The supply chain industry is brimming with anticipation of what’s to come, with supply chain disruptions, industry acquisitions, investments in ports and more. Follow along with our industry news roundup series, to stay informed on the latest trends and advancements impacting the supply chain industry.
Here are five recent stories you won’t want to miss:
Panama Canal pileup reaches 154 vessels
A drier than usual rainy season has led the Panama Canal Authority (PCA) to temporarily reducing both the number of vessel daily slot bookings and the weight limit allowed on each ship crossing via the canal. All of this has led to a backlog of ships, reaching at one point 154 vessels in total waiting to pass through. According to CNBC, the congestion is caused by ongoing drought conditions that roiled the major shipping gateway since the spring. While the restrictions set forth by the PCA for the canal pose challenges, the global supply chain landscape is adapting quickly. We expect to see an accelerated shift of cargo rerouted to the West Coast and transferred via rail, and additional vessels will route through the Suez Canal to the East Coast. Many retailers and companies are likely to diversify import and export strategies to mitigate risk. It’s also likely retailers and forwarders will face a general rate increase on all imports from Asia to U.S. The container spot rate, for instance, has increased by about 50% over the past two months.
Retail 3PL GSC expands service scope with MacMillan-Piper acquisition
GSC, a third-party logistics (3PL) company specializing in transloading and drayage services for imports across the U.S., has acquired Pacific Northwest (PNW)-based transloading giant MacMillan-Piper. By adding MacMillan-Piper’s 54 years of transloading and warehousing experience to the company’s portfolio, GSC aims to optimize export transloading operations and attract more imports and exports to/from the PNW gateway. This move is expected to facilitate two-way traffic for carriers and allows GSC to tap into the growing potential of the Pacific Northwest market.
Savannah reopens berth at Garden City Terminal, boosting capacity by 25%
The Port of Savannah has added 1.5 million TEUs of annual capacity with the reopening of the completely rebuilt Berth 1 at the Garden City Terminal. This expansion allows the port to handle 7.5 million TEUs annually, a 25% increase. This expansion will also allow the port to now accommodate larger vessels, including 20,000 TEU ships. The project aims to alleviate port congestion and boost capacity for growing volumes of discretionary cargo from the West Coast. Additionally, the Georgia Ports Authority is enhancing truck and rail infrastructure and building Savannah Transload Facility for faster order fulfillment. These investments will cater to the fast-growing consumer market in the Southeastern U.S., providing assured capacity for long-term growth.
SSA Marine looks to expand into new US port with deal for Ceres
Marine terminal operator Carrix is acquiring Ceres Terminal to expand its presence in the growing East and Gulf Coast markets. The deal aims to capture container volumes that have shifted away from Carrix’s West Coast ports. Ceres provides stevedoring services at 18 sites in the US and Canada, handling around 10 million TEUs per year. The acquisition will help Carrix’s subsidiary, SSA Marine, diversify its customer reach and offer services in more locations. The transaction is pending regulatory approval.
New capacity wave heading for trans-Pac trade: Sea-Intelligence
Trans-Pacific container lines are increasing their capacity by deploying new vessels in August and September, which could lead to lower spot rates due to a weak peak season. By the fourth week of August, trans-Pacific container fleet capacity is expected to increase by 19.2 percent year-on-year. Ship supply between Asia and North America will grow at double-digit rates, with a 25 percent increase by September 11. Moreover, the global container ship fleet is projected to add 2.5 million TEUs of capacity this year and 3.9 million TEUs next year.
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