Port Commissioner Defends Unlicensed Off-Dock Trucking –
controversy surrounding unlicensed off-dock trucking at the Port of Vancouver
deepened last week, with the Office of the B.C. Container Trucking Commissioner
(OBCCTC) defending the work.
off-dock container trucking activity Unifor refers to as (a) ‘black market’
activity and the United Truckers Association (UTA) calls ‘illegal’, is not
illegal,” Commissioner Michael Crawford said.
Canada’s largest private sector union, had demanded a crackdown on what it
called a large container trucking black market at the port.
two groups say unlicensed truckers are moving containers off-dock within the
Lower Mainland area at steeply discounted prices and undermining licensed,
companies engaged only in off-dock trucking are not required to have a licence,
and do not fall within the scope of the Container Trucking Act and
Regulation,” said Crawford.
UTA disputed this.
3: In the
Chaotic Freight Market, Shippers and Carriers Turn to Short-Term Contracts
– Commercial Carrier Journal
2020’s tumultuous ride on the spot market showing little sign of slowing,
shippers and carriers increasingly are leaning on short-term freight contract
agreements as a bridge to calmer days and a return to the usual longer-term
shippers nor carriers want to be locked in,” said Chris Caplice, an analyst for
DAT Solutions and executive director of MIT’s Center for Transportation and
Logistics. What he referred to as “shorter mini-bids” aren’t new, “but they’re
becoming more formalized,” he said. Instead of contracts of the usual nine or
12 months, shippers and carriers are entering into three- and six-month
reason is multifold. The mix of freight, and its geography, is dramatically
different than what was anticipated at the beginning of the year. “The big word
for the last few months has been ‘imbalance,’” Caplice said. “Some industries
cratered. Some lanes disappeared. Other lanes went up by 3x. For both carriers
and shippers, the network that is typically kind of balanced is now out of
Calls for Changes to B.C. Container Trucking Act
– Inside Logistics
independent study on the off-dock container movements at the Port of Vancouver
is calling for changes to the Container Trucking Act to improve fairness and
efficiency in the Lower Mainland drayage sector.
Drayage Insights was commissioned by British
Columbia amid fresh protests over off-dock trucking activities. It was released
on September 16.
groups have long complained that unlicensed truckers are moving containers
off-dock within the Lower Mainland area at steeply discounted prices,
undermining licensed, fee-paying companies.
report by Cascadia Partners acknowledged the problem.
Tightness to Continue, U.S. Xpress Report Says
its September industry forecast, truckload (TL) carrier U.S. Xpress identified
three primary catalysts – higher driver turnover, declining TL capacity and
“overwhelming” volumes – that will place upward pressure on rates through 2021.
of these three themes will greatly influence trucking rates over the next four
to six quarters. It’s becoming increasingly clear that high tide conditions
will persist for a long while, so shippers and carriers will have to plan – and
act – accordingly,” stated President and CEO Eric Fuller in the report.
Market Snapshot of Truck Driver Employment in Canada
– Ontario Trucking Association
HR Canada has released a labour
market information update, providing a current
snapshot of truck driver employment in Canada.
employment of truck drivers surged in July and August, after declining over the
first two quarters of 2020. Further, unemployment among truck drivers improved
significantly when compared with the rest of Canada’s workforce. Recent labour
market information predicted an increase in employment pending the gradual
opening of the economy. The upward trend we are seeing is even higher than
predicted, signalling that our return to acute labour shortages could be here
sooner than we think.
Spot Market Loads Reach Post-Pandemic Highs
– Today’s Trucking
spot market load volumes reached their highest levels in the first week of
September since before the Covid-19 pandemic struck in March, according to
a strong start to September, load volumes weakened in the second week of the
month, as a result of the Labor Day holiday in the U.S. and Canada. But average
daily load numbers in September were up 5% compared to the August average,
Loadlink Technologies reported.
