China-to-Mexico container shipping spike suggests importers seeking to circumvent U.S. tariffs, Xeneta analysts say
Growth in demand for container shipping imports from China into Mexico in January 2024 increased by 60% compared with the same 2023 period, “further fueling suspicions [Mexico] has become a ‘back door into the U.S.,’” analysts at ocean freight rate benchmarking and intelligence platform Xeneta said on March 15, citing Container Trades Statistics. Annual growth in container shipping between China and Mexico already had increased by 34.8% in 2023 compared with 3.5% in 2022.
The data may be further evidence of businesses attempting to circumvent tariffs on goods imported from China into the U.S., which have “ramped up during the ongoing trade war between the nations,” analysts at Oslo, Norway-based Xeneta said.
“The strength in trade between China and Mexico was building during 2023, but the latest data for January 2024 reveals a massive increase,” said Peter Sand, Xeneta’s chief analyst. “It is probably the fastest growing trade on planet Earth right now. A sizeable proportion of the goods arriving in Mexico by ocean will likely be trucked into the U.S., which gives rise to the suspicion that the increase in trade we are witnessing is due to importers trying to circumvent U.S. tariffs.”
Importing into Mexico's west coast ports from China may be a viable alternative to goods arriving directly into the U.S. west coast, but importers will face “a potentially volatile ocean freight shipping market” as volumes continue to increase, Xeneta analysts said.
Uber Freight’s European transportation services unit posts 100% year-over-year growth
Uber Freight’s European Managed Transportation business exceeded 200 million euros in freight under management year over year, and Uber Freight has surpassed $18 billion in freight under management (FUM) worldwide, company officials announced on March 12.
Uber Freight execs now expect to reach 2 billion euros FUM by 2028. The European logistics market alone is expected to reach 1.17 trillion euros by 2029, they said.
“With logistics becoming more globalized, it’s essential for shippers to find partners that can provide a comprehensive and flexible suite of services that meet them exactly where they are and can grow with them,” said Lior Ron, Uber Freight’s founder and CEO. “Our European business is accelerating because we’re dedicated to offering precisely that.”
Panama drought update: Canal to increase number of daily slots
Based on the present and projected level of Gatun Lake, the Panama Canal Authority on March 8 announced an increase in the number of daily slots in the Panamax Locks.
An additional slot will become available for supers in Booking Period 2 (14 days prior to transit date), and two additional slots will be offered via auction at the opening of Booking Period 3 (seven days prior to transit date). Of the four daily slots to be auctioned, three will be offered to supers and one slot to regular vessels.
If the auction for regular vessels closes without interested vessels, the slot may be auctioned to supers.
The additional slot offered in Booking Period 2 for supers will become available for transit dates beginning March 25. Applications for the additional slot began on March 11. The authority may also increase the number of slots offered via auction, depending on the Gatun Lake´s level projections.
Indian Railways posts ‘unprecedented’ freight volume, revenue increases
Indian Railways is “set to achieve unprecedented milestones” in operational performance, marking a historic year for the nation's lifeline in terms of freight loading, total revenue, and track laying during the financial year 2023-24,” India’s Ministry of Railways said last week.
The railroad originated more than 1,500 million freight loading tons, with total revenue reaching Rs 2.40 lakh crores, ministry officials said.
Sustainability: UPM Biochemicals now shipping wood by rail
DB Cargo recently completed the first deliveries of wood by rail to UPM Biochemicals’ biorefinery in Leuna, Germany.
“We will offer fully sustainable renewable chemicals with a significantly better CO2 footprint compared to fossil alternatives. It is paramount that we work on strategies to continuously optimize the environmental performance of our products further,” said Andreas Meggendorfer, Director Supply Chain & Sourcing at UPM Biochemicals. “Using rail as a transport mode does exactly that.”
Mainz, Germany-based DB Cargo already had been hauling UPM’s paper and pulp freight.
Sustainability, part 2: HD Hyundai Marine to provide engine part load optimization for four car carriers
HD Hyundai Marine Solution signed an agreement with Greek operator Neptune Lines Shipping and Managing Enterprises SA to provide Engine Part Load Optimization services for four car carriers, the companies announced on March 11.
HD Hyundai Marine partnered with Accelleron to launch the service, receiving the first order for one ship this past October.
Most marine engines are built to provide optimal fuel efficiency and performance for the speed and environment for which the ship is designed. However, more than 60% of the world's ships of 400 gross tons and above are required by the International Maritime Organization (IMO) to comply with the IMO's Energy Efficiency Existing Ship Index and Carbon Intensity Indicator regulations to reduce greenhouse gas emissions. One result: Many shipping companies are considering engine power limitation, operating at reduced speeds with engine output reduced by up to 70%, HD Hyundai Marine officials say.
Sustainability, part 3: Union Maritime to build two wind-propelled tankers
London-based Union Maritime Ltd. builds two new wind-propelled long-range tankers (LR2s) at Shanghai Waigaoqiao Shipbuilding’s yard in China.
Each vessel will be fitted with 3 WindWings®, developed by BAR Technologies and manufactured in partnership with CM Energy Tech, Union Maritime officials announced on March 12.
WindWings tankers can save up to 1.5 tons of fuel and around 5 tons of CO2 per wing per day on typical global routes, company officials said. WindWings operate in conjunction with a route optimization system that adjusts the rigid sails based on wind conditions, vessel speed and course without compromising speed.
Spain: Thales to provide signaling technology at Merida intermodal terminal
Administrador de Infraestructuras Ferroviarias (Adif) and the Spanish Regional Government of Extremadura awarded Thales a contract to provide signaling technology at the Merida Logistics Platform, an intermodal rail freight terminal, Thales officials announced on March 15.
Adif manages most of Spain's rail network.
Two branches will be built on the Merida-Los Rosales line; both will connect with the mainline and be controlled from the interlockings of one of the collateral stations, and from the Centralized Traffic Control Centre at Sevilla Santa Justa.
Project work includes the engineering, testing and commissioning of the necessary signaling and communications systems, and the adaptation of the existing interlockings in Calamonte and Almendralejo; and the installation of new field elements, train detection systems, drives, signals, local command post, energy, technical building, cable network and civil works. Thales also will be responsible for the fixed telecommunications system.
