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  • 23 June 2016

    AIR FREIGHT UPDATES


    Air France Pilots Cancel June 24-27 Walkout
    source: CIFFA
     
    Strike action planned by Air France pilots for June 24-27 has been canceled, although a national strike could still disrupt air traffic control services on June 23. [Excerpted from CIFFA] 
     
    Netherlands-Based easyJet Pilots to Strike On Friday (June 24th)
    source: CIFFA
     
    Dozens of easyJet pilots based in the Netherlands will hold a second strike on Friday lasting 24 hours after failing to secure better working hours, pensions and sick pay from the budget airline. [Excerpted from CIFFA] 
     

    OCEAN FREIGHT UPDATES


    GCT Canada: Canada Day (July 1) Gate Schedule
    source: CIFFA
     
    As a reminder, GCT Deltaport and GCT Vanterm truck gates will be closed on Friday, July 1st in recognition of Canada Day. Vessel and Rail operations will work as required. [Excerpted from CIFFA] 

     
    Drewry poll finds most big shippers expect flat or bleak peak season
    source: Shippingazette
     
    MOST major owners expect flat or lower ocean freight demand compared with last summer, according to a survey by London's Drewry Maritime Research. Read more here

     
    Shippers blame ULCVs for causing congestion and delays at European hub ports
    source: TheLoadStar
     
    Despite a reduction in weekly capacity and port calls on the main Asia-Europe trade, both carriers’ customers and suppliers said they were continuing to struggle with the cargo peaks caused by the continuing deployment of ultra-large container ships on the trade.Read more here
     
     
    Robots to connect vessels to shore power
    source: WorldCargoNews
     
    ABB will supply power and propulsion systems for two battery powered ferries that includes a robot for connecting the vessels to shore power. Read more here

    GROUND AND RAIL UPDATES

     
    BNSF RailPass cuts truckers' time from road to ramp in half
    source: Shippingazette
     
    THE Burlington Northern Santa Fe (BNSF) Railway has now adopted a dispatch system for pickup and delivery of containers at its intermodal hubs. Read more here
     

  • 22 June 2016

    AIR FREIGHT UPDATES


    New Luxembourg-Shanghai air pharma corridor planned
    source: Shippingazette
     
    Luxembourg Airport and Eastern Air Logistics (EAL), the cargo terminal operator at Shanghai's Hongqiao and Pudong airports, have signed a memorandum of understanding (MoU) to promote a pharma corridor between Luxembourg and Shanghai.Read more here
     
     
    New Istanbul airport to handle 5.5 million tonnes annually
    source: Shippingazette
     
    ISTANBUL'S US$11 billion airport is still under construction and 25 per cent complete despite opposition from environmentalists.The project is part of Turkish President Tayyip Erdogan's ambitious infrastructure development project that he hopes will bolster his nation's position in regional and global markets. Read more here
     
     
    Allegiant Air, Pilots Agree Tentative Deal
    source: AirWise
     
    Allegiant Travel said it has struck a tentative contract agreement with pilots at Allegiant Air after prolonged negotiations. Read more here
     
     
    Netherlands-based easyJet Pilots To Strike On Friday
    source: AirWise
     
    Dozens of easyJet pilots based in the Netherlands will hold a second strike on Friday lasting 24 hours after failing to secure better working hours, pensions and sick pay from the budget airline. Read more here
     
     
    Pilot shortage threatens regional air cargo links, carrier association warns
    source: TheLoadStar
     
    Regional freighter flights, including spokes connecting small communities to integrator hubs, are at risk from the worsening pilot shortage in the US, the Regional Air Cargo Carrier Association (RACCA) has warned. Read more here
     

    OCEAN FREIGHT UPDATES


    Autonomous shipping: ‘It’s not if, it’s when’
    source: Splash 24/7
     
    The Rolls-Royce led Advanced Autonomous Waterborne Applications Initiative (AAWA) yesterday published a whitepaper to coincide with its presentations at the Autonomous Ship Technology Symposium 2016 in Amsterdam. The whitepaper outlines the project’s vision of how remote and autonomous shipping will become a reality. Read more here
     
     
    BIC Launching Pilot Database To Include Tare Weights
    source: CIFFA
     
    The Bureau International des Containers (BIC), a non-profit organisation supporting the container industry with multiple registration databases, has opened a central database with weights ahead of the July 1 implementation of the new SOLAS verification gross weight (VGM) rule. This new, free of charge Technical Characteristics Database (TCD) has been created to make fulfilling the VGM requirement easier for 'Method 2' (calculation) for shippers, those who add cargo and secure material weight to the container's tare weight to obtain the VGM. [Excerpted from CIFFA]

    GROUND AND RAIL UPDATES

     
    Europe seeks to boost rail freight competitiveness
    source: IRJ 
     
    FIVE European railway and freight associations and European Union (EU) transport ministers have each pledged to boost the competitiveness of rail freight on the nine TEN-T freight corridors. Read more here

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Beaconsfield mayor worried about CP Rail plan to increase freight train speeds
    source: CBC
     
    Canadian Pacific Railway says it will increase the speed of some freight trains travelling through Beaconsfield, a plan that has local politicians and some residents on edge. Read more here. 

  • 21 June 2016

    AIR FREIGHT UPDATES


    Italian Air Traffic Controllers To Strike Again July 23
    source: CIFFA 
    Italian air traffic controllers (ATC) will strike again Saturday, July 23, which could result in numerous flight cancellations during one of the busiest summer holiday travel days, European lobby group Airlines for Europe (A4E) said in a June 17 statement. [Excerpted from CIFFA] 
     
    Singapore Air resumes non-stop flights to US after three years absence
    source: Shippingazette
     
    Singapore Airlines will resume nonstop flights to the US three years after they were suspended, thus ending the reign of United Airlines as the only carrier flying direct between the two countries. Read more here
     
    New air cargo terminal inaugurated at central India's Raipur airport
    source: Shippingazette
     
    The aviation sector of central India's Raipur got a major boost with inauguration of common user domestic cargo terminal (CUDCT) at old terminal building, Swami Vivekananda airport, reports the Times of India. Read more here

    OCEAN FREIGHT UPDATES


    PSA buys fleet of automated guided vehicles
    source: Splash 24/7
     
    Singapore is moving ahead with developing a futuristic port. Terminal operator PSA Singapore has bought 22 new automated guided vehicles (AGVs) for its container terminals, bringing the fleet to 30 units. Read more here
     
    Smart shipping needs smarter regulation
    source: Splash 24/7
     
    The era of ‘smart shipping’ needs much smarter regulation, supported by greater engagement from the industry to lobby for a favourable operating environment, according to a leading voice in Singapore shipping. Read more here
     
    Old workhorses to bow out as bigger box ships transit Panama Canal
    source: Shippingazette
     
    Many panamax boxships that have been the workhorses of the Panama Canal stand to be put out of service as the first postpanamaxes move from Asia to the US east coast, says London's Loadstar. Read more here

    GROUND AND RAIL UPDATES

     
    RPM Trucking Industry Safety program approved to provide certification courses
    source: CanadianShipper
     
    WINNIPEG, Man.–Manitoba Trucking Association said it is making history with its RPM Trucking Industry Safety program. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Central database of empty box weights opens before VGM rule date
    source: Shippingazette
     
    The Bureau International des Containers (BIC), a non-profit organisation supporting the container industry with multiple registration databases, has opened central database with weights ahead of the July 1 implementation of the new SOLAS verification gross weight (VGM) rule. Read more here
     
    JUMORE organizes first cross-border E-commerce summit in China
    source: CanadianShipper
     
    BEIJING, China– The first cross-border e-Commerce Summit, which focuses on applying the idea of the sharing economy to achieve global connectivity and economic cooperation, was held in Beijing on June 16. Read more here

  • 20 June 2016

    AIR FREIGHT UPDATES


    UK Referendum Could Affect Airline Traffic Rights
    source: AirWise
     
    A British vote to leave the European Union in Thursday's referendum would call into question EU agreements on open airspace that have allowed a huge expansion of air travel, creating uncertainty for British and other EU airlines. Read more here
     

    OCEAN FREIGHT UPDATES


    Ownership structures in shipping should become more transparent
    source: Splash 24/7
     
    Ownership structures in shipping should become more transparent, early results from our latest survey overwhelmingly shows. MarPoll, the quarterly online survey carried by Splash and Maritime CEO magazine, features nine topical questions ranging from emissions to shipping cycles, big boxships, technology and shipbroking. Read more here. 
     
    US regulator urges carriers to accept port operator's figure as VGM
    source: Shippingazette
     
    Using the container weight taken at the terminal gate as the verified gross mass (VGM) is a "simple and efficient solution to assure the continued flow of export cargoes", says Federal Maritime Commission chairman Mario Cordero. Read more here
     
    Picture Special: London Gateway gets a lift as new cranes arrive for Berth 3
    source: TheLoadStar
     
    Slightly incredibly, given the apparent state of the vessel, two massive cranes arrived safe and sound from China, via the Cape of Good Hope, to arrive at London Gateway.Read more here
     

    GROUND AND RAIL UPDATES

     
    Proposed locomotive emissions regulations reduce air pollutants
    source: CanadianShipper
     
    OTTAWA, Ont.–The Government of Canada published proposed Locomotive Emissions Regulations in the Canada Gazette, Part I, on June 18, 2016 to limit air pollution. Read more here
     
    Self-driving trucks: what's the future for America's 3.5m truckers?
    source: TheLoadStar
     
    Driverless vehicles appear to be one of the new breed of disruptive technologies that is most likely to have a genuine impact on the freight and logistics industry. Read more here.
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Legislation to expand pre-clearance between Canada, U.S.: Feds
    source: CanadianShipper
     
    OTTAWA, Ont.–The Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness, on June 17 announced the introduction of legislation in the House of Commons to expand the highly popular and effective preclearance agreement with the United States. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Saint Kitts And Nevis Ratifies WTO Trade Facilitation Agreement 
    source: CIFFA
     
    Saint Kitts and Nevis has ratified the WTO's Trade Facilitation Agreement (TFA), becoming the fifth Caribbean WTO member to do so. St. Kitts and Nevis deposited its instruments of acceptance with the WTO secretariat on 17 June. Read more here. 

  • 17 June 2016

    AIR FREIGHT UPDATES


    Canada To Introduce New Flight Crew Hours Regulations
    source: AirWise
     
    The Canadian government is preparing to announce new regulations to ensure commercial pilots throughout the airline industry get enough rest, Transport Minister Marc Garneau said. Read more here
     
    Airports of Thailand To Spend USD$5.5 Bln On Expansion
    source: AirWise
     
    Airports of Thailand, the country's main airport operator, plans to spend THB194 billion baht (USD$5.5 billion) over the next 15 years to expand its six airports to handle a boom in visitor numbers. Read more here
     
     
    Manchester Airports Group weathers French strike with high cargo volumes
    source: Shippingazette
     
    STRIKING French air traffic controllers failed to deflect Manchester Airports Group (MAG) cargo growth in May 2016, reports London's Air Cargo News. Read more here
     
     
    New aircraft and new markets for air cargo carriers looking to expand
    source: TheLoadStar
     
    It’s not been officially announced, but UK air cargo carrier Cargologicair’s latest 747-8F is expected to arrive very soon – and will also be exhibited at next month’s Farnborough Airshow in the UK. Read more here
     

    OCEAN FREIGHT UPDATES


    Oakland port's night-time gates and operations remain to ease congestion
    source: Shippingazette
     
    AUTHORITIES at the US west coast port of Oakland have announced that the night gates will remain open even after a port subsidy expires this month. In addition, Oakland International Container Terminal said it will offer full operations at night. Read more here
     
     
    Ship scrapping set to hit record level this year as more panamaxes become redundantChittagong ship breaking
    source: TheLoadStar
     
    Ship scrapping appears set to hit record levels this year, according to shipbroker and services firm Clarksons. Read more here
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    Rail provisions extended in Canada Transportation Act
    source: CanadianShipper
     
    OTTAWA, Ont.– The Honourable Marc Garneau, Minister of Transport, and the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, today announced that the Government of Canada is postponing for one year the repeal of certain provisions of the Canada Transportation Act that were enacted in 2014 by the Fair Rail for Grain Farmers Act. Read more here

     
    National Research Council spearheads research with provinces, industry on “innovative aluminium products”
    source: CanadianShipper
     
    OTTAWA, Ont.–A newly formed alliance called ALTec Industrial research R&D Group is consolidating research efforts in the Canadian aluminium sector to develop innovative aluminium products for ground transportation vehicles. As a cost-effective and sustainable material, aluminum is increasingly being used to manufacture components for lightweight vehicles which reduce greenhouse gas emissions, and meet increasingly stringent fuel consumption requirements. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    India's crowded terrain means bullet train to be elevated over 350 kilometres
    source: Shippingazette
     
    INDIA may spend as much as US$16 billion - over $1 billion more than expected - on its first bullet train simply to elevate the entire railway, said a person with direct knowledge of the matter, reported Bloomberg. Read more here

  • 16 June 2016

    AIR FREIGHT UPDATES


    Indian Cabinet Approves Aviation Policy
    source: AirWise
     
    India has made it easier for the country's airlines to fly abroad as part of the first set of comprehensive rules governing civil aviation designed to boost air travel and economic growth. Read more here
     
    Long term labour agreements in place with all Air Canada unions in Canada
    source: CanadianShipper
     
    MONTREAL, Que.–Air Canada has ratified its 10th and final labour agreement with its Canadian unions. This completes Air Canada’s current cycle of labour negotiations and establishes long term contracts extending in most cases over a ten year duration for all of its approximately 25,000 unionized employees in Canada, the company announced.Read more here
     
    Comment: a new balance between ‘the business’ and IT could boost air cargo
    source: TheLoadStar
     
    The correlation between different types of IT investments and profitability was analysed in a recent benchmark study (see here). Read more here
     

    OCEAN FREIGHT UPDATES


    Shippers worried about carrier ‘uncertainty’
    source: Splash 24/7
     
    Shippers have stopped celebrating the lowest freight rates in living memory and now concerned about the uncertain state of container supply chains, according to Rolf Niese, head of logistics operations at British American Tobacco. Read more here
     
    Most vessels subject to SOLAS now ready for electronic chart display
    source: Shippingazette
     
    DATA published by the United Kingdom Hydrographic Office (UKHO) at Posidonia shows that 59 per cent of the 42,000 internationally trading vessels are now ready for electronic chart display and information system (ECDIS) carriage. Read more here

    GROUND AND RAIL UPDATES


    Government of Canada Extends Provisions For Rail In The Canada Transportation Act
    source: CIFFA
     
    The Honourable Marc Garneau, Minister of Transport, and the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, Wednesday announced that the Government of Canada is postponing for one year the repeal of certain provisions of the Canada Transportation Act that were enacted in 2014 by the Fair Rail for Grain Farmers Act. [Excerpted from CIFFA] 
     
    CTA study predicts driver shortage to be worse than previously thought
    source: CanadianShipper
     
    TORONTO, Ont. – A new study by the Canadian Trucking Alliance (CTA) reveals that the driver shortage in the Canadian for-hire trucking industry is escalating quicker that previously believed. Read more here
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    Drone Delivery Canada Corp. to trade on Canadian Securities Exchange
    source: CanadianShipper
     
    TORONTO, Ont.– Drone Delivery Canada Corp. announced that the Company has listed its securities on the Canadian Securities Exchange and its common shares will commence trading on June 16, 2016. Read more here


     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Angela Merkel urges China on transparent, reliable investment rules
    source: Shippingazette
     
    GERMAN Chancellor Angela Merkel and Chinese Prime Minister Li Keqiang sought to limit conflict over trade during talks overshadowed by angst in Germany about a Chinese company's EUR4.6 billion (US$5.2 billion) bid for robot maker Kuka AG. Read more here. 
     
    China says it will open e-commerce, logistics to foreign investment
    source: Shippingazette
     
    CHINA plans to lift restrictions to investments by foreign firms in a range of service industries, including e-commerce, logistics, accounting and auditing, says Commerce Minister Gao Hucheng. Read more here

  • 15 June 2016

    AIR FREIGHT UPDATES


    Lufthansa Cargo to cut 700-800 jobs and ‘offer solutions to private customers’
    source: LloydsLoadingList
     
    Lufthansa Cargo has unveiled plans to cut 700-800 jobs from its worldwide workforce of around 4,600 by the end of 2017 as part of plans to save €80 million annually, in order to improve the carrier’s competitiveness.   Read more here

    Air France Pilot Strike Cost More Than €40 Mln
    source: AirWise
     
    Air France said the last four days of strikes by pilots would cost the airline more than EUR€40 million. A spokeswoman for Air France, who confirmed comments given by chief executive Frederic Gagey to AFP, said the company plans to meet unions by the end of the week. Read more here
     
    Long Term Labour Agreements in Place with All Air Canada Unions in Canada
    source: CIFFA
     
    Air Canada today confirmed the ratification of its 10th and final labour agreement with its Canadian unions. This completes Air Canada's current cycle of labour negotiations and establishes long term contracts extending in most cases over a ten year duration for all of its approximately 25,000 unionized employees in Canada. [Excerpted from CIFFA]
     

    OCEAN FREIGHT UPDATES


    Another trans-Pacific carrier cuts capacity amid back-to-school restocking
    source: JOC
     
    China Cosco Shipping has suspended a service from Asia to the U.S. West Coast, joining two other carriers that have pulled capacity on the trade laneeven as the season for back-to-school restocking kicks into gear. 
    The last eastbound vessel on China Cosco Shipping’s America-Asia Container route, which utilized ships with capacities ranging from 8,500 twenty-foot-equivalent units to 10,000 TEUs, will sail from Lianyungang on June 8, according to shipping analyst Alphaliner.   Read more here (login required) 
     
    Shipping lines in financial trouble pose a risk to our supply chains, claim shippers
    source: The Loadstar
    Major shippers are calling on shipping lines to develop a greater range of services and claim carriers experiencing financial difficulties pose a huge risk to their supply chains.
    Rolf Niese, until recently head of logistics operations at British American Tobacco, told delegates at the TOC Container Supply Chain event that many shippers had “celebrated” the lowest freight rates seen in living memory.
     
    Kenya not ready to comply with UN's rule for container weights by July 1
    source: Shippingazette
     
    THE East African Shippers Council (EASC) said members were not ready to comply with the UN's International Maritime Organisation (IMO) demand for verified gross mass (VGM) weights to be provided for each container before loading. Read more here
     
    Is Zero-Emission Freight Possible? The Port of Los Angeles Thinks So
    source: Smithsonian
     
    In a conference room high above the 43 miles of waterways that make up the Port of Los Angeles, the view is incredible: cranes, ships and the massive Pacific Ocean. Read more here
     
    CMA CGM and PSA Confirm Container Terminal Joint Venture
    source: Splash 24/7
     
    CMA CGM and PSA Singapore Terminals have announced the formation of a joint venture company CMA CGM-PSA Lion Terminal to operate and use four mega container berths at PasirPanjang Terminal Phases 3 and 4 in Singapore.  Read more here.

    GROUND AND RAIL UPDATES


    Automated Gates Expected to Cut Truck Congestion at Chennai Port
    source: Shipping Gazette
     
    INDIA's Port of Chennai has set up radio-frequency identification (RFID) technology for gate operations to complete gate processes quicker. 
    The development is expected to reduce wait times for truck drivers outside the terminals. Read more here
     
    China's Silk Road scheme brings opportunities to Hong Kong: HKTDC
    source: Shippingazette
     
    HONG KONG expects to benefit from China's new "silk road" initiative aimed at developing trade links in Asia and beyond, reports Reuters. "You have a lot of building materials that will need to be transported. That will have demand for shipping," said Jenny Koo, service promotion director for the Hong Kong Trade Development Council (HKTDC). Read more here
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    CFIA - Update to the Meat Hygiene Manual of Procedures - United States
    source: CIFFA
     
    Please be advised that export requirements under section 11.7.3, Annex W - United States of the Chapter 11 of the Meat Hygiene Manual of Procedures (MHMP), have been updated with the following information:
     
    Est. 086: add code 03B (raw product - not intact) for chicken, duck, lamb, mutton, turkey and veal.
     
    The update can be found here


     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Outlook for Vietnam's logistics sector bright as exports, production rise
    source: Shippingazette
     
    VIETNAM's future looks bright, according to freight forwarders, amid a boost in manufacturing output and spike in exports by all modes of transport, reports Lloyd's Loading List. DHL Global Forwarding ASEAN chief Thomas Tieber said it was an "exciting" market because recent legislation had reduced bureaucracy and border controls with the rest of Southeast Asia and China had been eased. Read more here
     
    Manufacturing Trends ‘Set to Soften Box Trade Growth’
    source: Lloyds Loading List
     
    Container shipping will undergo a prolonged period of softer growth as manufacturing trends impact long-haul container trade demand and traditional transhipment strategies, according to Drewry Maritime Research (DMR).DMR forecasts global throughput growth of less than 4% per year for the next five years at container ports.  Read more here.  

  • 14 June 2016

    AIR FREIGHT UPDATES


    Norway Reopens Airspace After Technical Outage
    source: AirWise
    Norway gradually reopened its airspace and resumed flights on Tuesday following radar problems earlier in the day that had triggered a shutdown in western parts of the country.
     
     
    Six U.S. Airlines Approved For First Regular Flights To Cuba
    source: CIFFA
     
    The U.S. Transportation Department on Friday approved six domestics airlines to begin scheduled flights between Miami, Fort Lauderdale, Chicago, Philadelphia, and Minneapolis/St. Paul and Cuba as early as this fall. [Excerpted from CIFFA]
     
     
    Air France pilot strike threatens relations with Dutch KLM partner
    source: Shippingazette
     
    A PLAN by Air France pilots to strike during the Euro 2016 soccer tournament in France, threatens to damage relations with their Dutch sister unit, KLM, Bloomberg reports. Air France-KLM Group's French arm has been meeting with pilot unions for days in an effort to avert a walkout, said the report. Read more here

     
    Greek Civil Aviation Workers to Strike
    source: AirWise
     
    Greek civil aviation workers plan a five-day strike next week in protest at the long-term lease of 14 regional airports.  Read more here. 
     

    OCEAN FREIGHT UPDATES


    Workers at DSME vote to go on strike
    source: Splash 24/7
     
    Around 85% of 7,000 unionised workers at Daewoo Shipbuilding & Marine Engineering (DSME) have voted in favour of industrial action at the South Korean yard, reports say.Read more here
     
     
    Ship detained for using a drone while transiting Suez Canal
    source: Splash 24/7 
     
    Scandinavian P&I Club Gard has warned its members on the dangers of using drones at sea. A vessel entered with Gard was recently detained following the launch of a drone to photograph the vessel proceeding through the Suez Canal. Read more here
     
     
    Born-again Panama heralds cargo drain to USEC from USWC: Drewry
    source: Shippingazette
     
    BIGGER ships in Panama Canal will carry more Asian cargo to and from the US east coast ports even if the number of services remains the same or falls. That's because ship sizes are expected to increase 25 per cent to 5,900 TEU, according to London's Drewry Maritime Research. Read more here
     
     
    Hutchison terminals ‘SOLAS-ready’
    source: Lloyd'sLoadingList
     
    Hutchison Port Holdings Trust has followed PSA by declaring that its port network is now SOLAS-ready. The container terminal operator said that its terminals, including Hongkong International Terminals, COSCO-HIT Terminals, and Asia Container Terminals in Hong Kong and Yantian International Container Terminals in Shenzhen – were now in full compliance with the new Verified Gross Mass (VGM) amendment to the International Maritime Organization’ s SOLAS convention, which comes into force on 1 July. Read more here

    GROUND AND RAIL UPDATES

     
    Roland Spedition starts new Hamburg-Nuremberg block-train service
    source: Shippingazette
     
    VIENNA-BASED Roland Spedition forwarders has started operating its own container block-train service linking three Hamburg container terminals with the Tricon terminal in Nuremberg. Read more here

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    U.S., Canada Lumber Talks Stalled, Litigation Looms
    source: CIFFA
     
    Talks between Canada and the United States to resolve a dispute over exports of softwood lumber are making little progress and the matter likely will return to the courts, sources familiar with the negotiations said on Friday. [Excerpted from CIFFA]

     
    Quebec, Bombardier Deal By Month's End
    source: AirWise
     
    The Canadian province of Quebec expects to complete an agreement to invest USD$1 billion in Bombardier's CSeries by the end of June, Premier Philippe Couillard said. "Our objective is to finish it by June 30," Couillard told reporters in Montreal. "I think that's realistic. Things are progressing well." Read more here

     
    Transport Canada, Minister Garneau kick off drone safety campaign
    source: CanadianShipper
     
    OTTAWA, Ont.– The Honourable Marc Garneau, Minister of Transport, today launched a national safety campaign and reiterated the Government of Canada’s intention to propose new regulations for UAVs, or drones as they are more commonly known. Read more here

  • 13 June 2016

    AIR FREIGHT UPDATES


    Air Canada Inaugurates Toronto-Budapest Service - New Route Extends Air Canada Rouge’s Summer Expansion
    source: AJOT
     
    MONTREAL - The arrival of flight AC1910 from Toronto-Pearson at Budapest Ferenc Liszt International Airport this morning further extends Air Canada Rouge’s presence in Central Europe. Read more here

     
    SAS, EasyJet Pilots Join Air France as Europe Hit by Strikes
    source: AJOT
     
    Swedish pilots flying for SAS AB, the owner of Scandinavian Airlines, extended a walkout in a pay dispute to a fourth day, joining cockpit crews at Air France-KLM Group in hitting travel the opening weekend of the Euro 2016 soccer tournament. Read more here
     
     
    Argentina Airport Workers Strike For 48 Hours
    source: CIFFA
     
    Airport workers in Argentina began a 48-hour strike on Friday over a wage dispute with the government. The strike will continue until the government agrees to talks with the workers over pay, the union said. [Excerpted from CIFFA]
     
     
    Gatwick Delays Over Week-End Caused By Runway 'Pothole'
    source: CIFFA
     
    London's second-busiest airport, Gatwick, was plunged into chaos over the weekend after heavy rain opened up a pothole in the main runway. [Excerpted from CIFFA]
     
     
    Air France Pilots' Strike Continues
    source: CIFFA
     
    Air France is expecting to cancel around 21% of its flight schedule on June 13 as its pilots continue their four-day walkout. In a statement, Air France said around 27% of its pilots are involved in the action, which started on June 11 is set to continue until June 14. [Excerpted from CIFFA]
     
     
    Shipment of lithium batteries poses big problem to air cargo sector
    source: Shippingazette
     
    THE current embargo on bulk shipping of lithium batteries on passenger flights will cripple many otherwise healthy industries, says New York's Air Cargo World. Read more here. 
     

    OCEAN FREIGHT UPDATES


    Panama Canal suspends draft restrictions in panamax locks
    source: Shippingazette
     
    THE Panama Canal Authority (ACP) announces that the first draft restriction announced in its advisory to shipping on April 18 has been suspended. Read more here
     
     
    BIFA warns members use VGM "grace" period wisely or be penalised
    source: Shippingazette
     
    THE British International Freight Association (BIFA) is urging its members and the freight forwarding community to get ready to comply with the new rules making the reporting of a container's verified gross mass (VGM) mandatory prior to loading on board a vessel.Read more here
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    Prince Rupert: Evolution From Remote Fishing Port Into Critical Container Shipping Link
    source: CIFFA
     
    In 2007, Canada's Port of Prince Rupert executed a phenomenal turnaround of its business through reinvention of its Fairview Terminal. Over the last few decades, global economic changes had eliminated the formerly thriving industry in the primarily fishing port and paper/pulp mill town. [Excerpted from CIFFA]
     
     
    G3 Terminal Vancouver Receives Project Approval
    source: CIFFA 
     
    Vancouver Fraser Port Authority has approved G3 Terminal Vancouver's application to construct a grain handling and export facility on the Lynnterm West Gate site in North Vancouver. [Excerpted from CIFFA]

  • 10 June 2016

    AIR FREIGHT UPDATES


    Air France To Protect Euro Flights During Strike - CEO
    source: AirWise
     
    Air France said a pilots strike starting on Saturday would force the cancellation of up to 30 percent of flights but the airline would strive to ensure minimal disruption to flights serving cities hosting Euro 2016 football matches. Read more here
     
     
    New cargo facility at Mumbai airport expects 8pc annual growth
    source: Shippingazette
     
    THE new domestic cargo terminal at Mumbai International Airport Ltd (MIAL), near Western Express Highway in Vile Parle, expects business to grow annually by between seven and eight per cent with the surge in e-commerce business, which currently accounts for about 75-80 per cent of the total domestic cargo business of MIAL.
     
     
    SAS Pilot Talks Enter Extra Time As Strikes Loom
    source: CIFFA
     
    SAS Scandinavian Airlines is facing the threat of two walkouts, as it seeks to hammer out labor deals with its Norwegian and Swedish pilots. SAS started collective labor agreement discussions with pilots from the two countries in April. However, it failed to reach a mediated agreement with Norwegian short-haul pilots by the midnight deadline on June 8 and its Swedish pilots have given notice of strike action on June 10. SAS and the Norwegian pilot unions have agreed to continue the mediation process in overtime, past the original deadline, and SAS is determined to reach an agreement.
     
     
    Air Canada Service To Fort Mcmurray Resumes June 10
    source: CIFFA
     
    Air Canada Cargo has advised that flights and cargo service to and from Fort McMurray, Alberta (YMM) will resume Friday June 10. Flights are open for cargo bookings as usual. For more information contact your local Air Canada Cargo representative or 1-800-387-4865 in Canada.
     
     
    Air Canada Cargo and Cargojet Successfully Launch First Freighter Flight to South America
    source: AJOT
     
    Only direct scheduled freighter service between Canada and Latin America. MONTREAL, QC and MISSISSAUGA, ON - Air Canada Cargo and Cargojet Airways Ltd., a subsidiary of Cargojet Inc. (TSX: CJT, CJT.A), (“Cargojet’) commenced service today with the first freighter flight to Bogota, Colombia and Lima, Peru, operated with a Cargojet B767-300F aircraft. Read more here
     

    OCEAN FREIGHT UPDATES


    Price, risk and trust ‘the top reasons shippers switch carriers’
    source: Lloyd’s Listing
     
    Price, risk management, and loss of trust are the top three reasons freight shippers switch containership carriers, according to a new survey by Xeneta, the Oslo-based benchmarking and market intelligence platform for containerised ocean freight.

     
    Striking port workers hold rally in front of Athens Stock Exchange
    source: Splash 24/7
     
    Striking port workers today protested in front of the Athens Stock Exchange where a meeting was taking place to rubber stamp Cosco Pacific’s controversial takeover of Piraeus port. Read more here
     
     
    Neopanamax makes history with first transit through expanded Panama Canal locks
    source: Splash 24/7
     
    The Panama Canal’s contracted vessel transited the new Atlantic-facing Agua Clara Locks yesterday. These transits, performed by the neopanamax dry bulk carrier Baroque, are part of a series of training events occurring in the run-up to the expanded canal’s June 26 inauguration. Read more here
     
     
    Port of NY & NJ Confirms Capability to Handle Larger Vessels
    source: CIFFA 
     
    On June 7, officials at the Port Authority of New York and New Jersey confirmed that the Port of New York and New Jersey will be able to handle 14,000 TEU vessels toward the end of 2017. [Excerpted from CIFFA] 
     
     
    Peel Ports introduces in-port container weighing at Liverpool
    source: AJOT
     
    Weighbridges installed at multi-lane autogates.  Standard solutions to be introduced at other group ports.  Process trials taking place before new rules take effect on 1 July 2016. Read more here

    GROUND AND RAIL UPDATES


    CN urges communities to submit input risk assessments on hazmat transits
    source: Shippingazette
     
    CANADIAN National Railway (CN) wants local communities to submit risk assessments along rail routes carrying hazardous materials. CN said it performs specific risk assessments on railway lines carrying substantial amounts of dangerous goods, looking at factors such as population and emergency response capabilities. Read more here
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    Vancouver's Terminal 2 project moves another step forward
    source: Shippingazette
     
    THE Canadian Government has moved Port Metro Vancouver's application to construct Terminal 2 at Roberts Bank adjacent to Deltaport, from the "completeness review" to review by an environmental panel, reports the American Journal of Transportation. The terminal, which could surpass Deltaport as the largest in Canada, is a key component of Vancouver's plans to expand container handling capacity. Read more here
     
     
    Canadian Exports Give St. Lawrence Seaway Shipping Solid Start
    source: CIFFA
     
    Canadian exports to the U.S. and abroad have kept St. Lawrence Seaway cargo shipments at a solid pace, despite tough economic conditions for some commodities. Seaway year-to-date shipments (March 21 to May 31) reached 6.5 million metric tons, down 4 per cent (282,000 metric tons) compared to the same period last year, due mainly to tonnage decreases in iron ore and imported steel. However, there were a number of positive cargo categories. [Excerpted from CIFFA]


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    Footwear industries call for regulatory harmonization
    source: American Shipper
     
    Trade associations on both sides of the Atlantic urged duty-free treatment for footwear and other steps to make it easier to sell shoes between the United States and the European Union.  Read more here.  

  • 9 June 2016

    AIR FREIGHT UPDATES


    Commercial Air Service to Resume at Fort McMurray International Airport
    source: CIFFA
     
    Commercial air service is scheduled to resume at Fort McMurray International Airport (YMM) on June 10, 2016. This day will mark an important milestone for the community. YMM will be marking the occasion with a reopening celebration. The first flight from EIA to YMM is scheduled to depart at 8:35 am on Friday, June 10. Read more here

     
    Two more cargo carriers set for take-off in Russia, despite its declining air freight market
    source: The Loadstar
     
    New air cargo carriers are picking over the bones of Tranasero, the Russian carrier which stopped operations in October – but could find it tough to squeeze into a declining market.  Read more here.  

     
    Mumbai Airport sees cargo volumes take off on e-commerce business
    source: The Loadstar
     
    Mumbai International Airport has opened a domestic cargo terminal to help the growing e-commerce business in India. The airport has launched a common user terminal to handle 300,000 tonnes of cargo each year, in an attempt to cater for expected air freight growth of 12.5% CAGR over the next five years. Read more here.  

    OCEAN FREIGHT UPDATES


    Hapag-Lloyd postpones transpac peak season surcharge
    source: Lloyd’s Loading List
     
    Hapag-Lloyd is postponing the implementation of a transpacific peak season surcharge (PSS) planned for 15 June amid continuing overcapacity on east Asia-North America container trades, with implementation now scheduled for 1 July. Read more here.  
     
