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To develop smooth and stable international logistics, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) joined hands with the ministries of Agriculture, Forestry and Fisheries (MAFF) and Economy Trade and Industry (METI) last week to share information on international logistics at a web conference. The meeting agreed 1) that ship and port congestion at U.S. West Coast ports are dramatically improving, 2) that logistics has been recovering in Shanghai for both seaborne and airborne cargo since the lockdown imposed in the city was lifted, 3) that air cargo movement could pick up if cargo space supply increases when the number of international passenger flights rises in summer schedules, 4) that space supply declines on railway and air routes and congestion at hub ports in Europe caused by the Ukraine crisis will remain unremedied and 5) that labor-management negotiations on the U.S. West Coast is a matter of concern.
At the conference, briefings were given on the ports of Los Angeles and Long Beach. Then, logistics service providers and relevant organizations explained their respective situations. Naoyuki Miyamae from Nomura Research Institute spoke of future outlooks. “The central government [of China] has set its 2022 economic growth rate target at 5.5%, while Shanghai has indicated that it will take measures to stimulate the economy,” he said. “When such actions are done in the high-demand season in the second half, they could be heavy load to international logistics.” Masashi Morimoto from the Japan External Trade Organization (JETRO) Los Angeles commented on ongoing developments at the twin ports. “As of June 14, IPI (interior point intermodal) cargo had dwelled for seven to eight days, and local cargo, four to five days, meaning that container terminals had almost returned to normal,” he said. “As for ships waiting offshore, there was one within 40 nautical miles and 26 within 150 nautical miles.” “As the lockdown in Shanghai has been lifted, it is feared that there will be a new peak from late June to July,” he added. As it concerns labor-management negotiations on the West Coast, “if there are huge gaps between requests from labor and answers from management, there could be work slowdowns and strikes,” Morimoto continued. “[If this is the case,] the federal government is highly likely to convene in early stages.”
