US-BOUND containership traffic from Asia increased four per cent year on year, hitting a record-breaking 1.72 million TEU in June, according to data from Miami research firm Descartes Datamyne, reports Tokyo's Nikkei Asia.

Traffic from South Korea and Vietnam grew by two per cent and 13 per cent, respectively.

This is the 24th straight month of growth as cargo originating from China gradually makes a comeback. But there are concerns that demand in the US will be dampened by inflation.

Traffic from China, which accounts for 60 per cent of shipments originating from Asia, increased by seven per cent. The Port of Shanghai was still affected in June by the pandemic lockdowns and saw a 33 per cent decline in container handling volume.

The country's largest port, Shenzhen's Yantian International Container Terminal saw a 30 per cent increase while the port of Ningbo, in Zhejiang Province, saw a 10 per cent increase, offsetting the Shanghai decline.

Traffic from South Korea and Vietnam grew by two per cent and 13 per cent, respectively.

Shipments of apparel grew 28 per cent and footwear was up 43 per cent, suggesting that consumers in the US are leaving home more often. On the other hand, furniture, this had been supported by strong housing-related demand in the US, decreased by 10 per cent.

Shipping rates remain high, but the downward trend continues. According to the Shanghai Shipping Exchange, shipments early this month from Shanghai to the US west coast cost $7,116 per FEU, four times that of April 2020, when Covid started spreading, but about 10 per cent lower than in early April 2022.

Wan Hai Lines will expand its Asia to North America coverage by adding Philadephia port to its current Asia to East Coast of North America AA9 Service.

The Taipei-based ocean carrier said this will be the first direct service from Asia to Philadelphia.

The port rotation of the service will be: Haiphong (Vietnam) - Shekou (China) - Kaohsiung (Taiwan) - Qingdao (China) - Charleston (US) - Philadelphia (US) - New York (US) - Haiphong

The new rotation will be effective from 8 July.

"The AA9 service, which connects Asia with the East Coast of North America will provide clients with more service options," said Wan Hai in a statement.

French reinsurance company SCOR said that Ever Given claims could amount to more than US$2 billion, while they believe it will take many years to settle the claims and the process will include much debate about who is liable, as the issue of responsibilities and applicable laws in global maritime world is complex.

Ever Given is maybe the most famous container vessel in the world after its serious accident in the Suez Canal on 23 March 2021. The ultra-large container ship entered the Suez Canal to make a crossing that would normally take anywhere between 11 and 16 hours.

Instead, a sandstorm, poor visibility, strong south wind and some miscommunication led to the vessel grounding that blocked the busy canal. The ship slipped from one side to the other, finally lodging sideways across the canal and blocking the route.

“The big lesson is that some sand and wind can potentially cause a tragedy of global proportions. This demonstrates the fragility of our economic and social models,” commented Sylvain Gauden, chief underwriting officer, Marine and Energy, Reinsurance at SCOR.

In the Ever Given incident, matters are complicated by the fact that the parties involved, the shipowner, the charterer, the owners of the goods, and even the Suez Canal, have insurance policies originating from all over the world, according to SCOR.

While all seek to recover at least some of their losses, the claims include different types of damages and losses, such as physical damage to the Ever Given, loss of revenue on the part of the Suez Canal Authority, the cost of the salvage operations and business interruption for owners and charterers of the blocked vessels, loss of perishables and cargo delays, as well as damage to the canal itself.

“Understanding the consequences of such an event means taking a holistic view,” said Gauden, adding, “Who are the stakeholders? Which insurance policies can respond? What is their exposure? How much is this going to cost? All branches of marine insurance are concerned, and the interests are multiple and sometimes divergent.”

HMM, SM Line and Pan Ocean have started the first service under the K-Alliance, a joint South Korea-Vietnam-Thailand service.

K-Alliance was launched in 2020, with HMM, SM Line, Pan Ocean, Sinokor Merchant Marine and Heung-A Line as members. The alliance was the brainchild of the government, which sought to cut duplication and excess competition in South Korea-Southeast Asia routes. However, it took some time to plan the routes and the collaboration.

Branded as "CVT", the service will turn in three weeks calling Incheon, Qingdao, Shanghai, Ho Chi Minh City, Laem Chabang, Chiwan and Incheon.

The ships deployed are the 1,809 TEU Sky Rainbow from HMM, the 1,708 TEU Jan from SM Line and the 1,809 TEU Pos Hochiminh from Pan Ocean.

CVT will have its first sailing on 26 June, when Sky Rainbow sets out from Incheon.

Korea Ocean Business Corporation, the state-backed ship finance institution, said on 15 June that it will work closely with the K-Alliance member carriers. This includes joint newbuilding orders by the member carriers, joint services and joint investments in overseas container terminals.

KOBC business strategy head Lee Jin-gyun commented, “This is a significant first step in terms of pioneering new routes through the K-Alliance and strengthening the operational competitiveness of national shipping companies. It is meaningful that we cooperate to respond to logistics demands.”

US president Joe Biden signed into law the Ocean Shipping Reform Act (OSRA) on 16 June, which authorizes appropriations for the Federal Maritime Commission (FMC) for fiscal years 2022 through 2025.

Additionally, the law is expected to establish additional requirements and prohibited conduct for ocean carriers and require the FMC to issue rules related to certain fee assessments, prohibited practices, and establishment of a shipping registry.

Furthermore, the new law authorizes the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers.

US president pointed out that one of the major factors that affect prices is the fact that nine container shipping companies, consulted into three alliances (2M, THE, Οcean), control the vast majority of shipping in the world.

Biden went on to note that during the pandemic, these carriers increased freight rates by as much as 1,000%. "While families and businesses struggled around the world, these carriers made US$190 billion in profit in 2021," he highlighted.

The law will stop “shipping companies taking advantage of American families, farmers, ranchers and businesses,” said Joe Biden at a signing ceremony at the White House, adding, “They [shipping companies] raked in the profits, and the costs got passed on, as you might guess, directly to consumers. Sticking it to American families and businesses because they could.”