     
    Biggest Indian Port One Step Closer To Truck Tolls
    source: CIFFA
     
    India's port regulator, Tariff Authority for Major Ports, has tentatively allowed Jawaharlal Nehru Port Trust to charge toll fees for truck cargo gated in and out of terminals at the country's biggest container gateway. The provisional ruling comes after the port filed an application with TAMP for the go-ahead and port-user associations, including the Mumbai-NhavaSheva Ship Agents' Association, protested the new levy, claiming it was outside the scope of the approved scale of rates for JNPT. [Excerpted from CIFFA]

    GROUND AND RAIL UPDATES


    Striking drivers at LA, Long Beach & San Diego ports hold protest march
    source: Shippingazette
     
    STRIKING drivers have held a march through Wilmington to demand the ports of Los Angeles and Long Beach & San Diego, California stop doing business with "lawbreaking" companies. The truck drivers are supported by warehouse workers and the union leaders. Read more here
     
     
    CN asks municipalities to submit input on key route corridors
    source: CanadianShipper
     
    WINNIPEG, Man.–CN is encouraging communities to submit input for corridor risk assessments along rail routes carrying significant amounts of dangerous goods. CN performs specific risk assessments on railway lines carrying substantial amounts of dangerous goods, known as Key Routes, looking at factors such as population and emergency response capabilities. Under new Transport Canada regulations, CN will incorporate input from Canadian municipalities along these Key Routes as part of those risk assessments, the company said. Read more here. 
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES

     
    HPA Notice - South Marginal Road Reconstruction Taking Place From June To September
    source: CIFFA
     
    Starting this month, the Halifax Port Authority will reconstruct a portion of South Marginal Road. Construction will take place from the Mission to Seafarers office to the South End Container Terminal (Halterm) truck entrance. The purpose of the construction is to upgrade existing rail crossings, remove rail sections that are no longer in use, add curbs and sidewalks and significantly improve water drainage. During the construction period, vehicle traffic will be reduced to one lane with minimal periods of stop-and-go traffic. The waterside pedestrian walkways along South Marginal Road will be unavailable. Please click here.  
     
     
    Chamber of Shipping recognizes World Oceans Day
    source: CanadianShipper
     
    OTTAWA, Ont.– The Chamber of Shipping recognized World Oceans Day June 8, with a release supporting the protection of Canada’s oceans, as marine shipping is intrinsically connected to the health of our oceans. Through efforts at the International Maritime Organization and in Canada, positive change is underway to reduce the impact on the environment through advanced ship-design, and reductions of air emissions, aquatic invasive species, and ship generated noise, it said. Read more here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    Most influential women in logistics narrowed down to final shortlist
    source: Lloyd’s Loading List
     
    Women in Logistics has revealed the final shortlist of the most influential individuals and businesses that will be bidding for a much sought-after award on 17 June 2016. Read more here.  

  • 8 June 2016

    AIR FREIGHT UPDATES


    EU Transport Chief to Battle Airline Subsidies in Persian Gulf
    source: AJOT
     
    European Union governments gave EU transport chief Violeta Bulc the go-ahead to negotiate aviation agreements with the United Arab Emirates and Qatar, setting up a potential clash over alleged unfair subsidies to airlines based in the two Persian Gulf nations.
     
    European transport ministers meeting on Tuesday in Luxembourg included a provision on financial transparency in the negotiating mandates for Bulc, targeting any market-distorting aid to Emirates, Etihad Airways PJSC and Qatar Airways Ltd. The ministers also approved similar mandates for accords with Turkey and the Association of Southeast Asian Nations.
     
     
     
    DHS Says US Airport Screening Improving
    source: AirWise
     
    The Transportation Security Administration (TSA) is working to improve airport screening after major lapses last year, a US government investigator said, adding that the agency has embraced oversight.
     
    "As a result of our audit reports… TSA is now, for the first time in memory, critically assessing its deficiencies in an honest and objective light," said John Roth, inspector general of the US Department of Homeland Security, the TSA's parent agency. "We are generally satisfied with the response we have seen at TSA."
     
    Read more here

    OCEAN FREIGHT UPDATES


    OOCL launches the first capacity cuts on the transpacific as freight rates sink to unsustainable levels
    source: The Loadstar
     
    OOCL has announced that it will suspend its transpacific service out of central China.
    The service, the CC1, which operates as part of the G6 alliance, will stop for six weeks, commencing with the arrival of the Hyundai Shanghai in Qingdao on 19 June.
    No reason was given by the carrier for the suspension, but weak demand combined with excess capacity has driven freight rates down to rock-bottom levels on the route this year.  

    Read more here.
     
     
    Suez Canal offers up to 65% discount for Asia-North America east coast carriers
    source: Lloyds Loading List
     
    The Suez Canal Authority has announced plans to offer a significant discount on toll fees of up to 65% to traffic heading on the backhaul eastbound leg from the North American east coast to South and Southeast Asia, as the waterway looks to increase the pressure on its rival, the Panama Canal.
     
    With immediate effect, containerships departing from Norfolk, Virginia, and North American ports further north heading to the port of Kelang in Malaysia and east Asian ports thereafter will be granted a 45% reduction on the Suez Canal’s normal tolls, according to the SCA.  

    Read more here

     
    G6 takes shipper fears on board and phases-out HMM ships from Asia-Europe trades
    source: The Loadstar
     
    The G6 Alliance is to phase out troubled ocean carrier Hyundai Merchant Marine’s (HMM) ships from its joint services on the Asia-North Europe tradelane and replace them with vessels from other partners.
     
    According to Alphaliner, the decision to drop the ships from the route is a “pre-emptive move” to avoid “potential operational disruptions” as a consequence of the South Korean company’s financial restructuring.  

    Read more here.  
     
     
    China vows to ignore Hague court's South China Sea judgment
    source: Shippingazette
     
    CHINA has rebuffed American pressure to curb its activity in the South China Sea, restating its sovereignty over the disputed territory and saying it "has no fear of trouble", Reuters reports.
     
    On the Asian security summit, Admiral Sun Jianguo said China will not be bullied, including over a pending international court ruling over its claims in the vital trade route.
     
    "We do not make trouble, but we have no fear of trouble," Admiral Sun told the Shangri-La Dialogue in Singapore, where 600 security delegates gathered for three days.
     
     
     
    New guidance on SOLAS a welcome move
    source: Lloyd'sLoadingList
     
    Latest IMO circular on VGM urging a policy of ‘practical and pragmatic' enforcement by authorities over the first three months will assist implementation, says TT Club’s Peregrine Storrs-Fox
     
    The International Maritime Organization (IMO) has issued a Circular to all Member States and the transport industry this week in order to assist the implementation of the VGM amendment to SOLAS, which comes into effect on 1 July.  TT Club welcomes the move, noting that governments have also been urged to engage with the industry in their jurisdictions to assist with compliance and to share best practice with other national authorities.
     

     
    Bad news for Port Klang as CMA CGM signs up for container terminal JV with PSA at Singapore
    source: The Loadstar
     
    After its acquisition of APL, French shipping line CMA CGM is expected to also sign a joint-venture agreement to develop a new hub at Singapore with the port’s operator, PSA.
     
    The move was indicated last year with CMA CGM’s original takeover offer, accompanied by a series of mollifying comments from vice-chairmanRodolpheSaade to Singaporeans clearly worried about their jobs.

    Read more here.  


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    Disregarding trade compliance “risky business”: survey
    source: CanadianShipper
     
    EAST RUTHERFORD, N.J.– Multinational companies are not investing in their employees’ trade compliance training, even though organizations and individuals that fail to comply with trade regulations face substantial penalties, according to survey results released from global trade management solutions provider Amber Road and its Global Trade Academy.
     
    The survey of 300 U.S.-based global companies across a range of revenues and industries found that 56 percent of executives at the companies surveyed are not investing in trade compliance training, even though 28 percent of those companies had already been fined or warned by government agencies for noncompliance.
     
     
     
    U.S. consumers aren't buying more international products despite the dollar's surge
    source: American Shipper
     
    U.S. consumers were supposed to be the world's economic engine, but haven't been straying from domestic shores.
    Despite the double-digit advance in the U.S. trade-weighted broad dollar index in 2015 on the heels of the rally in the second half of 2014, real goods imports (excluding petroleum) have gone nowhere for over a year:
    That is, although it got a lot cheaper for the U.S. to buy stuff from the rest of the world, Americans haven't been doing so.  

    Read more here.  

  • 7 June 2016

    OCEAN FREIGHT UPDATES


    DP World unveils $1billion project to develop greenfield container port in Ecuador
    source: The Loadstar
     
    DP World has won a concession to develop and operate a new container facility in Ecuador, a Latin America’s country that has proved most resistant to international terminal operators.
     
    The Dubai-headquartered operator today said it been awarded a 50-year concession to develop the port of Posorja, located around 65km from its largest port of Guayaquil.
     
     
     
    A more comfortable berth for live lobsters
    source: The Loadstar
     
    A few weeks ago CMA CGM announced that it had developed specialised container for transporting live lobsters caught in the Canadian waters of Nova Scotia to the food markets of Europe, thus making air freight redundant. It is not the first time a shipping line has tried to capture a market that has always been in the hands of airlines.  

    Read more here.
     
     
    Port of Oakland to extend night-time operations
    source: Splash 24/7
     
    The Port of Oakland announced on Monday that its International Container Terminal will continue with night-time operations from Mondays to Thursdays even beyond the expiry of a port subsidy this month.
     
    Night-time operations began two months ago as a temporary measure and funded by a $1.5m Port of Oakland subsidy program. It has proved very popular.

    GROUND & RAIL UPDATES


    Teamsters seek Socal port ban on misclassifying 'illegal truckers'
    source: Shippingazette
     
    THE Teamsters Union Port Division is calling on the ports of Los Angeles and Long Beach to "ban trucking companies if they "illegally misclassify truck drivers" as independent contractors.
     
    Teamsters director Fred Potter said compliant companies are facing an "unfair advantage" from those that continue to avoid treating their drivers as employees.
     
     
     
    62 managers sacked at coal-starved Burlington Northern Santa Fe
    source: Shippingazette
     
    THE Burlington Northern Santa Fe (BNSF) Railway has cut 62 management jobs and reduced itself from three regions to two as layoffs mount and coal volumes fall because of environmental regulations and low natural gas prices.
     
    The Association of American Railroads said April coal volumes on United States railways were down 39.7 per cent year on year, reported American Shipper.
     
     
     
    Peace Bridge (Fort Erie, ON and Buffalo, NY) Rehab To Begin This Month
    source: CIFFA
     
    American Bridge Company has been awarded an $80.5-million contract to rehabilitate the Peace Bridge - an international crossing connecting Fort Erie, Ontario and Buffalo, New York. The work is part of a five-year, $186-million capital project and begins this month. No lane closures are expected until mid-October. Construction is to be finished by 2019 and will be completed in four stages. The project will be a coordinated effort between both sides of the border to ensure completion with minimal impacts on motorists, tourists, bus passengers and commercial carriers. Rehabilitating the Peace Bridge will involve everything from replacing structural steel to new traffic control gantries, and add a pedestrian walkway.(Except from Today's Trucking)


    CANADIAN BUSINESS - GOVERNMENT UPDATES
     

    Claude Mongeau to Step Down from Role as CN CEO
    source: Canadian Shipper
     
    MONTREAL, Ont.–CN announced that its President and Chief Executive Officer Claude Mongeau will step down from his role leading CN at the end of June. Mongeau joined CN 22 years ago, was CN’s Chief Financial Officer for 11 years, and its Chief Executive Officer for the last six and a half years.  

    Read more here.  
     
     
    Halifax Port Authority Achieves Top Marks For Commitment To Environmental Sustainability
    source: CIFFA
     
    The Halifax Port Authority has achieved top marks as measured by Green Marine environmental sustainability criteria. This places the Halifax Port Authority among the top-rated Canadian ports as measured by Green Marine.
     
    The Halifax Port Authority is measured in four Green Marine categories: Greenhouse Gases, Spill Prevention, Community Impacts and Environmental Leadership. In all four categories, Halifax has achieved Level 5 ratings which reflect excellence and leadership. The 2015 Performance Report, containing the individual results of all of the program's participants, is available here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    Technology shift bringing an end to shipping cycles
    source: Splash 24/7
     
    Prepare to say goodbye to everything you thought you knew about shipping – that was the conclusion from the morning session of the TradeWindsShipowners Forum, held at Posidonia in Athens today.
     
    “Shipping cycles are a thing of the past,” Christopher Wiernicki, chairman of the International Association of Classification Societies (IACS) told delegates.
     

     
    'Outlook dim for Latin America trade in 2016', but Mexico is still shining
    source: The Loadstar 
     
    Trade prospects for Latin America are looking distinctly dim this year, according to a recent Maersk Line trade report,
     
    East coast volumes are predicted to shrink as major economies continue to struggle with recession, while west coast export nations face declining demand from China.  

    Read more here.  

  • 6 June 2016

    AIR FREIGHT UPDATES


    Henan Civil Aviation Development Investment said to buy Hahn Airport
    source: Shippingazette
     
    THE Henan Civil Aviation Development and Investment Co (HNCA) that owns 35 per cent of Cargolux. is reportedly about to buy loss-making Hahn Airport, 115 kilometres north west of Frankfurt.
     
    According to www.cargoforwarder.eu, which quoted "reliable sources, a agreement had been finalised with HNCA on "a double-digit million euro [sale] price" and that the deal will be officially announced in the coming days.
     
     
     
    Air Canada’s New Service from Montreal to Casablanca takes off!
    source: AJOT
     
    MONTREAL - The arrival of flight AC1936 at Casablanca’s Mohammed V International Airport this morning marks the successful launch of non-stop service between Montreal and Casablanca, Air Canada’s first African route and the only scheduled non-stop service to North Africa by a North American carrier. Flights between Montreal and the famed Moroccan city will be operated until October 29th, 2016 by Air Canada Rouge with a Boeing 767-300ER aircraft. Service is scheduled to resume on May 1, 2017.
     


    OCEAN FREIGHT UPDATES


    More capacity cuts on the way
    source: Lloyd’s Loading List
     
    Permanent cuts to capacity have proved to be the only effective way of reviving ailing freight rates in an environment of weak demand thus far, and industry analysts say its success only points to further supply reductions in the months ahead.
     
    Alphaliner said given the current market conditions, on top of the CMA CGM-APL consolidation and the uncertainties posed by Hyundai Merchant Marine and Hanjin Shipping’s financial restructuring moves, this will lead to significant capacity reductions, as carriers move to stop the severe rate slide of the past few months.  

    Read more here.  
     
     
    Shipping must prepare for stricter black carbon emission regulations
    source: Splash 24/7
     
    A new global challenge and a compliance monitoring market are emerging, due to tightening environmental regulations. VTT Technical Research Centre of Finland, the Finnish Meteorological Institute, Tampere University of Technology and the University of Turku have joined forces in an international project – Shipping Emissions in the Arctic – with the aim of making the measurement of black carbon emissions from shipping more reliable.
     
    The initial results show that engine loads and fuel types have a major impact on black carbon emissions from ships.
     
     
     
    2M takes advantage of lull in competition to revamp services for faster transit times
    source: The Loadstar
     
    Faster transit times and improved reliability will be the key battlegrounds for alliances on the Asia-Europe trades when the four groupings become three next April.
     
    According to Drewry, last week’s Asia-North Europe network redesign by 2M partners MSC and Maersk was focused on these two key elements.  

    Read more here

     
    Striking workers preparing for massive march through Wilmington on Monday starting at 3:00 PM PST
    source: AJOT
     
    Ports of Los Angeles and Long Beach & San Diego, CA –Hours after striking port drivers and warehouse workers, union leaders, and supporters called on the ports to stop doing business with lawbreaking companies, picket lines expanded to XPO Cartage’s San Diego-based yard (NYSE: XPO), as well as to the yard of one of XPO’s major customers, Toyota, on the U.S.-Mexico border. Long lines of trucks at the Port of Los Angeles, Port of Long Beach, and in San Diego are having a significant impact on the U.S. supply chain, which relies on the timely movement of cargo in and out of our nation’s largest seaport, through which more than 40% of U.S. imports arrive before being shipped by truck and rail to every zip code in America.
     
     
    'Auckland's port will have to be moved'
    source: The Loadstar
     
    The future of the port of Auckland might have little material impact beyond the shores of New Zealand, but the discussion under way in the city says a lot about the relationship between freight and society in the 21st century. With mayoral elections in Auckland looming, a majority of the candidates argue that the entire port needs to be moved, rather than grant it permission to extend its facilities, as port authority figures have requested.

    Read more here
     
     
    G6 Alliance announces Asia-Europe Schedule Update
    source: CanadianShipper
     
    HONG KONG, China–Members of the G6 Alliance have announced additional void sailings within their Asia-Europe product to adjust to market demand.
     
    As the G6 Alliance continues to review its product profile, the Loop 6 service will be suspended until further notice, the Alliance said.
     

    GROUND & RAIL UPDATES


    Calais migrants ‘using gas bottles in truck barricades’
    source: Lloyd’s Loading  List
     
    Migrants are using increasingly dangerous methods in their attempt to stop and enter trucks heading for the port of Calais, police sources have claimed.
     
    Unions representing police officers said that in the past fortnight, migrants had begun resorting to burning mattresses, tree trunks, and branches and placing them near gas bottles as they seek to barricade the ring road leading to the Channel port, in order to force trucks to slow down or stop.  

    Read more here.  

     
    Vancouver gets the OK for a new high speed grain terminal
    source: AJOT
     
    Port Metro Vancouver has approved an application by Global Grain Group (G3) to build a new high throughput grain export terminal at the port.
     
    G3 is a new grain company built from the remnants of the former Canadian Wheat Board and purchased by Bunge and the state-owned Saudi Agricultural Livestock Investment Company.
     
    Read more here

    CANADIAN BUSINESS - GOVERNMENT UPDATES
     

    Canada's GDP up 2.4pc as exports and consumers drive growth
    source: Shippingazette
     
    CANADA's GDP grew 2.4 per cent in the first quarter to C$1.78 trillion (US$1.37 trillion) on the strength of exports and consumer spending.
     
    But the increase fell short of expectations - a 2.8 per cent gain - and set the stage for a weak second quarter as Canada endured continuing lower commodity prices, reported the Wall Street Journal.
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    Freight forwarders urged not to be complacent on SOLAS ‘grace’ period
    source: AJOT
     
    The British International Freight Association (BIFA) is urging its members and the freight forwarding community not to be complacent about new rules concerning the reporting of the “verified gross mass” of every container, in light of the recent IMO circular on VGM urging a policy of ‘practical and pragmatic’ enforcement by authorities over the first three months after the new rules take effect on July 1.
     
    Robert Keen, director general of the trade association for UK freight forwarders says that whilst there has been ongoing concerns regarding the application of the container weighing requirements, which has led to an IMO committee issuing a statement suggesting some leniency be applied after July 1, international trade should not allow this grace period to shape its plans in regards to complying with the implementation of the new rules.
     

  • 3 June 2016

    AIR FREIGHT UPDATES

    IATA Raises Airline Profit Forecast
    source: AirWise
     
    IATA says airlines should make more money than previously expected this year, helped by low oil prices and work by airlines to fill planes and drive ancillary revenues.
     
    IATA, representing over 260 airlines accounting for 83 percent of global air traffic, is now forecasting they will make a collective net profit of USD$39.4 billion this year, up from a previous estimate of USD$36.3 billion and with more than half of all profits generated by North American carriers.
     
    Read more here.
     
     
    US Airforwarders Association urge use of private sniffer dogs for cargo
    source: Shippingazette
     
    THE US Airforwarders Association (AfA) is urging use of air cargo sniffer dogs and plans to lobby US policymakers to permit canines from private providers to perform screening duties.
     
    The US Transportation Security Agency (TSA) previously allocated sniffer dogs to air cargo, but over time they have been shifted to passenger terminals, reports Perth's Aircargo Asia-Pacific.
     
    Read more here. 
     
     
    Air China Expands Vancouver Service in August/September 2016
    source: CIFFA
     
    Air China has made further adjustment to planned Beijing - Vancouver operation, which sees overall frequency increases from 14 to 17 weekly, from August 16 to September 6, 2016. In addition, CA997/998 service is now scheduled to be operated by Airbus A330-300, from July 1 to August 31. 

     
     


    OCEAN FREIGHT UPDATES

    PSA, CMA CGM outline preparations for VGM
    source: American Shipper

    Singapore-based global terminal operator PSA International and French ocean carrier CMA CGM said they are ready to comply with a July 1 deadline set by the International Maritime Organization (IMO) for shippers to submit documentation certifying the weight of containers tendered. Without receiving the measurements in advance, carriers are prohibited from loading cargo boxes on vessels. 

    Read more here. 
     
     
    Vietnam’s port brace for chaos as they await clarification on how to apply VGM
    source: The Loadstar

    Vietnam’s shipping community is in a state of confusion over the SOLAS Verified Gross Mass (VGM) regulations, with widespread disruption to its burgeoning export industries expected from 1 July.
    With only a month until the IMO’s new container weighing rules come into effect, a lack of finalised guidelines from the Vietnam Maritime Administration (Vinamarine), coupled with poor shipper awareness, could mean boxes piling up at ports, as well as road congestion caused by a possible “no-VGM, no gate-in” policy by terminal operators. 

    Read more here.  
     
     
    No end in sight for Bangladesh congestion as garments fail to sail
    source: The Loadstar

    If you are trying to get garments out of Bangladesh, expect delays, both by air and sea. According to forwarder Ligentia, shippers are looking to sea-air services to avoid airport delays, where security and scanning issues have slowed processes. Sea-air services are via Singapore, Dubai or Colombo.

    At Chittagong port, however, ships carrying raw materials have been unable to dock after the port suspended operations in May due to a cyclone – and the congestion has yet to ease. Delays are four to five days, according to one company. To make matters worse, reportedSourcing Journal, an April strike by shipping workers has added to the congestion. 

    Read more here. 
     
      
    K Line commits to slash vessel CO2 emissions
    source: Splash 24/7
     
    Kawasaki Kisen Kaisha (K Lineļ¼‰has upped its commitments to slash its CO2 emissions going forward.
    The giant Japanese shipping line achieved 13.6% reduction in CO2 emissions in 2015 against its 2011 level, as a result of deployment of larger vessels, using advanced energy-saving technologies including electronically controlled engines, as well as slow steaming.
     
    Read more here. 
     
     
    UASC delays vote on Hapag-Lloyd merger
    source: Splash 24/7

    United Arab Shipping Company (UASC) has delayed a shareholder vote on the proposed merger with German shipping line Hapag-Lloyd.

    UASC said the shareholders of the company were generally supportive of the ongoing discussions with Hapag-Lloyd and recognised the strategic value of a potential combination of both businesses in an extraordinary general meeting (EGM) held yesterday. 

    Read more here. 


     

    GROUND & RAIL UPDATES


    Uber-like road haulage start-up ignites transcontinental US trade
    source: Shippingazette
     
    ROADIE, an Uber-like road haulage scheme, with the organisation charging US$12 to $500, with drivers getting 80 per cent of the fee, has set itself up in Atlanta, Georgia.
     
    The company has expanded in eight south-eastern states and then went nationwide, reports the Dallas Morning News.
     
    Read more here. 



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Floods, Strikes Disrupt French Daily Life as Euro 2016 Nears
    source: AJOT

    France is facing unusual levels of disruption from labor strikes and disastrous flooding with only a week to go before the start of Europe’s biggest sporting event, the Euro 2016 soccer championship.

    Overflowing rivers forced the evacuation of thousands south of Paris, while the Seine River traversing the capital rose to its highest in more than 34 years, shutting down the Louvre museum and some suburban train traffic. Meanwhile, strikes to protest a proposed labor law are disrupting railway traffic elsewhere, have caused gasoline shortages and reduced electricity output. 

    Read more here.  

  • 2 June 2016

    AIR FREIGHT UPDATES

     
    French Air Traffic Controllers To Strike Again
    source: CIFFA 
     
    European carriers are bracing for further disruption, as France's air traffic controllers plan another walkout which threatens to be the worst of 2016. Eurocontrol is warning that French air traffic control (ATC) could be affected by a French public services strike from 0400UTC on June 2 until 0400UTC on June 3. This will be immediately followed by an ATC-specific walkout from 0400UTC on June 3 until 0400UTC on June 6, in protest against future reforms.
     
    European airline lobby group Airlines for Europe (A4E) has warned that the June 3-6 strike threatens delays, cancellations and long detours. "They are looking at up to 3,000 cancellations, or more, if this hits hard. 

     
    Asian carriers monthly: demand grows in April but yields under pressure
    source: AircargoNews
     
    Asian air cargo carriers benefitted from better than expected demand in April but yields remained under pressure.
     
    The latest figures from Asian air cargo carriers show that the majority monitored in Air Cargo News’ monthly summary recorded an improvement compared with the rest of the year.
     
    This is partly down to the fact that in the first quarter of the year comparisons with 2015 are negatively affected by a demand rush last year due to industrial action at US west coast seaports.
     

     
    Airfreight industry to benefit from perishables growth despite modal shift
    source: AircargoNews
     
    The airfreight industry will continue to benefit from growth in the perishables market despite the threat of ocean transport grabbing marketshare.
     
    Speaking at the Cool Chain Association (CCA) Perishables Summit in Barcelona, CAA member Janet Coldebella, who is also Air France-KLM-Martinair Cargo business development manager – fresh, Americas, said that although ocean freight providers were taking market share, several shippers who had made the move had tried once and moved back.
     
    “Transit times are still too long to guarantee the quality and shelf life that retailers demand,” she said.
     


    OCEAN FREIGHT UPDATES


    Port Drivers Go On Strike In L.A./Long Beach
    source: CIFFA 
     
    Drivers are striking fat our companies doing business in and around the ports of Los Angeles and Long Beach, claiming they are being misclassified as independent contractors instead of employees. Drivers from XPO Cartage, XPO Port Services and K&R Transportation (owned by California Cartage) went on strike Wednesday, joining drivers at Intermodal Bridge Transport who went on strike Tuesday afternoon. In addition, warehouse workers at K&R's sister company, California Cartage Warehouse, are also on strike. It's not known how many drivers are involved in the strike, but a spokesman for the Harbor Trucking Company, said the drayage companies he has spoken to say less than 1 percent of their workers are involved in the action. Picketing is occurring at the companies' yards, warehouses and distribution centers, and the group and ambulatory picketing will occur at marine terminals and other locations throughout the day and into the night, the group said. (Excerpted from American Shipper)

     
    One-day national port strike hits France's leading container terminals
    source: Lloyd’s Loading List
     
    A 24-hour national ports strike in France today has impacted activity at France's leading container ports, Le Havre and Marseille.
     
    The stoppage by the Ports and Docks branch of the CGT trade union, the latest in a spate of industrial action over the past few weeks in protest to new labour laws, has impacted  the schedules of six box ships at Le Havre, an industry source told Lloyd's Loading List.  

    Read more here

     
    Chamber: Congestion at Yangon cannot be resolved overnight
    source: Shippingazette
     
    TO clear cargo backlogs at Yangon (Rangoon) port will require round-the-clock operations and the lifting of a ban the halts activities outside of the hours between 9am and 4pm daily imposed by customs, according to the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
     
    "Most countries around the world use round-the-clock loading and unloading processing services. Our trading system will be able to develop quickly now that we have introduced this fast-track method too, especially if customs clearance is also streamlined," UMFCCI joint secretary general U Aye Lwin told the Myanmar Times.  

    Read more here


     
    Maersk Line Announces Improvement to Asia-North Europe network
    source: Lloyd’s Loading List
     
    Maersk Line has announced improvements to its network between Asia and North Europe within the framework of the 2M alliance which it operates with MSC across five weekly service loops.
    “Maersk Line will eliminate overlapping port pairs in order to reduce the number of direct port calls in the network. This enables increased reliability through slower network speeds while the reduction in port calls make it possible for Maersk Line to maintain competitive transit times," the Danish shipping line said in a statement.

     

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Important New Rules For Dangerous Goods in Canada
    source: CIFFA
     
    Shippers required to report more dangerous goods information
     
    June 1, 2016 - The Honourable Marc Garneau, Minister of Transport, Wednesday announced several amendments to the Transportation of Dangerous Goods Regulations to improve reporting requirements in order to enhance public safety and improve local emergency response.
     
    Effective today (June 1, 2016), individuals responsible for dangerous goods must report more information to the department, such as:
     
     Dangerous goods that have been lost, stolen, or interfered with; 
    Road incidents involving dangerous goods; and 
    Undeclared or mis-declared dangerous goods transported by passenger aircraft.
     
    The amendments also make permanent a previously announced ban on lithium-ion battery cargo shipments on passenger aircraft.
     
     Read more on the Amendments to Part 8 of TDG Act in Canada Gazette

  • 1 June 2016

    AIR FREIGHT UPDATES

     
    Second Airline Suspends Flights To Venezuela
    source: CIFFA
     
    The largest airline in Latin America, Latam, says it is suspending its flights to Venezuela because of the worsening economic situation. The suspension came a day after Germany's Lufthansa said it would suspend its services to the country. The German company said Venezuela owed it millions in ticket revenues. Oil-rich Venezuela has been hit hard by the global drop in oil prices and suffers from high inflation and a chronic shortage of basic goods. Several airline companies have said that currency controls in Venezuela made it impossible for airlines to convert their earnings into dollars and send the money abroad. In a statement, Latam airlines said it would suspend its operations to Caracas airport "temporarily and for an unspecified time". It said flights on its Sao Paulo to Caracas route would end first, within days, and the other routes it runs to Caracas from Lima and Santiago would be halted by the end of July. Lufthansa said that it will suspend flights to Venezuela from 18 June due to economic difficulties in the country. (Excerpted from the BBC)


    OCEAN FREIGHT UPDATES


    American forwarders urge FMC to ensure shippers don't pay VGM costs
    source: Shippingazette
     
    THE National Customs Brokers and Forwarders Association of America (NCBFAA) has urged the Federal Maritime Commission (FMC) to see that compliance costs of container weights be verified not be passed on to US exporters or forwarders acting as shippers.
     
    In a letter to the FMC, the association lawyer Edward Greenberg said the agreement between the Ocean Carrier Equipment Management Association (OCEMA) and six major east and Gulf Coast ports to establish a process for transmitting VGM data to the carriers be accepted by the regulator.
     
    OCEMA represents 19 carriers in North America. The rule, called verified gross mass (VGM), is an amendment to the UN's International Maritime Organisation's existing Safety of Life at Sea (SOLAS) convention. 
     
     
     
    Collapsed wall latest disaster to hit gaff prone Panama Canal
    source: Splash 24/7
     
    The Panama Canal Authority (ACP) said traffic is normal and there will be no problem with meeting the deadline for inaugurating the Canal expansion project, despite the collapse of a wall segment at one of its locks, according to AFP.
     
    The expanded Canal is due for formal inauguration on June 26, and opening for commercial activity the following day.

    Read more here.  
     
     
    Efforts continue to refloat cargo ship grounded in Lake Superior
    source: Splash 24/7
     
    The self-unloading cargo ship Roger Blough remained grounded in Lake Superior on Tuesday, four days since it ran aground on Gros Cap Reef in Whitefish Bay in Lake Superior.
     
    Combined efforts of US Coast Guard (USCG), salvage crews and the vessel’s Canadian owners Great Lakes Fleet are moving towards refloating the ship.  

    Read more here
     
     
    Rotterdam port is to open a new Scheldt-Seine inland shipping link by 2021
    source: Shippingazette
     
    THE Rotterdam Port Promotion Council (RPPC) has announced that financing for the new Scheldt-Seine connection to expand inland shipping options from 2018 to 2021. 
     
    This was discussed at a seminar in Lille involving Danser Group managing director Ben Maelissa, Port of Rotterdam development chief Peter ten Broek and RPPC managing director Marjolein Warburg. 
     

    GROUND AND RAIL UPDATES


    Swiss declare Alps tamed as Gotthard rail tunnel opens
    source: TheLoadStar
     
    One of the great engineering projects of recent history was achieved today when Swiss authorities announced the completion of the Gotthard Tunnel, some 17 years after construction began. Stretching 57km at a cost of some $23.2bn, the tunnel forms one of the main north-south European rail lines, effectively linking the Dutch gateway of Rotterdam with its Italian counterpart of Genoa on the Mediterranean. 
     
     
     
    CBP - Commercial and Oversized Vehicles Unable to Cross Into U.S. at Rouses Point Starting June 6
    source: CIFFA
     
    Commercial and oversized vehicles, and vehicles with a trailer in tow, must use an alternate crossing route starting June 6, 2016. The temporary diversion is due to construction, and expected to last two weeks. "Signs wi
    ll be placed north of the port of entry to assist drivers with a detour route."
     
    Drivers of commercial vehicles are advised to enter the U.S. at the Champlain port of entry further west by utilizing Route 15. Oversized vehicles and vehicles with something in tow should use the Overton Corners and Champlain ports of entry. Overton Corners is 1.5 miles away from Rouses Point and is the closest alternative. When approaching Rouses Point from Canada on Quebec 223, travelers can drive west on Montee d' Odeltown Road, and then south on Quebec 221 to arrive at the Overton Corners port of entry. CBP will advise when all vehicles may use the Rouses Point border crossing again.


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    U.S. economy showing signs of life after rough start to the year
    source: American Shipper
     
    The United States economy grew more than initially expected in the first quarter of 2016, according to a “second” preliminary estimate issued by the U.S. Commerce Department on Friday.
     
    U.S. gross domestic product (GDP) – the broadest measure of a nation’s overall economic health – increased 0.8 percent during the quarter, down from a 1.4 percent advance in the fourth quarter of 2015. Gross domestic product is a calculation of the value of the goods and services produced by a nation’s economy minus the value of the goods and services used up in production.  

    Read more here.  

  • 31 May 2016

    AIR FREIGHT UPDATES

     
    Lufthansa Suspends Caracas Flights
    source: AirWise
     
    Lufthansa will temporarily suspend flights to Venezuela from June due to economic difficulties in the South American nation and problems converting local currency.
    International airlines have for years struggled to repatriate billions of dollars in revenue held in the local bolivar currency due to exchange controls, prompting many to limit service and require that passengers pay fares in US dollars.

