US

Shipping data indicate alarming situation on global trade

The volume of US ocean cargo imports arranged by Deutsche Post’s DHL Group, United Parcel Service Inc, FedEx Corp and other freight forwarders decreased significantly in February. This could be an indicator of warning on global trade, which is a key factor for the world economy. In total, US imports from China experienced a fall of 9.9% in February, driving the majority of the monthly reduction for freight forwarders.

Italy supports China’s ‘Belt and Road’ initiative

Italy joined China’s ‘Belt and Road’ initiative on March 23, and became the first major Western power to support this initiative, in an attempt to help revive the Italian economy which faces troubles. The agreement was signed during a trip of the Chinese President Xi Jinping to Italy. Leveraging this occasion, Italian companies signed agreements with Chine firms, amounting a total of 2.5 billion euros ($2.8 billion).

Container industry recovers on February, remains stable through March

International container rates finish in March with small but important increase in European import and export activity, along with increased Far East imports and a continuous development in US exports. Xeneta’s  latest XSI® Public Indices report builds on the positive rates development recorded which effectively halted a decline underway since August 2018. 

Utah Senator introduces bill to cancel the Jones Act

Michael Lee, Utah Senator, established the Open America’s Water Act of 2019, a bill that cancels the Jones Act and will allow all qualified vessels to take part in domestic trade between American ports. He commented that the restrictions in domestic trade have a crucial impact on American consumers and producers.

US Navy Budget focuses on less but modern ships

Concerning its FY2020 budget, the US Navy proposed to include a $10 billion top line increase, in comparison to the proposed reduction in projected fleet size. The Navy intends to prioritize more up-to-date vessels, retiring the carrier USS Truman two decades early and skipping the planned service life extension for the Ticonderoga-class cruisers. 

IEA: US lead global oil supply growth

According to EIA, the US will lead the global oil supply development in the five years following, due to its shale industry strength, while also triggering a fast transformation of global oil markets. By the end of the forecast, US oil exports will pass Russia and close in on Saudi Arabia, providing a greater diversity of supply.

Venezuela blackout stops majority of oil exports

Due to the previous week’s blackout, Venezuelan PDVSA is unable to resume crude exports at its primary Jose port. Power varied in most of the country because of the blackout, and had President Nicolas Maduro support that it was a US-backed act of sabotage on the country’s principal hydroelectric dam.

US maritime workforce grows to 650,000

Following last month’s news of 304,000 US jobs created in January, the Transportation Institute announced a 30% increase in domestic maritime job creation. According to the association, this was enabled by the Jones Act, thanks to which ‘the industry now employs nearly 650,000 Americans across all 50 states’.

2020 sulphur cap could raise costs significantly for shipping, report says

In its 2019 Global Container Shipping Outlook, AlixPartners say that the trade between the US and China, the tariffs imposed because of that, and Brexit will disrupt the container shipping industry throughout the course of 2019. As for the industry as a whole, it could be looking at as much as $10 billion in additional exposure, according to 2018 prices.

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