Trendwatch: Port Houston surpasses 2M TEUs faster than ever total import TEUs jump 12% in June; IATA data highlights continued strong demand for air cargo; US backs early extension of trade pact with Africa, envoy says

Port Houston surpasses 2M TEUs faster than ever total import TEUs jump 12% in June

Port Houston, the fifth-largest container port in the nation, has surpassed the two million TEU mark faster than ever. Through the first six months of the year, the Port has successfully handled 2,098,117 TEUs among its terminals, which represents a double-digit increase of 13% year-to-date compared to the first half of last year. For June specifically, 339,157 TEUs were managed at the Port's facilities, reflecting a 7% increase compared to June 2023.

“Houston's robust economy plays a pivotal role in the success of our container terminals. The city's dynamic economic landscape, driven by diverse industries such as energy, manufacturing, technology, and population growth fosters increased consumer demand and industrial activity,” said Roger Guenther, Executive Director at Port Houston. “Port Houston is responding to the needs of the region by ensuring infrastructure is in place to receive cargo and prepare for future growth.” This June, the Port received six additional rubber-tired gantry (RTG) hybrid-electric cranes, the fourth of five total deliveries for this year. Port Houston has acquired 26 new RTGs since December 2023. Additionally, by the end of this year, 15,000-TEU-class neo-Panamax vessels will be able to berth at Bayport as the Port continues to make progress on its Houston Ship Channel Expansion, widely known as Project 11.

IATA data highlights continued strong demand for air cargo

The International Air Transport Association (IATA) latest data show that global air cargo markets are continuing to boom.

June’s figures have contributed to what IATA has described as “an exceptional first half-year performance for air cargo”, with airfreight volumes exceeding those of last year, of 2022, and even of record-breaking 2021 levels.

Global demand, as measured in cargo tonne kilometres, rose year on year in June by 14.1%. June represented the seventh consecutive month of double-digit year-on-year growth in airfreight traffic.

US backs early extension of trade pact with Africa, envoy says

US President Joe Biden’s administration backed the early extension of a program that will enable more than 30 sub-Saharan African nations to retain their duty-free access to the world’s biggest economy, an envoy said.

“We have indicated our support for an early reauthorization” and an extension of the African Growth and Opportunity Act, which expires in September 2025, Joy Basu, the deputy assistant secretary of state in the Bureau of African Affairs, told a press briefing on Monday. 

African trade ministers last week attended an AGOA Forum in Washington where they called for the program to be extended by the end of this year. American trade concessions have in part been directed at countering Russia and China’s influence on the continent.

Relief for supply chains as congestion fears from people-processing at Dover ease

Changes in processing France-bound holidaymakers departing from Dover could offer a small win to British supply chains as the country moves to reset relations with the EU.

Yesterday, the new UK government confirmed that French border officials would be permitted to process passengers at Dover’s expanded Western Docks ahead of the introduction of the EU’s new Entry Exit System (EES).

Nichola Mallon, head of trade and devolved policy at Logistics UK, welcomed the decision, describing “anything that helps ease congestion at the port of Dover” as a positive.

Turkey moves to close EU loophole with its own emissions trading scheme

The government of Turkey is moving forward with its own carbon pricing scheme, comparable with the EU Emissions Trading System (ETS), denying shipowners the opportunity to use its ports to avoid tariffs.

The ETS levies a 50% tax on emissions from vessels from outside Europe calling at EU ports – a vessel travelling from a port in Asia might have been able to make a tactical transhipment call in Turkey to dodge an ETS fee.

Ports within 300 nautical miles of EU waters, such as Tangier Med, are covered by a special ETS amendment, but the concern is shared for ports further away but still relatively close, such as Port Said, in Egypt.

Port of Oakland receives US$3 million grant to face sea level issues

The California Department of Transportation (Caltrans) awarded the Port of Oakland and the City of Oakland US$3 million for a Sustainable Transportation Planning – Climate Adaptation Planning grant.

The funds are anticipated to address potential flooding due to sea level rise (SLR) and groundwater intrusion (GWI).

“Sea level rise and groundwater intrusion pose an existential threat to the Port and City,” said Director of Environmental Programs and Planning Colleen Liang. “We are thankful to Caltrans for the award. We’ll use the funding to provide adaptation strategies for the Port, and the City of Oakland’s vulnerable communities.”

Chinese Container Ships Take Arctic Shortcut Avoiding Red Sea

Two Chinese container ships have set course for the Arctic. The vessels intend to use Russia’s Northern Sea Route as a shortcut to connect ports in China with destinations in Europe. 

The Arctic route allows operators to avoid the troublesome waters of the Red Sea without detouring via the Cape of Good Hope. 