    Read more here
     
     
    IATA - Air Freight Markets Grow in April
    source: CIFFA
     
    IATA released demand growth results for global air freight markets for April 2016 showing a 3.2% increase in demand measured in freight tonne kilometers (FTKs) compared to the same period last year. Yields remained pressured as April freight capacity (measured in available freight tonne kilometers or AFTKs) increased by 6.6% year-on-year. The increase in demand was broad-based across all regions with the exception of Latin America. The strongest growth occurred in the Middle East and Europe, with April demand up by 7.7% and 6.8%, respectively, compared to the same period last year. While growth appears to be stronger than in the preceding months of 2016, this is largely due to the disappearance from the comparison data of distorting factors associated with the 2015 strike at seaports on the US West Coast.
     
    Overall, the demand for air cargo remains soft and lags behind the relatively robust growth on the passenger side of the business. This is largely driven by weak world trade. The first quarter of 2016 saw the first annual decline in trade volumes since the global financial crisis in 2009, and the World Trade Organization (WTO) predicts only sluggish growth for the remainder of 2016.
     
    Regional Analysis in Detail
     
    Asia-Pacific airlines' demand for air cargo was basically flat with a 0.1% rise in April compared to last year. Capacity expanded 2.8%. The largest factor impacting this stagnation is weak trade-globally and in the region.
     
    North American carriers experienced a significant upward swing in year-on-year performance as the exaggerated effects of last year's US seaport disruption wore off. Demand grew by 4% in April 2016 compared to the same period last year, significantly better that the 0.8% drop the previous month. 
     
    European airlines witnessed a 6.8% increase in freight volumes in April 2016, the highest growth since November 2013. The strong European performance corresponds with an increase in export orders in Germany over the last few months. Despite European cargo demand trending upwards, performance remains weak in historical terms. Seasonally adjusted demand in April 2016 was only 1.5% higher than mid-2011. 
     
    Middle Eastern carriers saw demand expand by 7.7% and capacity rise 11.0% in April 2016 compared to the same period last year. Although carriers in the region continued to report the fastest growth in aggregate, the April growth rate was about half that recorded in April 2015. This reflects both a slowdown in network expansion by the region's main carriers over the past six months and weak trading conditions. 
     
    Latin American airlines reported a decline in demand of 5.9% and a drop in capacity of 0.7%, as economic conditions continued to worsen, particularly in the region's largest economy, Brazil. 
     
    African carriers saw flat-line freight growth in April 2016 compared to the same period last year. Notably, on the back of long-haul expansion, the capacity for African airlines surged by 24.3% year-on-year. This is more than double the pace of any other region in recent months.
     
     
    Air Canada Cargo Service To Brisbane Starts, New Locations For Syd And Mel
    source: CIFFA
     
    Along with the new service to and from Brisbane, starting on June 1, Air Canada Cargo announced that they will also be handled at new locations at Sydney and Melbourne as of June 6.
     
    GROUND HANDLING, NEW ADDRESSES FOR SYDNEY AND MELBOURNE 
     
    As of June 6, our ground handling at Sydney Airport (SYD) and Melbourne Airport (MEL) will be managed by Menzies Aviation. Full detail can be found here
     
     
    Airports look to raise transport standards as pharma air cargo volumes grow
    source: TheLoadStar
     
    With a dire market for general air cargo, pharmaceuticals continue to prop up the sector, according to the latest figures from WorldACD.
     
    And companies are doing their utmost to impress pharma shippers with their high standards.
     
    Pharma shipments rose 12.3%, year-on-year, in April, with Middle East traffic seeing most growth at 16.6%, against 7.3% in Europe.
     


    OCEAN FREIGHT UPDATES


    Myanmar looks to ease port congestion
    source: Splash24/7
     
    Myanmar is pushing ahead with a variety of new rulings aimed at easing congestion at its ports.
     
    Customs teams at Yangon’s ports will now operate 24 hours a day, the Union of Myanmar Federation of Chambers of Commerce and Industry said yesterday.
     
    Earlier this month the port authority in Yangon started fining owners of containers that have lain idle at the port for too long as it emerged boxships are having to wait up to 10 days to call at the cramped port.

    Read more here
     
     
    HMM urged to merge with Hanjin Shipping to join THE Alliance
    source: Splash 24/7
     
    THE Alliance, a brand new grouping of six containerlines, only has room for one South Korean member, according to a government official in Seoul, which could spark a merger between Hanjin Shipping and Hyundai Merchant Marine (HMM).
     
    The government source, speaking on condition of anonymity with local media outlet Business Korea, said THE Alliance, which Hanjin formed this month with partners NYK, MOL, K Line, Yang Ming and Hapag-Lloyd, had room for only one Korean partner. HMM would likely be absorbed by Hanjin, another government source claimed.
     
     
     
    SOLAS box weigh-ins benefit big fish at expense of small fry: Stifel
    source: Shippingazette
     
    THE UN's new container weight verification rule that comes into force on July 1 stands to benefit big multinational concerns at the expense of smaller ones, according to logistics investment analyst Stifel, reports Lloyd's Loading List.
     
    "The onset of more regulations favours the larger players, squeezing out the smaller companies and raising the barriers to entry," said Stifel in its quarterly update on the freight forwarding market. 
     
    Under the IMO's amendments to its Safety of Life at Sea (SOLAS) convention the regulation is expected to bring new business to forwarders and major shippers and the expense of smaller players.
     
     
     
    U.S. Feds Seeking New Ideas to Achieve 100 Percent Cargo Container Scanning
    source: CIFFA
     
    The Department of Homeland Security recently extended for a third time the deadline for complying with a congressionally mandated requirement of 100 percent scanning of U.S.-bound maritime cargo containers. However, DHS is also soliciting new ideas on how to meet this requirement, an effort that has some business groups concerned.
     
    The SAFE Port Act of 2006 requires all maritime cargo containers admitted into the U.S. to be scanned through non-intrusive inspection and radiation detection equipment in a foreign port prior to being loaded on a U.S.-bound ship. The original deadline for achieving this goal was July 1, 2012, but DHS has now invoked three successive two-year waivers, the latest running through 2018. Officials have said compliance is virtually impossible with available resources and technology and conflicts with the department's general approach to risk management, which seeks to focus scarce inspection resources on the highest-risk containers. Most recently, DHS Secretary Jeh Johnson told Congress in May 2014 that the department's "ability to fully comply with this unfunded mandate of 100 per cent scanning, even in the long term, is highly improbable, hugely expensive and, in our judgment, not the best use of taxpayer resources to meet this country's port security and homeland security needs." Read more (Sandler, Travis & Rosenberg) 
     
     
    Why Arctic sea routes will not be useful to shipping cargo any time soon
    source: Shipping Gazette
     
    A MULTITUDE of factors present challenges that far outweigh advantages of the polar routes for international shipping, says a University of Calgary paper by former Canadian deputy foreign minister Hugh Stephens. 
     
    "Although passages are opening up due to climate change, they won't be as big a boon as once expected," said Mr Stephens, who is also executive-in-residence of the Asia Pacific Foundation.
     

    GROUND AND RAIL UPDATES


    CTA - First Truck Moves In-Transit Across US Border Under Pilot Program
    source: CIFFA
     
    "After much anticipation, the first commercial truck completed an actual in-transit run between Canada and the U.S. this past weekend. The move marked the launch of a six-month pilot project, promised under the Beyond the Border Action Plan, to restore Canadian carriers' ability to conduct in-transit shipments while using a limited set of data when crossing the border. The truck entered the US at Port Huron Michigan on Friday May 27 and exited the US at Emerson, MB the following day, trimming valuable miles from its route.
     
    Currently the pilot is limited to nine highway carriers and three ports of entry/exit - Port Huron, MI, Emerson, MB and Pacific Highway, BC. The Canadian Trucking Alliance (CTA) expects the pilot to expand in November to include additional ports, more carriers or, ideally, both. Highway carriers involved in the pilot have to meet certain requirements, including being C-TPAT members in good standing, have FAST drivers to move in-transit, and provide all necessary requirements for goods regulated by other government departments (such as FDA prior notice).
     
    For years Canadian carriers struggled to move Canadian domestic goods in-transit through the US for the purpose of increasing productivity through shorter distances and safer routes. More comprehensive data requirements imposed by US Customs all but eliminated these types of moves after 9/11. However, the Beyond the Border agreement committed to identifying a reduced data set to permit Canadian carriers to resume in-transit operations for domestic loads.
     
    CTA notes that USCBP, CBSA and PCO were instrumental in ensuring the pilot came to fruition with further support from both the Minister of Public Safety's office in Canada and the Department of Homeland Security in the US."
     
     
    France Labour Dispute: Hollande Digs In As Rail Strike Looms
    source: CIFFA
     
    President Francois Hollande of France has insisted that a controversial labour reform will not be withdrawn as strike action looms on the railways. Meanwhile, thousands of public sector workers in Belgium are taking part in a 24-hour national strike against budget cuts, changes to working hours and a rise in the retirement age.
     
    A national railway strike is due to get under way in France on Wednesday, according to an announcement by the state rail company SNCF (in French). According to the French daily Le Monde, strike action will actually begin at 19:00 (17:00 GMT) on Tuesday while another paper, Le Figaro, said it would start at 20:00. The Paris Metro is due to go on strike from Thursday, and six of the country's eight oil refineries are still halted or running at reduced capacity due to union action.
     
    Air France pilots have voted to strike for at least six days in June in a separate dispute over productivity targets. The labour reform, which is aimed at making the labour market more flexible, was pushed through the lower house of parliament without a vote. A new national day of action is planned by unions for 14 June, when the bill goes to the Senate. (Excerpted from the BBC)

  • 30 May 2016

    AIR FREIGHT UPDATES


    ACI Opposes New Airport Checkpoints
    source: AirWise
     
    The UN's ICAO should avoid creating new checkpoints outside airport terminals as it draws up guidelines to improve security in the wake of recent attacks, the head of Airports Council International said.
     
    Angela Gittens, director general of the global airport trade group, said she did not want external checkpoints, which are being debated as a way to deter attacks on airports, to become part of a proposed global security standard for public areas because the additional lineup could create a new target.
     
     
     
    eAWB Usage Grows
    source: CIFFA
     
    The use of electronic air waybills (e-AWB) picked up again in April after a drop off in March. The latest statistics from IATA show that eAWB penetration reached 38.3% in April, up 1.2 percentage points compared with March figures. The improvement is welcomed by IATA after there was a 0.4 percentage point slowdown in March, raising questions as to whether the industry would be able to hit the end-year-target of 56% set by the organisation. However, the organisation is hoping that its 360 Programme could help boost usage, with the second round of airports only joining the initiative in March.

    The 360 programme requires that the majority of operating airlines and ground handling agents at an airport offer an e-AWB as the preferred means to all destinations and that they adopt a single process service and a standard operating procedure. In total, nine airports are now part of the programme with a further 12 set to join by the end of the year. (Air Cargo News)
     

    Miami airport aims to become a free trade zone and global air cargo hub
    source: Shippingazettte
     
    MIAMI International Airport (MIA) is looking to turn itself into a free trade zone in 2017 as part of its grand plan to become a global air cargo hub.
     
    According to airport director Emilio Gonzales, MIA continues to grow and last year produced an economic impact of US$134 billion, as the only US airport serving 100 air carriers.
     
     


    OCEAN FREIGHT UPDATES


    Chittagong, Bangladesh Terminal Update
    Terminals in Chittagong are experiencing congestion. Elevated CY unitization leading up to low terminal productivity have been identified as the main root causes. The backlog of both laden and empty containers is increasing at the port yard and creating a hindrance. Congestion is expected to worsen due to the upcoming Ramadan holiday and Monsoon season. 
     
    The situation is affecting all carriers operating in Chittagong port with the majority of feeder vessels experiencing delays of minimum 2.5 to 3 days. 
     
    Container vessel movement status as on 28/05/2016 
    Date Total number of container ship
    waiting at outer anchorage
    Outgoing Incoming T/S Port
    29/05/2016 24 02 02 SIN:2

     
    CPA allocates a total number Nine (09) jetties for container ship. One (01) is at NCT, Two (02) is at CCT and Six (06) is at GCB. 
     
    CPA Handling equipment 
    It has been observed that CPA is suffering from acute shortage of container handling equipment and significant number of equipment is out of order. This is resulting in the delay sailing/berthing and consequently slower than normal productivity.
     
    High volume of Commercial/Food Item Importation 
    This is one of the main reasons for CY congestion. A high volume of Sugar, Ginger, Carrot, Onion, Turmeric, Garlic, Chick Pea, Dal etc. is being imported in preparation for the upcoming Ramadan holiday. The majority of which is shipped via FCL container.

    Importers are choosing to store their containers at the port CY for an extended period of time.  
     
    Awaiting time at Outer Anchorage and Berth Congestion 
    Ship movement generally commences about 4-5 hours before the day’s high water (High tide). Movement of ships depends upon draught, rise of tide, availability of berth and availability of daylight hours. 
     
    - Geared vessels are idling average 2.5 or 3 days (60/72 hours) at outer anchorage to get suitable berth at GCB and NCT.  
    - Gearless vessels are waiting 2 or 2.5 days (48/60 hours) at outer anchorage to get suitable berth at CCT 
    - Some geared vessels (deep draught) have draught more than 5/6 days delay due to limited berth provision. 

    Vessel Productivity 
     
    - Productivity of the vessels is slow now for monsoon (May-Jun) heavy rain and build-up of yard congestion recently. 
    - Under circumstances, we foresee some of transshipment connections may be affected due to delay feeder vessels departure from Chittagong port to connect 2nd leg vessel for erratic feeder schedule. 

    Terminal / Yard Congestion / Port Operation 
     
    - The terminal is now congested due to heavy rainfall in last 48 hours, unplanned stacking at port yard, the huge influx of import laden containers and slow delivery.
    - Major port yards (GCB 87%, NCT 77% and CCT 62%) are occupied with both laden and empty containers. 
    - Export laden containers are waiting in a queue to enter the terminal, and once inside the terminal, movement is very slow/hampered due to lack of sufficient open space to move the containers/trailers comfortably. 

    Container movement from Off-dock/CFS 
    Container movement from off-dock to terminal is normal. 
     
    Future outlook/Ramadan Impact 
     
    - Situation is expected to continue throughout Ramadan. Ramadan in 2016 will start on Monday, June 6 and will continue for 30 days until Tuesday, July 5.  During the month of Ramadan, the impact on overall Port, Off-docs and Office productivity might worsen the ongoing congestion further in view of shortened office hours, reduced shift time.

    Industry / other related issues 
     
    - Ready-made garment shipments are increasing and will continue up to Eid. At this moment, it is difficult to determine when congestion will ease. We will continue to provide you with most updated information as it becomes available. 

    We will further update you if we find any consignments are at risk of missing the sailing due to congestion. We are keeping a close eyes on the situation to ensure your cargo is not impacted.

     
    200 Shipping Corp of India seafarers enter third day of hunger strike
    source: Splash 24/7 
     
    Around 200 seafarers have entered their third day of a hunger strike, demonstrating against state-run Shipping Corporation of India’s (SCI) failure to improve their pay.
     
    The hunger strike began on Saturday. SCI was meant to have increased seafarer wages by 30% as agreed in March last year at a meeting of the collective bargaining mechanism known as the National Maritime Board, something it has failed to do.
     
    Read more here


    Port of Oakland terminal: appointments mandatory for imports
    source: AJOT
     
    Oakland, Calif. - Picking up an import load at the Port of Oakland’s largest marine terminal? You’ll likely need an appointment.
     
    Oakland International Container Terminal (OICT) said today it’s making appointments mandatory for most containerized import pick-ups beginning June 6. It means harbor truckers usually won’t be able to drive off loaded boxes without a reservation. The terminal said its goal is to shorten lines at terminal gates while speeding up cargo delivery to customers.  

    Read more here

     
    GRIs bring positive spin to Asia-Europe container trades as carriers eye a better peak season
    source: TheLoadStar
     
    Confidence would appear to be returning to the boardrooms of Asia-Europe shipping lines as container spot rates rebounded strongly this week, with an encouraging forward-booking outlook for the peak season.
     
    The Shanghai Containerised Freight Index recorded a 37% jump in rates to North Europe, increasing the spot rate by $193 per teu to $720 – just $180 per teu below the level at the beginning of the year, before prices slumped uncontrollably.
     
    Read more here

    GROUND AND RAIL UPDATES


    ATA: Congress must act to preserve current hours of service rules
    source: Shippingazette
     
    AMERICAN Trucking Associations is urging Congress to quickly pass legislation to preserve the current restart rule that gives professional truck drivers the flexibility and opportunity to take extended off-duty periods.
     
    ATA president Bill Graves said: "The flexibility to take additional rest that the restart provided for a decade, and is providing now, allows drivers to get additional off-duty time and rest, and we shouldn't be putting restrictions on that, certainly not ones that have been shown to push truck traffic into riskier daytime hours."
     
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Canadian Transportation Agency Announces Comprehensive Regulatory Review
    source: CIFFA
     
    Scott Streiner, Chair and CEO of the Canadian Transportation Agency, Thursday announced a full review of all the regulations administered by the Agency. The announcement was part of Mr. Streiner's speech in Toronto to the Economic Club of Canada. To advance this initiative, the Agency will actively engage a broad range of stakeholders, including the transportation industry, shippers, consumers and disability rights organizations. All interested Canadians will have an opportunity to provide feedback.
     
    This initiative will:
    • Ensure that industry's obligations are clear, predictable, and relevant to a range of existing and emerging business practices;
    • Ensure that the demands associated with compliance are only as high as necessary to achieve the regulations' purposes; and 
    • Facilitate the efficient and effective identification and correction of instances of non-compliance.
    A full suite of modernized regulations will be drafted by the end of 2017 and implemented in 2018.

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    How National Retailers Save When Sourcing Millions of Labels
    source: AJOT
     
    Retail chains that consume millions of thermal labels each month are turning to specialty converters that can reduce annual labeling budgets up to 40%.
     
    Although most national and regional retail chains view labels as a commodity item, for large operations that consume millions of thermal labels each month, it is a prime operating expense with sourcing decisions made at the corporate level.
     
     
     
    WTO Issues 2016 Annual Report
    source: CIFFA
     
    The WTO has published its 2016 Annual Report covering the organization's activities in 2015 and early 2016. The Report begins with a message from Director-General Roberto Azevêdo, who looks back at a memorable year for the WTO marked by the organization's 20-year anniversary and the successful conclusion of the WTO's Tenth Ministerial Conference in Nairobi.
     
    The opening section of the Report provides a brief overview of the past year, focusing on the WTO's major areas of activity. The second part provides more in-depth accounts of the WTO's work, covering trade negotiations, implementation of WTO agreements, trade monitoring, dispute settlement, support for developing countries and outreach activity.
     
    The Report includes a special focus on the major events of 2015: the 20th anniversary of the WTO; the Nairobi Ministerial Conference; the Fifth Global Review of Aid for Trade; the 2015 Public Forum; and the WTO's Open Day. 
     
    Read more and download the report here
     
     
    Descartes Acquires pixi
    source: CanadianShipper
     
    WATERLOO, Ont.– Descartes Systems Group has acquired pixi Software GmbH, a Germany-based provider of technology solutions for e-commerce order fulfilment and warehouse management.
     
    For over 10 years, pixi has helped its customers automate e-commerce processes originating from online orders, and is currently integrated with hundreds of e-commerce sites in Europe. The company’s customers include both small-to-medium sized businesses and larger retailers looking to enhance their online presence to meet the need for omni-channel deliveries. pixi’s platform collects order information from an e-commerce webfront, translates that into a scanner-driven pick and pack process within the warehouse, initiates the shipment to the customer, and synchronizes all of this information with the customer’s financial system for invoicing and shipment tracking, said the release.
     

  • 27 May 2016

    AIR FREIGHT UPDATES


    Air Canada Notice - Customs Requirements For Shipments To Turkey Effective June 1
    source: CIFFA
     
    The Republic of Turkey Ministry of Customs and Trade requires that all shipments tendered to Air Canada Cargo destined to or transiting via Turkey (IST) must be reported down to the House Air Waybill (HAWB) level. This applies to simple master air waybills, consolidation master air waybills and each HAWB, and each consignee. Non-compliance: Air Canada Cargo will not be able to move shipments until the required information has been prepared.
     
    Important: Turkish Republic Tax Identity Number (TR Identity Number) 
     
    All air waybills destined to Turkey must contain the consignee's Turkish Republic Tax Identity Number (TR Identity Number) as well as the HCC (Harmonized Commodity Code). 
     
     
     
    US Freight Industry Coalition Whistles Up New Plan To Use More Air Cargo Sniffer Dogs
    source: CIFFA
     
    The US Airforwarders Association (AfA) is taking the lead in a push to use more sniffer dogs to secure air cargo supply chains. The AfA is talking with a variety of players to establish an interest group to lobby US policymakers to permit canines from private providers to screen air cargo. The US Transportation Security Agency (TSA) had allocated some sniffer dogs to air cargo, but over time they have been shifted to passenger terminals, a trend probably accelerated by recent incidents, noted AfA executive director Brandon Fried. 
     
     
     
    AAWW pilots protest over ploy to 'drive down standards' amid contract row
    source: Shippingazette
     
    PILOTS have held a protest in New York outside the annual shareholder meeting of parent company, Atlas Air Worldwide Holdings Inc (AAWW).
     
    Atlas Air and Southern Air pilots lined up to picket on the Avenue of the Americas in midtown Manhattan, to call on Atlas Air and AAWW executives to stop driving down standards for pilots throughout the cargo industry, reported Aviation Tribune of Benalmadena Malaga, Spain.
     
    "We need Atlas to stop playing games and get serious about working with us to come to a fair contract agreement that ensures we can safely and efficiently meet the demands of clients like DHL and Amazon," said Atlas Air pilot Mike Griffith.
     


    OCEAN FREIGHT UPDATES


    Tankers and the new Panama Canal
    source: Splash 24/7
     
    Erik Broekhuizen from Poten & Partners wonders whether an expanded Central American waterway bears any significance for the oil and gas trades.
     
    The original Panama Canal, a 48-mile ship canal located in the Republic of Panama, was opened in 1914 and connects the Atlantic and Pacific Oceans. In the first year of operation some 1,000 vessels transited the interoceanic waterway. By 2015, total annual traffic reached 12,330 transits and the canal generated almost $2bn in toll revenues. Originally, the dry and liquid bulk shipping segments generated most of the canal’s revenues, but gradually container vessels became its heaviest users. Due to the growing size of these vessels, the Panama Canal Authority decided to create a new lane of traffic and construct a new set of bigger locks. This will be the third set of locks and the chambers are 180 ft wide, 1,400 ft long and 60 ft deep, which will allow the transit of much larger ships. Work on these expanded locks started in 2007.
     
    On June 26, 2016 the new, expanded locks will open for business. On April 29, the Panama Canal Authority held a draw among its top 15 customers to choose the first commercial vessel transit on June 26. Interested parties were required to indicate the name, type and dimensions of the Neopanamax vessel that they plan to deploy on inauguration day. Only one neopanamax vessel in the southbound direction (from the Atlantic to the Pacific) will be allowed to transit the expanded canal for its inauguration during daylight hours. Regular commercial transits through the expanded canal will commence on June 27.
     
     
     
    TransNav: Due diligence on bunker suppliers more important than ever
    source: Splash 24/7
     
    Singapore: All shipowners need to be especially careful carrying out due diligence on bunker suppliers, warns one tanker owner in today’s regular Friday shipowner profile on Maritime CEO.
     
    Morten Olsen Vind is the vice president at Singapore tanker player TransNav Shipping. He tells Maritime CEO: “One major concern we are having these days, and I do not believe this is only TransNav as it affects the shipowning and managing community worldwide, is the increasing need to very carefully perform due diligence on our bunker suppliers. Some suppliers are massively exposed due to many market-suffering owners in the bulk, offshore, and the container sectors. In cases where bunker companies default, the result can be a second bill for bunkers to the actual suppliers.”
     
     
     
    Clarification: IMO box weight rule not to be 'fully enforced' for 3 months
    source: Shippingazette
     
    OUR report about the International Maritime Organisation calling on governments to offer a three-month period of grace was misstated as a lack of enforcement until October. This is not so.
     
    Instead, what is called for is a lack of full enforcement for the period in which corrective measures undertaken by authorities will not likely involve preventing containerised cargo from loading.
     
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    CBSA Today: Commercial News for Stakeholders Bulletin - Spring 2016
    source: CIFFA
     
    In this issue updates on CBSA commercial and trade initiatives, both on the domestic and international fronts.
     
    Important Changes to the Collection of Commercial Revenue
    Update on eManifest
    CBSA Commercial Policy Review
    Post-Export Compliance Verification: Chapter 93
    Ruling Database Assists Importing Community
    CBSA International Engagement Strengthens Canada's Economic Competitiveness
    Strengthening the Canada-Mexico Customs Relationship
    Commercial and Trade Information at Your Fingertips
    CBSA.gc.ca is moving to Canada.ca
    Email Transformation and the CBSA's Commercial Stakeholders
     
    Download it here or read it online here
     
     
    Emergency Response Assistance Canada, Canadian Pacific conduct training exercise
    source: CanadianShipper 
     
    EDMONTON, Alta.–Emergency Response Assistance Canada (ERAC), in conjunction with Canadian Pacific (CP), have been conducting emergency exercises as part of ongoing ERAC responder training in the event of an incident involving a rail car carrying flammable liquids or gas.
     
    ERAC Response Teams, Technical Advisors and Remedial Measures Advisors from across Alberta participated in the exercise involving three simultaneous controlled transfers of flammable product from rail cars.
     
    “Rail incidents involving flammable liquids and gases, although very rare, can happen at any time and any place. If they do, Emergency Response Assistance Canada is capable of responding with highly-trained and experienced responders,” said Spencer Buckland, ERAC President. “Controlled transfer exercises provide our responders with critical experience to ensure they are ready to act when an incident occurs.”
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    French transport grinds to halt as unions cut of fuel over labour reforms
    source: Shippingazette
     
    FRANCE is facing a transport meltdown as a tense standoff between unions and the government over labour reforms saw oil refineries blocked and a fifth of its fuel pumps run dry, reports London's Daily Telegraph. 
     
    The fuel crisis in France shows no sign of easing on with most of the country now affected by shortages, reports Local.fr. 
     
    Despite the re-opening of a second big depot that had been picketed by protesters, more French service stations are running out of fuel while six of France's eight refineries have stopped production or are only partly open because of striking workers.
     
    Patrice Schneider, managing director of UK-based Birds Transport & Logistics, told Lloyd's Loading List: "We have had issues all week with drivers struggling to find diesel, especially in services catering for trucks and accepting the fuel cards used by hauliers.
     
     
     
    Global transport ministers release declaration on green and inclusive transport
    source: CanadianShipper
     
    LEIPZIG, Ger.–The Council of Ministers of Transport at the 2016 Summit of the International Transport Forum in Leipzig, Germany, officially released their declaration on green and inclusive transport May 19.
     
    Transport that is environmentally responsible, inclusive, efficient and economically sustainable will be central to implementing the commitments made at the United Nations Framework Convention on Climate Change (UNFCCC) 21st Conference of Parties (COP21) in Paris in December 2015 and achieving the UN Sustainable Development Goals, the ministers said.
     

  • 26 May 2016

    AIR FREIGHT UPDATES


    Biggest plane in the world thronged by thousands on arrival in Perth
    source: Shippingazette
     
    A 117 TON generator aboard an Antonov-225 has landed for the first time in Australia thronged by thousands of onlookers in Perth.
     
    "The excitement was great, there were high expectations", said Ron Koehler, CEO of Schenker Australia Pty Ltd. 
     
    "To organise air freight in an Antonov 225 is an absolute highlight. The cooperation between our experts in Adelaide and Perth with Czech colleagues went smoothly," he said.
     
    Karpeles Flight Services, a specialist unit of DB Logistics subsidiary DB Schenker were responsible for the around the world trip.
     
    The transport of the generator started on May 10 in the city of Pilsen (Czech Republic), from where it was brought overnight by a special multiple-axles truck to Prague. 
     
     
     
    American Airlines, LATAM File For Joint Venture Antitrust Immunity
    source: CIFFA 
     
    The cargo operations of American Airlines and LATAM could soon be integrated into the airlines' "metal neutral" alliance, which allows both carriers to book passengers, and potentially freight on the same route and share the revenues regardless of the operator for each flight. Under the terms submitted on May 16 to the U.S. Department of Transportation (USDOT) by the two airlines, the carriers would use each other's fleets and facilities to move freight along select routes. This development sets in motion, "the first broadly immunized joint business operating between North and South America." Once enacted, the two airlines anticipate a reduction in fares of up to 28 percent on connecting itineraries, according to documents submitted in the filing. (Excerpted from Air Cargo News)
     
     
    Air Traffic Controllers in France to Strike May 26 and Additional Days in June
    source: CIFFA
     
    French air traffic controllers (ATCs) are scheduled to strike again Thursday, May 26. Airlines for Europe (A4E) said in a statement that the air traffic controllers will work on reduced capacity for at least 24 hours starting Thursday morning. They (A4E) also said that there are further strikes scheduled from June 3-5 and again on June 14. The latest ATC strikes in Greece, Italy, Belgium and France in March, April and May have caused more than 2,500 cancellations among A4E members and more than one million minutes of delay (more than 16,000 hours) across all airlines operating in European airspace.


    OCEAN FREIGHT UPDATES


    CMA CGM announces new Westbound call at Port Kelang on REX 2
    Source: AJOT 
     
    CMA CGM announced the introduction of a new Westbound call at Port Kelang on its REX 2 service connecting Asia with Red Sea.
     
    To maintain and upgrade its service quality, CMA CGM has decided to replace REX2 W’B Singapore call by Port Kelang. This new routing grants the full coverage and transit time improvements through our advanced Feeder network in Asia.
     
    As from m/v E.R TIANSHAN voy. 125REW, expected to call at Port Kelang on June 16th, 2016, all Southeast Asia cargo will be routed via Port Kelang instead of Singapore, new REX 2 rotation being as follows:
     
    Shanghai - Ningbo - Kaohsiung - Shekou - Port Kelang - Jeddah - Ain Sukhna - Aqaba - Jeddah - Djibouti - Port Kelang - Singapore - Shanghai

     
    Importers Also Feel the Impact of the VGM Rule
    source: American Shipper
     
    The International Maritime Organization’s (IMO) July 1 deadline for ocean carriers to collect the certified weight of each container prior to loading is directed at exporters, but importers are indirectly affected too.
     
    Importers have a stake in the developments because they need their overseas suppliers – who are exporters – to provide the data so their goods get on the vessel and to stores as scheduled.
     
     Many retailers and manufacturers are checking with their vendors to make sure they are as ready as possible.
     
    In an interview at the US Chamber of Commerce’s Global Supply Chain Summit, Jon Gold, vice president of supply chain and customs policy at the National Retail Federation, complained that carriers have not made clear exactly how shippers are supposed to provide the verified gross mass (VGM) data they seek.
     
     
     
    Marine insurer fears VGM rule will bring short-term pain to supply chain
    source: Shippingazette
     
    SHIPPING and logistics companies as well as shippers will not be ready for the verification of the gross mass (VGM) of packed containers, and this will likely affect the cargo insurance sector, said the International Union of Marine Insurance (IUMI).
     
    "Issues include increases in risk exposure due to disturbances in the supply chain, unweighed containers being refused on board with delays for perishables or time-sensitive cargoes and the consequent accumulation risk associated with more containers languishing in ports," said the IUMI press release. 
     

     
    Port strike adds to French transport woes
    source: Lloyd'sLoadingList
     
    A two-day port strike in France starting today is adding to the difficulties faced by the freight transport sector, which is already having to cope with fuel shortages due to industrial action at distribution depots and oil refineries.
     
    At the Port of Marseille, a strike by dockworkers has led to a total shutdown in activity, including at the major container terminal of Fos, and the stoppage is expected to continue tomorrow as well. Five containerships bound for Marseille have modified their itinerary, a spokesperson for the Mediterranean port confirmed.
     
    While Lloyd’s Loading List has been unable to obtain confirmation, it appears to be a similar situation at France’s other main container gateway, Le Havre, where last week 70 port calls were impacted by strike action.  
     
    At time of writing, no one at either Maersk or CMA CGM was available to comment on how its schedules were being impacted by the French ports strike. 
     

     
    MSC rationalises Americas services
    source: Lloyds Loading List
     
    MSC is to combine its Europe-North America and North America-west coast South America services into a single service.
     
    The  SAWC-USA-NWC consolidates the US east coast to South America west coast and northern Europe to South America west coast services and will launch when the 8,800 teu MSC Brunellasails from Rotterdam on June 14.  

    Read more here. 

     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    India could force Apple to alter supply chains for greater market share
     
    source: The Loadstar
    A new Indian regulation could have an interesting impact on Apple’s supply chain. For the hi-tech behemoth to open its own shops in India, it must source at least 30% of its components locally. As we all know, most of its products are made in China – or other Foxconn locations – and it would not be able to meet the Indian rule, just ratified by the finance minister. Apple has a relatively small market share in India, where less expensive devices are more popular, but the Californian company is eyeing growth there.  

    Read more here. 


     
    World better to forget oil at $100 a barrel, says Norway
    source: The Loadstar
     
    Oil prices are on the increase again, and pretty quickly too, leading some to wonder what will happen to carriers that have managed to overcome overcapacity woes via cheap fuel. What will happen to those balance sheets once fuel returns to the levels of a few years ago? In this fascinating Bloomberg interview, Norway’s petroleum and energy minister, Tord Lien, says it is unlikely and takes the unusual position – for a country dependent on hydrocarbon prices – that it shouldn’t happen.  

    Read more here.  

  • 25 May 2016

    OCEAN FREIGHT UPDATES


    China approves CMA CGM acquisition of NOL
    source: Lloyds Loading List
     
    Container shipping group CMA CGM today received confirmation that its pending acquisition of south-east Asia’s largest container shipping company, Neptune Orient Lines (NOL), has been cleared by the Anti-monopoly Bureau of China’s Ministry of Commerce (MOFCOM), with a binding offer expected by 2 June.  

    Read more here.  

     
    MSC Adds Osaka and Tokyo (Japan) To/From Canada
    source: CIFFA
     
    MSC (Canada) Inc. announced on Tuesday two new additions to the Origami Express, Osaka and Tokyo both in  
    Japan. Please see below the details of transit times from Canadian ports of load.
     
