February News & Updates
Tight Squeeze? 

Space in the Gulf is becoming a tight squeeze booked out 1 1/2 months due to the Gulf resin boom. Carriers are booked at 150+% currently with little insight on  how long these space constraints will last.  Due to space constraints, carriers are pushing GRIs through monthly at $100 or more per container. Additional GRIs are announced at $300/40  for March 1st which we are currently negotiating. While we do not believe carriers will implement in full, we do expect at least a third to push through based on current space issues.

Carriers are willing to provide additional capacity to satisfy growing demand in the Gulf being that rates increase to account for additional cost to deploy additional vessels. As the resin exports start to increase this year, we will continue to see space constraints until additional capacity is deployed. Houston is expected to benefit the most from additional capacity due the strong resin market in Texas; however, we also expect additional capacity to come to Mobile port in 2017. We will keep you updated on this matter. 

We urge our customers to provide details on weekly volume needed so we can prebook space to meet you and your customer's needs.

Carrier Financial Improvements
As many of you may already know, there have been concerns looming over Yang Ming's financial status the past few months. Yang Ming is actively working to improve their current situation and are currently denying claims of a merger.   Read further about Yang Ming's effort here

Hyundai  Merchant Marine (HMM) has also reported improved financial standing improving its credit rating from D to BB credit  this week due to extensive efforts of selling assets, raising capital through stakeholders and reducing operations costs through new charter agreements. HMM has also been purchasing terminals from Hanjin around the globe and at the same time servicing many of Hanjin's customers. 

Financial risk is inevitable in the depressed freight market today, but there are a few measures shippers can take to decrease these risks going forward.

1) Diversify carriers
2) Obtain marine insurance and/or increase insurance coverage
3) Keep track of carrier financial situations 

Our team is here to assist you with diversifying carriers and obtaining marine insurance to reduce risks should another carrier file bankruptcy. We are happy to keep you informed on these changes to ensure you are able to making the best decisions for your business. 

Reference: Braden, Dustin. "HMM credit rating upgraded to stable" JOC

New Alliance Potential Delays

The new carrier alliances are set to take effect on April 1st. Some of the carriers have yet to announce days of port call at multiple terminals and updated service strings. These delays could result in port congestion in many areas worldwide as the terminals prepare for changes. They are forecasting some operations disruptions, but expect they could resolve in a few weeks to a few months. We will continue to update you as we see any delays.

Reference: Tirchwell,Peter . "Experts: April 1 Alliances roll out will disrupt US Ports " JOC


Employee Spotlight
Wally Wysocki, Sales Manager- Savannah, GA

Wally has a vast experience in the logistics industry where he has shipped everything from break bulk cargo and vehicles to lumber and live turtles!

He started his career in 1977 in an operations role with Norton Lilly and made his way through many valuable positions from Volkswagan's transportation division Customer Service Manager in 1990 to National Refrigerated Cargo Manager in 1993 at Ivanna Lines to Senior Sales manager at CP Ships in 2006. 

Wally joined ASF Logistics in 2011 moving over to the forwarding side of logistics as our Sales Manager for Savannah,GA. What he likes the most is working with an experienced team surrounded by success and growth, and the ability to travel and experience different cultures. Wally of course loves to travel, but most of all enjoys spending time with his family, wife of 35 years and two beautiful daughters and granddaughters. 
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