Port of Rotterdam

Critical Cargo Bypassing Bottleneck at Ocean Ports Aboard Chartered Passenger Aircraft

Bottlenecks in the global supply chain are being bypassed by repurposing passenger aircraft for critical cargo.  With retailers worldwide closing shop, warehouses becoming backed up with undelivered goods, increasing trucking restrictions and driver shortages, importers are being forced to delay delivery of goods that can’t be sold or stored. This clogs ports with containers and slows critical food and medical supply chains. Ocean carriers are rerouting containers to transshipment ports and yards close to destination so they can reach markets more quickly when business resumes, while keeping major ports unclogged. To keep food and medical supply chains flowing, critical cargo is moving on passenger aircrafts that have been idle since the travel ban.

Read more about how the ocean and air transport industries are adapting to the crisis at:

https://www.joc.com/air-cargo/idle-passenger-planes-take-mini-freighter-roles_20200317.html

https://www.joc.com/maritime-news/carriers-warn-supply-chain-chaos-if-cargo-stacks-ports_20200407.html

(Photo credit: IAPH/International Association of Ports and Harbors)

Container ship entering from bottom right

Spot Rates Quoted By Shipping Lines Are Often Lower Than Service Contract Rates

Given the increased efficiencies achieved through digital freight platforms, dynamic pricing in the spot rate market often yields lower rates than service contracts. Contract rates are agreements between a shipper and a carrier in which a shipper commits to a large annual volume of containers in order to benefit from a lower rate than that offered to the general public.

Read more on JOC.