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Advisory: Massive Delays at Yangshan Port in Shanghai China

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The port of Yangshan in Shanghai China has suffered massive delays due to bad weather conditions and excessive overbooking. According to author Bruce Gain in his post for American Shipper titled Shanghai’s Yangshan Port Suffers Massive Delays, “In addition to the more immediate impacts of the fog, rampant overbooking by carriers in the wake of newly restructured vessel sharing alliances is at the root of the massive delays at the port.” Gain specifies that even though carriers are at booking capacity, they continue to accept reservations, leaving many Chinese exporters stranded at ports, unable to board vessels.

Additionally, recent shortage in container capacity for the eastbound Europe-Asia trade prompted the European Shippers Council (ESC) to issue a warning that there would be trouble ahead. “Starting April 1, the number of large-scale carrier alliances was reduced from four to three – “THE” Alliance, the OCEAN Alliance and the 2M Alliance – and members of the east-west VSAs are still in the process of rationalizing their service networks in an effort to better bring them in line with demand” (Gain). Along with the poor weather and reckless overbooking, this shortage has seriously contributed to the port clogging in Shanghai.

Information about when the port’s congestion mess will be resolved remains unclear. According to Gain, poor communication between port officials is only exacerbating the problem. Port operators are intentionally avoiding direct communication on the issue because they are not yet sure what procedures have to be addressed.

Until this excessive traffic is rehabilitated, “Europe-to-Asia shippers are faced with being unable to meet their contractual obligations or to offer boarding slots before May” (Gain). 2M Alliance members are no longer accepting orders and container booking prices have risen almost 45 percent in trade. “‘This translates into missed sales, stock failure and significant extra costs as some exporters are trying to circumvent these obstacles by using other modes,’ the ESC said” (Gain).

Unfortunately, a resolution is not in sight. As the ramifications of Yangshan’s port congestion continue to expand into other elements of the supply chain, patience is the only countermeasure.

View the article: Gain, B. (17 April, 2017). Shanghai’s Yangshan port suffers massive delays. American Shipper.

 

Navegate Acquires North Star World Trade Services and T Brothers Trucking

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For Immediate Release

Following eight successful years in strategic partnership, Navegate Inc. has aquired North Star World Trade Services and T Brothers Trucking. Navegate, a technology-focused transportation and logistics company, now combines forces with the 47-year-old international freight forwarder, North Star, and 20-year-old domestic trucking and transportation company, T Brothers, to form a third party logistics (3PL) company with expansive expertise.

Navegate’s now comprehensive breadth of services has positioned the Global Trade Management Company for aggressive expansion, including new wholly owned facilities in Shanghai and Hong Kong. Also expanding is Navegate’s headquarters, which will relocate this spring to a 45,000 square foot property in Mendota Heights, MN.

“Bringing these three companies together has allowed us to expand operations in China,” said Joe Pelletier, president. “We have built a company that is substantial and gaining momentum. We have world class technology, carrier capacity, and the right people, enabling us to manage customers’ domestic and international supply chains, faster and smarter than ever.”

In addition, new branding has been unveiled beginning with a new website (www.navegate.com) featuring an expanded portfolio of global transportation and logistics services.  “Our new website is key in our transformation, as it cohesively brings together all the aspects of the three companies,” said Pelletier, “and helps us showcase how Navegate is here to make the complex simple for our customers.”

St. Paul, Minnesota (March 3, 2016)

About Navegate:

On Inbound Logistics’ Top 100 List of IT Providers for the last three years* in a row, Navegate is a full-service provider of global transportation and third party logistics (3PL). With 240 employees and six offices worldwide, Navegate’s global headquarters is located in Minnesota. Learn more at www.Navegate.com

*2015, 2014, and 2013, Inbound Logistics

Contact:

Amanda Kilduff
Navegate – Global Headquarters
1300 Mendota Heights Rd.
Mendota Heights, MN 55120
Toll Free: 800.944.2471
Direct: 651.294.3847
amanda.kilduff@navegate.com
www.navegate.com