According to Dewry’s cancelled sailings tracker, 131 blank sailings have been announced between between Jan 30 – Mar 5 (week 5 to week 9). This is out of a total of 693 scheduled sailings across the major trade routes of Transpacific, Transatlantic and Asia-North Europe & Med.

TEC Canada featured a great interview with Schulich School of Business professor M. Johnny Rungtusanatham, who offers some practical advice on improving your supply chain in 2023.

Analytics are predicting that trucking rates are bottoming out. Some key leading indicators like internal truckload freight index and a spot rate data set, have stopped falling. Morgan Stanley’s forecasting tool is now showing that truckload spot rates will move 15% higher over the next 12 months. FreightWaves National Truckload Index shows spot rates have increased 20% from a mid-November low in 2022. But spot rates are still down 33% from the all-time highs that were set 12 months ago.

ChatGPT is all the rage these days. If you haven’t heard of it, it is a prototype artificial intelligence chatbot which specializes in dialogue. Journalist Hariesh Manaadiar decided to test ChatGPT’s knowledge about global shipping by asking it, “What to do if I lose my original ocean bill of lading?”

Israeli carrier ZIM has teamed up with venture capital firm Team8 to invest in Tel Aviv-based fintech company 40Seas, with $111 million in funding. 40Seas is creating a global commerce solution for SMEs (small and medium-sized enterprises) to access digital financing.

The global pandemic in 2020-2022 disrupted normal operations in global logistics. The 100 vessels waiting outside the Los Angeles ports and other disruptions reduced global capacity by 13.8% in January 2022. During normal circumstances, only 2 percent of capacity is held up.

Chinese New Year begins on January 22, launching China into its longest holiday of the year and creating a slowdown in shipping for the next two weeks. This year is the Year of the Rabbit, which symbolizes longevity, peace, and prosperity.

We wanted to highlight an excellent article from Harvard Business Review titled How to Be a Good Leader in a Bad Economy and share our takeaways. It seems like the world has just survived the Covid-19 pandemic only to enter a recession, and compounding crises make people more vulnerable. Normal “leadership principles” are not working and possibly making things worse. It is up to leaders to adapt to get the most out of their teams in a bad economy and the key is balancing their desire to move the business forward with the needs of their employees.

The IRU released a new report showing that truck, bus, and coach driver shortages in Europe could triple by 2026 if there is no action taken. The need for drivers continues to increase, with a 44% growth in demand from January to September this year. By 2026, 30% of current drivers are expected to retire. But few young drivers are joining the industry, despite pay rates that are 5 times minimum wage and high youth unemployment in many countries.

The National Retail Federation is forecasting at 15% decline in container imports for the first quarter of 2023. After peaking in May 2022, imports have been dropping because retailers have built up inventories earlier in 2022 after experiencing delays in 2021. Also, consumer demand has been slowing down as a result of higher inflation and interest rate hikes.

Did you know that the Port of Vancouver has a podcast? Breaking Bottlenecks just finished Season 2 which includes 5 episodes that explore bottlenecks in global trade and supply chain logistics. The podcast looks at “the intricacies, infrastructure and innovations that connect Canada’s businesses and communities with the world, as seen through the inner workings of the Port of Vancouver.”

As China shifts away from a zero-Covid policy and eases restrictions, the leadership will be prioritizing economic recovery in 2023. This comes as China reported its monthly trade data for November, which was the lowest in two and a half years.

CMA CGM will acquire GCT Bayonne terminal in New Jersey and GCT New York terminal, solidifying their position as a top East Coast gateway to the U.S. Both terminals have a combined 2 million TEU capacity per year, with the opportunity to expand and double that capacity. If the deal clears, they would own seven terminals in the U.S.

With high inventories and slower demands, the shipping industry is experiencing a major slump in demand. One of the issues the industry will experience is a lack of container depot space.

Driven by strong demand, truck capacity is close to its highest level in 10 years. The JOC Index measures actual trucks at large publicly owned truckload carriers, and was at 92.8 in the third quarter, which is the second highest index score in the last 10 years. Only the second quarter of 2022 scored higher at 93.2.

The results of a recent SAP survey of senior business decision-makers show that supply chain disruptions are not over yet:

• 52% think their supply chain needs much improvement
• 49% expect current supply chain issues to last to the end of 2022
• 33% say issues will last until summer 2023

On Nov 2, several terminals at the Port of Oakland were shut down because of unexpected labour action. Rather than a union-wide effort, this job action was taken from the local chapter of ILWU Local 34 and targeted the terminals that move goods internationally.

The 2022 United Nations Climate Change Conference (COP27) was held in Egypt in November 2022, with the ambitious goal of tackling the global challenge of climate change. From COP27, the International Maritime Organization (IMO) reiterated a commitment to reducing greenhouse gas (GHG) emissions from ships by 40% by 2030 and 70% by 2050. Canada highlighted its pledge to work with the IMO to achieve net-zero GHG emissions by 2050. There is still a long way to decarbonisation in international shipping, but we are seeing global cooperation and progress.

North American demand for Asian imports continues to decline due to fears of an economic recession and inventory corrections by retailers. This has caused an increase in idle ships and blank sailings, as shipping companies remove capacity and attempt to keep rates up.

Major supply chain disruptions in the last two years prompted the appointment of the National Supply Chain Task Force, who’s mandate was to provide independent advice to the Minister of Transport on how to ensure that Canada’s supply chain is resilient and fluid.