Latest news with #LarsJensen
Yahoo
16-07-2025
- Business
- Yahoo
Port of LA Sets June Record on ‘Tariff Whipsaw'—But Signs Point to Fast Fade
The Port of Los Angeles had the busiest June in its history as the rush of cargo stemming from the aftermath of the U.S.-China tariff truce finally reached the West Coast. Loaded imports came in at 470,450 20-foot equivalent units (TEUs), 10 percent more than last year. Alongside the easing of China tensions, importers had sought to get their product into the U.S. ahead of the previous 'reciprocal' tariff deadline of July 9, which President Donald Trump pushed back to Aug. 1. More from Sourcing Journal EU Leaders 'Prepare for War' Against Trump's Tariffs US Warehouse Vacancies Hit Decade High as Tariff Fears Stall New Leasing These Retailers Are Raising Prices Because of Trump's Tariffs June's import total was a 32 percent improvement over the port's May numbers, which had plummeted due to mass blank sailings and cancelled bookings in the wake of Trump's tariffs. Approximately 45 percent of the cargo ending at the Port of Los Angeles typically originates in China, thus causing such significant swings. 'When the pause on U.S.-China tariffs was announced on May 12, this led to an immediate surge of cargo from China to the U.S., mainly of cargo which had been held back,' said Lars Jensen, CEO of container shipping consultancy Vespucci Maritime, in a LinkedIn post. It takes time to book, load and eventually ship this cargo—and carriers only managed to increase capacity in a meaningful way from early June.' According to Jensen, this coincided with the spike in quoted spot rates seen in the second half of May and early June. 'However, the spike in bookings (and spot rates) ended abruptly around mid-June as U.S. importers no longer saw front-loading as a useful way to mitigate the tariff risk they are facing,' he said. Across the board, the port handled 8 percent more containers, or 892,340 TEUs, in June. Loaded exports landed at 126,144 TEUs, a 3 percent improvement from 2024. Port of Los Angeles executive director Gene Seroka referred to the recent volume jump as the 'tariff whipsaw effect,' noting that the combined cargo volume for May and June is 'about the same as last year,' and also matches its five-year average. Five extra vessels not normally scheduled to arrive at the port helped boost volume, according to the port director, with the gateway bumping that number to seven loaders throughout July. Seroka said in a Monday briefing that he is 'seeing a peak season push right now to bring in goods ahead of potentially higher tariffs later this summer,' noting that the port is estimating a throughput of 950,000 TEUs in July. That would be a July record for the Port of Los Angeles, surpassing TEUs by 1 percent. There are multiple negotiation deadlines before for the implementation of global tariffs: Aug. 1 for goods imported from U.S. trade partners that aren't China, and Aug. 12 for imported cargo from China. 'We're going to probably get one last push on imports coming to the U.S. and doing as much as they can to sneak in under that new Aug. 1 deadline,' Seroka said, noting that he expects volumes to ease in August. Citing July's Global Port Tracker report, Seroka pointed out the National Retail Federation's projections that U.S. ports will see a double-digit drop in inbound cargo volume from August to November. 'One thing is certain, the year-end holiday cargo orders should already be in. What's going to be on its way is what we're going to get for that all-important holiday season,' Seroka said. 'It's too late to try to negotiate orders at this point in time for that year-end product.' Dr. Zac Rogers, an associate professor of operations and supply chain management at Colorado State University, said data from the L.A. port's Signal Port Optimizer indicates that inbound peak season is already over. While 70 percent of active loaded import containers entered the terminal in the previous four days, as of Tuesday morning, 'suggesting a lot of current activity,' Rogers noted in a LinkedIn post that active empty containers suggest a 'dearth of future activity' at the port. According to the Port Optimizer, 54 percent of empty containers have been idle for 13 or more days. In total, there are 59,339 empties. 'If supply chains were expecting that another wave of inventories was incoming, we would expect to see the empties shipped back to other countries to be filled again. For reference, there were only 42,631 empties this time a year ago,' Rogers said. 'Empty containers outnumber loaded containers by 15,000 at the busiest port in the Western Hemisphere. That's not something that is supposed to happen in mid-July. Maybe there will be another rush of international inventories to stimulate peak season, but at this point is it looking increasingly unlikely.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Thailand-Cambodia Border Closures Snarl Regional Trade, Apparel Manufacturing
