ARI Shipping Corporation

From our blog: https://www.arishipping.com//covid-didn-t-kill-gig-economy A new survey of the gig economy found that it grew 33% to $1.6 trillion in 2020, despite the onslaught of havoc brought upon the economy by COVID-19. The online survey of 2,788 U.S. adults by payments firm daVinci Payments also had some other surprising facts about the nation’s gig workforce. The survey is based on the 35% of respondents who identified themselves as gig participants.... Defined as temporary or part-time work conducted by independent workers, the survey found that 63% of gig workers (approximately 59 million out of the total 93 million gig workers in the country) also held full-time jobs in 2020, a 19% increase from 2019. The onset of COVID increased the importance of gig work for many, as 74% said gig work is as important or more important to their financial security because of COVID. The number of gig workers who earned less than $15,000 in 2020 was 69.8 million, a 35% increase from 2019. That is 74% of all gig workers. The average gig worker income was $17,445 in 2020, up from $16,926 in 2019, daVinci said. The survey found about 50% of gig workers had a household income below $50,000 per year; 6% had income above $150,000. The average U.S. household income in 2020 was $68,703, according to the Census Bureau.

From our blog: https://www.arishipping.com//for-airlines-cargo-no-substit Air cargo and airline passenger business are inextricably linked, but they don’t share the same path to recovery from the coronavirus pandemic. Shipment volumes have nearly recovered to their 2019 levels and will grow by double digits this year, while outbreaks of new coronavirus strains and more government travel restrictions dampen expectations that passenger traffic can crawl back to half of 2019’...s level, the International Air Transport Association said Wednesday. Although the cargo sector and passenger airlines both experienced their worst years on record in 2020, the damage wasn’t evenly distributed. Air cargo volumes improved significantly from the spring bottom when supply and demand shocks caused by the coronavirus put a brake on trade. For the year, cargo ton-kilometers fell 10.6%, with volume in the critical cross-border long-haul sector down 11.8%, whereas passenger traffic fell by two-thirds compared to 2019, according to IATA.

From our blog: https://www.arishipping.com//postal-service-may-expand-int The U.S. Postal Service is inviting public comment on a preliminary proposal to expand the network of providers allowed to transport outbound mail and parcel traffic, an initiative that has been on the table for some time. The program, which the Postal Service has called the Outbound Commercial Provider Initiative (OCPI), was introduced Monday in the Federal Register, the federal government’s publicat...ion of record. The action was classified as an advance notice of proposed rulemaking, underscoring the proposal’s preliminary status. Interested parties have 30 days from the Feb. 1 publication date to submit comments, which must be sent in only by email due to the ongoing COVID-19 pandemic. In its notice, the Postal Service said the growth of cross-border e-commerce and the increasing demand for shipping solutions has forced it to identify alternatives for commercial shipments going through its international mail streams. The quasi-governmental agency relies exclusively on foreign postal operators to deliver outbound shipments worldwide. The lack of commercial alternatives has restricted the Postal Service’s international delivery flexibility, and impedes its ability to be fully competitive in a fast-growing marketplace, it said. The Postal Service referred to OCPI as a strategic program that would allow it to effectively compete with alternative providers. The program would provide a safety valve of interrupted service when issues arise with foreign postal operators, the Postal Service said. It would also enable the agency to develop services that are currently available through the postal channels, it said in the notice.

From our blog: https://www.arishipping.com//trans-pacific-trade-crashes-i It’s official: Container volumes in the Asia-U.S. trans-Pacific trade have hit their limit. Massive port congestion in the ports of Los Angeles and Long Beach is forcing ocean carriers to take extreme measures. Sailings are now being blanked (canceled) not because of lack of demand, but because of lack of tonnage as ships are stuck awaiting berths. When ships fall behind schedule due to long waits i...n port, carriers normally add recovery vessels to take their place and keep weekly services going. There are no recovery vessels left. According to Hapag-Lloyd, as our fleets are fully deployed and stretched beyond capacity, this is regretfully currently not an option. As a result, Hapag-Lloyd has blanked 19 sailings in February. It is important to emphasize that vessels will not be idling at any time and we will perform as many voyages as possible, stressed the carrier. Hapag-Lloyd is a member of THE Alliance along with Ocean Network Express (ONE), Yang Ming and HMM. ‘Need-to-get-back-on-schedule blanks’ Schedule reliability is horrible, said Simon Sundboell, founder of eeSea, a company that analyzes ship schedules. These are not ‘pull-out-capacity blanks.’ These are ‘need-to-get-back-on-schedule blanks,’ Sundboell told American Shipper. Carriers usually blank sailings at this time of year due to lower exports during the Chinese New Year (CNY) holiday. Carriers initially opted to keep CNY sailings largely intact in order to clear the export pileup at Chinese ports. But the congestion in Los Angeles and Long Beach is leaving carriers short of ships. That means the pileup in Asia will take even longer to clear. The eeSea platform provides complimentary access to real-time blank sailing data. The data as of Wednesday reveals an 11% dip in Asia-U.S. sailings in February versus January. This is despite continued high cargo demand.

