SIMIC

RATES for shipping containers from Asia to the US continued to slide this week as congestion dissipate at US ports though consumer demand faded, reports Hellenic Shipping News Worldwide.
Overall, pressure on global supply chains decreased considerably in February and is now below historic norms, according to the Global Supply Chain Pressure Index (GSCPI) created by the Federal Reserve Bank of New York.
Rates for shipping containers from east Asia and China to both US coasts fell further last week, according to data from Freightos and the Drewry World Container Index.
Rates to the west coast are about 93 per cent lower than a year ago, and 30 per cent lower than they were at any point in 2019. Rates to the east coast are 87 per cent below the previous year's.
Freightos research chief Judah Levine said it was unclear if volumes that shifted to the east coast because of backed-up ports and potential labour disruptions will be returning to the west coast.
Shipping analysts with freight forwarder Flexport said ports are now "wide open" after working through backlogs created from surging demand during Covid lockdowns.
Supply chain advisors Drewry showed a three per cent decrease in its composite index last week, which is down by 80 per cent compared with the same week a year ago.
Containerships are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, containerships transport polymers such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets.
Spot and contract trucking rates ticked slightly lower this week, according to data from FreightWaves Sonar.
The National Retail Federation (NRF) said it expects import cargo volume at the nation's major container ports to begin slowly climbing again, but is likely to remain below 2022 levels through mid-summer.
US railways remain under pressure to improve service after Norfolk Southern (NS) had multiple derailments over the past several weeks.
The railway said it has found that a specific model and series of railcars had loose wheels, which could cause derailments, and has reported its findings to the National Transportation Safety Board (NTSB) and the Federal Railroad Administration.
The NTSB said earlier in the week it has opened a special investigation into NS, and the company announced its own six-point plan to improve service.
In the US, chemical railcar loadings represent 20 per cent of chemical transport by tonnage, with trucks, barges and pipelines carrying the rest.