Jet Fuel Reaches Record $3.455 – Air Cargo World - The cost of jet fuel hit a new record price of $3.455 per gallon in New York. After rising 10 cents per gallon from January to February, jet fuel prices have soared another 69 cents in one month. During March, one cargo airline, Cargolux, raised its fuel surcharge every week.

The fuel surcharge Phoenix passes on is currently a minimum of .90/kg USD, with a $ 15.00 USD minimum per Air Waybill and is expected to increase again soon. This will be for all air export shipments originating in the United States.

Transpacific Projections - TSA lines are seeking rate increases in their 2008-09 contracts of US$400 per 40-foot container (FEU) to the West Coast, and $600 per FEU for intermodal and East Coast all-water shipments, along with a $400 per FEU peak season surcharge in effect from June 1-October 31, 2008. TSA carriers reported further progress in their negotiations with customers to recover a greater share of full accrued bunker fuel costs and to allow fuel surcharges to float in upcoming service contracts, adjusted monthly with fuel price fluctuations. A combination of market forces will likely limit some carriers’ transpacific ship capacity through redeployments, slow-steaming and other cost mitigation initiatives. Negotiation of a new five-year West Coast longshore labor contract raises chances for WC congestion delays and increased costs; rising customer demand for U.S. East Coast all-water services comes as many of those services, as well as the Panama Canal, are operating at or near capacity. Southern California port environmental programs and federal government harbor security initiatives all are scheduled to take effect during 2008, creating the potential for shortages of trained longshore personnel, trucks and drivers, as well as raising regulatory compliance costs.  A number of carriers in the trade have individually reduced their vessel capacity during the post-holiday winter season to meet demand in other markets, perform routine maintenance and repairs, and cut fuel and other operating costs as cargo demand slowed.  Recently announced vessel-sharing arrangements will actually produce additional redeployments and a net decline in transpacific vessel space.

Nationwide truck shutdown delivers attention, scattered participation - A nationwide April 1 “call to inaction” by independent truckers to bring attention to the high cost of diesel fuel prices, came and went with a great deal of media attention but only scattered participation. Truckers had hoped to make a significant show of strength by staging the protest, but with large trucking firms and national trucking associations staying out of the plan, the protest never developed a focus and participation came down to individual drivers in widely separate areas taking the day off. There has been talk of additional protests last week at other ports, but the substance of the threats is difficult to gauge.

Exporters boxed in by shortage of containers – Cargo News Asia - Container shortages are hammering US shippers as exports surge on the back of the falling dollar. "An exporter cannot get a container in the Midwest, and in Southern California he can't get space on a ship," said Peter Friedmann, executive director of the International Trade Counsel. The demand for space by exporters is going to continue. Ed Zaninelli, vice-president of the transpacific westbound trade at Orient Overseas Container Lines, said exports may increase by 20 percent this year.

Weak Economy Slows Cargo, Idles Railcars  - AP - BNSF Railway Co., the nation's top hauler of container rail freight, is parking miles of railcars in Montana and elsewhere because there isn't enough freight to keep them rolling. The cars parked are the type that haul cargo from ships on the coast to points inland, mainly imported goods — an area that's starting to slow down due to the weak economy. For the first two months of 2008, the volume of intermodal rail freight in the United States was down 3.4 percent compared to the same period last year.

China Factory Shutdowns During Olympics – The Chinese government may ask some factories to temporarily shut down if they produce high levels of air pollution and they are located near Beijing or Tianjin. We are not aware of any factories that have been asked to shut down, so the best thing to do is check with your supplier. No news at this time for plans to reduce the number of vessels or sailings from the northern ports during the Olympics.

Brazil Customs Inspectors Still on Strike – Problems continue with some import and export shipments. No further news available at this time.

Phoenix’s Thailand office will be closed for holidays on April 14th and 15th.

Our summary articles are compiled from a number of public sources that, to the best of Phoenix’s knowledge, are true and correct. In the event any information provided is erroneous, Phoenix International Freight Services, Ltd. accepts no liability or responsibility.