From our blog: https://www.arishipping.com//biden-underscores-support-for President Joe Biden asserted strong support for the Jones Act as part of a Made in America executive order he plans to sign on Monday. The President will continue to be a strong advocate for the Jones Act and its mandate that only U.S.-flag vessels carry cargo between U.S. ports, which supports American production and America’s workers, according to the executive order. ... With the signing of the 2021 National Defense Authorization Act (NDAA), the Jones Act has also been affirmed as an opportunity to invest in America’s workers as we build offshore renewable energy, in line with the President’s goals to build our clean energy future here in America. Language included in the NDAA limits the ability to waive the Jones Act in certain cases. The Jones Act, a 100-year-old law that requires ships moving between U.S. ports be built and crewed in the U.S. as well as being flagged in the U.S., is criticized by some as a protectionist regulation that raises prices for shippers and ultimately consumers due in part to higher U.S. labor costs. Supporters of the law, which include the U.S. Maritime Administration along with U.S.-flag vessel operators and U.S. shipyards, assert that it is essential to national security and U.S. jobs. The ‘Buy American’ Executive Order issued today by President Biden will prioritize American innovation, ingenuity and craftsmanship that are pivotal to our national and economic security, commented Matthew Paxton, president of the Shipbuilders Council of America. Essential national and domestic security industries like the U.S. shipyard sector, and the maritime defense industrial base, will grow stronger because of the actions taken today, ensuring the future of America is made in America.

From our blog: https://www.arishipping.com//covid-outbreak-could-cripple- Los Angeles County is at the epicenter of the current COVID surge. That county’s Los Angeles/Long Beach port complex is simultaneously at the epicenter of America’s import surge. These two spikes are now converging as hundreds of California dockworkers catch COVID. The doomsday scenario COVID-induced terminal closures in California at the very height of the import boom is generally considered unl...ikely. But it’s being openly talked about. If the catastrophic infection rates continue, there may be a need to close the San Pedro Bay Port Complex to protect the health and safety of the workforce, executives of the ILWU dockworkers union warned in a letter Monday to the Pacific Maritime Association (PMA), which represents employers. U.S. Reps. Alan Lowenthal and Nanette Diaz Barragan said in a letter to California health officials on Jan. 15, Without immediate action, terminals at the largest port complex in America may face the very real danger of terminal shutdowns. This would be disastrous for the entire nation. ILWU Coast Committeeman Frank Ponce De Leon told American Shipper on Thursday, Longshore workers have been moving cargo nonstop during the pandemic and want to continue to do so. But the skyrocketing rate of infections in Southern California is real and taking its toll. We are coming close to surpassing the number of infections that we had experienced in the last eight months of 2020 in just the first two months of 2021, said De Leon. It’s impossible for dockworkers to ride in shuttle buses between terminals and work together to load and unload ships without having contact with hundreds of people per shift. The rate of infection is growing quickly.