A long-running border dispute between Thailand and Cambodia has escalated into a full-blown restriction in land border crossings. The move could potentially have a ripple effect on vessels seeking to stop at ports in both countries and compel apparel manufacturers to reevaluate their supply chain operations in the region. Tensions between the textile-producing nations inflamed in May when armed clashes along the border left one Cambodian soldier dead. More from Sourcing Journal Maersk Resumes Haifa Imports; Strait of Hormuz Shipping Normalizes Pakistan Slashes Port Qasim Export Fees 50% in Bid to Revive Trade, Lure Ocean Carriers China Port Volumes Hit Record Highs on US Tariff Truce On June 23, the Thai military ordered all permanent and temporary land border checkpoints between Thailand and Cambodia to close. This included suspending all cross-border vehicle movement and trade activities, except for humanitarian purposes, until further notice. In total, six permanent and 10 temporary checkpoints along the Thai-Cambodian border were shut down. Since the land border closures, seaports in both countries have remained open. There has been no direct impact on service lines yet, as there has been when India and Pakistan began a trade standoff that has effectively required ocean carriers to prioritize stops at one country over another. On Wednesday, ocean carrier Hyundai Merchant Marine (HMM) sent an advisory 'strongly' recommending customers against dropping off cargo at a Thailand port and using the trade route for in-transit shipments to Cambodia under merchant haulage. Merchant haulage is a clause in which the shipper is responsible for arranging and paying for the inland transportation of goods, and not the container shipping liner. 'Please be advised that any arrangements made via this route may result in additional costs, longer processing times, and significant delays—all of which will be sole responsibility of the customer,' the HMM advisory said. 'We kindly ask for your understanding and strongly discourage the use of in-transit arrangements via Thailand to Cambodia.' According to the South Korean container shipping firm, the Royal Thai Army Headquarters has not issued any additional guidance on the situation. Aside from HMM, none of the other major carriers have delivered advisories to customers on how to approach trade with either country. 'Clearly shippers with any other carrier will face the same problem if planning to move cargo over land between Thailand and Cambodia,' said Lars Jensen, CEO of container shipping consultancy Vespucci Maritime, in a LinkedIn post Thursday. However, Cambodia-bound ocean shipments via Thailand may also face delays, according to an analysis from Kuehne + Nagel. The logistics giant listed Thailand's Laem Chabang Port as 'slightly disrupted,' saying that congestions at two major terminals have improved over the past week and truck waiting times have reduced to three hours. During the week prior, the port racked up delays for export shipments because of a shortage of containers at the Lat Krabang Inland Container Depot in Bangkok. This due to a lack of available truck drivers to transport empty containers from Laem Chabang to Lat Krabang. Despite this week's improvements, 'fluctuations may occur from day to day,' the Kuehne + Nagel update read. 'Turnaround time between Laem Chabang and the Lat Krabang area has improved to an average of three to five days, and is expected to remain stable. The port is allowing early export gate-ins on application.' The border concerns could have impacts on apparel companies with manufacturing operations based in Cambodia as well, even pushing them to seek new suppliers for the duration of the closure. According to a report from Nation Thailand, many Cambodian buyers have been forced to source products elsewhere, with some Thai manufacturers now needing to delay shipments or suspend operations—particularly for factories in Cambodia reliant on Thai raw materials, such as garments. The border drama unfolds as both countries are currently in negotiations with the U.S. in the hope of conjuring up new trade deals. As part of his wider array of country-specific 'reciprocal' tariffs on U.S. trade partners, President Donald Trump hit both neighboring southeast Asian nations with high tariffs at the start of April. Cambodia was slapped with a 49 percent tariff, while duties on Thailand goods reached 36 percent. Those tariffs got a 90-day reprieve shortly after to make room for the negotiations, with both countries since having 10 percent baseline tariffs on all products exported to the U.S. The countries have a deadline of July 9 before the tariffs revert to their initially proposed figures, although the White House referred to the target date as 'not critical' on Thursday. Trump said during a press conference Friday morning that he plans to send a letter to all countries next week, informing them of their tariff rate. The president acknowledged that July 9 was not a fixed date. 'We can do whatever we want. We could extend it. We could make it shorter,' Trump said. I'd like to make it shorter. I'd like to just send letters out to everybody: 'Congratulations. You're paying 25 percent.'' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Israel attacks on Iran inflame Mideast shipping tensions