    FROM/TO:                    Via Transshipment     OSAKA             TOKYO 
    MONTREAL                  Antwerp/Ningbo            46                     47 
    PRINCE RUPERT         Ningbo                          28                     29
    VANCOUVER                Ningbo                          29                     30
    SAINT JOHN                 Freeport/Ningbo            50                     51
     
    (Export Transit Times in Days)
     
    For further information contact your local Sales team by phone at 1-800-634-3711 or email at canadarates@msc.com 
     
     
    Dockworkers Plan 48 Hour Strike In Greece Starting May 26
    source: CIFFA
     
    Dockworkers from Piraeus and Thessaloniki in Greece are planning 48 hour rolling strikes starting at 06:00 local time on  
    26 May. The strike action will impact porters, stevedores, cranes, gantry cranes, forklifts and the shuttle bus service  
    into the port. They are protesting against the Greek Government's privatisation of Piraeus and Thessaloniki's ports.
     
     
    IMO calls on member states to delay enforcement of VGM rule for 3 months
    source: Shippingazette
     
    THE UN's International Maritime Organisation (IMO) has called for a three-month delay in implementing its July 1 rule that no container be loaded aboard ship without its weight being verified.
     
    The safety rule has triggered fears of widespread backups, reports the Wall Street Journal. Now the IMO's Maritime Safety Committee is urging member state governments to postpone enforcement of the rule until October 1
     
    Freight insurer TT Club urges governments to engage with industry to assist it with compliance.
     
    The circular will urge "practical and pragmatic" enforcement of VGM (verified gross mass) over the first three-month settling-in period.
     
    This has partly to do with problems with transshipment containers but also recognises teething problems in documenting, communicating and sharing VGM information. 
     
    "Like many others in the industry, we have been disturbed by the apparent confusion over how shippers will comply," said TT Club risk management director Peregrine Storrs-Fox. 
     


    GROUND AND RAIL


    Hauliers report further French fuel concerns
    source: Lloyds Loading List
     
    Despite the re-opening of a second major distribution depot that had been picketed by protesters, and assurances from the government that the country has reserve supplies in hand, more and more French service stations are reported to be running out of fuel while six of France's eight refineries have either stopped production or are operating partially because of striking workers.  

    Read more here
     
     
    Rail freight still losing market share in Europe
    source: RailJournal
     
    Rail freight still losing market share in Europe
    THE European Court of Auditors says rail's market share of European Union (EU) freight has fallen since 2011 despite the EU contributing €28bn to rail projects between 2007 and 2013 and a concerted effort since 1992 to encourage a shift of freight from road to rail.
     
    The auditors reviewed the performance of EU rail freight since 2000 and visited the Czech Republic, Germany, Spain, France and Poland between mid-2014 and mid-2015.
    The auditors found rail's overall performance "remains unsatisfactory" with the average speed of freight trains very low and averaging only around 18km/h on many international routes. They also discovered that many shippers prefer road transport to rail. However, the auditors did note that some countries, such as Austria, Germany and Sweden, have managed to achieve better results than the EU as a whole.
     
    "A single European railway area is still a long way from being achieved," the auditors say. "The EU rail network by and large remains a system of separate national networks, with various national authorities and very different rules governing path allocation, management and pricing.
     
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    Is poor sourcing to blame for recent retail bankruptcies?
    source: The Loadstar
     
    Magnificent op-ed from the publisher of Sourcing Journal, a US publication for the fashion and apparel industry, on how rigid supply chains and set-in-stone sourcing policies and arrangements have led to many traditional clothing retailers being unable to compete with fast fashion houses such as Zara, resulting in some catastrophic financial losses.
     

  • 24 May 2016

    OCEAN FREIGHT UPDATES


    Transport Canada Publishes SOLAS Requirements of VGM of Packed Containers
    source: CIFFA
     
    Transport Canada has announced the release of its Ship Safety Bulletin RDIMS No.: 11733860.
     
    To help shippers comply with these new requirements, Transport Canada, Marine Safety and Security (TCMSS), in consultation with Measurement Canada, various stakeholder's groups and associations, has developed and published the final version of the Canadian Procedure for Obtaining the Verified Gross Mass of Packed Containers as Required bySolas VI/2 (TP 15330E).  
     
    As a reminder the new requirements become effective July 1, 2016. This is the final version of the Transport Canada document that was reviewed in the recent CIFFA workshops held in Montreal and Toronto. 
     
    In addition the International Maritime Organization (IMO) on Monday published guidance on the requirements, specifically for transhipped containers prior to the July 1, 2016 implementation date. The notice is published further below under Ocean Updates.
     
     
    IMO Advice Regarding VGM of Packed Containers and Transshipments
    source: CIFFA
     
    The following notice was issued by the Maritime Safety Committee (MSC) of the International Maritime Organization (IMO) on Monday and will be of interest to members.
     
    "An MSC circular on Advice to Administrations, port State control authorities, companies, port terminals and masters regarding the SOLAS requirements for verified gross mass of packed containers has been agreed by the Maritime Safety Committee (MSC) of the International Maritime Organization (IMO), following discussion on the pending entry into force of the requirements in SOLAS regulations VI/2.4 to VI/2/6 on the verification of the gross mass of packed containers on 1 July 2016. 
     
    Concerns were noted with regards to the application of the requirements to a container which was loaded before 1 July 2016 and then transhipped. The Committee, meeting for its 96th session (11-20 May), also noted delegations' comments that, in the first few months after 1 July 2016, some leeway should be provided in order for any problems resulting from software updates, required for the electronic collection and transmittal of verified gross mass data, to be rectified without causing delays to containers being loaded. 
     
    In this context, the MSC agreed that while there should be no delay in the implementation of the SOLAS requirements, it would be beneficial if Administrations and port State control authorities could take a "practical and pragmatic approach" when enforcing them, for a period of three months immediately following 1 July 2016. This would help ensure that containers that are loaded before 1 July 2016, but transhipped on or after 1 July 2016, reach their final port of discharge without a verified gross mass and it would provide flexibility, for three months immediately after 1 July 2016, to all the stakeholders in containerized transport to refine, if necessary, procedures (e.g. updated software) for documenting, communicating and sharing electronic verified gross mass data. 
     
    Notwithstanding the above, the MSC emphasized that the stability and safe operation of ships, including the safe packing, handling and transport of containers, is not limited to the provision and use of VGM information and is also covered by a number of SOLAS regulations, including SOLAS regulations VI/2.1, VI/2.2 and VI/2.3, and other IMO instruments, amongst others. MSC.1/Circ.1548 will shortly be available to download from the IMO website."
     
     
    Le Havre Braced For Fresh Strike Action
    source: CIFFA
     
    France's biggest container port Le Havre is bracing itself for fresh strike action later this week following several days of disruptions last week as port workers and other transport workers in France continue their protests against new labour legislation. Last week, a three-day strike affected 70 calls at Le Havre, roughly the normal volume of traffic handled over such a period. The majority of these calls were postponed rather than cancelled, the port operator said, with the port operating normally since last Friday. "We are awaiting confirmation later today that a 24-hour strike will go ahead this Thursday (26 May)," a spokesperson for the Le Havre Port Authority (GPMH) said. Meanwhile, France's biggest transport and logistics trade federation, Transport and Logistique de France (TLF), said prolonged industrial action, which continues to target blocking access to French ports, fuel depots and oil refineries, had already cost the sector "several millions of euros". (Excerpted from Lloyds Loading List)
     
     
    The Pros and Cons of Low Freight Rates
    source: Lloyds’ Loading List
     
    Shippers and logistics providers are ‘paying’ for the current unsustainably low container prices on major trades by having to adjust to lower service levels and reliability, according to some senior forwarding executives, although carriers can’t afford to let service levels slip too much for fear of losing business.  

    Read more here


    GROUND AND RAIL


    '3D printing will disrupt trucking, shipping and delivery industries'
    source: TheLoadStar
     
    Although its methodology remains untested, new figures from one survey suggest that “3D printing could threaten 41% of air cargo, 37% of ocean container and 25% of trucking business”, as there is just less need for the transporting of finished or semi-finished goods around the world, other than the composite material that 3D printing uses. The long-term implications however, are about far more than the mere transport of stuff, as this long article from Trucks.com shows – for example, who knew that Amazon now has patents filed for mobile 3D printers housed in its delivery vehicles?
     
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    CBP - Updated ACE Development/Deployment Schedule Now Available
    source: CIFFA
     
    U.S. Customs and Border Protection (CBP) has posted an updated version of the Automated Commercial Environment (ACE) Development and Deployment Schedule, which also contains a list of changes made with this update. The ACE Development and Deployment Schedule provides details on when upcoming capabilities will be developed and deployed in ACE.

    To download the document click here
     
     
    Vietnam is Globalisation’s Last Big Fan
    source: The Loadstar
     
    Leaving aside the less-headliney fact that there are probably a host of other developing countries that would love to welcome the sort of foreign direct investment (FDI) levels that Vietnam has seen over the past couple of years, there’s little doubt that Vietnam has been the major beneficiary of the recent decline in Chinese manufacturing.  

    Read more here
     
     
    E-Commerce Shippers Choose 3PLs On Price Alone, But are Warned ‘You Get What You Pay For’
    source: The Loadstar
     
    Cost is the sole factor when the majority of UK e-commerce retailers appoint a logistics partner, according to a new survey conducted by 3PL DK Fulfilment.
    And DKF executives also argue that failure to consider aspects such as service quality means many are likely to be disappointed with their 3PLs.  

    Read more here
     
     
    Container shipping: would a freight exchange drive rate volatility out of the system?
    source: TheLoadStar
     
    Each week the Shanghai Containerised Freight Index (SCFI), along with other index providers and rate benchmarking platforms, provides market participants with rate transparency covering both spot and contracted rates in the ocean container freight market. 
     
    The SCFI is well established and is regularly quoted in the financial results of carriers as a bellwether to the market’s health.
     

  • 20 May 2016

    AIR FREIGHT UPDATES


    AC Cargo Notice - Effective Immediately Security Screening for Shipments from Canada to India
    source: CIFFA
     
    Air Canada Cargo has advised that Transport Canada requires that all shipments on flights from Canada to India be security screened by the carrier, regardless of the security status of the shipper or forwarder. To comply with these requirements, shipper loaded units cannot be accepted for carriage to India, since the contents must be screened at the piece level. Security screening is subject to additional fees. Contact your Air Canada Cargo representative for further information.
     
     
    Atlas, Southern and Polar pilots vote to authorise strike action
    source: AirCargoNews
     
    Pilots working for Atlas Air, Southern Air, Polar Air, ABX and Kalitta have voted in favour of authorising their unions to call strike action.
     
    Nearly 2,000 pilots, representing 93% of union members, at the five US cargo carriers voted online through anonymous balloting in April and May, with 99% of voters giving the go-ahead to take strike action if necessary.
     
    The vote to authorise strike action does not necessarily mean industrial action will take place, but can be seen as a useful agreement to have in place while negotiations are ongoing.
     
    The Teamsters union claimed that the five carriers account for approximately 70% of DHL’s total flying worldwide, while it could also have an impact on Amazon, which will lease aircraft from ATSG and Atlas.
     
    “This is truly an unprecedented situation where pilots across five different companies are standing up together to send a message that we refuse to be treated below industry standards,” said Captain Mike Griffith, an Atlas pilot.
     
    “By calling this strike vote, we are telling our respective companies – and DHL – that they need to listen to the pilots who keep them flying and help build their millions in profits.”
     
    In response, Atlas Air Worldwide Holdings, which owns or has stakes in Atlas, Southern and Polar, said the unions had no right to call a strike.
     
     


    OCEAN FREIGHT UPDATES


    Port of Calais Operating Normally Despite Strike Threat
    source: CIFFA
     
    Threatened industrial action aimed at blocking the Port of Calais Thursday failed to materialize, with the French Channel port's operator confirming that activity was normal at the time as of 11.00 UTC. French transport workers are staging strikes across the country this week in protest to new labour legislation and working conditions. Lorry drivers have been at the forefront of the action in several regions of France, setting up roadblocks and filtering traffic near strategic locations such as ports and oil refineries. Railway workers at state-owned SNCF began a 48-hour stoppage on Wednesday. A spokesman for its rail freight unit, Fret SNCF, declined to comment on the extent of the disruption to its schedules but did reveal that 25% of freight train drivers had been on strike yesterday. (Lloyds Loading List)
     
     
    Hong Kong Marine Department sets strict VGM box weigh-in rules for July 1
    source: Shippingazette
     
    THE Hong Kong Marine Department has set strict rules to enforce the requirement of the UN's mandatory verification of the gross mass of a container prior to loading on the vessels in Hong Kong from July 1.
     
    Unlike other strictures that leave wiggle room by allowing what amounts to a declaration of weight, the Hong Kong rules require scales and operators of scales to be numbered and registered with the Marine Department.
     
    The Marine Department authorises two methods under the "Guidelines on the Verification of Gross Mass of a Container with Cargo Packed in Hong Kong".
     
    "For a container weighed by the approved weighing scale, the shipper requires to have a weighing document showing the weighing scale's authorisation number, the name of weighing scale operator, the date of weighing, the container number and the seal number with signature of the weighing scale operating staff and company stamp. The sample of weighing document is available here," said the Marine Department website.
     
    "For any local weighing scale operator who is interested in getting the authorisation, please click here for the procedures of application. The approved weighing scale operator has to schedule an annual calibration within 12 months of the previous calibration. The calibration proof shall be issued by Registered Professional Engineer (Mechanical or Marine and Naval Architecture discipline)," the website said.
     
     
     
    With cargo still under pressure, Cathay Pacific chief demands spending cuts
    source: TheLoadStar
     
    Cathay Pacific, which next week will receive its first A350-900, is looking to cut costs in all departments as revenues come under growing pressure – despite an April revival in cargo.
     
    Chief executive Ivan Chu told staff last week that “business challenges have become more acute in recent weeks, with continued pressure on the cargo side being compounded by a weakening trend in the passenger business”.
     
    Blaming a tourist slump in Hong Kong, combined with tough competition and a weak global economy, he said: “Over the past couple of months we have seen load factors in decline, with yield coming under ever-increasing pressure.”
     
     
     
    MOL, NYK, “K” Line, Hanjin, Hapag-Lloyd and Yang Ming ink “The Alliance”
    source: AJOT 
     
    Mitsui O.S.K. Lines (MOL, President & CEO: Junichiro Ikeda), Nippon Yusen Kaisha, “K” Line, Hanjin, Hapag-Lloyd and Yang Ming have agreed to create a new alliance covering all East-West trade lanes namely, Asia-Europe / Mediterranean, Asia-North America West Coast, Asia-North America East Coast, Transatlantic and Asia-Middle East / Persian Gulf / Red Sea. A binding agreement has been concluded by all partners and “THE Alliance” is scheduled to begin operation in April 2017 subject to approval of all relevant regulatory authorities. The initial term of the cooperation will be five years.
     
    The new partnership will build one of the leading networks in the container shipping industry combining approximately 3.5 million TEU or 18% share of the global container fleet capacity. All six partners operate advanced and competitive fleets with more than 620 ships in total. This will become the basis of a dedicated fleet deployed into the groups’ future service portfolio. Clients will be able to enjoy an outstanding product characterized by fast transit times, high frequency sailings and expansive port coverage.
     
     


    GROUND AND RAIL

    CN Intermodal Gate Hours For U.S. Memorial Day, May 30th, 2016 Now Available
    source: CIFFA
     
    Please refer to the following link to access the list of Intermodal Gate hours for Memorial Day, May 30th, 2016. Memorial Day Intermodal Gate Hours.  


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Bright future predicted for offshore wind sector
    source: Splash 24/7
     
    A recently published report out by the OECD looks at the ocean economy in 2030. Among the biggest winners in terms of new job creation is anticipated to be the offshore wind sector.
     
    The report also warns that regulation and governance will struggle to keep up with changes in world trade.
     
    “The world is increasingly multipolar and is experiencing growing difficulty in forging international consensus on global and regional issues key to the ocean environment and ocean industries,” the report noted.
     

  • 19 May 2016

    AIR FREIGHT UPDATES

    Hong Kong Airlines to launch first daily flight to New Zealand
    source: Shippingazette
     
    HONG KONG Airlines will launch its first daily direct service to Auckland on November 10, deploying an Airbus A332 aircraft on the route.
     
    "With the success of our service to Australia earlier this year, Hong Kong Airlines is delighted to announce this second long haul service," said chief commercial officer Li Dianchun. 
     
     


    OCEAN FREIGHT UPDATES


    Germany's Hapag-Lloyd in merger talks with United Arab Shipping Company
    source: Shippingazette
     
    GERMANY's Hapag-Lloyd is in talks to merge with United Arab Shipping Company (UASC), representing the latest move in container shipping corporate consolidation, Reuters reports.
     
    Hapag-Lloyd gave no details on the talks, saying there was no certainty of a deal, though a successful merger would create a group with an estimated enterprise value in the region of EUR8 billion (US$9 billion).
     
    Kuwait-based UASC, owned by Gulf Arab states with Qatar holding the majority stake, was not available for comment. 
     
    "There is so much price pressure that all shipping groups are looking for mergers and this one won't be the last,?a transport banking source told Reuters. 
     
    "Hapag in particular had to look for a partner as it was left out of recent tie-ups and alliance regroupings. It was at risk of becoming a sub-scale player lacking the full range of destinations," said the banker. 
     
    However, a shipping industry source said it is unclear whether there would be sufficient benefit to UASC. 
     
    Read more here

     


    GROUND AND RAIL


    Portland boss sees trucking to port as cheap as shipping with today's low oil
    source: Shippingazette
     
    LOW oil prices has made the Port of Portland, Oregon, less economically viable for container shipping, said port boss Bill Wyatt.
     
    Low oil prices has caused trucking rates to drop well below expected levels, making direct container service to the Puget Sound region less competitive, he told the Portland Business Journal.
     
    "Trucking up to Puget Sound is a lot less expensive than people thought it was going to be a year and a half ago. Freight rates are very cheap right now, " he said.
     
    "I don't expect to see any new carriers here for a while," he said. "With the cost of oil where it is."
     
    Korean ocean carrier Hanjin Shipping in February 2015 stopped calling the Port of Portland from China and now calls at Prince Rupert, British Columbia; Seattle, Vancouver, British Columbia.
     
    Then Hapag-Lloyd of Germany pulled out of Portland on its Med Pacific Service (MPS), which connects the region with the Mediterranean, stopping in Central America and the north coast South America along the way. 
     
     
     
    Denmark to build fixed link underground tunnel to Germany
    source: CanadianShipper 
     
    LEIPZIG, Ger.—Denmark’s Minister for Transport and Building, Hans Christian Schmidt, announced that Denmark will construct an 18 km long fixed link, an immersed tunnel, to Germany. The tunnel is expected to be the world’s longest of its type and the biggest construction project in the history of Denmark. It will reduce the travel distance to Germany by some 160 km. It will be financed by Denmark’s ‘State Guarantee Model’.
     
    Schmidt spoke of the project at the opening plenary session of the 2016 International Transport Forum summit, held in Leipzig, Germany.
     
    Denmark holds the 2016 Presidency of the ITF summit and hosted a reception May 18 to welcome ministers, journalists and industry attendees.
     
     
     
    Rail freight volume staying down, Union Pacific says
    source: Omaha
     
    Union Pacific said Tuesday that it expects second-quarter freight volume to fall from a year earlier by a percentage that is in the low teens.
     
    The Omaha-based employer of 8,000 Nebraskans said that so far in second quarter, volume is down 14 percent. U.P., the nation’s second-largest railroad by ton-miles, made the forecast at a conference in Boston. It predicted freight volume for 2016 would be down by a percentage in the mid-single digits.
     
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    International Transport Forum releases study on commercial transport apps
    source: CanadianShipper
     
    LEIPZIG, Ger.—The International Transport Forum has released findings from its study on commercial transport apps. The ITF’s Corporate Partnership Board presented the findings at a press conference the morning of May 18 at the ITF annual summit.
     
    José Viegas, Secretary-General of the International Transport Forum at the OECD, said there were many relevant questions to consider but that the report “doesn’t try to be a catalogue of ready-made measures for the governments” of the ITF’s 57 member countries.
     
    Four principles emerged from the report that “should inform thinking around regulatory reform” of for-hire transport.
     
    1)      Policy should enable innovations that contribute to policy objectives such as equitable access, safety and sustainability.
     
    2)      The regulatory framework should be kept simple and uniform.
     
    3)      Regulation approaches should be innovative and flexible.
     
    4)      Perhaps the “biggest” outcome of the report, according to its author, Philippe Crist, a Transport Analyst at the ITF, is that there is a tremendous amount of data to be mined from app-based use of transport and that data-led regulation can improve benefits for all.
     
     
     
    Mass lay-offs loom in South Korea as corporate revamp starts
    source: TheLoadStar
     
    It’s been like a game of massive macroeconomic chicken: who will blink first, the Chinese government or the state-owned South Korean banks? The story in shipping for the past decade is that there have been too many ships; and that’s because ship prices were exceptionally low, and that’s because there were too many shipyards; and there were too many shipyards because the Chinese have been producing far too much steel, so that has been ultra-cheap as well. The national and provincial Chinese authorities allowed this to happen because they needed to fill jobs. Unfortunately, as South Korea’s shipping and shipbuilding sectors now teeter on wide-scale bankruptcy, it would appear those jobs were originally held by the workers in Okpo, Masan, Ulsan and other places along the country’s heavily industrialised southern coast.
     

  • 18 May 2016

    AIR FREIGHT UPDATES

    Air France - KLM Cargo Introduces "E-Quote"
    source: CIFFA ebulletin
     
    Air France - KLM Cargo has announced they have a new process for Quoting called "E-quote"!
    Please visit the website http://afklcargo.com/WW/en/local/homepage/homepage.jsp and go to "Get a quote ". After customers create an account, they receive an email asking to verify their email address, then click on the link to confirm and then are ready to submit quotes online! For questions or additional information, contact the Customer Service Team at 1-888 OK AF KLM (652-3556).
     


    OCEAN FREIGHT UPDATES

    China to Conduct Random Inspections on Export Containers
    source: BIFA
     
    From 1 July, as part of its enforcement of new container-weighing requirements, China will conduct random inspections on export containers at the country’s ports according to long-awaited industry guidelines issued by the Ministry of Transport.
     
    In a consultation paper sent to all agencies of the Transport Ministry, the guidelines stated that vessels and terminals could not load a container for which the verified gross mass, or VGM, had not been received.  Read more here.  
     
     
    Regulators downplay ‘tolerance’ in new SOLAS rules
    source: Lloyds Loading List
     
    Despite reports about ‘tolerance’ regarding the new SOLAS container-weighing rules that come into effect globally on 1 July, there is little room for manoeuvre for most shippers – at least in the UK.
     
    Keith Bradley, technical advisor at UK regulator the Maritime Coastguard Agency (MCA), told a packed seminar room at the Multimodal 2016 event last week that after 1 July, the only containers that would have the flexibility to be treated under the old rules allowing shippers to estimate container weights were those already at sea on 1 July and requiring transhipment.  Read more here.  

     
    UASC seeks approval for possible ‘business combination’ with Hapag-Lloyd
    source: Splash 24/7
     
    Shareholders in United Arab Shipping Company (UASC) will vote soon to approve a “business combination” agreement with Germany-based container line Hapag-Lloyd.

    The nature of such a combination has not yet been disclosed, but it could potentially include a merger. On April 21, the two lines said their merger discussions are based on a relative valuation of the two businesses at 72% for Hapag-Lloyd and 28% for UASC. Read more here
     
     
    Hyundai Merchant Marine may offer debt-for-equity swap in charter rate negotiations
    source: Splash 24/7
     
    Hyundai Merchant Marine (HMM) must renegotiate a 28.4% cut in charter rates before May 20 or will likely enter court receivership, and could offer equity to its counterparties to sweeten the deal.
     
    Five unnamed shipowners from whom HMM has chartered vessels will visit South Korea today to wrap up discussions over the charter rates the company is paying, according to reports from the Korea Times.  Read more here. 
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Thieves 3D-print keys and locks to bypass container security
    source: The Loadstar
     
    Hot on the heels of yesterday’s news that cargo crime in the EMEA region rose 115% in the first quarter, comes an article which shows how it happened – and how 3D printing could have a negative impact on supply chains in more ways than one.

    Thieves are using 3D printers to manufacture copies of high-security cargo seals, which they then put onto the outside of already-emptied containers. And since someone posted CAD master files online, showing how anyone with a 3D printer can open a TSA-approved lock, the threat of theft has worsened. Read more here

  • 17 May 2016

    AIR FREIGHT UPDATES


    Neutral Air Partner aims to revive specialisation and expertise in the air freight sector
    source: TheLoadStar
     
    Neutral Air Partner is forming a group of specialists from all parties – except the end-user.
     
    “We believe that since the word ‘logistics’ became trendy, the industry has lost its identity as far as specialisation and industry expertise is concerned,” CEO and founder Christos Spyrou told The Loadstar.
     
    “We want to create a powerful grouping of leading and independent advanced air cargo specialists, each defined and selected by industry specialisation – airlines, tradelanes, commodity, etc.”
     
    For $500 a year, the network’s SAFE scheme offers member financial protection, which includes bankruptcy or bad debt by other members.
     

    OCEAN FREIGHT UPDATES


    ‘Too many cooks’: Drewry’s verdict on THE Alliance
    source: Splash 24/7
     
    Shipping consultant Drewry has echoed comments made by other analysts on the potentially unwieldy nature of containershipping’s new grouping, THE Alliance.
     
    THE Alliance was announced last Friday and comprises six carriers: Hanjin Shipping, Hapag-Lloyd, K Line, MOL, NYK and Yang Ming. It will start in April next year.
     
    Drewry described the members of the new grouping as “orphans” and suggested there might be “too many cooks” involved. Moreover, two other carriers, UASC and HMM, could still join THE Alliance taking the number of parties involved to eight.
     
     
     
    Getting tough over weight at the gate may divert cargo, says exporter
    source: Shippingazette
     
    PORTS that insist on verified gross mass VGM at the gate will likely get the short shrift from exporters like STIHL Inc, maker of chainsaws another hand-held construction equipment, reports American Shipper.
     
    "If there is a port that said, 'We will not accept a box,' we may divert freight away from that port," said STIHL export manager Murray Bishop in a panel discussion at the Virginia Maritime Association's annual conference in Norfolk. 
     
    Mr Bishop's remarks are made in relation to the United Nations' regulation requiring verified container weight before loading by July 1. This is the result of an amendment to the Safety of Life at Sea (SOLAS) convention.
     
    STIHL, of Virginia Beach, will only use ports with flexible policies towards meeting new international maritime safety guidelines for carriers to obtain the certified weight of containers prior to vessel loading. 
     
     
     
    CMA CGM to improve its services connecting North Europe with Middle East and Asia
    source:  AJOT
     
    CMA CGM announced the following changes to come on its services connecting North Europe with Asia.
     
    New rotation on FAL 1:
    Starting in Hamburg on May 26th, 2016 with m/v CMA CGM VASCO DE GAMA voy. 087 FLE, FAL 1 will include a new call at Jebel Ali on its rotation, now becoming the only service to offer connections with Middle East Gulf ports as follows….

    Read more here.  


    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Fraser Surrey Docks Victoria Day Gate Closure and Changes to Pre-book Times on the GRS
    source: CIFFA
     
    Please note that Fraser Surrey Docks will not have any gate operations on Monday May 23rd, for the Victoria Day holiday. Regular gate operations will commence on Tuesday May 24th at 8:00 am. Please also note that due to the gate operations closure on Victoria Day, the GRS pre-booking dates will be as follow.
     
    Pre-Booking requests for Tuesday, May 24th will be accepted on Thursday, May 19th between the hours of 11:00 to 13:00
    Pre-Booking requests for Wednesday May 25th will be accepted on Friday, May 20th between the hours of 11:00 to 13:00
     
    Regular pre-booking dates and times will resume on Tuesday, May 24th. If you have any questions or concerns with this notice, please contact the Gate Supervisor atfsdres@fsd.bc.ca or at 604-495-1191.
     
     
    Montreal Port Authority: Another Year of Growth In 2015 And Major Projects In The Works
    source: CIFFA
     
    In 2015, cargo traffic handled at the Port of Montreal rose 5.2% over the previous year to reach 32 million tonnes. This is a record high for the Port of Montreal. Containerized cargo grew 4.1% in 2015. Its volume reached 13.1 million tonnes, or close to 1.5 million TEUs (twenty-foot equivalent units). Almost half of the goods that pass through the Port of Montreal are containerized, making it the Port of Montreal's largest sector of operations. Liquid bulk posted an 8% increase, with close to 10 million tonnes handled. This increase can be partly explained by the drop in oil prices, which favoured imports.

    Read more here.

     
    Global Affairs Canada Notice to Exporters Export Controls to Belarus 
    source: CIFFA 
     
    Export and Import Permits Act Serial No. 197 - Date: May 13, 2016
     
    This Notice is to advise exporters that Global Affairs Canada will initiate the regulatory process to remove Belarus from the Area Control List (ACL). 
     
    Background
     
    Pursuant to the Government of Canada's commitment to diplomatic re-engagement with the international community, and in response to recent positive developments in Belarus, Global Affairs Canada will initiate the regulatory process to remove Belarus from the ACL, thereby lifting sanctions that have been in place since December 14, 2006.
     
    This announcement is consistent with actions taken by the United States and the European Union since October 2015. It also reflects Canada's acknowledgment that the Government of Belarus has made progress in key areas in recent months, including the release of political prisoners and conducting a presidential election in October 2015, which demonstrated greater adherence to international norms and was not marked by the levels of violence and intimidation seen in past elections. Canada also recognizes the constructive role played by Belarus in facilitating negotiations toward a ceasefire and peace agreement in Ukraine-the Minsk agreements-in September 2014 and February 2015. 
     
    Administration
     
    This Notice replaces Notice to Exporters No. 148, "Export Controls to Belarus". As the regulatory process to remove Belarus from the ACL may take some time, as an interim measure, and effective immediately, Global Affairs Canada will normally issue permits for the export to Belarus of any goods and technology not specifically listed in the Export Control List (ECL). 
     
    For those goods and technologies that are listed on the ECL, applications for export permits will be reviewed on a case-by-case basis. Further information on how to apply for an export permit may be found at the links below.
     
    Information on how to enrol as a user of the Export Controls On-Line (EXCOL) system may be found at the links below. 
     
    General Information
     
    For further information, exporters may contact:
     
    Export Controls Division (TIE)
    Global Affairs Canada
    125 Sussex Drive
    Ottawa, Ontario K1A 0G2
    Telephone: 613-996-2387
    Facsimile: 613-996-9933
    Email: tie.reception@international.gc.ca 
     
     
    Government of Canada Creates Cape Breton Regional Municipality Foreign Trade Zone Point
    source: CIFFA
     
    Today (May 14), the Honourable Mark Eyking, Member of Parliament for Sydney-Victoria, on behalf of the HonourableNavdeepBains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, announced that the Government of Canada has created a Foreign Trade Zone (FTZ) Point in the Cape Breton Regional Municipality (CBRM).

    Read more here

     
    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    US National Retail Federation calls on Congress to enact trade pact
    source: Shippingazette
     
    THE recently negotiated Trans-Pacific Partnership trade agreement will have a positive impact on both retailers and American consumers once enacted, according to a new report released by the National Retail Federation.
     
    "This report shows the importance of international trade to the US economy and how TPP creates economic growth and opportunity in the United States," said NRF president and CEO Matthew Shay.
     
    "Congress should move quickly to approve this agreement so American workers, consumers and businesses can begin to realise those advantages as soon as possible," he said.
     
    "The Trans-Pacific Partnership agreement holds potential for retailers and American families," the report said. 
     
     
     
    US Eases Sanctions on Myanmar in Bid to Promote Growth, Reforms
    source: Nikkei Asian Review
     
    WASHINGTON (Reuters) -- The United States eased some sanctions on Myanmar on Tuesday to support political reforms and economic growth in the country but retained other measures to discourage human rights abuses and military trade with North Korea, U.S. officials said.
    The moves include easing restrictions on the country's financial institutions, removing seven state-owned companies from the U.S. blacklist and extending a measure allowing shipments to go through ports and airports, the Treasury Department said in a statement.  

    Read more here

  • 16 May 2016

    AIR FREIGHT UPDATES


    Hartsfield-Jackson Atlanta aims to be major cargo airport
    source: Shippingazette
     
    THE general manager of Hartsfield-Jackson Atlanta International Airport, Miguel Southwell, has vowed to make his gateway one of America's top five airports for cargo.
     
    Speaking at the recent annual ATL Cargo Awards co-hosted with the Metro Atlanta Chamber (MAC), MrSouthwell said he believed the world's busiest passenger airport could also become a major cargo player.
     
    "Atlantans are visionaries. Anything we say we're going to do, we're going to do it," he noted.
     
    "When we stand here, and we say that we're going to move from 10th in the nation in cargo movement to within the top five in the nation, we're going to do that, too."
     
    The annual awards ceremony honours businesses and leaders for their achievements in air cargo in addition to welcoming new cargo carriers to ATL and looking at burgeoning cargo opportunities at ATL, the Airport World of Airports Council International reported.
     
     
     
    Air Canada Cargo attains QEP Accreditation
    source: CanadianShipper
     
    MONTREAL, Que.– Air Canada Cargo has received QEP Accreditation from Envirotainer at its Canadian Global hub – Toronto Pearson International Airport (YYZ) as well as six more stations across its network: Indianapolis (IND), Chicago (ORD), London Heathrow (LHR), Paris (CDG), Amsterdam (AMS) and Frankfurt (FRA). Qualified Envirotainer Provider (QEP) Accreditation demonstrates Air Canada Cargo’s competency in handling Envirotainer containers and cold chain shipments, the company said.
     
    “We are proud to receive QEP Accreditation from Envirotainer. This is an important acknowledgement of our commitment to maintaining the highest industry standards when it comes to the handling of temperature-controlled shipments,” said Lise-Marie Turpin, Vice President Air Canada Cargo.
     
    “AC Absolute° is a premium, quality-driven service that the healthcare industry can rely on when shipping healthcare products,” said Chris Fore, Compliance Manager at Envirotainer. “I am especially pleased to recognize Air Canada Cargo as a Qualified Envirotainer Provider.”
     
     
     
    Exec support for ICAO meeting on carbon offset scheme in air transport
    source: CanadianShipper
     
    MONTREAL, Que.–A High Level Meeting being convened by the International Civil Aviation Organization (ICAO) on May 11 has received executive-level support from the aviation industry, as leaders representing all parts of the sector encouraged governments to progress their deliberations on a global carbon offsetting scheme for air transport.
     
    The ICAO discussions have been gathering pace since the UN specialized aviation agency agreed to the development of an economic mechanism at its Assembly in 2013. The next such meeting, in September this year, will decide on the design of the scheme in which CO2 emissions growth from 2020 is offset through the international carbon markets, capping the growth in international aviation emissions. It is seen as part of a basket of measures to tackle aviation’s CO2 emissions, alongside new technology, use of sustainable alternative fuel, improved operations and more efficient infrastructure.
     