From our blog: https://www.arishipping.com//port-of-la-will-pay-container The Port of Los Angeles is willing to pay out $7.5 million to San Pedro Bay container terminals over the next year if they turn trucks faster. We see this as an investment in our efficiency, a port spokesman told American Shipper Wednesday.... The port announced this week that beginning Feb. 1, it will reward container terminals for both improving truck turn times and completing dual transactions. The port said the incentive program is designed to help move trucks faster and more efficiently through the container terminals. Terminal operators can earn what the port called financial rewards by shortening the time it takes to process trucks dropping off and/or picking up cargo. Rewards also would be given for trucks handling both a drop-off and pickup in the same trip. These best practices are needed now more than ever to relieve pressure on the supply chain due to the ongoing surge, Port of LA Executive Director Gene Seroka said in the port’s announcement. Ports are more fluid when trucks move quickly in and out of the gates and more productive when a truck delivers one container and leaves with another in a single trip. We’re going to reward terminals for better performance, Seroka said. Drayage trucks reportedly handle about three-fourths of the import and export containers moving through the port. Imports far outweigh exports at the Port of LA. The port said that imbalance has reduced the number of chassis in circulation, caused inbound containers to stack up on terminals and slowed the movement of trucks in and out of terminals.

From our blog: https://www.arishipping.com//fuels-institute-explores-tran A mixture of carbon pricing, biofuels, vehicle electrification and other initiatives will be needed to effectively decarbonize the transportation industry, according to Fuels Institute Executive Director John Eichberger. The Fuels Institute released a report entitled Impact of Transportation-Related Environmental Initiatives in October that objectively compared the effectiveness and cost of differe...nt environmental initiatives and the impacts they have on energy consumers. Eichberger made his remarks Tuesday during a webinar with the Consumer Energy Alliance. Carbon pricing Eichberger said several experts favor carbon pricing because it is transparent and delivers benefits proportionate to the costs. While carbon pricing does not put a direct limit on emissions, it does provide an economic incentive for companies to choose less carbon-intensive options. According to the Union of Concerned Scientists, revenues raised by carbon pricing are typically used to invest in renewable energy, build a more climate-resilient infrastructure or encourage conservation through funding environmental projects. Eichberger said that the majority of carbon pricing funds are used on subsidies and rebates for low-income families to help mitigate possible negative impacts of the regressive tax it places on low-income consumers. We all want to reduce emissions, but we can’t do it by bankrupting families and businesses. We have to do it responsibly, and having an objective approach to these types of policy discussions is the best way to do it, Eichberger said. Phasing in carbon pricing would be the best way to reduce a shock to the economy, he said. According to previous research, Eichberger said that consumers get used to the price they are paying for gasoline as long as the changes in price are gradual.

From our blog: https://www.arishipping.com//freight-railroads-curtail-ope Bitter cold, heavy snowfall and power outages over swaths of the South and Midwest are crimping much of the U.S. freight rail network and causing service disruptions. Another winter storm will slam the South Wednesday, taking nearly the same track as the historic storm earlier this week, FreightWaves reported. That storm produced daily record snowfalls and record low temperatures in many places.... Besides road closures, several airports and intermodal terminals remain closed, and millions of people still have no electricity. Indeed, Texas primary grid operator ERCOT, the Electric Reliability Council of Texas, said as of 9 a.m. local time Wednesday, approximately 46,000 megawatts of electricity generation has been forced off the system, including 28,000 MW of thermal energy and 18,000 MW of wind and solar energy. About 185 generating units have been tripped offline for various reasons, including frozen wind turbines, limited natural gas supplies, low gas pressure and frozen instrumentation. During the overnight hours, ERCOT restored approximately 3,500 MW of load, or roughly 700,000 households, it said Wednesday. The ability to restore more power is contingent on more generation coming back online, said ERCOT Senior Director of System Operations Dan Woodfin in a release. Union Pacific Extreme winter conditions forced Union Pacific (NYSE: UNP) to close intermodal terminals systemwide. Union Pacific (UP) conducted the measure to avoid an imbalance of equipment across the network and enable a quicker recovery of operations, according Kenny Rocker, UP executive vice president of marketing and sales.

From our blog: https://www.arishipping.com//convoluted-it-systems-slowing The process for sharing data about COVID-19 vaccine distribution is something of a Rube Goldberg machine, and the disconnect between the federal government, states and vaccine administration sites is slowing the vaccination campaign. The Centers for Disease Control and Prevention lists six different software systems used to track vaccine administration and distribution. That doesn’t include the dozen...s of separate immunization information systems, which are records of vaccinations for individuals, operated by each state. Some of these systems have been around for years. Since 2010, states have used a system called VTrckS to order immunizations for children, as well as flu shots and other publicly funded vaccines. Now, states are using the same system to order coronavirus vaccines. States normally order about 80 million doses of vaccine through VTrckS each year. So far, the CDC has already delivered more than 70 million doses of COVID-19 vaccines. Other data-tracking systems were developed more recently. Earlier this year, the federal government tapped the consulting company Deloitte to build a piece of software called the Vaccine Administration Management System. It was designed to streamline the process of ordering vaccines, scheduling appointments and sharing data with state and federal agencies. The software is free to states, but many vaccine sites are choosing alternatives because it has experienced numerous problems.