There were no immediate reports of attacks on commercial shipping by Iran after Israel attacked nuclear targets there Thursday. But shipping analysts warned that could change amid rising tensions in the region. As of early Friday vessel traffic was flowing through the Strait of Hormuz between Iran and Oman, the only route out of the Persian Gulf to global shipping lanes. GPS data showed container ships from Taiwan's Wan Hai and CMA CGM of France in the area. United Kingdom Maritime Trade Operations (UKMTO), which monitors Middle East shipping, said increased tensions in the region 'could lead to an escalation of military activity having a direct impact on mariners. Vessels are advised to transit the Arabian Gulf, Gulf of Oman and Straits of Hormuz with caution.' Iran still holds the 14,000-TEU container ship MSC Aries, which it detained in 2024. The air attacks by Israel also killed two high-level Iranian military leaders. Maritime analysts said increasing conflict could lead major container carriers to withdraw services in the straits, as attacks by Yemen-based Houthi rebels did in the Red Sea. 'If this leads to major container lines avoiding transits through the Strait of Hormuz, this will severely impact links to the major container terminal transshipment hubs inside the Persian Gulf such as Jebel Ali [in Dubai] and Port Khalifa [in Abu Dhabi], said analyst Lars Jensen, in a LinkedIn post. 'A ripple effect would be a sharp increase in handlings with a high risk of wider Asian congestion issues.' Iran's state news agency Friday denied reports that it had struck back at Israel with drones. Tehran also accused the United States of aiding Israel's strikes, a charge denied by U.S. Secretary of State Marco Rubio. The attacks by Israel pushed West Texas Intermediate crude oil prices by more than 9%, while crude oil futures rose 13%. Find more articles by Stuart Chirls upheaval tops new shipping concerns surveyHouse investigator Yi to lead Marad Early peak coming as trans-Pacific container rates double Retailers see cargo surge coming The post Israel attacks on Iran inflame Mideast shipping tensions appeared first on FreightWaves.
Yahoo
02-06-2025
- Business
- Yahoo
As CMA CGM Flirts with Red Sea Comeback, Will Others Follow Suit?
CMA CGM is reshuffling its deck of vessels to expand its presence in the Red Sea. Starting in June, the ocean carrier will reroute its Med Express (MEDEX) service—which connects ports across the Middle East, Indian subcontinent and Mediterranean Sea—back through the Suez Canal. More from Sourcing Journal Carriers Ramp Up Trans-Pacific Capacity on Expected Demand Rally CMA CGM's $600M Vietnam Port Project Reflects 'Sharp' Container Demand Trans-Pacific Cargo Space Vanishing Fast Ahead of Tariff Deadlines According to a CMA CGM spokesperson, the container shipping firm is reallocating ships on a trade lane that had already been temporarily using the Suez route, and is not deploying additional vessels via the Red Sea and Bab el-Mandeb Strait. 'At this stage, the majority of the Group's vessels continue to be rerouted via the Cape of Good Hope,' the spokesperson told Sourcing Journal. 'CMA CGM does not plan to resume transits through the Suez Canal on a large scale in the short term, unless security conditions allow it. Until further notice, the CMA CGM Group will continue to seek escort assistance from the European Union Naval Force's Operation ASPIDES for its ships to ensure the highest level of safety for its crew members, vessels, and its customers' cargo.' The first westbound transit on the route will be with 9,700 20-foot equivalent unit (TEU) CMA CGM Pelleas ship, which will leave Sri Lanka's Colombo Port on June 10. The ship will also conduct the first eastbound voyage for the service out of Jeddah Islamic Port in Saudi Arabia on July 24. The weekly service line will use a fleet 10 ships that can carry between 6,000 to 10,000 TEUs, and dock at ports including Nhava Sheva and Mundra in India, Abu Dhabi and Jebel Ali in the U.A.E., Genoa in Italy and Barcelona and Valencia in Spain, among others. Fourteen ports comprise the MEDEX line, which last, Since late 2023, when the Yemen-based Houthi militant group began attacking commercial vessels in the Red Sea and Bab el-Mandeb Strait, CMA CGM had opted for MEDEX vessels to instead sail around Africa's Cape of Good Hope. The longer route adds between one and two weeks to total ocean transit times, and has been a key determinant in pushing up freight rates due to the ensuing capacity crunch. A Red Sea return would mark a big step for container shipping in returning to the conflict-ridden waterway, which remains a no-go zone for most ocean carriers concerned about the attacks. Although the Houthis haven't attacked a container ship thus far in 2025, and have appeared to indicate they won't be targeting non-Israeli ships any longer, the industry has still been hesitant about redeploying ships in the area. 