    “We are now less than five months away from the crucial ICAO Assembly, at which industry hopes governments will agree to go ahead with the global offsetting scheme. We have come a long way and made impressive progress. But key negotiating points remain and we encourage our government colleagues to spend the next few days ironing out any remaining differences at the ICAO High Level Meeting,” said Michael Gill, Executive Director of the cross-industry Air Transport Action Group (ATAG), at the Global Sustainable Aviation Forum.
     
    Read more here

    OCEAN FREIGHT UPDATES


    Port of Long Beach Shipments Decline Amid Weak Retail Sales
    source: AJOT
     
    Following a solid first quarter, Port of Long Beach container cargo volumes decreased in April compared to the same month in 2015, after lower-than-expected consumer spending in recent months. The decline also reflects evolving vessel alliances that have shifted ship deployments.
    Overall, Port container cargo volume was down 22.1 percent last month, compared to April 2015. Amid a soft retail climate in the U.S. and economic woes overseas, the decline in imports was accompanied by exports that were down 18 percent due to the continued strength of the U.S. dollar.  

    Read more here.  
     
     
    Zhejiang Hexing Shipyard ordered to suspend operations over safety concerns
    source: Splash 24/7
     
    Zhejiang local safety authority has announced that it found a series of safety issues at Zhejiang Hexing Shipyard during a safety inspection.
     
    According to the inspection report the shipyard has insufficient protection for the workers, some special equipment operators working without licenses and fire risks due to the incorrect storage of material.
     
     
     
    Wreck removal big money for salvors, but also needed to stop pollution
    source: Shippingazette
     
    SHIPWRECK removal, is not only one of the main sources of income for members of the International Salvage Union (ISU), but also one of the most important things its members do in fighting marine pollution.
     
    This surfaced in the ISU's Pollution Prevention Survey along with industry statistics for 2015, demonstrating a robust industry and its member’s role in environmental protection.
     
    "Yet again our members?operations have delivered great benefit in helping to protect the environment," said ISU president John Witte, reported the Maritime Journal of Fareham, Hampshire, England.
     
    Looking back, ISU members provided 185 services to vessels carrying two million tonnes of potentially polluting cargoes during 2015, slightly down from 216 in 2014. 
     
    Oil cargo showed more than a three-fold increase at 666,416 tonnes (194,880 tonnes in 2014) with chemicals down at 35,744 tonnes in 2015 from 102,939 tonnes in 2014. 
     
     
     
    Strikes Set To Hit French Transport Sector This Week
    source: CIFFA
     
    France's transport sector looks set for a week of disruption as trade unions representing rail workers, lorry drivers, airport staff, air traffic controllers, seafarers and oil refinery personnel stage strikes in protest against new labour legislation and working conditions. Two days of industrial action are scheduled for 17 and 19 May, although some of the unions have called for rolling stoppages starting Tuesday that could hit cross-Channel services at major Channel ports such as Calais and Dunkirk, while rail and air traffic schedules may also be affected.
     
    Unions representing lorry drivers are unhappy that they have received no response from France's Transport minister over their concerns that labour reforms include provision to lower the rate of pay for overtime work. Drivers in Normandy region are planning to block roads tomorrow, notably in the vicinity of the city of Caen, but it is unclear whether there will be similar action in other regions.


    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Canadian Shipper to attend International Transport Forum Summit in Germany
    source: CanadianShipper
     
    LEIPZIG, Ger.–The Organization for Economic Cooperation and Development officially launches its 2016 annual International Transport Forum Summit May 18-20 in Leipzig, Germany. The Honourable Marc Garneau, Canada’s Transport Minister, is expected to attend.
     
    Canadian Shipper Editor Julia Kuzeljevich will also participate as part of the Media Travel Program.
     
    Since 2008, the Summit brings together ministers from around the world to share policy perspectives with CEOs, heads of international organizations, thought leaders from civil society and academia, and media.
     
    ITF’s 2016 Summit on Green and Inclusive Transport will explore the importance of low-carbon transport as an essential element in the transition to a green growth economy as well as the changes needed to make transport more inclusive and provide access for everyone to jobs, public services, and other opportunities.
     
     
     
    Montreal Port Authority announces major projects in the works
    source: CanadianShipper
     
    MONTREAL, Que.– In 2015, cargo traffic handled at the Port of Montreal rose 5.2% over the previous year to reach 32 million tonnes. This is a record high for the Port of Montreal.
     
    “This increase is very satisfactory. It reflects the fact that, more than ever, the Port of Montreal is a real growth force! Several structuring projects also progressed in 2015,” said Sylvie Vachon, President and CEO of the Montreal Port Authority (MPA) at the annual meeting held on May 13, 2016.
     
    Containerized cargo grew 4.1% in 2015. Its volume reached 13.1 million tonnes, or close to 1.5 million TEUs (twenty-foot equivalent units). Almost half of the goods that pass through the Port of Montreal are containerized, making it the Port of Montreal’s largest sector of operations, the port said.
     
    Dry bulk, for its part, increased 3.6% to 8.7 million tonnes. The main products handled include grain and iron ore.
     
     

     
    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    TAPA calls for more law enforcement agencies and insurers to share data on cargo crime
    source: AJOT
     
    Increased sharing of cargo crime data by law enforcement agencies will enable manufacturers and logistics service providers to further protect high value/theft attractive goods in supply chains and relieve the pressure on police forces that have to deal with the growing number of incidents in the Europe, Middle East and Africa (EMEA) region, says the Transported Asset Protection Association (TAPA).  

    Read more here.  
     
     
    India Service Tax Revision
     
    The “Service Tax” has been Revised with effect from 01st June 2016, as detailed below: 
     
    01.  From 01.06.16 KrishiKalyanCess 0.5% is applicable, hence rate of Service Tax is 15% w.e.f. from 01.06.16. Notification attached for your reference. 
     
    02.  Service Tax 4.5% is applicable on freight from place outside India to the Customs Station of clearance relevant notification is attached for your information.
     
    03. Rate of Service Tax on Ocean import freight is provided in below link under 9.8
     
    Here is the Web Site Link.

  • 13 May 2016

    OCEAN FREIGHT UPDATES


    Mega-vessels ‘no benefit to shippers’
    source: Lloyd’s Loading List
    The introduction of ultra-large container vessels (ULCVs) may be good for shipping lines but they are not necessarily beneficial for shippers, ports, or hauliers.
    Speaking at the FTA session at Multimodal 2016 examining ‘The impact of mega shipping vessels and maritime alliances’, the Freight Transport Association (FTA)’s director of global policy, Chris Welsh, said: “The mega vessels reduce unit costs for shipping lines, but overall supply chain costs are increasing.”
     
     
    New containership grouping ‘The Alliance’ unveiled
    source:  Lloyd’sLoadingList
     
    Hapag-Lloyd is joining forces with five Asian container lines to form a new container shipping vessel-sharing agreement on the main east-west trades, the awkwardly named ‘The Alliance’.
    Featuring Hanjin, Hapag-Lloyd, “K”Line, Mitsui OSK Lines, NYK, and Yang Ming, ‘The Alliance’ will cover all the East-West trade lanes, namely: Asia-Europe / Mediterranean, Asia-North America West Coast, Asia-North America East Coast, Transatlantic and Asia-Middle East / Persian Gulf / Red Sea.  
     
     
     
    Port of Shanghai's April box volume rises 0.3pc to 3.12 million TEU
    source: Shippingazette
     
    CONTAINER volumes at Shanghai, the world's biggest container port, increased container throughput 0.3 per cent to 3.12 million TEU in April year on year, according to the Shanghai International Port (Group) Co (SIPG).
     
    On a month-to-month comparison, throughput also went up from 3.01 million TEU in March this year.
     
     

     
    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    GCT Canada Gate Schedule for Week 20 and Victoria Day Holiday
    source: CIFFA
     
    As a reminder, Deltaport and Vanterm truck gates will be closed on Monday, May 23rd in recognition of Victoria Day Holiday. Rail and Vessel operations will work as required. Please check GCT Canada Gate Schedule for updated Saturday, May 21st gates at Deltaport.
     
     
    CBSA Enhancing Trusted Trader Programs (FAST)
    source: CIFFA
     
    The Canada Border Services Agency (CBSA) announced Thursday that it is expanding Free and Secure Trade (FAST) benefits for members of its trusted trader programs. The Agency plans to increase the number of dedicated FAST lanes to provide low-risk, pre-approved importers, carriers and drivers with expedited clearance at the border. By winter 2017, dedicated FAST lanes will be in operation at Fort Erie, Ontario, and at Pacific Highway, British Columbia. A new FAST lane will be opened at Emerson, Manitoba by spring 2018. Program eligibility requirements will also be expanded at existing FAST sites in Sarnia and Pacific Highway, and at future sites at Fort Erie and Emerson. These improvements will expedite commercial traffic at the border by allowing more trusted traders access to the FAST benefit. Want more information, read the Backgrounder: Free and Secure Trade (FAST)
     

     
    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    Consultancy offers snapshot on “future of trade”
    source: CanadianShipper
     
    DUBAI, U.A.E.—Global trade consultancy DMCC has released a report on ‘Exploring The Future of Trade,’ together with Futureagenda.org and economics consultancy Cebr.
     
    “Exploring The Future of Trade was a natural progression for us. We are in constant dialogue with our 12,000 or more member companies about how to improve their standing in the world of trade, so we thought it prudent to look ahead to the next decade to see the challenges and opportunities we will face. Together with Futureagenda.org and economics consultancy Cebr we embarked on a journey around the world that began in London, the historic home of global trade, and ended in Dubai, its modern day equivalent. On the way we stopped off in Hong Kong, Cape Town and Mumbai where we engaged at every turn with some of the world’s leading experts on global trade. We listened to them, we discussed the major issues they raised and our journey became a conversation that has led to a remarkable report packed with insight and valuable observation.
     
     
     
    Exis Technologies launches e-learning courses on CTU code, container VGM requirements
    source: CanadianShipper
     
    DARLINGTON, UK–Exis has announced the introduction of two new e-learning courses for safe handling and packing in accordance with the CTU Code and to assist compliance with the SOLAS Verification of Gross Mass (VGM) regulation. TT Club has provided sponsorship to support development of the courses, said a release.
     
    As consistently evidenced by the experience of both global freight transport insurer, TT Club and the Cargo Incident Notification System (CINS) Organisation, poor CTU packing is responsible for an alarmingly high number of incidents  leading to damage, loss, injuries and fatalities.  Additionally, the declaration of incorrect container weight (or Gross Mass) also contributes to adverse safety conditions, they said.
     

  • 12 May 2016

    AIR FREIGHT UPDATES

     
    Australia Withdraws Ban on Air Cargo, UK Ban Expected to be Lifted Soon
    source: Shipping Online

    AUSTRALIA has withdrawn its ban on air cargo from Dhaka deciding that the Bangladesh government has made satisfactory progress in airport security.

    Australia and Britain both imposed air cargo bans from Dhaka airport, much relied up by fashion exporters, after screening procedures were deemed to run from inadequate to non-existent.  Read more here
     
     
    Myanmar Pushes Ahead With New Carrier, Airport
    source: CIFFA

    Asia's recently democratized nation, Myanmar (formerly Burma), is expanding its aviation capability with a new airline and the construction of an international airport. The new carrier, to be named Asian Blue Aviation, is joint venture (JV) between Japan's full-service carrier All Nippon Airways (ANA) and Myanmar-based banking, infrastructure and telecoms company Golden Sky World, a subsidiary of Myanmar conglomerate Shwe Than Lwin Co.

    Local media reports indicate the startup will focus on both regional and international operations in a market where relatively few operators fly direct to northeast Asia from Myanmar's international hub at Yangon. In addition, construction of a new international airport at Hanthawaddy, Bago, situated some 50 miles north of the capital Yangon, is scheduled to start in late 2016.
     

     
    Cathay Pacific and Lufthansa Cargo Announce Hong Kong– Europe Tie-Up
    source: Air Cargo News

    Cathay Pacific and Lufthansa Cargo have signed a partnership that will see the two airlines offer a joint network of more than 140 flights per week between Hong Kong and 13 European destinations.

    The “highly integrated bilateral co-operation” is due to begin early next year and will see the two airlines work closely together on network planning, as well as sales, IT and ground handling.  Read more here.

     
    OCEAN FREIGHT UPDATES


    Details of New Container Alliance Emerge
    source: Splash 24/7

    The make up of a third global container alliance has been revealed by the Wall Street Journal. Japan’s Nippon Yusen Kaisha (NYK), Mitsui OSK Lines (MOL), Kawasaki Kisen Kaisha (K Line) are joining forces with South Korea’s Hanjin Shipping and Hyundai Merchant Marine (HMM), Taiwan’s Yang Ming and Germany’s Hapag-Lloyd. An official announcement on the new alliance is expected within the next 24 hours.

    “Hapag-Lloyd is in separate merger talks with Dubai-based United Arab Shipping Co. UASC will either be part of the new alliance or join in after the completion of the merger talks,” the Wall Street Journal reported.  Read more here
     
     
    Cosco Pacific Buys into Rotterdam Terminal
    source: Splash 24/7

    Cosco Pacific has announced that it has entered into an agreement with ECT Participations, a wholly-owned subsidiary of port operator HPH, to acquire a 35% equity interest in Euromax, the operator of Euromax Terminal Rotterdam in the Netherlands.

    Cosco Pacific will pay EUR41.43m ($47.4m) for the acquisition of the shares and an additional EUR84m ($96m) for 35% of a loan owed by Euromax to ECT Participations.   Read more here
     
     
    CMA CGM Shelves Eastbound Mega-vessel Sailings
    source: DC Velocity

    Five months after placing in service the largest containership ever to call the U.S., French liner CMA CGM Group has pulled the plug.

    Marseilles-based CMA CGM, the world's third-largest liner company, has terminated sailings of the "Ben Franklin" megavessel that had been operating between China and the West Coast ports of Oakland, Los Angeles, and Long Beach, according to two sources. Also tabled were CMA CGM's plans to operate five additional megaships, each capable of carrying 18,000 twenty-foot equivalent units (TEUs), eastbound into Long Beach and outbound from Oakland. That service was to start at the end of the month.  Read more here.  
     
     

     
    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    Vietnam the New Global Hot-Spot as Pirates Become Hi-Tech Hackers to Find High Value Cargo
    source: The Loadstar

    Piracy attacks in South-east Asia now account for 60% of global incidents, with a surge of activity in Vietnam marking it as a new global hotspot.

    Using data from the International Maritime Bureau (IMB), a new report by insurance firm Allianz shows global piracy attacks increased for the first time in five years in 2015, albeit by just one incident, up to 246 compared with 245 in 2014.  Read more here

     
     
    UK Faces Chronic Shortage of Warehouse Space as E-Commerce Boom Drives Demand
    source: The Loadstar

    The UK is facing a chronic shortage of warehouse capacity as years of under-development and growing demand, especially from e-commerce specialists, conspire to leave operators fighting for available space.

    This will likely lead to considerably higher rents, according to Kevin Mofid, director of logistics research at Savils.  Read more here

     
     
    US imports lower than last year, but still some of the highest ever
    source: Shipping Gazette

    IMPORT container cargo at US major ports is expected to be at some of its highest levels ever during the next few months despite a fall off from last year's record-setting numbers, according to the monthly Global Port Tracker from the National Retail Federation (NRF) and Hackett Associates.

    "Retailers are importing less merchandise than last year but these are still some of the highest numbers we've ever seen," said federation vice president Jonathan Gold.   Read more here.  

     
     
    Chinese exports stabilise in April as currency starts to weaken
    source: Shipping Gazette

    CHINA's exports stabilised in April as the value of the currency decreased, while imports extended declines to 18 months, reports Bloomberg News.

    "China's exports stayed positive in April, but with gains flattered by yuan depreciation," said Bloomberg Intelligence economists Tom Orlik and Fielding Chen.   Read more here

  • 11 May 2016

    AIR FREIGHT UPDATES


    IATA Puts Price On Carbon-Offset Deal
    source: AirWise
     
    IATA says a global market-based measure to curb aviation emissions would cost the airline industry up to USD$6.2 billion in the year 2025, but carriers could face higher charges if governments fail to reach a deal by October.
     
    Government representatives are gathering at the ICAO to negotiate a draft deal on carbon-neutral growth from 2020 which will be voted on later in the year at a full assembly.
     
    "That of course is the result the industry is counting on," IATA Director General Tony Tyler told participants at a global sustainable aviation forum in Montreal.
     
    By 2035, the deal would cost airlines up to an estimated USD$24 billion, as air traffic grows, according to figures from ICAO.
     

     
    OCEAN FREIGHT UPDATES


    APM Terminals to Provide Container Weighing Services at 29 Locations
    source: AJOT
     
    The Hague, Netherlands - With just 50 days until SOLAS Verified Gross Mass (VGM) comes into force APM Terminals is taking the lead to ensure a smooth transition into the new regulatory environment facing over 120 million containers entering the international supply chain. Under international law from 1st July, 2016 shippers are required to provide a VGM for every container before it can be loaded with the shipping line.
    In 2014, the International Maritime organization (IMO), the agency of the United Nations responsible for regulating international seaborne trade, approved amendments to the Safety of Life at Sea Convention (SOLAS) which as of 1st July 2016 will require verification and documentation of loaded containers (Verified Gross Mass, or “VGM”) before they can be loaded onto vessels.  

    Read more here.  
     
     
    Another 24-hour Greek seamen's strike as union stages walkout surprise
    source: Shippingazette
     
    THE Seamen's Union in Greece has staged another 24-hour surprise walkout, which affects domestic and local ferry routes though tug boats and pilots are not participating, reports Inchcape Shipping Services (ISS). 
     
     
     
    HK temporary navigational channels during bridge deck building works
    source: Shippingazette
     
    IN Hong Kong, the existing northeast-bound and southwest-bound temporary navigation channels across the works area of the Link Road has been shifted eastwards by 400 metres and 500 metres respectively, to facilitate bridge deck construction works, with effect from May 5. The relocated area will remain in place for three months.
     
    The lateral light buoys and fixed red lights marking the existing navigation channels will be relocated to the following positions (WGS 84 Datum) to mark the new navigation channels.
     
     
     
    New container alliance to be revealed this week
    source: Splash24/7
     
    A new container alliance will be revealed in the next couple of days.
     
    William Doyle, from the US’s Federal Maritime Commission (FMC), has revealed that representatives of a number of containerlines will meet with the FMC today to outline their new alliance and they could then announce the new lineup by the end of this week. Doyle did not give away which companies are involved in the new alliance, saying: “It may not include all of the remaining eight carriers, but it could eventually.”
     
    The eight carriers mentioned are those left out from new or existing alliances. 2M continues with Maersk and MSC, while the Ocean Alliance, comprising CMA CGM, China Cosco Shipping, OOCL, Evergreen and possibly APL, is set to start in Q2 next year, shredding the CKYHE and G6 alliances apart.
     
     
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    After A Challenging 2016, NFLD and Labrador Exports Set To Rebound Strongly Next Year
    source: CIFFA
     
    Newfoundland and Labrador will see Canada's most dramatic turnaround in export performance from this year to next, according to Export Development Canada's (EDC) semi-annual Global Export Forecast. Challenges in the energy sector, particularly weak commodity prices, are the primary force driving the province's exports down 11 per cent in 2016. However, Newfoundland exports are expected to rebound strongly with 18 per cent growth in 2017. 
     

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    Australia withdraws ban on air cargo, UK ban expected to be lifted soon
    source: Shippingazette
     
    AUSTRALIA has withdrawn its ban on air cargo from Dhaka deciding that the Bangladesh government has made satisfactory progress in airport security.
     
    Australia and Britain both imposed air cargo bans from Dhaka airport, much relied up by fashion exporters, after screening procedures were deemed to run from inadequate to non-existent.
     
    "We received a letter from the Australian High Commission here. We have made significant progress on airport security that will also help us to get cargo ban withdrawn from the UK soon," said Civil Aviation Minister Rashed Khan Menon.
     
    But the Australians insist that cargo from Bangladesh has to be rescreened wherever it takes stopover on the way to Australia.
     

  • 10 May 2016

    AIR FREIGHT UPDATES


    WestJet launches its first wide-body transatlantic service
    source: CanadianShipper
     
    CALGARY, Alta.–WestJet will launch its new non-stop service between six Canadian cities and London (Gatwick) beginning this weekend.  Flights from Vancouver, Calgary and Toronto begin tomorrow, while service from Edmonton, Winnipeg and St. John’s begins on Saturday, the airline said.
    “The launch of wide-body transatlantic service this weekend ushers in a new era in the history of  WestJet,” said Gregg Saretsky, WestJet President and CEO.  

    Read more here.  
     
     
    Tianjin Cargo Airlines launched to tap into exploding e-commerce growth
    source: Shippingazette
     
    HAINAN Airlines has launched a new cargo airline in Tianjin given that Beijing airport is said to be too ill-equipped to fulfil anticipated demand for cross-border airlift in China. 
     
    The new airline, Tianjin Cargo Airlines, registered on April 27 with initial operating capital of US$107 million, is a joint-venture between Hainan Airlines Group and the Tianjin local government, through the Tianjin port free trade zone.
     
    Tianjin Cargo Airlines plans to capitalise on the capacity limitations and congestion issues that plague the airport in Beijing. Within five years, the venture is expected to operate a fleet of between 50 and 100 aircraft, operating mainly on international routes between Tianjin, Northeast Asia, Europe and the Americas, New York's Air Cargo World.
     
     
     
    Air France-KLM Cargo exec warns that boom years will not return
    source: Shippingazette
     
    EXECUTIVE vice president of Air France-KLM Cargo, Bram Graeber, who steps down on June 1 to take up a role in the maritime sector at Royal Boskalis Westminster, has warned that the strong growth in the air cargo sector experienced over three decades prior to 2008 is not going to re-emerge any time soon.
     
    "We have had the idea for a long time that we could escape from margin pressure by adding extra services and quality to our products," he said in London's Air Cargo News. "Instead we have to offer very sharp service at a very good price."
     
    He said the demand-supply balance has changed forever. "Growth on the back of hi-tech shipments and China is not there anymore."
     
    In a bid to adapt to the reality that the passenger side of the business is outstripping cargo, Air France-KLM has made massive cuts to its freighter fleet. 
     
    This will come to an end in June when the last MD-11 departs, leaving just two Boeing 777 freighters at CDG and four B747Fs (operated by Martinair) at Schiphol.
     
    That strategy, said MrGraeber, should help the freighter operations to return to profit next year. The focus will then switch from re-sizing to being more efficient - doing things in a more cost-effective way through better planning and improved sharing of data with forwarders.
     
    MrGraeber admits that he is amazed at how slow cargo has been to adapt to new electronic ways of interacting. "Things are changing now, but the system is still very inefficient," adding that some "companies still do everything by phone".
     
     
     
    Lufthansa Cargo takes a hi-tech route to give logistics start-ups a better chance of success
    source: TheLoadStar
     
    Lufthansa Cargo is making a pre-emptive move towards the potentially disruptive tech sector, launching a Logistics Tech Accelerator with San Francisco-based RocketSpace, a technology campus which helps start-ups.
     
    The collaborative effort makes Lufthansa the first cargo airline to embrace disruptive tech start-up culture for supply chain management.
     
    The Accelerator programme’s straplines are: “Be part of the disruption in logistics technology”; and “it’s time to rethink logistics”.
     
    The initiative aims to deliver innovative, tech-driven supply chain solutions, to respond to growing digitalisation trends and an increased need for real-time visibility.
     

     
    OCEAN FREIGHT UPDATES


    Gothenburg strike forces APM Terminals to close doors
    source: Lloyds Loading List
     
    APM Terminals has stopped taking export containers in Gothenburg after becoming overwhelmed with boxes following industrial action last week and continuing absenteeism issues with staff.
     
    Carriers reported yesterday that the terminal operator had stopped accepting export containers, with APM indicating that it would resume accepting export containers early on Thursday morning.  

    Read more here
     
     
    Despite 'early gains', container lines are in for another year of losses, says Drewry
    source:TheLoadStar
     
    Despite Maersk Line’s better-than-expected $37m first-quarter net profit, Drewry today reiterated its view that ocean carriers would collectively record a significant loss this year.
     
    “Carrier profit margins this year will be influenced by big swings on both prices and costs, but as things stand carriers will lose between $6bn-$10bn this year,” it said in analysis published this morning.
     
    It described the Q1 results that have so far been published as “patchy”, in as much as Maersk and US Jones Act carrier Matson made operating profits while others “sank further into the red”.
     
    Indeed, on Friday NOL posted a first-quarter net loss of $105m by its APL container division, compared with an $11m loss in the same period of 2015 – and with the exception of Maersk and Matson, all other carriers reporting so far have recorded Q1 losses. 
     

     
    GROUND AND RAIL UPDATES


    City of Montreal, CN strengthen safety partnership
    source: CanadianShipper
     
    MONTREAL, Que.– On his visit to CN Headquarters in Montreal, the Honourable Denis Coderre, Mayor of Montreal, joined Sean Finn, Executive Vice­-President, Corporate Services and Chief Legal Officer at CN in announcing the areas of safety that the City of Montreal and CN will continue to focus on together.
     
    Mayor Coderre began by pointing out that “CN is a great economic partner of the City of Montreal with some 2,000 employees in its Montreal headquarters building alone. Its North American network is also a key enabler for our businesses. Our partnership on safety announced today shows great collaboration between CN and local authorities.”
     
    Finn also emphasized the strategic nature of the partnership between CN and the City of Montreal.
     
    “We are very proud to be headquartered in Montreal and work with our logistics chain partners, including the Port of Montreal, to enhance the economic vitality of the city and the region. Montreal is more united and driven than it has been in a long time, and that’s mostly due to Mayor Coderre’s efforts to reach out to all stakeholders,” he said.
     
     
     
    CN recognized for safe movement of chemicals
    source: CanadianShipper
     
    MONTREAL, Que.–CN has been recognized as one of the three recipients of the prestigious Responsible Care Partner of the Year award of the American Chemistry Council (ACC). The award recognizes the strong performance and safety record of companies involved in the transportation, handling and marketing of chemicals.
     
    Responsible Care is a global voluntary initiative to guide member organizations in safely managing chemicals through creation to manufacturing to disposal or recycling, said the release.
     
    CN has also earned a 2015 National Achievement Award from Transportation Community Awareness and Emergency Response (TRANSCAER) in recognition of its ongoing work to help communities understand the movement of dangerous goods and what is required in the event of transportation incidents.
     
    Through TRANSCAER, whose sponsors include the ACC and the Association of American Railroads, CN works with partner chemical companies to support communities with information sessions and training and simulations for community leaders and first-responders about hazardous commodities.
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Canada Finalizes New Agreement for Exportation of Untreated Sawn Wood to Australia
    source: Government of Canada
     
    May 9, 2016 – Ottawa, Ontario – The Canadian Food Inspection Agency (CFIA) and Australia's Department of Agriculture and Water Resources (DAWR) have established a national certification program that ensures untreated Canadian sawn wood can continue to be exported to Australia. The establishment of the Canadian Untreated Sawn Wood Certification Program is an important achievement for Canada as over $40 million worth of untreated sawn wood is exported to Australia annually.

    Read more here

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    NGOs call on the US and Nordics to ban use of HFO in the Arctic
    source: Splash24/7
     
    NGOs have written an open letter to the leaders of the US, Denmark, Finland, Iceland, Norway and Sweden, calling on them to work towards banning the use of heavy fuel oil (HFO) in Arctic waters in order to prevent a potentially “catastrophic” oil spill, which the organisations say is becoming statistically more likely.
     
     
     
    China's demand for foreign goods still high despite new taxes
    source: ShippingGazette
     
    CHINESE consumer demand for foreign goods remains high despite new taxes, according to a survey by FT Confidential Research, a unit of London's Financial Times. 
     
    Recent government tax increases and tighter customs treatment of business-to-consumer cross-border ecommerce, dubbed haitao in Chinese, may appear to threaten surging demand for international goods, but the survey shows that consumers are motivated by more than price. 

    Read more here

  • 9 May 2016

    AIR FREIGHT UPDATES


    Analysis: it's all about costs at AF-KLM, but angry unions may blunt its cutting edge
    source: TheLoadStar
     
    Air France-KLM is still operating under great financial pressure, in spite of a decent trading update this week, particularly if oil prices keep rising and costs are not carefully managed over the next couple of years.
     
    Its shares plunged more than 4% on Wednesday, in the wake of a quarterly release that turned out to be worse than it looked at first sight, and its valuation was still under pressure yesterday, underperforming a flat stock market by two percentage points. 
     
     
    Qatar to Reduce Flights Because of Aircraft Shortages
    source: Airwise
     
    Qatar Airways is reducing flight frequency on more than a dozen routes from Doha because of hold-ups in the delivery of new aircraft from Airbus.
    The 15 affected routes include the carrier's recently launched service to Adelaide in Australia, flights to Boston, Houston and Miami in the United States, and services to Copenhagen, Jakarta and Manchester.  

    Read more here.  

     
    OCEAN FREIGHT UPDATES


    Fire hits Maersk ship involved in collision with another containership off Ningbo
    source: Splash 24/7
     
    Maersk Line containership Safmarine Meru and another containership Northern Jasper, owned by German company NorddeutscheReederei, collided off Ningbo on Saturday.
    The collision caused a fire on Safmarine Meru, which was en route from Qingdao to Ningbo, leading to all 22 crewmembers onboard abandoning the ship.  

    Read more here.  
     
     
    Union Announces Another 48 Hour Strike In Greece 
    source: CIFFA
     
    A 48-hour strike by the Seamen's Union in Greece was announced Friday (May 6). The strike is expected to affect all domestic and local ferry routes as well as commercial vessels calling at Piraeus, Aspropyrgos, Eleusis, Pachi and Megara ports for cargo discharging. The Crew Union of Towage and Salvage has also confirmed participation in the strike which started at 06:00 local time and is scheduled to finish at 06:00 on 8 May. It is expected that a second 24-hour strike will also be announced from 06:00 on 8 May until 0600 on Monday 9 May, directly following the first strike. During the stoppage period, vessels will not be able to berth, shift or sail from the affected ports.

     
    Port of Savannah will continue weighing containers at no cost to shippers
    source: Shippingazette
     
    NOW that the US Coast Guard has declared that the scales at the Port of Savannah meet a new UN's Safety of Life at Sea (SOLAS) Convention requirements, the Georgia Port Authority (GPA) says it will weigh all export containers free of charge.
     
    "We would like to commend the US Coast Guard for bringing clarity to the SOLAS issue," said Griff Lynch, incoming executive director at Georgia Ports Authority. 
     
    "In conjunction with the International Longshoremen's Association, the GPA currently weighs all loaded export containers, and will continue to do so at no cost to the customer."
     
    An amendment to the international SOLAS Convention, effective July 1, called for shippers to either weigh loaded containers or weigh empty containers and cargo separately, and provide a verified gross mass total to shipping lines. 
     
    A Coast Guard bulletin issued April 28 explained that the current practice of weighing containers at terminal gates delivers equivalent data.
     
     
     
    The new Panama Canal is opening soon and will cause an 'evolution' in a vital US industry
    source: BusinessInsider
     
    100 Years After Its Birth, The Panama Canal Is On The Verge Of Creating A Huge New Opportunity For US Exporters
    On October 9, 1913, President Woodrow Wilson opened the Panama Canal by dynamiting the final dikes holding the water at bay.
     
    He did it from the comfort of the White House, keying a telegraph transmitter that set off the explosion from over 4,000 miles away.
     
    In the 103 years since Wilson pushed that button, the Panama Canal has become an international shipping bottleneck, as container ships grew too large for its aging locks.
     

     
    GROUND AND RAIL UPDATES


    Trucking Chief ponders “good, bad and ugly” of Canada-US border
    source: CanadianShipper
     
    TORONTO, Ont.–Canadian Trucking Alliance CEO David Bradley evoked a spaghetti western theme in a speech to the Canadian-American Border Trade Alliance this week by describing the “good, bad and the ugly” of Canada-US border and trade issues.
     
    The good, according to Bradley: The Free & Secure Trade (FAST) program and the e-Manifest programs in both countries, the soon to be commenced in-transit pilot program in the U.S., progress on the Gordie Howe International Bridge and continuing work towards a ‘single window’ concept.
     
    However, Bradley lamented the fact that “security still trumps trade and there is no denying the so-called security measures that have been introduced over the past 15 years have reduced efficiency and productivity at the border.”
     
     
     
    Truckers call for dedicated truck lanes as freight expected to double
    source: TheSun
     
    Trish Anderson, 53, a truck driver from Mississippi, dreams about dedicated truck lanes. A lot.
     
    “Dedicated truck lanes that are only for trucks should be everywhere. Seriously, that’s the first thing I think of and that should be everywhere, not just even because the ports are going to be congested,” she said while resting at an Ontario truck stop.
     
    ”It would make it easier because you don’t have to deal with all the cars. If it’s all trucks, and everyone’s in the same mindset, you don’t have to dodge traffic.”
     
     
     
    CN Intermodal Gate Hours For Victoria Day, May 23rd, 2016 Now Available
    source: CIFFA
     
    CN has advised the Intermodal Gate hours of operations for Victoria Day, May 23rd, 2016. 
     
    The hours can be found at Victoria Day Intermodal Gate Hours (PDF)
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Transportation industry responds to help Canadians affected by Alberta fires
    source: CanadianShipper
     
    TORONTO, Ont. and MONTREAL, Que. and CALGARY, Alta.–The trucking and rail industries in Canada are responding to help the tens of thousands of Canadians whose lives have been turned upside down by the devastating fires in Alberta.
     
    The Canadian Trucking Alliance (CTA) is asking its membership of 4500 Canadian motor carriers to help these Canadians in need by making donations to the Red Cross. To kick-off the donation drive CTA is contributing $12,000 to the Red Cross Alberta Fires donation appeal.
     
    “We appreciate the effort from everyone across Canada. It is a dire event and any help we can get is appreciated greatly,” said CTA Chairperson Gene Orlick. Orlick runs a trucking company in Rocky View, Alta. and is also Chair of the Alberta Motor Transport Association (AMTA).
     
     
     
    Canada To Lift Sanctions On Belarus
    source: CIFFA
     
    Pursuant to the Government of Canada's commitment to diplomatic re-engagement with the international community, and in response to recent positive developments in Belarus, Global Affairs Canada will initiate the regulatory process to remove Belarus from the Area Control List (ACL), thereby lifting sanctions that have been in place since December 14, 2006.
     
