International trade News June 2021

International trade June 2021 News [Procurement – Logistics – Compliance]

High demand for air cargo to combat inventory backlogs

To ensure that goods are in stock at all times, some brands such as Lands'End, Levi Strauss and PVH have decided to use air freight more extensively. This type of freight is faster and ensures that they never run out of goods for their customers.

James Gooch, Lands' End's CFO and president, said there are additional costs associated with expediting shipments.

But this operation is so essential that some brands are dedicating part of their budget for the future. For example, PVH (which includes major brands such as Calvin Klein and Tommy Hilfiger) has chosen to include its air freight in its 2021 budget.


Edwin Lopez

Supply Chain

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15 June 2021

The trial of the crew members who transported 20 tons of cocaine on board a container ship is underway

Trials have begun for the eight crew members, including the ship's manager of the container ship, Montenegrin Bosko Markovic, who had tried in June 2019 to mount a smuggling operation within their ship.

As a reminder, the ship of the shipping company Mediterranean Shipping Co. (MSC), named MSC Gayane, had been loaded at night off the South American coast. The crew members used the ship's crane to transfer the sports bags filled with cocaine bricks from the speedboats to the seven containers that were designed to hide the merchandise. False seals were used to close the containers.

It was upon arrival at Packer's terminal in Philadelphia a few days later that authorities realized the operation. In total, the volume amounted to 20 tons of cocaine.

Billed as the largest cocaine seizure in 230 years of U.S. history, the culprits in this story were recently heard and their trial is underway. First, the captain, Markovic, was sentenced to 7 years in prison. As for the mechanic Vladimir Penda, he was sentenced to 5 years and 10 months in prison. Three other crew members involved in this case were sentenced to 5 years in prison. The other accomplices will receive their sentences during the summer.


Greg Miller

American Shipper

More than one million containers handled at Port of Los Angeles this month

Today, the Los Angeles Marine Terminal (USA) became the first port in the Western Hemisphere to handle more than one million TEU (Twenty-Foot Equivalent Units) containers in a single month. This figure represents an increase of almost 74% compared to the same month of the previous year.

This figure is due in particular to the impressive number of imports recorded: + 75% this year compared to the year before.

The figures are also up in terms of empty containers. Compared to the same month last year, empty containers jumped by 114%, mainly due to the strong Asian demand.

However, there was a fairly large gap between the number of imports and exports, with imports being almost 5 times higher than exports.

Los Angeles ville

Kim Link-Wills

American Shipper

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21 June 2021

Hapag-Lloyd applies its new seasonal rates

Peak Season Surcharges (PSS) between different North American and Asian ports.

Thus, as of July 18, the following charges on reefer, dry, flat rack and open top containers:

  • 2,000 USD for a 40 ft container
  • 1,000 USD for a 20 ft container

Also, the shipping line will increase its rates by $450 USD per container to the Indian subcontinent (India, Bangladesh, Maldives, Sri Lanka) and the South American East Coast (Uruguay, Argentina, Brazil)


Container News

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23 June 2021

After its grounding 3 months ago at the Suez Canal, the Ever Given could resume its journey

Three months after the terrible incident that blocked the Suez Canal for several days, the ship that blocked the route, the Ever Given, could soon be released in Egypt.

This is in any case what one of the insurers of the ship, the British P&I Club, has stated, stressing that the agreement has been reached with the Suez Canal authorities.

As a reminder, the ship was leaving Yantian in China and was bound for Rotterdam in the Netherlands. On March 23, while transiting the Suez Canal, the ship was caught in strong winds, which led to its grounding. Blocking traffic in both directions, it paralyzed the Suez Canal and some 367 ships for a long week, before it was released on March 29.

Since then, the vessel has been located at the Great Bitter Lake of Egypt, and is being held by the SCA. The SCA initially claimed $916 million in damages for causing the blockage and damage to the canal.

With a capacity of 20,000 20-foot equivalent units (TEU), and loaded to 85% of its capacity at the time of the incident, the Ever Given was carrying mainly furniture, electronics and machinery. These goods are still stuck with the ship. This news is therefore not only good news for the shipping company, but also and especially for the owners of the goods, who have been waiting for their goods for 3 months now.



Kim Link-Wills

American Shipper

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25 June 2021

FedEx wants to invest in 20 additional aircraft

As e-commerce continues to proliferate and drive global growth, FedEx announced today that it is looking to Boeing to fill an order for 20 Boeing 767s to meet their needs.

The first half of the order is scheduled for 2024 to 2025, with the second half scheduled for the following year.

Since 2013, FedEx has taken delivery of 100 Boeing 767s, each with a maximum load of 120,000 pounds.

The planes are indeed the secret of FedEx's speed, as online shoppers are increasingly in a hurry and are demanding a service with increasingly shorter lead times, taking 1 to 2 days at most.


Eric Kulisch

Freight Waves

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