'The open question for now is of course how many services we need to see from CMA CGM reverting back to the Red Sea before the other major carriers will re-assess and also revert back to a Suez routing,' said Lars Jensen, CEO of Vespucci Maritime, in a post on LinkedIn. Companies have been avoiding a return largely because they cannot guarantee safety on the route, and because war-risk insurance premiums for carriers remain elevated compared to pre-Red Sea crisis levels. The higher freight rates also add an incentive, contributing to higher profits industrywide. Unlike the other major carriers, CMA CGM hasn't spurned the Suez Canal entirely since the Houthis began their onslaught on shipping. The France-based company opened up transit on a case-by-case basis in February 2024, and had already been working with the French Navy to help escort vessels through the Red Sea when necessary. This is a benefit major carriers like Denmark-based Maersk and Switzerland-based Mediterranean Shipping Company (MSC) don't have. CMA CGM's fleet has regularly been sailing one service on the Suez route as part of the Ocean Alliance the carrier has with Cosco Shipping, Orient Overseas Container Line (OOCL) and Evergreen. The weekly BEX2 (Phoenician Express) service from Far East to the Mediterranean has been in regular rotation since July 2024. That line stops at major Asian ports including Shanghai and Ningbo in China, Busan, South Korea and Singapore. It likely strayed away from Houthi attention because it transported cargo to and from Beirut, Lebanon, according to Alphaliner. On June 23, CMA CGM also plans to do a single Suez Canal voyage via its Far East-to-Mediterranean MEX service, when the 16,000-TEU CMA CGM Jules Verne leaves eastbound from Jeddah. The Ocean Alliance service is not a permanent shift. Both the services and one-offs have put CMA CGM far ahead of competitors when it comes to Suez sailings. CMA CGM ranked first in net tonnage of container vessels passing through the Suez Canal from January to April, representing 19 percent of cargo moved during that period. During the quarter, 486 container vessels sailed through the Suez Canal, amounting to 17,234 metric tons. During a meeting with the Suez Canal Authority earlier this month, CMA CGM's executive vice president of assets and operations, Christine Cabeau, hinted at the MEDEX shift. She indicated that the group wanted a second fixed service to traverse the canal. The Suez Canal Authority, which has seen substantial losses in revenue since the Houthi attacks began, is offering 15-percent rebates for container vessels opting to sail through the trade artery. Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Maersk, Hapag-Lloyd partner on new Asia-Long Beach service
Maersk (OTC: AMKBY) and Hapag-Lloyd (OTC: HPGLY) announced new container services from East Asia to the U.S. Port of Long Beach. The additions by the Gemini Cooperation partners, which include the redeployment of at least one ship back into the eastbound trans-Pacific to U.S. West Coast trade, come as carriers scale up during a 90-day pause in reciprocal tariffs by China and the United States. Maersk's Gemini TP9 service will be covering East China and North East Asia to Long Beach. The port rotation is Xiamen, China – Busan, South Korea – Long Beach – and return to Xiamen. The first sailing is the 4,600-TEU Rhone Maersk on June 24, with a return from Long Beach scheduled for July 15. The ship is being phased out of a West Africa-Asia will operate the 4,250-TEU Synergys Keelung on the same eastbound rotation from Xiamen on July 1. The new service adds an additional 1.2% of capacity to the Pacific trade into the U.S. West Coast, said analyst Lars Jensen, in a LinkedIn post. In the past week container vessel capacity on the trans-Pacific grew by 11%, according to Sea-Intelligence. Also, Maersk hiked its peak season surcharge from the Indian Subcontinent and Middle East to the U.S. and Canada East and Gulf coasts. The charge increases from up to $500 depending on origin/destination to an additional $500 as of next Monday from South and East India, Sri Lanka, Bangladesh, and Pakistan. The carrier said as of June 16, across-the-board surcharges will be $1,500-2,000 per said waiting times are rising at North China and other ports due to congestion, and intermittent port closures caused by strong winds and dense fog. Wait times range from 24-72 hours at Shanghai Yangshan; 24-36 hours at Ningbo, China; 24-72 hours at Qingdao, China; 12-36 hours at Singapore; an average of 18 hours at Busan, South Korea but 72 hours at PNIT Terminal. Japan's Yokohama has waits from 12-24 hours. Find more articles by Stuart Chirls more than halfway through $1B stock buyback Drewry: China-US container rates up by double digits Savannah sees record containers amid tariff frenzyZim profit up on higher container volume, rates The post Maersk, Hapag-Lloyd partner on new Asia-Long Beach service appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