    This announcement is consistent with actions taken by the United States and the European Union since October 2015. It also reflects Canada's acknowledgment that the Government of Belarus has made progress in key areas in recent months, including the release of political prisoners and conducting a presidential election in October 2015, which demonstrated greater adherence to international norms and was not marked by the levels of violence and intimidation seen in past elections. Canada also recognizes the constructive role played by Belarus in facilitating negotiations toward a ceasefire and peace agreement in Ukraine-the Minsk agreements-in September 2014 and February 2015. 
     
    As an interim measure while the regulatory process to remove Belarus from the ACL moves forward, Global Affairs Canada will normally issue export permits for the export to Belarus of goods and technology that are not specifically listed in the Export Control List. This practice will take effect immediately.
     
    Going forward, Canada will continue to monitor the evolving situation in Belarus and will engage with the Government of Belarus in order to advance human rights, democratic standards and norms, and respect for the rights of civil society.
     
    Associated links
     

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    Strikes protesting austerity likely to cripple Greek transport in coming weeks
    source: Shippingazette
     
    GREEK workers walked off the job in a general strike over the weekend at the call of unions to protest pension cuts and tax increases, reported the New York Times.
     
    The strike hit all ferry routes as well as commercial vessels calling at Piraeus, Aspropyrgos, Eleusis, Pachi and Megara ports for discharging cargo.
     
    The Crew Union of Towage and Salvage has also confirmed participation in the strike, reported Inchcape Shipping Services (ISS). 
     
    It is expected that a second 24-hour strike will also be announced from 6am May 8 until 6am Monday May 9, directly following the first strike.
     
    During the stoppage, vessels were unable to berth, shift or sail from the affected ports. The action has been called by the union in response to the government's planned changes to labour and insurance rights, pensions and retirement ages.
     

  • 6 May 2016

    AIR FREIGHT UPDATES


    Air Canada, Cargojet to launch freighter from DFW Airport to Mexico City
    source: Shippingazette
     
    AIR CANADA Cargo and Canada's Cargojet Airway have finalised new dedicated freighter service from Toronto to Mexico City via Dallas Fort Worth International Airport (DFW), reports the Dallas Business Journal.
     
    The service will begin June 9 and will be operated with Boeing 767-300ER freighter aircraft. DFW handles 60 per cent of all air cargo originating in Texas and is a top inland cargo hub in the United States.
     
    "This addition to our air cargo network builds upon our solid relationships with Mexico and Canada while further strengthening the Dallas Fort Worth market," John Ackerman, executive vice president of Global Strategy and Development for DFW Airport, said in a statement. 
     
    With the new service, Air Canada Cargo becomes DFW's 19th cargo carrier. The new route adds 52 tons of net cargo capacity and connects shippers from the DFW catchment area to more than 150 destinations in the carrier's global network.
     

     
    OCEAN FREIGHT UPDATES


    US port results hit by comparison with 2015 west coast labour strife
    source: Shippingazette
     
    OUT of the 22 major ports in North America that handled 85 per cent of containers in 2015, the top performers were LA and Long Beach, after achieving record container throughputs in January and February. 
     
    But these ports and others experienced marked year-on-year declines in March.
     
    The volatility in the first quarter was largely attributed to comparing this year's results to the volume growth seen on the US east and Gulf coasts in 2015 as cargo was being diverted from congested US west coast ports in the throes of a dock labour dispute, reported Seeking Alpha. 
     
    This year, six of the 10 leading seaport performers were on the US west coast. Other standouts continued to include the Northwest Seaport Alliance, Oakland and Lazaro Cardenas. 
     
    Most west coast ports witnessed solid export performance of between three and 10 per cent with exceptions being Long Beach and Prince Rupert with flat to negative 31 per cent performance. 
     
    All west coast ports witnessed substantial decreases in imports from 25 to 30 per cent.
     
    For the east coast, Baltimore and Miami followed by Virginia continued to achieve positive results throughout the first quarter. However, most east coast ports saw marked fall in both import and export volumes during March of between five and 14 per cent, with Charleston, Savannah and Montreal being exceptions. 
     
     
     
    Dredging work off Hong Kong Coliseum, Hung Hom to take 13 weeks
    source: Shippingazette
     
    VESSELS navigating in the vicinity of Hong Kong Coliseum, Hung Hom should proceed with caution because dredging operations and modification of the finger pier will be carried out over the next 13 months.
     
    The works will be carried out by a flotilla of vessels including one grab dredger, two hopper barges, two derrick barges, one guard boat and one tug, said the Hong Kong Marine Department. 
     
    The number of vessels engaged in the works will change from time to time to suit operational requirements.
     
    A working area of 50 metres around the dredger and barges will be established. Yellow marker buoys fitted with yellow flashing lights will be laid to mark the positions of the anchors extending from the dredger and barges.
     
     
     
    Panama's emission reduction cited at UN's marine environment session
    source: Shippingazette
     
    THE Panama Canal Authority (ACP) joined Panamanian delegation at the UN's International Maritime Organisation (IMO) Marine Environment Protection Committee (MEPC) for ship pollution talks. 
     
    During this five-day meeting in London, delegates discussed the energy efficiency and fuel consumption data collection.
     
    The Panamanian delegation supported a joint statement on the reduction of greenhouse gas emissions from waterway, making the canal committed to "reducing the effects of climate change".
     
     
     
    Another 48-hour strike begins at Greek ports
    source: Splash 24/7
     
    Strikes have commenced at major commercial ports in Greece, which will stop work for up to 48 hours.
     
    The Seamen’s Union and the Crew Union of Towage and Salvage commenced industrial action at 06:00hrs (local time) today at the ports of Piraeus, Aspropyrgos, Eleusis, Pachi and Megara.
     
    The work stoppage is scheduled to terminate at 06:00hrs on May 8, but is expected to be continued by a further 24 hours until 06:00hrs on Monday May 9, according to an advisory from Inchcape Shipping Services (ISS).
     
    The strike will affect domestic ferries and commercial vessels, which will not be able to berth, shift or sail from the affected ports during the stoppage period.
     

     
    GROUND AND RAIL UPDATES


    Roadrunner Transportation Systems expands outbound service from Vancouver
    source: CanadianShipper
     
    Roadrunner Transportation Systems
     
    Cudahy, Wi.–Roadrunner Transportation Systems, Inc. has expanded its less-than-truckload service to include outbound service from Vancouver, British Columbia, Canada. The new service offering began May 2, 2016 and will open the western half of Canada to Roadrunner LTL Freight’s outbound service, said the release.
     
    “Vancouver is a vibrant area with dynamic business growth, being fueled by domestic as well as international trade,” said Grant Crawford, Roadrunner Transportation Systems President of Less-than-Truckload. “The access to the world supply chain that this market provides through ports in both Vancouver and Prince Rupert is becoming a regular choice for customers moving freight from Asia into North America. Adding outbound service will allow us to serve the needs of customers that require transportation in both directions.”
     
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Canada-US east coast ports ready to gain from bigger Panama Canal
    source: Shippingazette
     
    LESS congested North American east coast ports may attract 25 per cent of the traffic that typically arrives at US west coast ports after the expanded Panama Canal opens on June 27.That's how Ceres Halifax container terminal president Calvin Whidden sees it. "Halifax will have a real chance at additional volumes from these services, especially any vessel crossing the Atlantic Ocean and passing by Halifax on its voyage to the east coast of the US," said Mr Whidden.
     
    Completion of the US$5.3 billion Canal project will mean containerships of up to 13,000 TEU will be able to travel along the 77-kilometre waterway and bring more cargo to the US east coast, where ports have also been benefiting from the expanded Suez Canal that opened last August to ships of up to 18,000 TEU, reported the Chronicle Herald. 
     
    A bump in cargo to the east coast would boost ports like Halifax and Saint John, and strengthen the case to build a new terminal in Melford, at the Strait of Canso.
     
     
     
    Vancouver Fraser Port Authority - Notice of Field Studies in May 2016
    source: CIFFA
     
    The Vancouver Fraser Port Authority is continuing field studies in May 2016 as part of ongoing environmental and technical work for the Container Capacity Improvement Program
     
    For an overview of field studies that will be taking place this month, please read the May 2016 Field Studies Information Sheet
     
    The port authority produces field studies information sheets summarizing any upcoming field work that is planned. Past field studies notices regarding the Roberts Bank Terminal 2 Project can be found here
     

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES

    Europe To Assess Drone Strike Risk
    source: AirWise
     
    European aviation safety authorities have set up a task force to urgently assess the dangers of collisions between drones and aircraft after a rise in near-misses with passenger planes.
     
    The use of civil drones, whether for commercial purposes such as crop surveillance, monitoring of natural disasters, photography or leisure, is rising and aircraft pilots are increasingly reporting near-misses.
     
    In one widely-reported incident last month, a British Airways passenger plane was suspected of having hit a drone as it approached Heathrow airport, although authorities later said this could not be confirmed.
     
    The European Aviation Safety Agency (EASA), which will lead the inquiry, said it will examine how vulnerable aircraft windows, engines and airframes are to impact with drones.
     
    While extensive research has been carried out into the impact of birds colliding with passenger planes, little is known about what would happen if a drone were to be sucked into an engine.
     

  • 5 May 2016

    AIR FREIGHT UPDATES


    US To Boost Airport Security Check Staffing
    source: AirWise
     
    With airlines concerned that delays at airport security checks may discourage summer visitors, the US government said it will add TSA staff and bomb-sniffing dogs and ramp up pre-screening signup efforts.
     
    The US Transportation Security Administration (TSA) will add officers at airports expected to have the highest passenger volumes, said Jeh Johnson, secretary of the US Department of Homeland Security.
     
    He added that he has asked Congress to approve additional funds to pay for officers' overtime and to meet "critical short-term needs."
     
    Security officials are on high alert for potential attacks by groups inspired by Islamic State. On March 22, suicide bombers killed 32 people in Brussels Airport and a rush-hour metro train.
     
     
     
    March Air Freight Demand Falls - IATA
    source: AirWise
     
    Demand for global air freight fell 2 percent in March on subdued growth in world trade, IATA said in its monthly update.
     
    Another reason for the drop was the impact of a US port strike that had bolstered year-earlier figures.
     
    Available capacity rose 6.9 percent in the month, with load factor down by 4.0 percentage points to 43.5 percent.
     
     
     
    A few bright spots in a slow air cargo market
    source: TheLoadStar
     
    It‘s not exactly good news – but it could be worse. WorldACD has reported air cargo results for the first quarter. With a little adjustment, they are not as bad as some might think. If you take out of the comparison the boost from last year‘s west coast port strikes, volumes actually increased 1.4% year-on-year, while while yields fell less horribly, down 13.6%. Without the Asia to North America adjustment, volumes fell 1.3% and yields sank 17%. And China wasn’t as bad as you might think. The first quarter saw year-on-year volumes rise 6% – or 18% in some European markets. But revenues between China and Western Europe dropped by 12% YoY, due to a yield decrease of over 25%.
     
     
     
    Air Canada Cargo Advisory - Fort McMurray
    source: CIFFA
     
    Cargo Advisory for Fort McMurray, Alberta (YMM) - Air Canada's cargo operations at YMM are impacted by the forest fires in the region. If you have any questions or concerns about your shipments, please contact the Customer Service Center at 1-800-387-4865 (in Canada) or contact your regional representative.

     
    OCEAN FREIGHT UPDATES


    Port of Seattle issues citizens' call to help it limit emissions
    source: Shippingazette
     
    THE Seattle Port Commission has called for community members to advise on policies to reduce greenhouse gas emissions and increase energy efficiency.
     
    The energy and sustainability policy committee will include advisors from diverse sectors of the community, including business, environmental justice, maritime, aviation, construction and government.
     
    The committee will develop and propose to the commission policy directives that will guide future Port operations, with a focus on innovative energy efficiency and alternative energy generation proposals. 
     
     
     
    Lack of facilities - yards, berths - slow Mindanao's shipping development
    source: Shippingazette
     
    THE limited capacity of seaports in Mindanao, including adequate berths, transit or cargo shed areas for non-containerised shipments and container yards, is holding back the Philippines' southern island in becoming a major hub, according to Socioeconomic Planning Secretary Emmanuel Esguerra.
     
    "Mindanao is still faced by current issues on sea transport such as limited capacity of its seaports," said Mr Esguerra during the Mindanao Shipping Conference 2016, reported Manila's Business World.
     
    Mr Esguerra also said there is a need to expand existing sea linkages and establish new ones, particularly the routes between Zamboanga and Sandakan, Malaysia; Davao/General Santos and Bitung, Manado, Indonesia; Zamboanga and Muara, Brunei; and Tawi-Tawi and Tarakan, Indonesia.
     
    The limited capacity of Mindanao's ports was also cited by European Union (EU) Ambassador to the Philippines Franz Jessen during his visit to the city early this year as a deterrent to the influx of EU investments in the country's southern area.
     
    Mr Jessen said the EU is looking at Davao City as a possible investment area after the completion of the free trade agreement between the EU and the Philippines.
     
     
     
    Damage At Egypt's Port Said After Containership Crashes Into Crane
    source: CIFFA
     
    Some major damage at Suez Canal Container Terminal in Egypt's Port Said happened Tuesday after a containership apparently crashed into a gantry crane as it was leaving the port. Video and images posted online show several cranes collapsed or damaged, with stacks of containers knocked over and some even on fire. Some reports have said that hazardous chemicals in one of the containers caused a large explosion at the site. It's not clear if the terminal has resumed full operations at time of publication. 
     
     
     
    Santos (Brazil) Slogs Through Backlog After Closure
    source: CIFFA
     
    Unexpected and unseasonably rough seas caused the closure of Santos, South America's biggest port for containers, for more than 30 hours at the end of last week and Monday. Shippers and carriers suffered delays and some cargo had to be rolled over to later sailings, according to Sindamar, the Santos ship agents association. The São Paulo Port Captain's department ordered the closure of the port because the entrance channel was inundated with waves of four meters (13 feet) and winds of 88 kilometers per hour (55 miles per hour). 
     
    Codesp, the port authority for Santos, reported that 13 ships were unable to dock while eight had their departures delayed and another eight were waiting to berth. The high waves and wind also flooded roads in various districts of Santos. Once the wind had slowed to 44 kph and the waves had fallen to 2 meters, the port reopened. On Thursday and Friday, Santos was also dealing with additional delays caused by the paperless port system, which crashed and slowed the issuing of clearance documents. (Excerpted from JOC Online)

     
    GROUND AND RAIL UPDATES


    No Impact to Rail Movements Through Alberta
    source: CIFFA
     
    CIFFA has confirmed with both CN and CP that there is little or no operational impact due to the severe fires going on in Fort McMurray, AB area. We will keep members posted if there is any change.
     
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Canadian waters safer but full understanding of shipping risks needed
    source: CanadianShipper
     
    OTTAWA, Ont.–A new workshop report, Commercial Marine Shipping Accidents: Understanding the Risks in Canada, recently released by the Council of Canadian Academies (CCA), explores risk by focusing on the likelihood of commercial marine shipping accidents across Canada as well as the potential social, economic, and environmental impacts of such accidents.
     
    “Overall, the evidence shows that Canada’s waters have been getting safer over the past decade, with fewer commercial marine shipping accidents,” said Captain Dr. James R. Parsons, Chair of the Workshop Steering Committee and Academic Director at the Marine Institute of Memorial University.
     
    “Commercial marine shipping has benefited from improved traffic control technology, better ship designs, and a strengthened regulatory regime. Accidents do still occur, yet typically do not result in large impacts.”
     
     

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES

    NAFTA trade values continue to slide in February
    source: AmericanShipper
     
    The total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA) Canada and Mexico continued its slide in February 2016.
     
       NAFTA freight value slipped 2 percent to $84.0 billion for the month compared with the previous year after dropping 7.7 percent year-over-year in January, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics.
     
    Read more here

  • 4 May 2016

    AIR FREIGHT UPDATES


    Air Canada Cargo deploys piece-level RFID tracking
    source: AJOT
     
    Lakeland, FL - CargoAware, a division of Franwell, Inc., the proven leader in radio frequency identification (RFID) track and trace technologies, announced today that Air Canada Cargo is moving forward with implementation of a large-scale RFID implementation that will track cargo and mail shipments across additional stations in its network. Initial implementation and solution validation was agreed to in September of 2015, with Montreal Canada and Frankfurt Germany being the first two stations installed, at that time.  

    Read more here
     
     
    Hong Kong Airport Authority wins statutory approval for 3rd runway
    source: Shippingazette
     
    THE Hong Kong Airport Authority has gained statutory approval for reclamation work that will allow construction of a third runway to go ahead. 
     
    The authority said it would now proceed with the detailed design for the third runway and also start procurement of construction contracts for the reclamation works at the earliest opportunity.
     
    The expansion includes reclaiming 650 hectares of land, building a 3,800-metre long new runway and supporting taxiway systems, a new passenger building and apron, an expanded Terminal and comprehensive road network and transportation facilities.
     

     
    OCEAN FREIGHT UPDATES


    Containers fall from vessel at Waigaoqiao Port
    source: Splash 24/7
     
    A feeder containership tilted during loading at Shanghai’s Waigaoqiao Port, causing 44 containers onboard the vessel to fall into the water.
     
    The vessel, Shang Qing 3, is owned by Chongqing Shangqing Shipping.
     
    Shanghai Maritime Salvage Center deployed three vessels for the salvage work and started traffic control near the site. The containers were all salvaged yesterday.  

    Read more here.  
     
     
    OOCL adds westbound call at Ningbo on Loop 7 from May 16
    source: Shipping Gazette
     
    HONG KONG's Orient Overseas Container Line (OOCL) has announced that its Loop 7 will add a westbound call to Ningbo.
     
    Thus, the new port rotation will be Qingdao, Shanghai, Ningbo, Hong Kong, Shenzhen-Yantian, Singapore, Rotterdam, Hamburg, Gdansk, Gothenburg, Antwerp, Southampton, Singapore, Shenzhen-Yantian and back to Qingdao.
     
    The new rotation will become effective with MOL Quintet (QIT) 010 W with Qingdao ETA on May 16.

    Read more here
     
     
    Carriers no longer care what's in the box - so long as its full: Xeneta
    source: Shipping Gazette
     
    CONTAINER shipping lines no longer care what's in containers as they once did in establishing price, says Xeneta, an Oslo market intelligence.
     
    "As long as the box isn't overweight - although even that isn't always an issue these days - or filled with hazardous material, the carriers just want a full box, period," said Xeneta CEO Patrik Berglund.
     
    Xeneta says that oversupply, better supply chain management, and low fuel costs have made the market so competitive that 'what's in the box" no longer counts, reports Lloyd's Loading List.  

    Read more here
     
     
    China SOLAS guidelines opt for 'agencies' to spot check container weights
    source: Shippingazette
     
    CHINA said it has opted for random checks on container weights by its "marine management agencies" to meet its enforcement obligation in complying with the mandatory verified gross mass of containers required by the United Nations from July 1. 
     
    "All marine management agencies should perform random checks on the verified gross mass of packed containers loaded onto vessels," said the long-awaited guidelines from the Ministry of Transport.
     
    In a consultation paper sent to all agencies of the Transport Ministry and translated by Hong Kong's CargoSmart, the guidelines stated that vessels and terminals could not load a container for which the verified gross mass, or VGM, had not been received.
     
    This is consistent with all other jurisdictions that have so far issued information on the amendment to the UN's International Maritime Organisation's (IMO) Safety of Life at Sea (SOLAS) convention that will become law in all 162 signatory states from July 1. 
     

     
    GROUND AND RAIL UPDATES


    Self-driving trucks revolutionising waterfronts as containerisation did
    source: Shippingazette
     
    TRAPAC LLC's Los Angeles marine-cargo facility doubles the speed of loading and unloading ships, saving money and boosting profits, reports Bloomberg News. 
     
    The impact rivals that of containerisation, which revolutionised waterfront cargo handling worldwide 50 years ago, eliminating most manual work.
     
    "Self-driving won't just rebuild the current freight system, it will create a whole new way of thinking about it," said Larry Burns, a former research and development chief at General Motors and now a consultant at Alphabet Inc's Google unit.
     
    "It will happen sooner with goods movements than with personal transportation, because the economics are crystal clear," Mr Burns said.
     
    The Port of Los Angeles and TraPac, a unit of Mitsui OSK Lines (MOL) are investing US$693 million in four dozen self-driving cranes and automated carriers, plus related infrastructure. 
     
    As the carriers scamper back and forth across the dock, each device changes direction independently from the rest - without apparent need for human help.
     
    A few dozen people watch and monitor in faraway control rooms. On the wharf itself, TraPac uses people only to run the cranes that unload ships and to drop containers the last few feet onto waiting trucks and trains.
     
    To speed things up, TraPac president Frank Pisano has implemented an appointment system for truckers, who often arrive unannounced and then wait as port employees find their container. 
     
     
     
    CN joins Midwest Inland Port Strategic Development Coalition
    source: CanadianShipper
     
    Midwest Inland Port Strategic Development Coalition
     
    DECATUR, IL.–The Midwest Inland Port Strategic Development Coalition (“MIPSDC”) announced Monday that CN, one of three railroads providing rail service to Decatur businesses, has joined the group to provide strategic and marketing support to the development of the Midwest Inland Port.
     
    “Today marks another exciting and significant step forward for the Midwest Inland Port and for all of Central Illinois.  The organizations that comprise the Strategic Development Coalition represent a combination of global, national, regional and local perspectives and capabilities that are critical to our ability to realize the full potential of the Midwest Inland Port development,” said Ryan McCrady, President of the Economic Development Corporation.
     
    “We are pleased to join this important coalition and to work with the partners to bolster the supply chain in Decatur and Illinois,” said John Orr, CN’s Senior Vice President, Southern Region.
     
    “We have been working closely with CN for the past year to extend our marketing reach through their international offices and to significantly enhance the rail services and connectivity that can provide significant benefit to our existing and prospective customers. CN has introduced rail connectivity to Decatur from the Canadian ports of Prince Rupert and Vancouver in British Columbia, and Montreal, providing direct import lanes that bypass the congested Chicago rail network,” said Larry Altenbaumer, Executive Director of the Midwest Inland Port.
     
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Greater Vancouver port expansion proceeds apace to meet rising demand
    source: Shippingazette
     
    WORK has commenced on a new rail yard at the Deltaport terminal south of Vancouver now that the truck route 17 is linked to the TransCanada Highway, reports the American Journal of Transportaton. 
     
    The project will combine the existing two sets of four rail tracks into one set of eight tracks, reconfigure internal vehicle circulation and parking within the terminal.
     
    It will also replace the seven existing 10 to 20 year-old manually-operated container cranes in the rail intermodal yard with eight modern wide-span quay cranes.
     
    When completed the project will enable greater efficiencies, giving the terminal the capacity to handle a maximum throughput of 2.4 million TEU per year within the existing terminal footprint, said the report. 
     
    Plans for a second terminal, equal in size to Deltaport (Canada's largest), have already been submitted to federal government in Ottawa for approval.
     

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES

    New multimodal terminal planned at London Thamesport
    source: Splash 24/7
     
    Shipping agent and logistics company Armitt Group is to build a new 120,000-square-metre multimodal terminal at London Thamesport, which could starting handling cargo by the end of the year.
     
    Construction of Armitt Multimodal Terminal South, as the facility will be known, is due to commence this month. Once completed, the operator hopes the facility will handle up to 2m tonnes of high-quality steel products every year, and attract up to 50 port calls from deep-sea vessels of up to handysize, and up to 100 calls from short-sea vessels.
     
    Armitt has signed a long-term heads of terms agreement for the development with Hutchison Port Holdings (HPH) Group, which owns Thamesport. The two are also discussing the prospect of Armitt developing an additional area that would handle aggregates for consumption within Greater London.
     

  • 3 May 2016

    AIR FREIGHT UPDATES


    New Security at Brussels Airport Causes Delays
    source: Airwise
     
    Additional security checks at Brussels Airport are causing delays and missed flights, a situation the airport operator described as "bizarre".
     
    Belgium's main airport reopened part of its main departure hall on Monday, bringing capacity up to about 80 percent from 20 percent when operations initially restarted a month ago, after the suicide attack on March 22.  

    Read more here.  
     
     
    Kosovo Airport Closed After Jet Skids Off Runway
    source: AirWise
     
    A Turkish Airlines jet carrying 143 passengers and eight crew from Istanbul skidded off the runway on Monday when landing at Kosovo's only airport.
     
    "Turkish Airlines flight TK1018 from Istanbul has had a minor incident and fortunately no one was injured," an airport spokeswoman said.
     
    "The airport will remain closed for few hours until some initial technical investigations are finished."
     
     
     
    Lufthansa Faces Cargo Retructure as Q1 Profits Nosedive 70M Euro into the Red
    source: The Loadstar
     
    Lufthansa could restructure its cargo business this year, following poor first-quarter results, which saw its Logistics division make an EBIT loss of €19m, compared with a positive €52m last year.
     
    “Lufthansa Cargo is under severe pressure,” said CFO Simone Menne. “We only expect earnings to improve again in the fourth quarter, hit hard by strikes last year.”  

    Read more here.  
     
     
    IATA: Despite concerns, air cargo CFOs confident of a better 2016 to come
    source: Shippingazette
     
    A SURVEY by the International Air Transport Association (IATA) of airline chief financial officers (CFO) revealed their outlook was bullish for the remainder of the year despite a weak first quarter. 
     
    IATA's survey takes a measure of five key indicators: profitability, demand, input costs, yield and employment and asks respondents to reflect on the past three months, as well as their outlook for the year ahead.
     
    Beginning with the outlook for industry profitability, results from cargo and passenger respondents were combined, but 74.2 per cent of respondents expect profitability to remain flat or improve over the next 12 months. 
     
    Looking back on the first quarter, 51.6 per cent of respondents believed industry profitability improved year on year.
     
    Moving on to demand growth, US west coast port disruptions, which led to a surge in demand in the first quarter of 2015, were the likely cause of more than one-quarter of respondents reporting lower volumes in Q1 2016. 
     
    For the next 12 months, those surveyed were optimistic about cargo demand, with 43.3 per cent expecting stability and growth. 
     
    Looking at the weighted score of demand growth over the past five quarters, IATA added that, although "the weighted average score for freight over the next 12 months remains in positive territory, it is currently at its lowest level since April 2011."
     

     
    OCEAN FREIGHT UPDATES


    China COSCO Vessel Will Be First To Transit Expanded Panama Canal
    source: CIFFA
     
    A China COSCO Shipping vessel will make the first transit through the expanded Panama Canal on June 26 having won a lottery draw conducted Friday morning at the Panama Canal Administration building. The shipping line's container vessel Andronikos which has a maximum capacity of 9,400 TEUs. If for any reason the Andronikos cannot be deployed, WalleniusWilhemsen Lines's car carrier Thalatta will take its place. In addition, more than 100 neopanamax ships have already made reservations for commercial transit through the new larger locks, which will begin on June 27, following the historic inauguration and first voyage. (American Shipper)
     
    Hanjin Heavy gets another $105m from creditors
    source: Splash 24/7
     
    Hanjin Heavy Industries is to receive a further KRW 120bn ($105m) cash injection from its creditors, led by Korea Development Bank (KDB), as part of the shipyard’s restructuring programme, reports say.
     
    The South Korean yard “has had difficulty in making a turnaround due to lack of new orders and delayed sale of non-core assets,” a spokesman for KDB told the Yonhap news agency.  

    Read more here.
     
    Port of South Carolina first to announce container weighing plans
    source: TheLoadStar
     
    Recent debate in the US over the forthcoming implementation of the amendment to Solas, that will see shippers obliged to deliver a certificate of an export container’s verified gross mass if it is to be loaded on its designated vessel, has been strange to say the least. Some of it, frankly, has been near-hysterical, and not in the funny sense of the word. So we welcome the recent news that the port of Charleston, which has had a container weighing system for a number of years, is to offer all export shippers a weighbridge service that is likely to cast $25 per box. 
     

     
    GROUND AND RAIL UPDATES


    CP Vaughan Notice - Traffic Pattern Change for Truck Traffic
    source: CIFFA
     
    With recent changes decommissioning cranes, the traffic flow within the CP Vaughan yard has been modified. Drivers should be aware of new signage throughout the yard as follow:
     
    The crossing at the mid-point of track 5 has been closed to traffic moving west.
    Roadway access to 1PK and 2PK are no longer 1 way roads and are open to traffic in both directions.
    Access to the reefer pool has been closed at the north end.
     
    Please drive accordingly.
     
     
    CBP to Allow Prepayment of Single-Crossing User Fees for Commercial Trucks
    source: CIFFA
     
    U.S. Customs and Border Protection has announced a pilot test program that will offer a new electronic payment option for commercial truck single-crossing user fees. This test will begin at the Buffalo, Detroit and El Paso ports of entry on June 2 and run for about one year. Any owner, agent or person in charge of a commercial truck may participate in this pilot and no application is needed. If CBP determines that the pilot is working successfully at these initial ports it will expand the pilot to all U.S. land border ports of entry that process commercial trucks.
     
    CBP regulations specify the applicable user fee for commercial trucks upon arrival into the U.S. and the methods of payment, which include payment on an annual basis or on a per crossing basis. Although commercial truck carriers can prepay the annual user fee online, the single-crossing user fee is paid by cash or credit card each time a truck arrives at a U.S. port of entry.
     
    This pilot will enable the owner, agent or person in charge of a commercial truck to prepay the single-crossing user fee online prior to the truck's arrival at a port of entry. CBP states that this change should reduce wait times, improve primary processing, save costs to truck carriers associated with idling time (such as gas and lost driving hours), and alleviate CBP officers of the administrative functions pertaining to the collection, accounting and transmittal of user fee collections. (Sandler, Travis & Rosenberg)
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Canada Says It Wants To Help Bombardier
    source: AirWise
     
    The senior Canadian official looking at a request by Bombardier for aid to support its CSeries aircraft has indicated for the first time that Ottawa actively wanted to help the company.
     
    Innovation Minister NavdeepBains until now has said merely that the Liberal government would closely examine Bombardier's request for USD$1 billion in aid and outlined some of the concessions he wants in return.
     
    But on Monday he went further, detailing how much help Ottawa had given the company over the last 40 years and stressing the number of aerospace jobs across Canada that depended on Bombardier continuing to operate.
     
    "We've been there with the company in the past, we've continued to remain engaged with the company and we want to be part of a solution," he told reporters. The CSeries is years late and billions of dollars over budget.
     
     
     
    Commercial Marine Shipping Accidents: Understanding the Risks in Canada
    source: CIFFA
     
    A new workshop report, Commercial Marine Shipping Accidents: Understanding the Risks in Canada, was released last week by the Council of Canadian Academies (CCA). The report explores risk by focusing on the likelihood of commercial marine shipping accidents across Canada as well as the potential social, economic, and environmental impacts of such accidents.
     
    The workshop report found that both the likelihood of an accident and the severity of its impact differ greatly across Canada's regions. For example, data show that the St. Lawrence River region experiences the highest level of commercial marine accidents in Canada, but these accidents have been the least likely to lead to casualties or serious injuries. The Pacific Region has the highest level of shipping activity, but has a relatively low risk profile. More research is needed to gain a fuller understanding of the factors that contribute to these regional variations.
     
    The report notes that gaps exist in the available data on the causes of accidents, the stages at which accidents occur, and the frequency of shipments by cargo type and region. It also points out that better data is needed to more fully understand the breadth of pollution events across Canadian waters. With regard to oil spills, the workshop report confirms that while the likelihood of an accident resulting in an oil spill in Canada is low, the potential impact of such an accident would be significant.
     
    Download the full 84 page report in PDF at the following link: Commercial Marine Shipping Accidents: Understanding the Risks in Canada 
     
    A 10 page Executive Summary  or a 4 page Report in Focus also available. 

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    New future of maritime firefighting to touch down in Colorado Springs
    source: Splash 24/7
     
    This week, the world’s biggest and fastest firefighting 747 will have its official homecoming in the US. Global SuperTanker’s Spirit of John Muir will touch down in Colorado Springs on Thursday.
    From a maritime perspective, the news is significant because the plane is capable of reaching and fighting rig and mid-ocean ship fires far more quickly than any other asset is currently able to, according to its owner. Additionally, the plane is the only very large air tanker certified by authorities in the US for oil spill dispersal giving it plenty of possibilities for the future of salvage operations.
     
    The converted B747-400 freighter is capable of delivering single or multiple drops of nearly 20,000 gallons of water, fire retardant, or suppressant, any of which can be released at variable rates.
     
    “The Spirit of John Muir differs from other firefighting planes not just because it is capable of variable rate drops,” said Jim Wheeler, president and CEO of Global SuperTanker, “as the world’s largest aerial firefighting asset, the John Muir can fly 600 miles per hour for long ranges at efficient altitudes. The plane can respond to fires on isolated drilling rigs or mid-ocean tanker blazes in a matter of hours.”
     
     

  • 2 May 2016

    AIR FREIGHT UPDATES


    Brussels Airport Departure Hall Reopens
    source: AirWise
     
    Brussels Airport has partially reopened its departure hall, about six weeks after suicide bombers killed 16 people there.
     
    The two attackers detonated suitcase bombs in the departure hall on March 22, before a third bomber blew himself up on a metro train in the city. In all, they killed 32 people.
     
    From Monday, 111 check-in counters will be open in the airport departure hall and another 36 in a temporary building. This brings departure passenger capacity to at least 80 percent of that before the attacks, the airport management company said.
     
     
     
    AAWW pilot unions demand US mediation in contract negotiations
    source: Shippingazette
     
    UNIONS representing 1,300 pilots who fly for DHL-contracted carriers Atlas Air and Polar Air Cargo have requested to begin mediation with Atlas Air Worldwide (AAWW) through the US National Mediation Board (NMB).
     
    The unions claim that Atlas Air's management has "refused to engage in any further legally-mandated negotiations", reported New York's Air Cargo World.
     
    In response, Atlas Air said it believed the request for mediation was premature as negotiations had only just begun.
     
    "The NMB is currently investigating how to best move forward and will let the parties know what it concludes. While we continue to believe this request is early, we will cooperate fully with the process," Atlas said.
     
    "Pilots are fed up with Atlas and AAWW's game playing and backroom corporate maneuvering to try to deny us basic workplace protections like the much-needed time to rest between international flights," Mike Griffith, an Atlas pilot and communications chairman of APA Teamsters Local 1224. 
     
    "We believe the federal government intervening will make sure they work with us to come to a fair contract agreement that is up to cargo industry standards."
     
