Exports of Domestic Crude Oil and Refined Diesel Rise, U.S. DOT Looking to Expedite Container Data Exchange Initiative, China to Have 9 of the Top 20 Container Ports in the World by 2023

Ocean

Exports of domestic crude oil and refined diesel rise. Prices for gasoline and diesel at the pumps are down marginally from peaks, but they continue to remain exceptionally high. More and more U.S.-produced crude is being exported on ships to Europe, and more U.S.-refined diesel is bound for Latin America. “Rising [diesel] exports shipments have drained domestic supply,” reported Argus on Monday. Argus said that diesel exports averaged 1.45 million barrels per day (b/d) from July 1-13, more than in any month since July 2017, citing ship-movement data from Vortexa. Data from Kpler details that total clean products exports (including diesel, gasoline, jet fuel and other products) averaged 2.5 million b/d in the first half of July, one of the highest monthly averages since August 2019.

U.S. Pacific Fleet Command release video of SINKEX live fire exercise. The U.S. Pacific Fleet Command released video of a sinking exercise (SINKEX) from last week, during which live fire is used to “gain systems proficiency while sinking a retired U.S. Navy vessel during the annual Rim of the Pacific (RIMPAC) 2022 military forces exercises,” according to Maritime Executive. The target this year was the retired guided missile frigate USS Rodney M. Davis. The ship sustained multiple strikes during the exercise and was ultimately sent to the bottom 50 nautical miles north of Kauai, Hawaii, in waters 15,000 feet deep.

Ports

U.S. DOT looking to expedite container data exchange initiative. The U.S. Department of Transportation is looking to expedite its container data exchange initiative aimed at improving cargo flow through domestic freight networks. The DOT’s Bureau of Transportation Statistics (BTS) requested emergency approval from the Office of Management and Budget for a pilot effort to develop a proof-of-concept Freight Logistics Optimization Works (FLOW) data exchange, launched by the administration in March. The DOT anticipates the pilot project will move toward what the administration hopes becomes a permanent voluntary program with up to 200 participants during its first three years.

Customs

FMC provides guidance on filing complaints under OSRA 22. The Federal Maritime Commission (FMC) has provided guidance for parties wishing to dispute charges assessed by common carriers that they believe may not comply with the Ocean Shipping Reform Act of 2022 (OSRA 22). When the Commission receives sufficient information, it will “promptly initiate an investigation,” which could ultimately result in a civil penalty and order for a refund of charges paid, the FMC said. See the guidance here.

July 24 Deadline for Use of DUNS Number with FDA Food Shipments. Via the NCBFAA Monday Morning eBriefing: “Starting July 24, food import entries will be rejected if a DUNS number to identify the FSVP importer is not provided in the FDA Message Set. For the past five years, the Food and Drug Administration (FDA) has temporarily accepted the code “UNK” in lieu of a DUNS number. This practice will no longer be acceptable as of July 24. The DUNS number is location specific and should correspond to the FSVP importer’s U.S. location. If the U.S. importer has multiple locations and multiple DUNS numbers, customs brokers should use the DUNS number for the location where FSVP records are maintained. DUNS numbers can be searched or requested through Dun & Bradstreet at the Import Safety Lookup Portal. More information is also available in this CSMS.”

Trucking

California truck drivers clog traffic protesting AB5. On Monday, truck drivers in California choked traffic at the Oakland seaport while protesting the AB5 state law that could limit labor at the state’s already clogged seaports and makes it harder for independent contractors to transport goods. This could worsen the nation’s pandemic-fueled supply chain jams. California’s ports handle about 40% of container goods that enter the United States, and the trucking disruptions come at a time when unions and West Coast port employers are also negotiating a high-stakes labor contract.

Rail

Ongoing rail labor dispute results in creation of government oversight board. Last week, President Biden signed an executive order to “establish an emergency board to handle an ongoing dispute between freight railroads and their unions over a new labor contract,” FreightWaves reports. The formation of the board aims to avert a potential strike by union members this week. The railroads and their unions have been in dispute over contracts since January 2020, with wages and health care benefits being the major negotiation points. The National Mediation Board (NMB) stepped in earlier this year to mediate, but negotiations continue to sit at an impasse. NMB released the railroads and unions from mediation and a 30-day cooling-off period began in June. The Railway Labor Act outlines all of these steps in the negotiation process, including conditions under which a union may elect to strike.

Canada invests $29m into rail projects. As part of its broader program aimed at bolstering Canada’s trade corridors, the Canadian government announced that it will invest more than CA$29 million ($22 million) in rail infrastructure in Saskatchewan and Ontario. Canada is also funding climate resiliency projects that seek to safeguard rail infrastructure. See the list of investments here.

Air

Delta charters Airbus to deliver delayed luggage. Delta confirmed to Insider that they chartered an Airbus A330 from London to Detroit to deliver 1,000 delayed bags to passengers last week. “Delta teams worked a creative solution to move delayed checked bags from London-Heathrow on July 11 after a regularly scheduled flight had to be canceled given airport passenger volume restrictions at Heathrow,” a company spokesperson said. In total, US airlines lost, damaged, or delayed about 220,000 bags in June 2022 — a 135% increase from 2021.

Strike ends as SAS reaches deal with pilots unions. Scandinavian Airlines (SAS) and pilots unions reached a wage deal on Monday, ending a nearly three week long strike over a new collective bargaining agreement that grounded hundreds of flights and caused worry over the airline’s future. A majority of SAS pilots in Sweden, Denmark and Norway walked out on July 4 triggering a strike that SAS has said cost the airline between $10 million to $13 million per day.

International

Extreme heat waves in Europe lead to wildfires and heat-related casualties. This week, Britain recorded its highest temperature amid a heat wave that has impacted much of Europe. The unusually hot, dry weather has triggered wildfires from Portugal to the Balkans and led to hundreds of heat-related deaths so far. The U.K. Met Office weather agency registered a provisional reading of 40.3 degrees Celsius (104.5 degrees Fahrenheit) at Coningsby in eastern England — breaking the record set just hours earlier. Before Tuesday, the highest temperature recorded in Britain was 38.7 C (101.7 F), set in 2019. By later afternoon, 29 places in the UK had broken the record, according to AP News.

China to have 9 of the top 20 container ports in the world by 2023. By the end of this year, China is expected to have 45% or nine of the world’s top 20 container ports, according to a forecasting report released by the Chinese Academy of Sciences (CAS). Among the top 20 ports, the Shanghai port will have the most throughput capacity in 2022, the China Science Daily quoted the forecast as reporting on Wednesday, adding that most of China’s container ports hold growing demand for shipping services, including the Ningbo-Zhoushan port, as well as ports in Qingdao and Tianjin, Hellenic Shipping News reports.

Other

Tesla has competitors for “quickest car in the world.” According to the Tesla website, the Tesla Roadster has claimed the title of “quickest car in the world.” The 2022 Tesla Roadster backs up the claim with specs that say it accelerates from 0 to 60 miles per hour in 1.9 seconds, can reach speeds over 250 miles per hour with 800 to 1,000 horsepower, and it has a range of about 620 miles. However, three competing electric vehicles seem to finish ahead of the Tesla Roadster in speed estimates, according to a recent CAR Magazine report. The fastest to 60 mph, however, is a McMurtry Spierling that was built in Britain that travels 0 to 60 mph in 1.5 seconds, but only has a top speed of 150 mph. Read more from The Street.