Xin Xin Hai 1 departed from the Port of Taicang near Shanghai on July 5 and has since passed through the Bering Strait and onto the Northern Sea Route. The 21,279 deadweight tonnes (DWT) vessel can carry 1,220 standard containers (TEU).

South Africa seeks EU talks on carbon tax it says hurts BRICS

South Africa will approach the European Union to discuss its planned tax on carbon-intensive imports, saying it will hurt the economies of BRICS nations. 

The EU’s so-called carbon border adjustment mechanism — a tax on goods such as fertilizer, cement, iron, steel, and aluminum entering the bloc — will fully kick in come 2026. While the measure is meant to encourage companies to adopt better clean-energy technology and discourage the production of such goods outside the EU, nations including South Africa argue it shifts the burden for climate action to poorer regions. 

South Africa — which is the world’s 14th-biggest source of greenhouse gas emissions and whose exports include coal — says the tax may contravene World Trade Organization rules and that countries need to share responsibility for the climate-adjustment process. 

New Boeing 747 freighter service to enhance connectivity between Amsterdam and Hong Kong

Air France KLM Martinair Cargo (AFKLMP) has announced the launch of new Boeing 747-400ERF or BCF freighter service, operated by Martinair, from Amsterdam Schiphol Airport (AMS) to Hong Kong (HKG) via Dubai (DWC). After an absence of almost nine years, KLM/Martinair freighters will return to HKG with a new service, enhancing our cargo operations and offering our global customers greater flexibility and capacity.

The inaugural flight is scheduled to depart on 19 September 2024. The service will initially operate thrice weekly, increasing to four weekly flights from the start of our winter schedule on 27 October 2024. The flights to Hong Kong will depart Amsterdam on Monday*, Tuesday, Thursday, and Saturday. The return flights depart Hong Kong on Tuesday*, Wednesday, Friday, and Sunday. This new service will provide an impressive capacity of 110 tonnes per flight, facilitating seamless cargo movement across key international hubs and offering a wide range of onward connections to the Americas and Africa via our Amsterdam Schiphol hub.

Qatar Cargo to refocus freighter network strategy to drive profitability

Qatar Cargo will make its freighter network more responsive to market conditions as part of efforts to increase profitability – with changes to its Americas network coming in September.

Speaking to Air Cargo News, Qatar Airways chief cargo officer Mark Drusch said the carrier was looking to adjust its freighter network more quickly to changes in market demand and not be led by the passenger side of the business.

This will see the carrier utilise its freighters on routes where demand is high and fully allocated aircraft are required while the belly network will be utilised in markets where it can cover demand at a lower cost.

Ports struggle with congestion as Red Sea crisis and front-loading boost volume

The latest port congestion data reveals that shippers are grappling with extensive dwell times as the Red Sea crisis continues to take its toll.  

Today, Danish carrier Maersk warned customers it had to “implement recovery measures in the US to ensure schedule integrity” on its AMEX service that connects South Africa to the US. 

Delays to this service had been caused by “adverse weather in South Africa and extended waiting time in Freeport”, it said. Freeport is on the US Gulf coast.

“With these contingencies, due to the Jones’ Act rule, we’ve had to tranship cargo out of Freeport, which has created a backlog of containers awaiting oncarriage to final destination,” explained Maersk.  

The Jones Act is a federal statute that requires shipping between US ports to be done by ships constructed in the US, carry an American crew and are US-flagged. 

MPA Singapore partners with Microsoft

The Maritime and Port Authority of Singapore (MPA) signed a memorandum of understanding (MoU) with Microsoft on 29 July to collaborate in innovative technologies including cloud computing, artificial intelligence (AI), data analytics, robotics, and cybersecurity.

The two partners aim to support the adoption and the development of digital and green solutions for the maritime industry.

MPA and Microsoft will trial the use of AI and digital twins to optimise vessel route planning to enhance safety and reduce emissions in maritime operations, as well as just-in-time arrivals to reduce the turnaround times for vessels in Singapore port.

The two parties will also train early adopters and upskill workers on how to use and implement these solutions for their operations.

Beirut flights cancelled or delayed amid fears of Israeli attack

Flights to and from Beirut airport were cancelled or delayed on Monday as tensions escalated between Israel and armed political group Hezbollah after a strike in the Israeli-occupied Golan Heights killed 12 children and teenagers.
Air France said on Monday that due to the security situation at the destination, it will suspend flights between Paris-Charles de Gaulle and Beirut for the days of July 29 and 30, 2024.

"Air France is monitoring the situation in Lebanon in real time," the airline said.
Lufthansa, Swiss and Eurowings of the Lufthansa Group have decided to suspend their flights from and to Beirut up to and including Aug. 5 due to the current developments in the Middle East, a group spokesperson said.
Lebanon's Middle East Airlines (MEA) said disruptions to its schedule were related to insurance risks.