Maritime carriers are preparing to counter 175 shipper complaints
Good morning! Happy Friday - TGIF 😎
"Forget past mistakes. Forget failures. Forget everything except what you're going to do now and do it." — William Durant
The Federal Maritime Commission’s staff in the Office of Investigations is in for a wild ride. After the Ocean Shipping Reform Act of 2022 was made iron-clad in early 2022, carriers named in complaints will be forced to face judgment.
Check out today’s featured article from Supply Chain Dive to read about the Federal Maritime Commission’s incoming investigation of 175 shipper complaints against maritime carriers and what this could mean for the industry as a whole. ☕️
Featured Article:
FMC to review over 175 shipper complaints against ocean carriers | Supply Chain Dive
“The agency unveiled preliminary guidance on how it would handle potential charge violations of the Ocean Shipping Reform Act.”
Regulations & Sustainability ♻️
Shipping industry CEOs gear up for decarbonization
While the European Union, the International Maritime Organization (IMO), and several individual countries are tightening their sustainability and carbon footprint standards, shippers are planning to meet them head-on. Environmental groups and civil society organizations are taking the lead with more power than ever, and CEOs at these large shipper companies are navigating uncharted waters.
By choosing to do nothing, a shipping company’s leadership is opting for a challenging route in the face of social and environmental justice. The strategies are vast, but many experts are saying that not only is it the “right” thing to do… decarbonization is practical, in the long run.
Trade & Border Issues 🗺️
Netherlands to slow down exports of chipmaking equipment to China
The Dutch foreign trade ministry and the White House’s National Security Council, while declining to comment officially, seem to have struck up a deal. This move aligns the Netherlands with the United States’ not-so-secret efforts to curb China’s access to high-end chipmaking technology. An unofficial ban on some technology sales to China will assist western countries’ push in limiting Beijing’s military powers.
Dutch firm ASML Holding NV, a major user of US-made components, is also one the world’s most important suppliers of machines necessary to make advanced semiconductors - something China needs desperately. Limiting its sales - and likely stopping entirely eventually - it’s likely to put a huge dent in China’s progression.
Let’s Get Global 🌎
🇸🇪 Sweden’s Amazon customers are banking on ocean shipping for next-day delivery. Amazon’s decision to integrate into ocean shipping has been speeding up shipments while lowering the company’s emissions via transportation. Sea carrier Stena Line has been center stage in the partnership with the e-tailer giant, transporting loaded trucks from Amazon’s distribution centers in Germany and Poland to the Nordic country. This move by Amazon - which originally began in 2019 - is expected to axe approximately a quarter of the carbon emissions issued by providing next-day delivery in Sweden.
🇨🇳 Western auto supply chain has been linked to labor abuse of Chinese Uyghurs. A new report issued by a team of researchers led by Laura T. Murphy (a professor of human rights and contemporary slavery at the U.K.’s Sheffield Hallam University) has made a disheartening conclusion. More than 100 international car and car parts manufacturers are at risk of sourcing from companies relevant to the auto industry mining, processing, or manufacturing in the Uyghur Region of China. Companies such as Volkswagen, Tesla, Dodge, BMW, Honda, Ford, GM, Mercedes-Benz, and Toyota are only a few of the automakers at risk of working with companies regularly engaging in human rights abuses.
🇩🇪 Germany’s government is taking a bold stand against Russia. German Chancellor Olaf Scholz’s cabinet outlined new regulations this week, highlighting critical infrastructures on a federal level to protect the country from Russian threats against its economy. Interior Minister Nancy Faeser reminded the public in a press release that the security situation in Germany has evolved since Russia’s invasion of Ukraine last February and the mysterious explosions that destroyed Nord Stream 1 and 2 gas pipelines.
iLevel With You
More topics for the average American household to consider…
🎄 Imports are slowing down as the holiday season draws to a close. A narrowly avoided rail strike has eased some worries as the holiday shopping frenzy begins to temper. Fears of a west coast disruption at the ports also stirred some trouble, bringing cargo rerouted from Los Angeles and Long Beach into East coasts ports - making New York and New Jersey the busiest ports in the nation.
🤖 Attitude toward driverless technology is a mixed bag. In a poll called “Trust In Automation” conducted by the British automotive research center, Thatcham, 2,000 U.S. motorists, and 2,000 U.K. motorists shared their opinions on the topic. A whopping 72% of Americans and 52% of Brits believe it is possible to buy a fully-automated vehicle in today’s market. The truth? There is not one fully-automated vehicle able on the market in any country in the world.
GET SMART
Ramp up that brain power for these advanced topics…
📲 Who are the top dogs in terms of transportation execution and supply chain visibility? The transportation execution and visibility systems (TES) market is growing as more companies ask this question of their suppliers.
💻 E-commerce sales ballooned during the pandemic. Making a 43% jump from 2019 to 2020, the rise of the convenience economy deeply impacted the retailer’s ability to provide the best customer service.
🚛 Freight rates for sea, air, and land are likely to drop in 2023. Lower shipping costs could make some goods more affordable for the everyday consumer, but there is still so much uncertainty.
Business Strategy 💡
Four Strategies What Worked | Supply Chain Shaman
Lora writes about the best strategies for dealing with supply chain challenges.
Retooling S&OP for a Successful 2023 | Supply Chain Brain
SCB Contributor Mike Bush writes about the failures of the sales and operations planning (S&OP) process, and why it should be revamped.
Two-thirds have shifted sourcing locations in response to global disruption | Reuters Events
Reuters Events contributor Alex Hadwick writes about how most global retailers and manufacturers have changed materials and components sourcing locations.
Ports 🚢
CMA CGM to acquire New York and New Jersey terminals operated by GCT | DC Velocity
DC Velocity Staff writes about CMA CGM’s agreement to take over two terminals at the Port of New York and New Jersey.
Trade & Border Issues 🗺️
Freight Rates Down 90% from China to Western U.S. | More Than Shipping
More Than Shipping contributor Jim Carrington writes about the plummeting price of cargo shipping from China to the West Coast of the United States.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.