Trendwatch: USMX: Automation is Essential to Future of U.S. Ports; The Red Sea crisis and its impact on containership deployment; Trump threatens 100% tariffs on BRICS countries

USMX: Automation is Essential to Future of U.S. Ports

The U.S. Maritime Alliance (USMX) says that new technologies at U.S. ports like automation need to be "core priorities" for any new agreement between them and the International Longshoremen's Association (ILA).

"Port operations must evolve," the USMX said in a December 3 release, responding to a statement from ILA executive vice president Dennis Daggett, where Daggett detailed the union's opposition to the use of any and all automation. Throughout the negotiation process, ILA leaders have voiced concerns over automated technology replacing workers, with the USMX arguing in its latest statement that it "is not, nor has it ever been, seeking to eliminate jobs."

The Red Sea crisis and its impact on containership deployment

The impact of the Red Sea crisis on containership deployment trends – after a wave of ‘cascading’ rapidly accelerated supply growth last year – is brought home to the market in a new report by shipbreaking firm Clarksons.

Smaller vessels ’cascaded’ from Asia-Europe lanes have been returned back to the tradelane, with the share of Asia-Europe deployment of ships smaller than 17,000 teu rising 11% year on year, to 42%, last month.

Trump threatens 100% tariffs on BRICS countries

Donald Trump threatened to levy 100% tariffs on members of BRICS, an informal consortium of countries including Russia and China, if the group attempts to shift from the U.S. dollar to an alternative currency. 

Any countries that back another currency to replace the U.S. dollar will face increased duties and eventually “say goodbye to selling” in the U.S., the president-elect said in a Nov. 30 post on his social media platform Truth Social.

IATA: Air cargo demand robust in October but outlook less positive

Air cargo volumes remained robust in October as traffic was up year on year for the fifteenth consecutive month but the coming 12 months should be viewed with caution, according to IATA.

The latest statistics from IATA show that in October demand in cargo tonne km (CTK) terms increased by 9.8% compared with last year, while capacity in available CTKs was up 5.9% and the cargo load factor increased by 1.7 percentage points to 47.3%.

The increased capacity was largely driven by the addition of international belly hold space, which was up 8.5%, while dedicated freighter capacity increased by 5.6% as levels neared 2021 peak levels, IATA said.

Panama Bars Six Ships From Flying its Flag After U.K. Sanctions

Panama is canceling the registration of six ships sailing under its flag that were recently sanctioned by the United Kingdom, a boost for Western nations that have slapped sanctions on Moscow’s oil exports. 

The Panama Maritime Authority said it will carry out “expedited cancellation” of the vessels after the U.K. blacklisted 30 ships. 

Merchant ships sail under the flags of various countries that aren’t necessarily closely linked to the ship’s ownership, with so-called flag states typically playing a key role in ensuring industry safety standards. Panama is the second-biggest flag state in the world, just behind the Liberian registry.

Japan-US container exports rise in October

Japan’s container exports to the United States reached 58,333 TEUs in October, marking a 7.1% year-on-year increase, according to Descartes Datamyne.

Monthly exports remained above 50,000 TEUs from January through August, dipped below this threshold in September, and rebounded in October. Direct shipments from Japan to the US surged by 19.7% to 43,375 TEUs, while transshipped containers declined by 17.9% to 14,958 TEUs, representing 25.6% of total exports.

Maersk confirms fleet renewal plans with orders for 20 ships

Maersk has confirmed much-telegraphed orders in China and South Korea. The Danish carrier revealed in a release yesterday orders for 20 boxships with a combined slot total of 300,000 teu. Once phased in, they will replace existing capacity in Maersk’s fleet.

Broken down, Maersk’s latest orders include a pair of 9,000 teu vessels and six 17,000 teu vessels ordered at Yangzijiang Shipbuilding and twelve 15,000 teu ships, split evenly between Hanwha Ocean and New Times Shipbuilding. All the ships will feature LNG dual fuel propulsion, a departure from other ships ordered this decade that have predominately been methanol focused. 

Georgia Ports targets community improvements with $120M in grants for electrical and rail infrastructure

At the Georgia Ports Authority meeting Monday, President and CEO Griff Lynch outlined plans to improve operational sustainability for neighboring communities in Savannah and Brunswick as the driver of three federal grants totaling more than $120 million.

“We are constantly looking for ways to be a good steward for our local communities near our ports in Savannah and Brunswick. These federal grants will help us reduce the community impact of our ship, rail and truck traffic operations and emissions. We’d like to thank our federal partners for their role in supporting our plans to reduce our carbon footprint and strengthen our business resiliency,” Lynch said.