EuroWire September 2020

Transatlantic cable

“What we are seeing is quite a mixed situation from cargo owners, some of which are resuming normal shipment of their cargoes, others are requesting routings via longer transit times,” said Marcus Leaver, chief operating officer of sea freight at Hellmann Worldwide Logistics. Importers say the lack of shipping space has led to more rollovers – where booked containers are moved from loaded vessels onto later ones, much like passengers on oversold flights. Shipping delays and an increase in cancellations have caused erratic supplies for retailers, and with air freighters giving priority to essential medical supplies the cost of air transport has risen sharply. Analysis of the industry data shows items such as clothes, luggage and furniture comprise 15 per cent of shipped freight. Data from the logistics technology company Descartes indicate that clothing arriving in the USA by ship dropped nearly 20 per cent during the first five months of 2020, compared with the same period last year, while furniture shipments fell by 12 per cent and luggage over 34 per cent. It’s hard to see a glimmer of light for the container shipping industry, as retail clients will almost certainly still be in some financial straits if, and when, they begin placing orders for traditional holiday and winter merchandise.

Trouble in the labour market may be a significant risk to President Trump. Though many economists expect the unemployment rate to have peaked in May, it is forecast to be above 10 per cent when America goes to the polls in November. On a slow boat to… literally everywhere In early June, with retail hit by the pandemic shutdown and exacerbated by cautious spending by anyone still in work, shipping lines were reducing sailing speeds and taking longer routes around Africa to avoid Suez Canal passage fees. Many were also cutting the number of voyages and, in effect, providing short-term storage for clients as the $1 trillion container shipping industry faced its biggest downturn since 2008. Changes within the industry saved costs, and assisted retailers coping with store closures, huge inventory surpluses and a collapse in consumer demand. Slower shipping times also meant importers could delay payments due on delivery. Retailers in many sectors have been forced to reduce shipments of new merchandise, and some of the largest retailers have managed excess inventory by “storing” it on slow-going ships, waiting for shops around Europe and the USA to reopen. But the container slow-down hasn’t benefited everyone, and retailers such as Walmart and Amazon, committed to online selling and currently in greater demand than ever before, have found themselves jostling for space on the faster vessels.

US cable described as “punching above its weight”

US cable operators continued to hold their ground against fibre-to-the-home (FTTH) and broadband competition as

31

www.read-eurowire.com

September 2020