     
     
    UK air cargo carriers set to expand despite tough market conditions
    source: TheLoadStar
     
    Two UK-based air cargo carriers, IAG Cargo and CargoLogicAir, are set to expand their networks, despite the tough market conditions.
     
    Stansted-based CargoLogicAir looks set to receive its second aircraft, G-CLAB, very shortly; the livery is already completed.
     
    The 747-8F was formerly owned by Boeing, and painted in the Seahawks livery in July last year, just after its first flight in June.  It is currently waiting for final delivery in Paine Field. You can see an image here.
     
    CLA is awaiting approval to operate US flights to add to its successful African operation.
     
    Over at IAG Cargo, which now hands maindeck volumes over to Qatar Airways Cargo, the financial results are as opaque as ever. The group announced first-quarter commercial revenues of €262m – a decrease of 1.5%, year-on-year, claimed the company.
     
    However, it noted, adjusting 2015’s figures to reflect a comparable operation shows commercial revenues decreased by 8.6%. IAG said it had amended the way it reported, adding €20m of “other” revenue to “cargo” revenues in 2015.
     
    The cargo arm said volumes fell 1.8%, while yields, adjusted, fell 6.9% at a constant exchange – better than some rivals.
     

     
    OCEAN FREIGHT UPDATES


    HK's Modern Terminals orders 5 quay cranes, upgrades 4 old ones
    source: Shippingazette
     
    HONG KONG's Modern Terminals Limited signed two orders with Shanghai Zhenhua Heavy Industries Co (ZPMC) for five new quay cranes and the upgrade of four old ones at its Hong Kong terminal.
     
    "These latest agreements constitute Modern Terminals'continuous investment in the advanced technologies, equipment and facilities required to provide operational excellence to customers and maintain the competitiveness of Hong Kong Port," said the company statement.
     
    "Modern Terminals' facilities in Hong Kong are capable of handling the largest container vessels in the world," said Modern Terminals chief engineer Horace Lo. 
     
    "We don't rest on our laurels. It is our policy to continuously improve by investing heavily in both hardware and software to cater for the existing and future needs of our shipping line customers. 
     
    "We will continue to be able to accommodate the next generation ultra-large container vessels, with a carrying capacity of 21,000 TEU, alongside our berths when they come onstream next year," said Mr Lo.
     
     
     
    Hanjin expected to outline restructuring plans on Wednesday
    source: Splash 24/7
     
    Local media in Seoul is reporting Hanjin Shipping will unveil a creditor-led restructuring program on Wednesday.
     
    The plans are likely to include asset sales, wage freezes and like compatriot Korean line Hyundai Merchant Marine (HMM) Hanjin is likely to enter negotiations with tonnage providers to try and lower the rates of its chartered in fleet.
     
     
     
    Panama Canal hits back at 'false' ITF claims that new locks pose a threat to larger boxships
    source: TheLoadStar
     
    The Panama Canal has rejected claims by the International Transport Workers’ Federation (ITF), reported in The Loadstar, that operation of the new locks could lead to unsafe practices when larger vessels are introduced.
     
    Following the publication of an ITF-commissioned study, Peter Pusztai Panama, Canal Pilot Training Coordinator, said: “The ITF’s claims are unproven and contain many errors.
     
    “Despite their false claims, we look forward to transforming the maritime industry through the opening of the expanded Panama Canal.”
     
     
     
    U.S. CBP Urges Commercial Traffic Requiring Port of Seattle Access to Expect Delays
    source: CIFFA
     
    With the closure of the Alaskan Way viaduct beginning Friday April 29th. 2016, U.S. Customs and Border Protection (CBP) is urging commercial traffic that requires access to the Port of Seattle to expect delays and to plan ahead to take alternate routes or travel at non-peak times and to plan alternate routes during the closure of the Alaskan Way viaduct. CBP does not anticipate any interruption in operations at the port, but does expect heavy surface street congestion in the area of the port during the approximately two-week closure of the viaduct. Drivers requiring access to the port are encouraged to visit www.99closure.org for more information.

     
    GROUND AND RAIL UPDATES


    Derailed Freight Train Near Washington, D.C. Leaks Hazardous Liquid
    source: Fortune
     
    However, no injuries were reported.
     
    A CSX freight train derailed in northeastern Washington, D.C. on Sunday, spilling hazardous liquid near a city subway station, the railroad company said.
     
    Several cars were overturned but no injuries were reported.
     
    The District of Columbia Fire Department said it had not ordered evacuations near the site of the accident, about three miles (5 km) from the White House.
     
    Sodium hydroxide, used to produce household products including paper, soap and detergent, was leaking from one car, CSX  CSX -0.37%  said in a statement.
     
    Canada Eager to Consider Investing In New Montreal Rail Network
     
    Earlier, the fire department said three cars were leaking an unidentified substance or substances but there was no fire. Fire department photographs showed several cars lying on their sides by the tracks on the main train route into the city, including tank cars, bulk material cars and box cars.
     
    The accident forced the closure of the Rhode Island Metro Station and Rhode Island Avenue, it said.
     
    The train, with three locomotives and a total of 175 cars, most carrying mixed freight or riding empty, was traveling from Cumberland, Maryland, to Hamlet, North Carolina.
     
     
     
    US shippers to shift more freight to rails amid pricing and volume softness
    source: JOC
     
    U.S. shippers expect to ramp-up their conversion of freight from truck to intermodal rail the most in a year and a half, according to a new survey.
     
    But railroads are still going to scrap for that cargo with trucking motor carriers able to offer more competitive pricing, according to intermodal rail executives and pricing indices for intermodal and over-the-road transport.  
     
    According to a recent Wolfe Research survey of more than 600 supply-chain managers whose aggregate transportation budget exceeds $10 billion, despite low fuel prices and overcapacity in the over-the-road segment, expectations for intermodal volume growth rebounded in the first quarter to their highest level in one-and-a-half years. Looking ahead, shippers told the New York-based transportation research firm they expect 14 percent of their total over-the-road volumes to go through intermodal in five years.  
     
    That said, “intermodal is going to have to grow the old-fashioned way,” Larry Gross, a senior transportation analyst at FTR Associates, told JOC.com Friday. “It’s going to have to earn it. It is a competitive environment out there, to be sure.”
     
    The competition for valuable intermodal cargo is stiff. Freight volume expectations are now at their lowest level in six years, the soft energy market is wreaking havoc with carload traffic increasing the role of intermodal freight in profit margins and flush capacity on both road and rails is driving down pricing industry-wide.
     
     
     
    Sweden introduces 730m-long freight trains
    source: IRJ
     
    REGULAR operation of 730m-long freight trains began in Sweden on April 28 following the completion of a multi-annual project by infrastructure manager Trafikverket to lengthen loops and double-track sections to accommodate longer trains.
     
    Hector Rail is now operating 730m-long trains on the Hallsberg/Katrineholm - Malmö corridor, one of Sweden's key rail freight arteries, carrying paper products for export.
     
    According to Hector Rail, the project has increased payloads by 15% compared with the previous maximum permitted train length of 630m.
     
     
     
    MoT Announces New Measures Enhance Transparency On Rail Safety and DG
    source: CIFFA
     
    The Minister of Transport, on Friday announced new measures to strengthen rail safety and the transportation of dangerous goods during a meeting with the Federation of Canadian Municipalities. Effective April 28, 2016, railways will be required to provide municipalities and first responders with even more data on dangerous goods to improve emergency planning, risk assessments, and training. The requirement, contained in Protective Direction 36, also provides that municipalities are given information that can be shared directly with the Canadian public.
     
    As part of Rail Safety Week, the Minister also announced the release of the 2016 Emergency Responders Guidebook and a set of competency guidelines for first responders. These tools provide first responders with important safety information when they arrive at the scene of an incident, as well as training guidelines when they need to quickly respond to transportation incidents involving dangerous goods. 
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    CBSA Memorandum D21-1-1 Customs Privileges for Diplomatic Missions, Consular Posts Updated
    source: CIFFA
     
    This memorandum has been entirely rewritten to clarify the procedures and processes for importing goods, particularly motor vehicles and alcohol, by foreign representatives posted to Canada and assigned to diplomatic missions, consular posts, and certain international organizations accredited by the Department of Foreign Affairs, Trade and Development (DFATD). It also reflects changes resulting from the implementation of the Canada Border Service Agency (CBSA) branding initiative. Full details here
     
     

    INTERNATIONAL BUSINESS - GOVERNEMENT UPDATES


    UK logistics executives believe their firms will be better off staying in the EU
    source: TheLoadStar
     
    Around two-thirds of UK executives in the freight logistics industry believe Britain should stay in the European Union.
     
    Results from a recently conducted membership survey by the Chartered Institute of Logistics and Transport (CILT) show 65% of respondents believe the supply chain, logistics and transport industry will have a better future if the UK remains in the EU.
     
     
     
    California ports turn to robots to cut emissions, speed freight
    source: ArkansasOnline
     
    On one end of a dock at America's busiest port, tractor-trailers haul containers through dense, stop-and-go traffic. Sometimes they collide. Sometimes the drivers must wait, diesel engines idling, as piles are unstacked to find the specific container they need.
     
    A few hundred yards away, advanced algorithms select the most efficient pathway for autonomous carriers to move containers across the wharf. The four-story-high orange machines cradle their cargo, passing quietly within inches of one another, at speeds of up to 18 mph, but never touching. Self-driving cranes on tracks stack the containers and then deliver them to waiting trucks and trains with minimal human intervention.
     
    TraPac LLC's Los Angeles marine-cargo facility demonstrates how autonomous technology could revolutionize freight transport as much as or more than personal travel. TraPac's equipment doubles the speed of loading and unloading ships, saving money and boosting profits. Their impact is rivaling that of containerization, which eliminated most manual sorting and warehousing on docks after World War II.
     
    "Self-driving won't just rebuild the current freight system, it will create a whole new way of thinking about it," said Larry Burns, a former research and development chief at General Motors and now a consultant at Alphabet's Google unit.
     
     
     
    New EU Rules - Customs Union Come Into Force
    source: CIFFA
     
    New customs rules came into force on Sunday, May 1st that will make life simpler for businesses that trade in Europe and better protect consumers against illegal and counterfeit goods. The new Union Customs Code (UCC) represents a major overhaul of existing EU customs legislation, which dates back to 1992. It is a milestone for the European Customs Union, the framework which allows more than 3 trillion Euros worth of goods to flow in and out of the EU each year.
     
    The new rules aim to:
     
    Allow traders to clear customs procedures more simply and quickly, getting goods to consumers faster and more cheaply;
    Better protect consumers against illegal goods or goods which don't respect European environmental, health and safety requirements;
    Improve cooperation between customs administrations with the help of new IT systems.
     

  • 29 April 2016

    AIR FREIGHT UPDATES


    IAG To Slow Expansion After Brussels Attacks
    source: AirWise
     
    IAG said it would slow its plans to fly more routes in the short term, in response to weaker demand from high-margin passengers and a general slowdown after the Brussels attacks.
     
    IAG posted operating profit of EUR€155 million for the three months to March 31, due to lower fuel prices and ongoing plans to reduce costs.
     
    That compared to the EUR€25 million operating profit it posted in the year-earlier period.
     
    Total revenue for the quarter was EUR€5.08 billion, up 7.9 percent from the previous year.
     
    IAG, whose airline portfolio includes British Airways, Iberia, Vueling and Aer Lingus, stuck to its forecast for 2016 profit, and said reaching that target would be helped by a plan to cut costs, excluding fuel, by about one percent during the year.
     
     
     
    Shanghai Hongqiao Airport Fire Out, Two Dead
    source: AirWise
     
    A fire in a basement at Shanghai Hongqiao Airport that killed two people has been put out, China Central Television (CCTV) said on its microblog, while an airport official said there had been no disruption to flights.
     
    Four people were also injured, CCTV said.
     
    The fire started underground in a pile of insulation material.
     
     
     
    China's FTZs in Tianjin, Fujian, Guangdong, Shanghai pilot reforms
    source: Shippingazette
     
    CHINA's four pilot free trade zones located in Tianjin, Fujian and Guangdong province on the east coast, as well as Shanghai, are spearheading structural reforms to make it easier to start businesses and grant foreign firms more access to the service sector.
     
    These cities and provinces have taken on the role of piloting new reforms in their free trade zones, where local authorities have greater discretion to manage business activities and cross-border capital flow, reported Xinhua.
     
    Loosened controls on capital and widened access to sectors that remain closed or restricted for foreign firms elsewhere have led to a surge in new business registrations and cross-border transactions in the zones.
     
    A survey published in September by the American Chamber of Commerce in Shanghai found that 42 per cent of American firms are happy with measures to facilitate trade in the Shanghai free trade zone, and plan to gain a foothold in the free trade zones in Tianjin, Fujian and Guangdong.
     
    Tianjin plans to use its free trade zone to serve a greater region in northern China that includes Beijing and Hebei province. Tianjin has performed well in auto imports and financial leasing compared to the rest of the country. 
     
    The financial leasing arm of China's biggest state lender ICBC performed the country's first offshore leasing in Tianjin when it bought an A320 aircraft from Airbus and leased it to Himalaya Airlines in Nepal.
     
    Guangdong has been leveraging its proximity to Hong Kong and Macao to encourage more cross-border financial transactions. A total of 13 securities firms and asset managers from Hong Kong have been allowed to invest up to US$18.66 billion combined in China's domestic capital markets.
     
     
     
    Bengaluru airport holds skills training session for cargo handling staff
    source: Shippingazette
     
    BANGALORE International Airport Limited (BIAL) has launched a skills development programme for cargo handling staff at the Kempegowda International Airport, Bengaluru (KIAB). 
     
    In a bid to provide a learning platform to develop sound knowledge of the air cargo industry, the airport has teamed up with Menzies Aviation Bobba Bangalore (MABB). 
     
    Under the directive of the Ministry of Civil Aviation (MoCA), this one-day training programme was attended by representatives from airlines, cargo handling agencies, ground handlers and officials. 
     
    The programmeemphasises the importance of developing a strong cargo community, economic growth of the community, and global recognition of the industry.
     
     
     
    Flights Resume At Manta (Ecuador) As Quiport Builds Emergency Terminal After Earthquake
    source: CIFFA
     
    Quiport, the operator of Quito airport, has built an emergency terminal in the City of Manta, whose airport was damaged by a severe earthquake earlier this month. Together with the Civil Aviation Directorate and Avianca, flights have now resumed to Manta, which lost all connectivity after the earthquake - a time when it was sorely needed. But commercial flights carrying aid and rescue workers have now started. Technicians built the emergency terminal in a single weekend, offering basic airport infrastructure, according to Quiport. It started operating on Monday and will be used until longer-term solutions can be found to recover the infrastructure affected by the earthquake. (Excerpted from The Loadstar)

     
    OCEAN FREIGHT UPDATES


    EC clears CMA CGM bid to buy APL, but it must withdraw carrier from G6 alliance
    source: The Loadstar
     
    The European Commission’s competition directorate has cleared CMA CGM’s acquisition of Singapore line APL and its parent company, NOL – with the proviso that it withdraws APL from the G6 alliance.
     
    Competition commissioner Margrethe Vestager said: “Container liner shipping plays a central role in global trade, so competition in this sector is essential for businesses and consumers in the EU.
     
    “Today’s decision ensures that the takeover will not lead to price increases for the many EU companies using these container shipping services.”  
     
     
     
    Long Beach CEO sees near-shoring in Mexico next big economic trend
    source: Shippingazette
     
    IT is Latin America's turn to be the workshop of the world now the title has been lost by China given its rising wages, says Jon Slangerup, chief executive of the Port of Long Beach.
     
    "Today, in a couple of different segments, China's hourly labour cost structure is higher than Mexico by double digits," he told the Long Beach Business Journal. 
     
    "In some cases, Mexico is half the cost in certain types of traditional Asian commodities or products. So shifts will occur."
     
    It's a pattern that has occurred in Japan, then Korea, and now China, he said. 
     
    "They develop their industrial manufacturing capacity, they build their workforces around that, they begin becoming extremely dominant in a particular series of markets or products, and then their wages start to rise . . . and [become] more comparable to other manufacturing environments worldwide," he said.
     
    "And guess what happens? The costs go up and then they're no longer attractive." 
     
    China's exports have decreased by three per cent in the past year, which, considering the country's immense manufacturing sector, translates to a lot of volume, MrSlangerup said. 
     
    "When you look at who's picking up the slack, it's Vietnam, Thailand, Indonesia, Malaysia. And even South Korea remains in double-digit growth," he said. 
     
    Entrance to Port of Santos reopens
    source: Splash 24/7
     
    The entrance to the Port of Santos in Brazil reopened on Thursday after being closed for 30 hours because of rough seas, according to Reuters.
     
    Latin America’s busiest container port, Santos is Brazil’s biggest export gateway for soybeans, one of its most important crops, and this is the peak of the soy export season.
    Around 20 ships were prevented from accessing or departing the navigation channel during the closure.
     
    TAGS
    BRAZIL

     
    Korean yard workers threaten action over mass layoff plans
    source: Splash 24/7
     
    Unions at two of South Korea’s largest shipyards have warned they will take militant action if job cuts proceed as planned amid huge restructuring in the sector. Workers at Daewoo Shipbuilding & Marine Engineering (DSME) and Hyundai Heavy Industries have threatened action if cuts move ahead as planned.
     
    “The government is trying to pass the buck to workers without holding the management accountable for huge losses,” DSME’s union said in a recent letter. “It is natural for unionists, who have worked hard for the company, to protest such a move.”
     

     
    GROUND AND RAIL UPDATES


    The driverless truck is coming, and it’s going to automate millions of jobs
    source: TheLoadStar
     
    Flexport’s Ryan Petersen has penned this rather brilliant post – honestly, are these guys actually trying to do us out of a job? Don’t you have some freight to book instead? – in TechCrunch recently on the future of a trucking industry dominated by autonomous vehicles. It doesn’t look good for drivers; it perhaps appears rosier for anyone concerned about the driver shortage crisis both in Europe and the US – there will be vast cost savings in salaries and diving costs, because driverless trucks can operate around-the-clock; are expected to be more fuel efficient; there will likely be less accidents; and it goes a long way to solving the driver shortage crisis.
     
     
     
    CN Rail Warns Ottawa Not To Impose Or Extend Regulations On Railways
    source: CIFFA
     
    Canadian National Railway is calling on Ottawa to refrain from imposing or extending service regulations on the country's railways that it fears will stifle innovation and discourage investment. Chief executive Claude Mongeau says railway managers, not government agencies, are the best ones to decide on the trade-offs needed to ensure an efficient service. 
     
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Construction work should improve Port of Montreal access: port
    source: CanadianShipper
     
    MONTREAL, Que.–The Montreal Port Authority has welcomed the announcement by the Quebec Ministry of Transport, Sustainable Mobility and Transport Electrification regarding improved access to the Port of Montreal.
     
    The government effectively kicked off the work on the stretch of Highway 25 between Sherbrooke Street to the North and Notre-Dame Street to the south. The project to optimize this corridor of Highway 25 will enable truck drivers to reach Port of Montreal territory more directly, and in turn reduce trucking on the local road network, the port said.
     
    The planned work will also make it easier for pedestrians and cyclists to get around on the municipal network, notably by reconfiguring the Sherbrooke interchange and adding a multipurpose path.
     
    “This project has been on our radar for a long time, and I welcome the Government of Quebec’s cooperation. This new road corridor will have a major impact on traffic flow. It will speed up the transport of goods, which is mission-critical to the quality of services provided by a port.
     

  • 28 April 2016

    AIR FREIGHT UPDATES


    E-commerce boom means demand for narrowbody freighters threatens to outstrip supply
    source: The Loadstar
     
    Feedstock for narrowbody freighter conversions could run short by 2018, thanks to demand from China’s e-commerce and express delivery markets.
     
    “Looking at the overall global market for freighters, and narrowing down into the single-aisle sector, we see demand as about 1,000 airplanes over the next 20 years,” Boeing vice-president Kurt Kraft told last week’s Cargo Facts Asia conference in Hong Kong.
     
    “We believe 400 of those are going to China. Another 250 will go into the US market, with the reminder going into Europe, the Middle East and Africa.

    Read more here

     
    Drewry air cargo index upticks 0.3pc, bringing cheer to unhappy sector
    source: Shippingazette
     
    Drewry's East-West Airfreight Price Index rose by 0.3 points in March to a reading of 79.5, bringing much needed cheer to the sector.
     
    The increase came after four consecutive months of falling prices, during which period the index fell by over 20 points from an October peak.
     
    But the March figure still represented the index's second lowest level since it was launched in May 2012.
     
     
     
    Flights resume at Manta as Quiport builds emergency terminal after Ecuador earthquake
    source: TheLoadStar
     
    Quiport, the operator of Quito airport, has built an emergency terminal in the City of Manta, whose airport was damaged by a severe earthquake earlier this month.
     
    Together with the Civil Aviation Directorate and Avianca, flights have now resumed to Manta, which lost all connectivity after the earthquake – a time when it was sorely needed. But commercial flights carrying aid and rescue workers have now started.
     
     
     
    Air Canada Cargo sees “dramatic usage increase” on e-air waybill campaign
    source: CanadianShipper
     
    MONTREAL, Que.–Air Canada Cargo says it is seeing dramatic usage increases on its e-air waybill campaign. On January 21, the airline launched a campaign aimed at obtaining 100% e-AWB usage on domestic shipments by April 28. According to the airline:
     
    e-AWB usage in Canada has increased by 55% over last year
    60% of Air Canada Cargo’s top customers have an e-AWB usage of 90% or more
    Usage of Air Canada Cargo’s e-Booking tool has doubled since December
    Many customers are still in the midst of making the conversion to e-AWB. To support those who are finalizing your e-AWB conversion plans, the $18 fee for shipments tendered without an e-AWB will be waived until June 1, the airline said.
     
     
     
    Virgin Atlantic Cargo Re-Introduces Chicago Service
    source: CIFFA
     
    Virgin Atlantic Cargo is re-introducing seasonal, daily flights to and from Chicago, they announced this week. The flights, which will arrive at London Heathrow at 7:55 a.m., will operate with an A330-300. Virgin Atlantic Cargo already has a daily, year-round service that links Detroit and London Heathrow, which arrives at London Heathrow at 6:25 a.m. Virgin Atlantic Cargo now offers direct services to and from 12 U.S. destinations, which include Atlanta, Boston, Chicago, Detroit, Las Vegas, Los Angeles, Miami, New York, Newark, Orlando, San Francisco and Washington.

     
    OCEAN FREIGHT UPDATES


    CKYHE restructures Asia-U.S. East Coast service network
    source: American Shipper
     
    The CKYHE Alliance members - consisting of ocean carriers COSCO, "K" Line, Yang Ming, Hanjin and Evergreen Line -  unveiled a reorganization of their service network on the Asia-U.S. East Coast trade from early June of 2016, in addition to reconfirming their cooperation on major east-west trades until the end of March 2017.
    The CKYHE Alliance's revised Asia-U.S. East Coast service network will include the following services and rotations.  

    Read more here.  
     
     
    NYK rep reiterates no VGM, no load
    source: American Shipper
     
    A representative of the ocean carrier NYK Line this week told a conference in New Orleans that if the verified gross mass data is not submitted for a container, the carrier will not load that container when it arrives at a U.S. port.
     
    Bill Ferguson, vice president, security services and environmental affairs for NYK Line (North America) reiterated a stance made by carriers in recent weeks as enforcement of the International Maritime Organization’s Verified Gross Mass (VGM) guidelines become clearer.
     
    Read more here
     

     
    GROUND AND RAIL UPDATES


    French national rail strike disrupts freight to and from major ports
    source: Shippingazette
     
    FRENCH rail freight has being disrupted across France and at its major seaports as a week-long strike continued with no sign of settlement, reports IHS Media.
     
    State-owned railway SNCF (Societenationale des chemins de fer) has asked customers to postpone shipments scheduled for this week until further notice.
     
    The strike threatens to reverse the recent slight increase in rail's share of the overall domestic transport market after decades of decline. 
     
    A wave of rolling strikes in 2010 reduced traffic, with some shippers switching permanently to road transport.
     
    The strike, by CGT, France's largest labour union, and the smaller Sud-Rail union, to protest government plans to reform the industry, has caused the most serious disruption in years.
     
    The French Socialist government wants to place SNCF and the RFF rail network manager into a single holding company, while keeping their operations separate, in a bid to boost productivity and cut costs.
     
    Unions want them fully merged as they were until 1997, and also demanded that the government to assume some of their combined EUR44 billion (US$60 billion) debt.
     
     

    Canadian Railway Car-Loadings for February 2016
    source: CIFFA
     
    The volume of rail freight carried in Canada totalled 26.8 million tonnes in February, an increase of 4.5% from the same month last year. Freight originating in Canada increased 7.0% to 24.4 million tonnes. These shipments are composed of both non-intermodal and intermodal freight. 
     
    Non-intermodal freight rose 8.9% to 270,000 carloads in February. The amount of freight loaded into these cars totalled 21.8 million tonnes, up 7.1% from the same month last year. The rise reflected an increase in freight loadings of iron ores and concentrates (up 0.5 million tonnes), canola (up 0.4 million tonnes), other oil seeds and nuts and other agricultural products (up 0.3 million tonnes), and lumber (up 0.2 million tonnes). 
     
    For the third consecutive month, the tonnage of coal, potash, and fuel oils and crude petroleum shipped by rail posted a year-over-year decline in February.
     
    Intermodal freight loadings rose 7.8% to 173,000 units in February. In terms of weight, intermodal traffic grew 5.5% to 2.6 million tonnes as a result of an increase in containerized cargo shipments. Freight traffic received from the United States fell 15.1% to 2.5 million tonnes as a result of a decrease in both non-intermodal and intermodal shipments. From February 2011 to February 2016, the total volume of rail freight carried in Canada increased 19.2%.
     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    CN announces candidates for Ground Up community tree-planting program
    source: CanadianShipper
     
    MONTREAL, Que.–CN has announced the successful candidates for its 2016 From the Ground Up community tree-planting program. Thirty one communities in Canada were selected amongst the 92 applications to receive grants of up to $25,000 each in this fifth year of the program.
     
    The objective of the CN EcoConnexions – From the Ground Up program is to promote community sustainability, through the greening of municipal and community properties across Canada. CN partners with Tree Canada and Communities in Bloom to help Canadian municipalities and community groups establish tree planting and green space enhancement initiatives in a sustainable, environmentally responsible manner. The program aims to enhance environmental and social health of communities.
     
     
     
    Soaring Aerospace Industry Will Give Quebec Steady Export Growth This Year And Next
    source: CIFFA
     
    Quebec's healthy mix of export sectors, which is the most diversified in Canada, will continue to benefit the province as export growth is forecast to increase by five per cent both this year and next. This year the champion of that group will be the province's aircraft and parts sector, according to Export Development Canada's (EDC) semi-annual Global Export Forecast. 
     

     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Containerisation celebrates 60 birthday as box that changed the world
    source: Shippingazette
     
    CONTAINERISED shipping has turned 60, after the first seaborne container was transported on board Malcolm McLean's Ideal-X on April 26, 1956. 
     
    The man credited with being container shipping's true pioneer was Malcolm McLean, a trucking magnate, who used a converted tanker to move the first containerised cargo by sea 60 years ago from New Jersey to Houston. 
     
    Four years later, Sea-Land introduced the first transatlantic service, and in 1969, in the UK, Overseas Container Lines launched its first service. 
     
    Containerisation enabled the standardisation of port handling equipment, increased the speed of cargo handling and the flexibility of stowage location and unpacking, which together transformed the way manufactured goods were shipped around the world. 
     
     

  • 27 April 2016

    AIR FREIGHT UPDATES


    Delays, Cancellations As German Airport Workers Strike
    source: AirWise
     
    German air travel is set for a day of disruption after public sector workers at airports started strikes in a push for higher wages.
     
    Lufthansa said it was cancelling almost 900 flights at airports including Frankfurt and Munich, equivalent to around 60 percent of its usual daily traffic.
     
    The strike by workers, including ground services, security checks, fire fighting and check-in staff, are likely to severely impede operations at German airports, with airport operator Fraport warning it could take a day or two for services to return to normal.
     
    Staff in Munich are holding an all-day strike on Wednesday, while in Frankfurt, Germany's largest airport, the strike is due to end at 15:00 local time. Munich airport said around 700 of a scheduled 1,100 takeoffs and landings had been cancelled.
     
     
     
    Kenya's Astral Aviation set to introduce commercial delivery by drone
    source: TheLoadStar
     
    An African cargo airline has pledged to introduce commercial drones as soon as laws and clearance are in place. Astral Aviation, a Kenya-based cargo carrier, is investing $500,000 to start operations as early as next year. Sanjeev Gadhia, CEO, is planning to develop a drone airport for goods such as medicines and aid in remote locations. Kenya is the second country in the region to regulate the use of UAVs, after Rwanda.  The government has bought a state-of-the-art military drone  from the US to help it combat problems such as terrorism and poaching.
     

     
    OCEAN FREIGHT UPDATES


    CMA-CGM postpones megaship calls to US west coast ports
    source: Splash 24/7
     
    French container giant CMA-CGM has postponed plans to send some of its so-called megaships on routes to US west coast ports starting in May.
     
    The company blamed its decision on poor trans-Pacific market conditions.
     
    Six of the firm’s ultra large container ships (ULCS) would have plied CMA-CGM’s Pearl River Express route from China to California, calling at the ports of Long Beach and Oakland.  

    Read more here
     
     
    Berth productivity falls at 20 top ports in face of mega ship challenge
    source: Shippingazette
     
    BERTH productivity at 20 of the biggest ports in Asia and Europe is in decline, according to new analysis presented by CTI at the 20th TOC Asia Container Supply Chain conference.
     
    Despite carrier pleas that port productivity levels need to improve to handle mega ships, berth productivity levels at the world's largest ports are falling.
     
    CTI Consultancy partner Andy Lane said that terminal productivity relative to average vessel call size showed productivity levels dropping. 
     
    Mr Lane took 20 major ports ?five Asia gateways, five Asian hubs, five European gateways and five European hubs ?for his analysis.
     
    "As call size is a major determinant of crane intensity, then we might expect berth productivity to fall if the average call size decreases," he said.
     
    "What we observe is that berth productivity has fallen by further than call size. So whichever way you chose to measure it productivity is in decline," he told delegates.
     
    In the five European hubs, average call size had reduced by 19 per cent while productivity had slipped by 22 per cent. In the five European gateway ports, average call size had fallen eight per cent while productivity had dropped 11 per cent. 
     
    In the five Asian hubs, average call size had decreased by four per cent while productivity had declined 11 per cent; and in the five Asian gateway ports, average call size had gone down 18 per cent while productivity had declined by 27 per cent.
     
     

     
    GROUND AND RAIL UPDATES


    Canadian Pacific falls as buyback fails to soothe investors
    source: Shippingazette
     
    CANADIAN Pacific Railway (CP) shares fell as plans to repurchase stock disappointed investors expecting a bigger payback following the railroad's failed takeover attempt of Norfolk Southern Corp.
     
    CP chief executive Hunter Harrison said repeatedly during the five-month public campaign for the US rival that he probably would start repurchasing stock if the acquisition attempt ended, which it did last week. 
     
    The board authorised repurchasing as many as 6.91 million common shares, the Calgary-based company said in a statement, Bloomberg reported.
     

     
    Driver creates app to get truckers out of line at Port of Oakland
    source: AJOT 
     
    Oakland, Calif. - Another mobile phone app has been developed to get truckers out of line at the Port of Oakland. The difference this time: it’s the brainchild of a harbor driver.
    FilexFok, a licensed motor carrier at the Port, introduced the new app last week. Called Jupigo, his technology helps harbor truckers exchange empty cargo containers without ever entering the Port. The objective: keep truckers on the road, not waiting at busy terminal gates.  

    Read more here

     
    French SNCF's Rail Freight Traffic Hit By Another Strike
    source: CIFFA
     
    Intermodal firms have hit out at the latest industrial action by French state-owned rail operator SNCF, the third in the past two months. SNCF's rail freight traffic is being disrupted by strike action, with French state railway staff staging a 36-hour stoppage (Tuesday) in protest to proposed new working conditions. In a message to customers, freight subsidiary Fret SNCF said its staff "are mobilised to limit the consequences of the strike as much as possible", without elaborating on the degree of disruption that is expected to schedules. (Excerpted from Lloyds Loading List)
     
     
    New Electronic Manifest for In-Transit Truck Cargo to be Tested
    source: CIFFA
     
    U.S. Customs and Border Protection is planning to conduct a pilot test of a new electronic manifest in the Automated Commercial Environment Truck Manifest System for truck shipments of commercial goods transiting from point to point in Canada through the United States. This test will commence no earlier than May 27 and will run for approximately six months at the ports of Port Huron, Mich.; Pembina, N.D.; and Blaine, Wash. Participation is currently limited to nine Canadian truck carriers, each of which is a bonded carrier and a certified member of the Customs-Trade Partnership Against Terrorism. 
     
    Currently, a truck carrying such in-transit goods must present a paper U.S.-Canada Transit Manifest (CBP Form 7512-B Canada 8½) to CBP when it crosses the border at the U.S. ports of arrival and exit. CBP also requires the electronic filing of certain information regarding such in-transit goods in advance of the truck's arrival at the border. The ACE Truck Manifest System enables these in-transit shipments to be filed under shipment release type 62 as transportation and entry in-bond entries, which includes a complete ANSI X12 manifest (referred to as a 309 manifest) with trip, shipment (including the value of the goods along with a description of the cargo and a Harmonized Tariff Schedule number to the six-digit level), conveyance, equipment, crew and passenger data.
     
    Under the forthcoming test, participating truck carriers transporting such in-transit goods will be required to submit an e-manifest in the ACE Truck Manifest System under a new shipment release type 70 no later than 30 minutes prior to arrival in the U.S. Carriers will be required to submit the same set of data elements as on a 309 manifest, except that CBP will accept (a) a value amount of $2 per pound when the actual value is not available and (b) a precise description of the cargo rather than the HTS number.
     