From our blog: https://www.arishipping.com//smart-loading-dock-startup-ka Smart loading dock tech startup Kargo announced Thursday it closed on a $6 million seed round. The round was led by Founders Fund and included Sozo Ventures, Accomplice and Hanover as well as technology executives. The San Francisco-based company’s loading dock control tower, Argus, verifies incoming and outgoing freight and aggregates data, which allows shippers and carriers to manage dock operations.... The autonomous system uses sensors and cameras to scan shipping labels and verify the freight on the dock against the advanced shipping notice. Users are notified of discrepancies and have the ability to swap out supplies in real time. We are deeply grateful for their support and leadership as we team up to bring safety and efficiency to the logistics industry, said Sam Luyre, founder and CEO, in a statement. Kargo plans to use the funds to invest in operations, product development and to accelerate expansion both domestically and abroad. The company also plans to add senior leadership positions in engineering, computer vision and product design and management. Our source: https://www.freightwaves.com//smart-loading-dock-startup-k

From our blog: https://www.arishipping.com//has-hyundai-unveiled-the-futu Autonomous delivery vehicle concepts seem to be popping up by the minute, many by upstart companies looking to cash in on a market expected to reach nearly $40 billion in the U.S. alone by 2030. Not all the companies are new to transportation, though. Some have long histories of developing innovative concepts and solutions in transportation. Hyundai Motor Group is one of those. The company’s New Horiz...ons Studio, based in Mountain View, California, has unveiled its concept of an unmanned delivery vehicle. Transforming Intelligent Ground Excursion Robot (TIGER) has been built in collaboration with New Horizon’s partners Autodesk and Sundberg-Ferar. Vehicles like TIGER, and the technologies underpinning it, give us an opportunity to push our imaginations, said John Suh, head of New Horizons Studio. We are constantly looking at ways to rethink vehicle design and development and redefine the future of transportation and mobility. TIGER, officially classified as an Ultimate Mobility Vehicle (UMV), is based on a modular platform and designed with a leg-and-wheel locomotion system that has 360-degree directional control and a range of sensors for remote observation. The legs can be retracted for easy driving as an all-wheel-drive vehicle. When TIGER encounters difficult terrain, the legs extend and can walk the vehicle through the obstacles. The benefit of having leg-and-wheel locomotion means that TIGER can keep the payload more level than conventional suspensions when traveling across uneven terrain or climbing over obstacles, said Suh. Sundberg-Ferar assisted New Horizons in creating this capability, which makes TIGER an option for delivering critical supplies to remote areas the vehicle is designed to be carried (and charged) by a drone.

From our blog: https://www.arishipping.com//biden-readies-critical-supply President Joe Biden is preparing to make good on a campaign promise to review critical supply chains and reduce American dependence on imports for pandemic-related equipment and materials. In July 2020, while he was officially still the Democratic Party’s presumptive presidential nominee, Biden laid out a plan to help the U.S. prevent shortages of critical products needed in times of crisis. The plan ...was in response to what he and others saw as failed efforts of the Trump administration during the COVID-19 pandemic. If elected, Biden will launch a [100-day] review of U.S. supply chain vulnerabilities and implement a national strategy to close them, the plan stated. He will sign a comprehensive executive order directing relevant agencies to identify the specific critical products where the U.S. faces national security supply chain vulnerabilities and to address these weaknesses immediately. That executive order is expected to be released in the coming weeks, according to reports citing unnamed administration sources. Relevant agencies named in a draft of the order include the White House National Security Council and the departments of Justice, Homeland Security and Commerce, Reuters reported. Biden signed a related executive order in January aimed at strengthening COVID-19 supply chains. It directs federal agencies to fill supply chain shortfalls that include shortages of needle syringes available to administer the vaccine. It was one of a flurry of presidential actions issued by Biden the day after he was sworn in as president.