Relief as Ocean Carriers Finally Scrap Low-Sulphur Surcharges –
carriers are officially scrapping the low-sulphur fuel surcharges introduced
last year to mitigate the impact of the January 1 IMO 0.5% sulphur cap
regulations on marine fuel.
low-sulphur surcharges as fuel prices plunged has been a bone of contention for
shippers, who have criticized carriers for being slow to ditch the additional
a customer advisory on Tuesday, CMA CGM said its LSS20 (low-sulphur surcharge)
in place since December 1, 2019, would no longer be applicable as of October 1.
the carrier added that the surcharge “may come back later, as per our formula.”
Impose Restrictions as Container Shortages in Asian Ports Get Worse –
the major carriers are experiencing equipment shortages at Asian ports, with
popular 40-ft-high cubes in particular short supply at Chinese depots.
reports suggest CMA CGM currently has a shortage of equipment at all of the
main Chinese ports, while other carriers are advising of shortages at some
docks and “near normal” availability at others.
one Chinese forwarding source said equipment availability was more about “what
you are prepared to pay,” with some lines introducing a “box priority fee,”
payable at the time of booking.
many carriers have introduced restrictions on the release of empty containers
prior to the intended shipment.
September 17: Red-Hot
Ocean Rates Could Spark Chinese Government Intervention –
Record-high trans-Pacific spot rates and container-equipment
shortfalls in Asia have caught the eye of powerful government regulators. The China
Ministry of Transportation and Communication questioned liner reps in a special
meeting on September 11.
In the aftermath of that sit-down, concerns have been raised about
carriers’ ability to implement general rate increases (GRIs) and “blank” (cancel)
sailings while averting future government backlash.
“Never before have we seen a gap this wide between spot freight
rates and long-term contract rates on the Trans-Pacific trade lane,” said Peter
Sand, analyst at shipping association BIMCO.
“Now, more than ever, it is the carriers’ market. The coming weeks
are likely to see higher long-term freight rates when contracts are up for
negotiation and renewal,” Sand said.
17: FMC to
Investigate Carriers’ Runaway Rates Success –
up on last week’s efforts by the Chinese Ministry of Transport to curb runaway
spot rates, United States authorities have threatened to take carriers to court
if they discover evidence of collusion in the container shipping industry’s
highly profitable response to the global pandemic.
U.S. government’s Federal Maritime Commission (FMC) called a private meeting on
September 16 to discuss what it described as “market trends in trade lanes
serving the U.S., and actions taken by both individual carriers and global
alliances in response to COVID-19 and related impacts to the shipping
Alliances Reinstate Transpacific Capacity –
three east-west alliances have now committed to reinstate blanked sailings in
October on the booming transpacific tradelane.
part of the 2M vessel sharing agreement, communicated last week its intention
to reinstate blanked sailings from Asia to the west coast of North America next
month, citing enormous pent-up demand, as has Cosco and subsidiary OOCL, both of
whom are in the Ocean Alliance. THE Alliance member Hapag-Lloyd, meanwhile, has
told clients it is bringing back all but five of its blanked sailings to the
west coast next month.
on the swift deployment news seen in the past week, Andy Lane from Singapore’s
CTI Consultancy, said: “We need to see how far the bull run goes on for and, if
demands starts to appear to soften, then I am also sure that you will see last
Grow to Detain Ships in Order to Stop the Humanitarian Crisis at Sea –
influential group of unions has called for ships to be detained in ports if
seafarers have been onboard longer than international treaties allow.
World Maritime Day yesterday, the Nautilus Federation of 22 maritime unions
said seafarers are being denied their human rights during the pandemic, with as
many as 300,000 stuck at sea beyond the agreed 11-month maximum service.
failure of governments, industry and flag states to name seafarers as key
workers and get them off ships and home to loved ones has led to a humanitarian
crisis that can no longer be tolerated, the federation said in a joint
that international solution cause port states to detain growing numbers of
vessels until seafarers are repatriated, the industry and governments will need
to prepare for the disruption this would cause to global supply chains.”