses on Chinese cargo-data network Logink, which aggregates information about freight and shipping lines in China and other countries.

The commission’s concern cuts across commercial and military logistics because both use port facilities worldwide. Chinese state-controlled companies over recent years have become significant players in logistics, building on the country’s manufacturing dominance. As the world’s largest exporter, China has fostered some of the world’s biggest shipping operations, including China Cosco Shipping Corp. and China Merchants Group Ltd.

The shipping lines also control port facilities, warehouses and related infrastructure on almost every continent.

Even cargo that isn’t carried by Chinese sea-shipping companies — or data about it — can move through their warehouse or other subsidiaries, such as ground-transportation lines, or through separate systems, such as Logink. In doing so, information about the shipments can be captured by the Chinese companies’ data systems.