From our blog: https://www.arishipping.com//soybeans-lead-u-s-farm-export China’s strong return to the U.S. soybean market in recent months has single-handedly lifted U.S. farm exports to the Asian country to new records, and the heavy forward shipping schedule bodes well for the promises outlined in the Phase 1 trade agreement between the two countries. That agreement suggests China in 2020 will buy and import at least $36.5 billion worth of American agricultural products,... an all-time high. Progress was relatively dismal through mid-year, but the narrative has since changed. The United States in September shipped $3.13 billion worth of agricultural and related products to China, according to data published Wednesday by the U.S. Census Bureau. That volume is 50% larger than the prior record for the month and is the most for any month since November 2017. It follows August’s monthly record of $2.15 billion. Those records could not have been possible without the surge in soybean shipments. The oilseed accounted for 41% of the August value and 62% of the September one, the largest monthly share since November 2019. More on our blog.

From our blog: https://www.arishipping.com//chinese-president-xi-pledges- China will import over $22 trillion worth of goods over the next decade, and the country is accelerating its opening up in spite of the global coronavirus pandemic, Chinese President Xi Jinping said on Wednesday. Speaking via video message at the opening of the Nov. 5-10 China International Import Expo, or CIIE, an annual import show in Shanghai, he said the world should not let unilateralism and prot...ectionism undermine the international order. We should take a constructive stance to reform the global economic governance system and promote an open world economy, he said via video message. With a population of 1.4 billion and a middle-income group exceeding 400 million, China is the world’s largest market with the greatest potential. China is expected to import an accumulated over $22 trillion worth of goods in the next 10 years. China is set to be the only major economy to grow this year after largely bringing the epidemic under control, following its emergence in the central city of Wuhan last year. More on our blog.

From our blog: Pfizer Inc. (NYSE: PFE) will manage distribution of its COVID-19 vaccine on its own rather than through the U.S. government’s designated coordinator, but officials question whether the U.S. has an adequate supply of medical-grade freezers at the point of use for vaccines requiring storage at ultra-cold temperatures. The Centers for Disease Control and Prevention in August tasked McKesson Corp. to be the central distributor for COVID vaccines and related supplie...s needed to administer vaccinations. Most pharmaceutical companies will deliver approved vaccines to McKesson distribution centers, which will arrange delivery to hospitals, nursing homes and other administration points. Pfizer has a different, just-in-time distribution plan. It will ship COVID medicine directly from U.S. manufacturing facilities and warehouses to end users with the help of trusted transportation providers, said Tanya Alcorn, the company’s vice president for biopharma global supply chain, during a Thursday webinar organized by the U.S. Chamber of Commerce. We’ve been working from the beginning with the U.S. government to ensure that model is successful, she said.

From our blog: https://www.arishipping.com//pharma-shippers-continue-to-f The logistics industry as a whole has been rocked by a chaotic marketplace throughout 2020. The coronavirus pandemic sent supply and demand surging and then grinding to a halt, getting stuck in a perpetual yo-yo effect for several months earlier this year. The market has stabilized in comparison to the spring and early summer months, but the uncertainty that comes along with life during a pandemic ...remains. This uncertainty combined with persistent concerns about driver availability, peak season and the federal Drug & Alcohol Clearinghouse has underscored the importance of reliable partnerships for industry players across the board. Everyone has been impacted by the current political, economic and health climate in the U.S. For the health science industry, these challenges are amplified. More on our blog

https://www.arishipping.com//supply-chains-will-face-multi

Frrom our blog: https://www.arishipping.com//has-brazil-become-a-new-custo

From our blog: https://www.arishipping.com//digitization-to-support-just-

https://www.arishipping.com//major-container-ship-newbuild

From our Blog: ‘Untraditional peak’ a good thing at Port of New York/New Jersey https://www.arishipping.com//untraditional-peak-a-good-thi

https://www.arishipping.com//trump-vs-biden-how-the-winner From out blog how the #election can effect #ocean shipping

Long-haul freight boom leads to pre-peak capacity crunch http://ow.ly/y4uq50BQIZQ News from our shipping blog.

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Industry Giants Commit to Transparent Reporting of Shipping Emissions https://www.arishipping.com//industry-giants-commit-to-tra