Topic of the month
As part of our commitment to provide you with the most up-to-date and relevant information on the logistics industry, we share our Market Update on the Latin American market. You will find information and interesting data on the update of the state of the ports, the most important transport routes, and relevant news. We hope you'll find the following information helpful, as well as inspiring to boost your business and keep your cargo moving.
The COP:
It is undeniable that there has been a surge during the last few years in the need for businesses to become more environmentally sustainable. In November this year, COP27 will be held in Egypt, for countries to discuss and define central aspects of the implementation of the Paris Agreement, talk about the commitments they are working on, and give predictability to climate finance. During this topic of the month, we will bring you more insights on the sustainability topic, how to measure your emissions, and what companies have been doing to reduce their carbon footprint on their operations and in the world.
What is COP 27:
The United Nations Climate Change Conference is a yearly conference held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). This year, the second week of November was the 27th session of the Conference of the Parties (COP), where the assistants assess progress in dealing with climate change. This event started in the 90s, establishing obligations for developed countries to reduce greenhouse emissions. This year´s COP will take place in Egypt.
COP27 was originally going to take place in November 2021, but due to COVID, COP 26 was rescheduled to November. The Conference built on the outcomes of the past COP and concluded with action plans that will reduce and tackle climate emergencies. The focus of this conference is to reduce greenhouse gas emissions, build resilience and adapt to the inevitable impacts of climate change.
The conference has 6 key themes: Adaptation, Finance, Renewable energy, Net Zero, Food, Causes, and Effects.
195 countries have ratified the convention, and the ones assisting are Heads of State, ministers, and negotiators related to climate activists, majors, civil society representatives, and CEOs. This is the largest annual gathering on climate action.
What Companies are doing to cope with climate change:
Nowadays, many companies are recognizing that consumers are increasingly focused on green brands and their sustainable efforts. Several actors, such as McKinsey and Company, emphasize that major consumer goods companies are setting sustainability targets to go beyond simply optimizing their carbon footprint.
Big consumer goods companies are implementing several actions to become more sustainable. Some initiatives are:
- Reduction of land use
- Renewable sources for electricity generation
- Sustainable procured palm oil
- Circular resources implementation
- Regeneration of water in the environment
- Recyclable packaging
- Waste reduction
- Products with microplastics
- Biodegradable products
- Certified paper
Some other logistic companies are doing beyond optimizing carbon footprint in their supply chains. Regulations around Environmental, Social, and Governance (ESG) have been an important factor, and this has pushed toward their investor' and consumers' choices. Accenture mentions that around 60% of all global emissions come from supply chain operations, so sustainability is a priority in the logistics world.
All this is forcing supply chain managers to seek resilient ways to make their supply chain sustainable without impacting efficiency. Companies are focusing on mainly three pillars of supply chain sustainability:
- Supply chains 3 zero, this means structuring a supply chain with zero carbon, zero waste, and zero social risk
- Grow trust by increasing transparency of all the supply chain
- Create a balance between growth, sustainability, diversity, and profitability.
Green Solutions for your Cargo:
Nowadays, different markets are involved in a more sustainable world, and here is important to choose the right partner to support you in decarbonizing or at least reduce the emissions on your supply chain.
As you know, for Hamburg Sud, sustainability is a central and important topic in our customer engagement today. We are always looking for potential partners, so together, we can drive towards net zero as fast as possible.
We have developed different solutions to help our customers reach their green goals, Powered by Maersk. The EMISSIONS DASHBOARD increases the visibility of the emissions on your supply chain, or ECODELIVERY
Major Trade Lane Market Overview
| TRADE LANE | COMMENTS | DEMAND TREND |
|---|---|---|
|
TRADE LANE
WCSA to Asia
|
COMMENTS
Cherry season out of Chile started, and volumes are expected to be strong; a trucker strike in Chile end of Nov put some challenges on the inland, but the strike ended; Mineral market out of Mexico is still under pressure as the price for iron ore remains low |
DEMAND TREND
stable in general; up for cherries
|
|
TRADE LANE
East Coast to Asia
|
COMMENTS
Strong protein demand remains in Africa. Lower reefer demand in China until the end of this year due to high stock in China and low consumption in the Chinese market. But as of Q1, the expectation is to have a stronger demand. Cotton to China is also expected to remain low for the coming months. Due to the low consumption, they have high stocks in the country, and China's quota is also uncertain. |
DEMAND TREND
Stable
|
|
TRADE LANE
East Coast to Europe
|
COMMENTS
High inflation and low consumption in Europe remain uncertain. On reefer, customers are having problems with Egypt payment. The halal market (Middle East) is being shifted to African trade. The cotton market has good expectations for the Middle East for the coming months. |
DEMAND TREND
Stable
|
Main port status
Key ports across our global network have made significant improvements in waiting time as a consequence of less congestion and a drop in volumes:
In Northern Europe, the situation at ports remains stable; however, due to weather disruptions on the crossing, we should attempt line-up delays, mainly in Southampton, Antwerp, and Bremerhaven
In Asia, the situation is stable, and the only port with experienced waiting time is Tauranga, where vessels can wait up to 2 days to get a space at the berth. Delays are mainly due to labor shortages and strong winds impacting vessel productivity and, consequently, delays to the port line-up.
In Latin America, the situation related to weather disruption remains deteriorating the line up mainly in the Gulf of Mexico. The North Winds, common in that area from October up to March, are often causing port closure and line-up disruption. Waiting time in Veracruz and Altamira can reach up to 2 days.
In North America, on the West Coast, the situation has a signal of improvement; waiting time in Oakland has reduced from 18 to 12 days; however, the situation with labor shortage remains. On East Coast, Savannah remains critical, and waiting time can reach 12 days. For the Canadian ports, Vancouver remains critical, with waiting time experienced up to 38 days.
Vessel Arrival Waiting Time Indicator
| Less than 1 day | 1 – 3 days | 3 – 7 days | |
|---|---|---|---|
|
Latin America
|
Less than 1 day
SSA/ Manzanillo, Lazaro Cardenas, Moin, hubs (Balboa, MIT, PSA, Cristobal and Cartagena ), Buenaventura, Callao, Guayaquil, Valparaiso, San Antonio (Chile), Santos, Paranagua, Itajai, Itapoa, Paranagua, Buenos Aires, Montevideo.
|
1 – 3 days
Veracruz, Altamira
|
3 – 7 days
|
|
Rest of the world
|
Less than 1 day
Singapore, Malaysia, Norfolk, Charleston, North Charleston, Jacksonville, Port Everglades, Tampa, Long Beach, Los Angeles
|
1 – 3 days
Tauranga, Philadelphia, Seattle, Miami, Freeport, Newark, Baltimore, New Orleans, Mobile, Antwerp, Bremerhaven, Rotterdam, London, Hamburg, Qingdao, Hong Kong, Busan, Ningbo, Yantian, Shanghai, Prince Rupert (*)
|
3 – 7 days
Vancouver, Savannah, Oakland, Houston (*)
|
(*) - cargo connections can be impacted considering the delays reported
Monthly Highlights
At Hamburg Süd we brought the message of diversity, equity, and inclusion to Costa Rica!
We were honored with the important mission of transporting the Rainbow Container to the Moín Terminal to continue the tour in Latin America. READ MORE
Is this newsletter useful? We would like to hear from you to improve the information we provide. FILL IN SURVEY
Please reach out to us if you have further questions about solutions for your supply chain. We are here to help you navigate through the current situation. CONTACT US