    The in-transit manifest will be processed and retained in ACE in the same manner as a type 62 manifest. When the shipment arrives in the U.S., CBP will generate a "transit movement authorized" message (referred to as a 350 message) that will be sent to the carrier. The shipment will then be able to transit the U.S. and proceed to the U.S. port of export as an in-transit entry. When the shipment arrives at the port of export the carrier will report the arrival of the shipment to CBP via an EDI message or through the carrier's ACE portal account. CBP will issue another 350 message notifying the carrier that the shipment has entered Canada and that the in-transit entry is closed. (Sandler, Travis & Rosenberg)

     

    CANADIAN BUSINESS - GOVERNEMENT UPDATES


    Canada's Non-Resource Exports Take Centre Stage In 2016
    source: CIFFA
     
    While natural resources continue to struggle under lower prices and sluggish demand, double-digit growth in consumer goods, automotive, and aerospace sectors will drive Canada's overall exports to grow by two per cent this year, according to a new global export forecast by Export Development Canada (EDC). 
     
     

     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Shipping: The business of an industry
    source: Splash 24/7
     
    In the first of a two-part special for Splash, Paul Slater looks at how shipping has changed in the 21st century.
     
    The shipping industry is a collection of thousands of businesses operating around the world carrying a huge variety of cargoes across the oceans and in the seas and rivers that separate the land masses where populations live.
     
    Raw materials and commodities of all types are shipped efficiently from the source countries to consumers that manufacture finished goods, which in turn are shipped to other consumers.
     
    Energy products such as oil and gas and the chemicals they produce are shipped to consumers who cannot exist without them. Food products are also moved across oceans today and many form a fundamental part of the consumers’ daily diets.
     
    Up until the middle of the 20th century these shipping services were provided by large liner companies and certain smaller companies serving specific trades mainly in the dry cargo markets. They were mostly located in the developed countries of Europe, Asia and the USA and certain fleets were directly owned by energy suppliers.
     
     
     
    Ulsan chosen to print ships
    source: Splash 24/7
     
    How soon till a ship comes hot off the press? Ulsan, the Korean industrial city where Hyundai Heavy Industries is based, is set to spend big on developing 3D printing with ships in mind.
     
    The Ministry of Trade, Industry and Energy has chosen Ulsan as the base to carry out research into 3D printing and manufacturing of ships and offshore equipment. Around $20m will be spent in a five-year period starting in 2017.
     

  • 26 April 2016

    AIR FREIGHT UPDATES


    Bombardier In Spotlight As Delta Deal Nears
    source: AirWise
     
    Bombardier faces a pivotal week that may see a key deal announced with Delta Air Lines, but a federal aid package is unlikely to be approved in time for its annual meeting on Friday.
     
    The deal with Delta for up to 125 CSeries aircraft is critical for Bombardier as Delta would be the first major US airline to purchase the CSeries, which is entering service years late and billions of dollars over budget.
     
    Delta’s board is widely expected to approve the purchase, which includes 75 initial orders, this week.
     
    A Delta commitment, coupled with a firmed up agreement for 45 CSeries with Air Canada, would put the CSeries order book above the 300 mark, allowing the company to hit a psychologically-important internal target by the time the first plane enters service in July 2016.
     
     
     
    Six German Airports To Be Affected By Wednesday's Strikes
    source: CIFFA
     
    Six German airports including Frankfurt/Main, Munich, Düsseldorf, Cologne, Dortmund and Hannover will be affected if the strike by German public services trade union Verdi moved forward on Wednesday, April 27. Frankfurt Airport will be affected from early morning until 3 p.m. local time, including ground-services, check-in, maintenance areas and also fire services (from 8 a.m.). Frankfurt Airport said on its website that the public sector strike across Germany will cause "major disruptions and flight cancellations."
     
    Munich Airport expects to be affected the entire day in all areas of airport operations. The airport confirmed it also expects major interruptions at check-in services and flight operations. Cologne Airport ground workers will strike for 24 hours starting from midnight. Düsseldorf Airport workers are setting strike actions from between 3 a.m. until 2 p.m., including administration, terminal and bus services. Dortmund Airport said ground services will be affected from shift start on Wednesday; Hannover Airport will experience strike action from 4:30 a.m. until 3 p.m. 
     

     
    OCEAN FREIGHT UPDATES


    New shock for liner shipping as now Hanjin applies for debt restructuring
    source: The Loadstar
     
    South Korea’s biggest container line, Hanjin Shipping, today submitted an application to the state-owned Korea Development Bank for a creditor-led debt restructuring programme .
     
    Hanjin thus joins its compatriot, Hyundai Merchant Marine (HMM), in seeking a deal with creditors.
     
    The rapid demise of Hanjin – thought to be in a relatively stronger financial position than HMM – will send further shock waves through the liner industry, and could have severe repercussions for the owners of its leased containerships who will fear charter defaults.
     
     
     
    G6 Alliance will begin using neopanamax ships
    source: American Shipper
     
    Members of the G6 Alliance - ocean carriers Hapag-Lloyd, OOCL, MOL, NYK, APL and HMM - have announced an alteration of their services through the Panama Canal in anticipation of the opening of the enlarged locks at the end of June.

    Read  more here
     
     
    Hutchison Ajman port: All ships must have IMO numbers and AIS by May 1
    source: Shippingazette
     
    HONG KONG-owned Hutchison Ajman International Terminals Limited has given notice that all vessels calling at Ajman Port must have a valid IMO number clearly mentioned in the certificates, reports GAC Hot Port News. 
     
    All cargo ships, supply vessels and tug boats entering the port should also have an Automatic Identification System (AIS) fitted on board vessel on or before May in Ajman, one of the seven emirates of the UAE. 
     

     
    Type of cargo ‘no longer affects price’
    source: Lloyd’s Loading List
     
    Container lines are no longer pricing cargo according to type, with simply filling their vessels now their number one priority, according to data from Xeneta, an Oslo-based benchmarking and market intelligence platform for containerised ocean freight.
     
    It argues that oversupply, better supply chain management, and downwardly spiralling fuel costs have made the market so competitive over the last 18 months that ‘what’s in the box’ no longer plays a part in negotiations.  

    Read more here
     

     
    GROUND AND RAIL UPDATES


    Union Pacific Q1 profit falls 15pc to US$979 million as sales drop 14pc
    source: Shippingazette
     
    THE Union Pacific's first quarter net profit fell 15 per cent year on year to US$979 million, drawn on revenues of $4.83 billion, down 14 per cent.
     
    Weak coal demand continues to be a challenge for all the major railways as utilities switch to natural gas because of low costs and environmental regulations, said the company statement.
     
    Omaha-based Union Pacific said coal shipments fell 34 per cent in the quarter, but there were also declines in shipments of industrial products, agricultural crops and intermodal containers. 
     
    The company laid off 5,175 workers from a year earlier and has put 1,400 locomotives in storage to adjust to the reduced shipping.
     
    "The commercial team did an excellent job of securing 2.5 per cent price in an environment where volume is down eight per cent," said CEO Lance Fritz. "There were a lot of headwinds."
     
    The overall economy continues to grow but that's obscured in the railroad results by the weak demand for coal, shipments related to shale mining and exports.
     

     
    Melbourne Container Terminal Faces New Strike Threat
    source: CIFFA
     
    The Patrick container terminal at the port of Melbourne in Australia will face a stoppage as part of a three-week-old industrial action campaign by the Maritime Union of Australia as the two parties negotiate contracts. The strike will last 48 hours beginning at 7 a.m. local time April 28 and comes after similar actions last week at the ports of Melbourne and Brisbane. Future stoppages are planned for Patrick container terminals at Port Botany, Sydney and Fremantle during the first two weeks of May. The Brisbane stoppages last week affected three vessels due at Patrick's Fishermen Island terminal, the company said. At the same time, a Brisport representative said that operations had been largely unaffected over the 48 hours. (Excepted from JOC Online)
     
     
    Fremantle port proposal not in freight link plan
    source: Yahoo
     
    A plan being canvassed by the Barnett Government to increase workloads through Fremantle port does not form part of the business case used to justify the Perth Freight Link.
     
    The West Australian can reveal that pushing two million containers a year through the port — a key part of the Government’s proposal to sell it — raises fresh questions about the $1.9 billion freight link. Treasurer Mike Nahan said this week that Fremantle port could triple its capacity to more than two million containers a year, delaying the need for an outer harbour near Kwinana for up to 25 years.
     
    DrNahan, trying to win support for the port’s privatisation, has argued that building the outer harbour before Fremantle went to full capacity would add costs to port users, customers and the economy.
     
    But the cost-benefit analysis for the freight link — announced just ahead of the 2014 Federal Budget — was based on the Fremantle port taking between 1.2 million and 1.4 million containers a year, with most delivered by road.
     
     
     
    Officials: No Injuries, No Spill When Freight Train Derails
    source: ABC
     
    Authorities say no one was injured and nothing was spilled after some freight train cars derailed in New Jersey.
     
    The Port Authority of New York and New Jersey spokesman, Joseph Pentangelo, says Saturday three or four Conrail freight cars came off the rails in Jersey City. He says Port Authority police report no injuries and no spilled hazardous materials.
     
    Port Authority Trans-Hudson train service also was not disrupted.
     
    Pentangelo says the derailment happened on lines behind Dickinson High School.
     
    A message left with Conrail has not been returned.
     
    Pentangelo says Port Authority police responded to a request for assistance from Jersey City officials.
     
     
     
    Will freight transportation become "Uberized"? I don't see it
    source: JOC
     
    Sometimes it can feel as if freight transportation is about to get “disrupted” by brilliant software engineers flush with millions of dollars in startup funding from Silicon Valley. Not only do we learn about new logistics-focused venture funds backed by people whose prior startups are the epitome of success, but we also see disruption in action every day. As a regular Uber customer, I rarely use my local Brooklyn taxi company that sent beat-up old cars to pick me up and never seemed to be straight with me about when a car would arrive.
     
    How much money have I given Amazon that formerly would have gone to an actual store? From the perspective of freight transportation, it’s as if you can hear the footsteps growing louder, but you don’t know who’s coming, what they’ll look like or when they’ll arrive, if ever.
     
    You could get vertigo with who’s taking an interest in freight transportation and all its inefficient, manual processes, as the mother-of-all-disruption plays.
     
    According to the Wall Street Journal, Amazon.com Founder Jeff Bezos, eBay Founder Pierre Omidyar and Uber Technologies Co-Founder Garrett Camp are backing a startup called Convoy, a Seattle-based freight-booking service. A venture fund backed by PayPal Holdings Creator Peter Thiel led a $20 million early stage investment in Flexport, a technology-driven forwarder based in San Francisco that among other things aims to improve cargo visibility through software. Former Maersk Line social media guru Jonathan Wichmann has created a list of more than 50 logistics startups ranging from freight to last mile to moving.
     
    With all that firepower aimed at freight transportation, it won’t be long before the industry is unrecognizable, with logistics directors monitoring their global supply chains from an app on their iPhones while they sip a latte at Starbucks, right? If you’re skeptical, you’re not alone.
     
    As Wichmann points out with abundant accuracy, “the logistics business is not easy on the startups. There’s a reluctance among the big players to change their business models.”
     

  • 25 April 2016

    AIR FREIGHT UPDATES


    Strike Called At German Airports For April 27
    source: AirWise
     
    Workers at several German airports including Frankfurt will strike on April 27 in support of a wage increase, the Verdi union said.
     
    Strikes will affect Frankfurt, Munich, Dusseldorf, Cologne/Bonn, Dortmund and Hanover airports, Verdi said.
     
    At Frankfurt, ground services, check-in, shops, aviation security inspectors and the fire service will strike until about 15:00 local time.
     
     
     
    Thailand names CAA International to meet ICAO norms starting in May
    source: Shippingazette
     
    THE Civil Aviation Authority of Thailand (CAAT) has appointed CAA International (CAAi), the advisory arm of the UK Civil Aviation Authority (UK CAA), to help strengthen CAAT's aviation safety oversight and compliance with the International Civil Aviation Organisation (ICAO), starting from May.
     
    The CAAi project will involve a team of 10 experts from the UK CAA to work with CAAT to recertify Thai registered AOCs, to address the Significant Safety Concern (SSC) raised by ICAO in 2015, a statement said. 
     
    CAAi will also conduct on-the-job flight operations training to CAAT Inspectors, to help increase their core inspectorate competencies in accordance with international standards. The final work stream includes full-scale ICVM preparation assistance. 
     
    This activity will cover all of ICAO's eight critical elements of a safety oversight system ahead of Thailand's impending ICVM safety audit by ICAO.
     
     
     
    Brussels Airlines launches new service from Toronto
    source: CanadianShipper 
     
    TORONTO, Ont.– Effective April 21, Star Alliance member Brussels Airlines will connect Toronto Pearson International Airport five times a week with its home base Brussels, and onwards to other destinations in Europe and Africa.
     
    Toronto is Brussels Airlines’ first destination in Canada, the airline announced at the official launch Thursday. Brussels Airlines will offer five weekly flights between Toronto Pearson and Brussels Airport. The flight will leave Toronto every Tuesday, Thursday,Friday, Saturday and Sunday at 18h30 in the evening and arrive the next morning in Brussels at 07:50am local time. The flight to Toronto leaves Brussels Airport at 10:30am and arrives at Pearson Airport at 01:20 pm local time.
     
    The new service is operated with Airbus A330 aircraft equipped with Brussels Airlines state of the art Business and Economic Class cabins.
     
    Thanks to its close cooperation with Star Alliance partners Air Canada and United, Brussels Airlines also offers its guests out of Europe many codeshare connections via Toronto to and from various other destinations in Canada (Ottawa, Edmonton, Halifax, Quebec, Vancouver, Montreal Metropolitan Airport and St John’s) and the United States (Miami, San Francisco, Los Angeles, Houston, Denver, Detroit, Seattle).
     
    Read more here
     

     
    OCEAN FREIGHT UPDATES


    Troubled Hanjin Shipping faces restructuring if bond maturity not extended
    source: Shippingazette
     
    KOREA's biggest shipping line, Hanjin Shipping, is facing a creditor-led re-structuring similar to that of its troubled domestic rival Hyundai Merchant Marine. 
     
    "KDB [Korean Development Bank] is considering a conditional restructuring arrangement if Hanjin Shipping fails to draw an [agreement] of the non-banking institutions that own corporate bonds to extend maturity," a KDB spokesman told Lloyd's List.
     
    "However, nothing has been decided yet regarding the specific timeline or method of the restructuring plan at this moment."
     
    The KDB-led creditors are concerned that the cash-strapped carrier, hit by unfavourable market conditions and high charter costs, might default on debts due over the next three months, local media reported.
     
     
     
    Ocean Alliance meets with US Federal Maritime Commission to seek approval
    source: Shippingazette
     
    US Federal Maritime Commissioner Mario Cordero says the agency has not yet received a formal application by from the freshly minted Ocean Alliance, but that the commissioners had been briefed by its representatives.
     
    CMA CGM, Cosco, Evergreen Line and OOCL said they plan to form a new carrier alliance that is also anticipated to include APL, once CMA CGM completes acquisition of its Singapore parent Neptune Orient Lines, reports American Shipper.
     
    Mr Cordero did not want to comment in detail on his meeting, but said he was pleased that carriers are "being cognizant of this whole question of congestion."
     
    Carriers and alliances have acknowledged that they can play a role in helping mitigate the impact of larger ships and alliance on terminal operations at major ports, Mr Cordero added.
     
     
     
    Financial watchdog investigates former Hanjin chairman’s share selloff
    source: Splash 24/7
     
    South Korea’s Financial Supervisory Service is looking into speculation that Choi Eun-yeong, Hanjin Shipping’s chairman until 2014, profited from the line’s restructuring announcement last Friday.
     
    The financial watchdog is investigating whether Choi received a tip off from Hanjin employees ahead of the announcement. She and her two daughters sold all of their shares in the company between April 8 and April 20 for $2.6m.
     
    Hanjin Shipping’s board of directors on Friday sought a debt settlement agreement with creditors, handing the firm’s management to Korea Development Bank and other creditors.
     
     

     
    GROUND AND RAIL UPDATES


    Rail Safety Week starts April 25
    source: CanadianShipper
     
    CALGARY, Alta.–Canadian Pacific (CP) and the CP Police Service (CPPS) will be educating the public throughout Rail Safety Week (April 25 – May 1) about the importance of safe, smart decisions in and around railway property, 365 days a year.
     
    In conjunction with Operation Lifesaver and other stakeholders, CP is reminding motorists, cyclists and pedestrians that any route that includes illegally crossing railway tracks or using railway tracks as a short cut is the wrong route. During the week, CP and CPPS will conduct rail safety blitzes in communities across our network with participation from other police agencies and schools to educate the public about the role we each play in staying safe, said the release.
     
    “Railway tracks are not an extension of a public pathway, nor are they a safe shortcut,” said Laird Pitz, CP Vice President and Chief Risk Officer. “While Rail Safety Week is a good reminder, rail safety requires ongoing vigilance every minute of every day. Crossing incidents can have tragic consequences for all involved, but it’s important to remember – they are preventable.”
     
     

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    New industrial parks coming to market: Centreport plan
    source: CanadianShipper
     
    WINNIPEG, Man.–More than 2,100 acres of prime industrial land are moving toward development, providing companies with opportunities to grow their businesses in a variety of new rail, truck and airserved industrial parks, said Manitoba’s Centreport.
     
    “CentrePort already has 44 companies investing more than $220 million in building new capital operations, but this is really just the beginning,” said Diane Gray, president and CEO of CentrePort Canada Inc., following the release of the corporation’s 2016-2017 Business Plan.
     
    “We are expecting significant growth as new industrial parks become available.”
     
    These new industrial parks include:
     
    Rail – the new 700-acre CentrePort Canada Rail Park, which is preparing to break ground with its anchor operation BroadGrain Commodities Inc.
    Truck – several new truck-served industrial parks are in the works on more than 1,200 acres, with companies already filing applications for more than 400 acres of new projects.
     
    Air – The Winnipeg Airports Authority is developing 260-acres on the west side of its campus, providing new direct airside co-location opportunities. These new industrial parks include lands located in CentrePort North (RM of Rosser) and CentrePort South (City of Winnipeg). Development to date has been clustered in CentrePort North, where more than 250 acres have been developed by various companies including new operations by FedEx Freight, Canada Cartage, ISCO Industries and Cassidy Manufacturing.
     
     
     
    St. Lawrence case study looks at rivers at heart of today’s climate and environmental issues
    source: CanadianShipper
     
    MONTREAL, Que.– Following the second session of Initiatives for the Future of Great Rivers (IFGR)), held from April 18 to 20 at the headquarters of the Montreal Port Authority (MPA), Erik Orsenna, economist, writer, member of the Académie Française, expert in sustainable development, the environment, agriculture and emerging economies, and President of this multidisciplinary international observatory created by Compagnie Nationale du Rhône (CNR), presented work summaries that showed the plurality of uses of a river and their necessary acceptability in a controlled risk culture, and in a context where new energy models are emerging around rivers. The study on the Port of Montreal within the St. Lawrence / Great Lakes system was the focal point of the exchanges, said a release.
     
    “Through this international gathering of great importance, we are pleased to have been able to help bring a multidisciplinary perspective on the St. Lawrence River, which connects the Port of Montreal to all the continents and more than 140 countries,” said Sylvie Vachon, President and CEO of the MPA. “The themes that the MPA proposed to IFGR members were brilliantly dealt with. The expertise and informed view of members will guide us to take better actions to safeguard the sustainability of the river that we depend on so much.”
     
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Connected ships need smarter software
    source: Splash 24/7
     
    Rob Kenworthy from GTMaritime tackles smart shipping.
     
    Email has become so essential to our daily working life that to lose connection for even a couple of hours could have serious implications for business continuity. Technologists call this ‘nomophobia’; the fear of being unconnected when on the move.
     
    In an era of ‘smart shipping’, email is a business continuity tool that could make the difference between profit and loss, a smooth voyage or rough seas. The loss of email is a reminder of how isolated floating assets really are. If the data connection is interrupted it will become obvious very quickly whether the system offers any kind of support.
     
    The normal response – after asking the guy who ‘knows about IT’ – is to call for support. This likely starts with their in house IT department on shore, operating during business hours. After this, the difference between support and service with a paid-for application versus free software, becomes critically apparent.
     
     
     
    India / Russian Federation Ratify WTO Trade Facilitation Agreement 
    source: CIFFA
     
    India has ratified the new Trade Facilitation Agreement (TFA). India's WTO ambassador Anjali Prasad handed over her country's instrument of acceptance to Director-General Roberto Azevêdo on 22 April. On 18 March India submitted its Category A notification to the WTO indicating which provisions of the TFA it intends to implement upon entry into force of the Agreement.
     
    Similarly, the Russian Federation has become the 77th WTO member to ratify the new Trade Facilitation Agreement (TFA). The Russian Federation's Minister of Economic Development, Alexey Ulyukaev, met with Director-General Roberto Azevêdo on 22 April and presented his country's TFA instrument of acceptance.

  • 22 April 2016

    OCEAN FREIGHT UPDATES

    Hanjin starts China-US service, linking Shanghai to Long Beach
    source: Shipping Gazette
     
    SOUTH KOREA's Hanjin Shipping has launched a new express service on its Asia-US trades, branded China America Express Service (CAX) that links Shanghai to Long Beach.
     
    The service deploys five 4,000-TEU ships and will reduce a transit time of 13-14 days to 11 days, reported Korea IT Times.  Read more here.
     
     
    Hutchison expects more mega ships in Shenzhen, busier PRD barges
    source: Shipping Gazette
     
    HUTCHISON Port Holdings Trust expects more mega ships to call at its Shenzhen container terminal, to move cargo around this leading Chinese export manufacturing region.
     
    Its Shenzhen facility in Yantian opened a new berth this year and another will begin operating in the second half, to handle mega ships, said CEO Gerry Yim.   Read morehere.
     
     
    Panama starts taking reservations for widened canal from July 27
    source: Shipping Gazette
     
    THE Panama Canal has started accepting transit reservations for neo-panamax vessels that will transit the expanded Canal from June 27 onwards - the scheduled date of the inauguration of the expanded locks.
     
    In light of this, the Panama Canal Authority said it will offer four extra slots per day for vessels of this size, in addition to the existing 25 slots.  Read more here.
     
     
    Ecuador Port Operations Update
    source: Shipping Gazette
     
    Following the severe earthquake that struck Ecuador on April 16th, 2016, the ports of Guayaquil, Puerto Bolivar and Esmeraldas are 100% operational. The Port of Manta has stopped all operations until the complete revision of its structure, piers and yards. Until further notice, vessels are being diverted to other ports.
     
     
    NY/NJ port’s future view
    source: American Shipper

    Container volumes are up this year at the Port of New York and New Jersey, and while that’s good news for the region’s economy, the cargo growth also creates challenges for the largest port on the U.S. East Coast, which experienced severe congestion in the summer of 2013 and following winter.

    Shippers are watching how the port performs this year as container carriers ramp up the size of their ships and additional cargo is routed to the East Coast following months of problems at West Coast ports during and after contract negotiations with members of the International Longshore and Warehouse Union. Read more here.
     
     
    China Reveals Plans To Ship Cargo Across Canada's Northwest Passage
    source: Shippingazette
     
    The Chinese government has published a lengthy Northwest Passage shipping guidebook that lays the foundation for cargo vessels to sail across the top of Canada.
     
    Spanning 365 pages of charts and detailed information on sea ice and weather, the Chinese-language Arctic Navigation Guide (Northwest Passage) was compiled by ocean and shipping experts as a way to help the country's mariners plan voyages through a waterway seen as a valuable shortcut between China and North America. Read more
    here


     
    GROUND AND RAIL UPDATES

    CP Introduces New Appointing Tools for Intermodal
    source: CIFFA
     
    CP is introducing new tools to allow customers to book delivery appointments and release empties after unloading. Customers can access these new tools by selecting either Manage Equipment or Intermodal Track & Trace-NEW from the Intermodal Tools menu at the top of the Customer Station homepage. If you are not registered for Customer Station, click here to complete the registration process. 

    Once the Central Manager from your company has approved your access, these tools will appear in the Intermodal Tools dropdown menu. If you require assistance with getting set up, contact Customer Service at 1-888-333-8111 or the eBusiness Support team at
    eb_support@cpr.ca
    .
     
     
    Update to Canadian Pacific Corporate Fuel Surcharge Software
    source: CIFFA
     
    Effective May 21, Canadian Pacific is upgrading their fuel surcharge software "ALK Technologies PC*Miler Rail" from version 21 to version 22.1. The mileage-based fuel program will continue to be administered using route miles based on PC*Miler Rail Fuel surcharge router (FNII) non-familized. For more information, please see the mileage-based fuel program webpage here, or contact your CP Account Manager.
     
     
    Rail providers must make themselves more attractive to freight customers
    source: BD Live
     
    THERE can be no question of forcing movers of bulky commodities to switch from road to rail, so the service offered by freight rail providers must be improved.
     
    This is according to Hlengiwe Sayd, the Department of Transport’s director for rail policy and strategic management, who was speaking at the South African Rail Industry Summit in Boksburg on Thursday.  Read more here.

  • 21 April 2016

    OCEAN FREIGHT UPDATES


    Hapag-Lloyd to merge with UASC after secret talks with Gulf owners
    source: TheLoadstar
     
    Hapag-Lloyd is to merge with UASC. The news follows the Dubai-headquartered carrier being excluded from the new Ocean Alliance announced yesterday.
     
    The merger was first reported online by German monthly business magazine Manager Magazin yesterday, saying “secret negotiations between the two sides are close to a conclusion”.  

    Read more here

     
    Hanjin Shipping to face conditional restructuring led by KDB
    source: LloydsLoadingList
     
    Hanjin Shipping, South Korea’s largest shipping line, is facing a creditor-led restructuring, following a similar move already undertaken by its debt-ridden compatriot Hyundai Merchant Marine. 
     
    “KDB is considering a conditional restructuring arrangement if Hanjin Shipping fails to draw an [agreement] of the non-banking institutions that own corporate bonds to extend maturity, or an [agreement] of the shipowners to lower their charter fees,” a spokesman from Korea Development Bank told Lloyd’s List in a written statement.
     
     
     
    High level of ship demolition continues despite low scrap prices
    source: Shippingazette
     
    THE high rate of vessel demolition that started at the end of last year is continuing, with 19 containerships for a total of 58,000 TEU being scrapped in the first two months of this year; and Drewry forecasts a rising number of ships will enter the demolition derby in 2016. 
     
    Of those units scrapped, 12 ships were under 20 years old and nine had a capacity of 4,000 TEU, according to data from Drewry, which pointed out that the level of scrapping escalated in the final months of last year as demand for Panamax ships waned and charter rates plummeted.
     
    "Demolition prices remain unattractively low but many owners, particularly of the non-operating kind, have decided that with charter rates falling they are better off recouping some residual value from their assets from the scrap market," the maritime analyst noted.
     
     
     
    US port of Boston to dredge harbour channels, container terminals for mega ships
    source: Shippingazette
     
    THE Port of Boston plans to dredge the harbour channels, including the North Entrance Channel from 45 feet deep to 51 feet deep, the main channel from 40 feet deep to 47 feet, and the berths at Conley Container Terminal to 50 feet.
     
    This development comes as the Conley Container Terminal handled 237,166 TEU in 2015, an 11 per cent increase from 2014 on the back of the strong regional economy and higher levels of productivity, data from the Massachusetts Port Authority (Massport) showed, reported American Shipper. 
     
    Import volumes surged 8.1 per cent from 2014, while export volumes jumped 5.4 per cent.
     


     
    GROUND AND RAIL UPDATES


    Canada, U.S. Still Losing Billions To Highway Congestion
    source: CIFFA
     
    Traffic congestion on U.S. highways added about $50 billion in operational costs to the trucking industry in 2014, according to research released today by the American Transportation Research Institute (ATRI). The congestion resulted in delays totaling more than 728 million hours of lost productivity, which equates to 264,500 commercial truck drivers sitting idle for a working year, the institute found. The analysis also demonstrates the impact of congestion costs on a per-truck basis, with an average increased cost of $26,625 for trucks that travel 150,000 miles annually. 
     
    The problem isn't much better north of the border. In November 2015, Canada's EcoFiscal Commission released an analysis of congestion in some of the country's major cities. For Vancouver, the report found that an estimated $1.4 billion is being lost annually to downtime while stuck in traffic; that number jumps to $7 billion for the Greater Toronto and Hamilton area, and is predicted by the commission to more than double over the next 15 years. Congestion pricing options continue to be the most common recommendation from firms studying the problem. (Today's Trucking). The report can be downloaded for free on the ATRI website here but registration is required.
     
     
    Convoy of self-driving trucks completes first European cross-border trip
    source: LloydsLoadingList
     
    Six convoys of semi-automated “smart” trucks arrived in Rotterdam’s harbour last week Wednesday after an experiment its organisers say will revolutionise future road transport on Europe’s busy highways, UK newspaper The Guardian reports.
    More than a dozen self-driving trucks made by six of Europe’s largest manufacturers arrived in the port in so-called “truck platoons” around midday, said Eric Jonnaert, president of the umbrella body representing DAF, Daimler, Iveco, MAN, Scania and Volvo.
     
     
     
    Union Pacific Profit Falls on Weak Freight Demand
    source: TheWallStreetJournal
     
    Union Pacific Corp. said its profit slid 15% in the first quarter as the railroad operator continued to face weak freight demand, especially for coal, offsetting benefits from higher prices and cost-cutting efforts.
     
    Earnings, though, handily beat estimates, sending shares of the Omaha, Neb., company—which have risen 18% over the past three months—up 2.4% to $85.88 in premarket trading.
     
    The rail industry has been under pressure from lower commodities prices that have weighed on demand for coal, a key market. The sector also is facing increased competition from trucks, as lower fuel prices make hauling containers and trailers less expensive. Companies, including Union Pacific, have mothballed locomotives and furloughed workers to curb costs.
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    ICC Calls For Improved Trade And Investment Conditions To Reinvigorate Global Growth
    source: CIFFA
     
    International Chamber of Commerce (ICC) Chairman Terry McGraw joined global business leaders at a B20 meeting in Washington and urged the private sector to intensify engagement with the G20 to promote international trade and investment. ICC calls for improved trade and investment conditions to reinvigorate global growth. Presided by B20 China Sherpa Yu Ping, the B20 Joint Task Force meeting was held on the margins of the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group and in the lead up to the G20 Summit in Hangzhou, China next September.

    Read more here

  • 20 April 2016

    AIR FREIGHT UPDATES


    Push to automate pallet building prompts 3 firms to sign up
    source: Shippingazette
     
    TO automate pallet building three companies have placed orders for a new robotics, says Airis International Holdings, which took the orders from PACTL and two Mideast airlines.
     
    Shanghai ground handler PACTL will be the first to the use of robots to build general cargo pallets from this summer, reported Lloyd's Loading List.
     
    The company has been working with logistics facilities developer Airis since last year to examine the feasibility of robot technology within air cargo pallet-building in a context of shipments of irregular size, shape and mass. 
     
    Using analysis of two years of data from PACTL and from airlines, Airis has concluded that 85-90 per cent of general air cargo shipments handled by PACTL could be processed by robots. 
     
     
     
    Thousands Lose Power, Flights Canceled As Rains Inundate Houston
    source: CIFFA
     
    More than 100,000 customers lost power and Houston's airports canceled hundreds of flights as a line of thunderstorms dropped more than a foot of rain across southeastern Texas on April 18th. 
     
    The National Weather Service declared a flash-flood emergency until 1 p.m. local time. George Bush Intercontinental Airport declared a full ground stop, with 465 cancellations and 108 delays as of 11 a.m. Houston time. Hobby Airport had 144 cancellations and 14 delays. High water was reported on all major roadways. Parts of the county reported more than 14 inches of rain in 24 hours, according to the Harris County Flood Warning System. (Excerpted from Bloomberg)
     
     
    Air Canada Cargo announces start of Casablanca service
    source: CanadianShipper
     
    MONTREAL, Que.–Air Canada Cargo has announced the start of its service to Casablanca on June 3. With this new service to and from Africa, the airline now provides cargo options on six continents and over 450 destinations worldwide, it said in a release.
     

    OCEAN FREIGHT UPDATES


    New Challenges for Mega Groups As Ocean Alliance Prepares for Launch
    source: The Loadstar
     
    Ocean carriers CMA CGM, COSCO Container Lines, Evergreen and OOCL have signed a Memorandum of Understanding to form a new mega-alliance designed to challenge Maersk Line and MSC’s 2M grouping on east-west trades.
     
    Dubbed the Ocean Alliance, the proposed grouping would bring the world’s 3rd, 4th, 5th and 9th biggest container lines together in a vessel-sharing agreement but leave the other top 20 carriers scrambling to compete and stay in the Asia – Europe and transpacific markets.  

    Read more here.  
     
     
    International Chamber of Shipping favours stringent IMO regulations
    source: Shippingazette
     
    THE International Chamber of Shipping (ICS) has made a number of submissions to address the need to reduce the sector's CO2 emissions, focus on problems with the implementation of the IMO Ballast Water Management Convention, and the need for an immediate IMO decision on whether ships will have to use 0.5 per cent sulphur fuel in 2020.
     
    ICS submissions come ahead of this year's International Maritime Organisation's Environment Committee (MEPC) meeting, reported London's Tanker Operator. 
     
    The ICS explained that its immediate priority is to help ensure that the new global CO2 data collection system is adopted by IMO as soon as possible. This will then facilitate the possible development of additional CO2 reduction measures.
     
    ICS secretary general, Peter Hinchliffe, explained; "The data global system now before the MEPC is a workable compromise between governments primarily interested in data on fuel consumption and CO2 emissions and those that wish to collect additional information, for example on so called transport work."
     
    In a separate submission to the meeting, ICS responded to the Paris Agreement on climate change with a radical proposal that IMO should develop an Intended IMO Determined Contribution for CO2 reduction on behalf of the sector. 
     

     
    Hong Kong Marine Department announces VGMs will be in force July 1
    source: Shippingazette
     
    THE amendment to UN's Safety of Life at Sea (SOLAS) Chapter VI, Regulation 2 will be in force in Hong Kong on July 1, announced the Hong Kong Marine Department. 
     
    The amendment requires mandatory verification of the gross mass (VGM) of containers prior to loading onto vessels to which SOLAS Chapter VI applies.
     
    The Marine Department has updated its website with information relevant to the VGM requirements. 
     
    Additionally, making reference to the concerned guidance of IMO, a "Guideline on the Verification of Gross Mass of a Container with Cargo Packed in Hong Kong" has been published to provide guidance to operators in the industry to comply with the new requirement.
     
    Read more here


     
    GROUND AND RAIL UPDATES


    First trains arrive at JAXPORT's new US$30 million rail terminal
    source: Shippingazette
     
    JACKSONVILLE JAXPORT's newly completed Intermodal Container Transfer Facility (ICTF) at Dames Point is being used in support of a military training exercise this month in advance of its official opening to commercial container movements later this year.
     
    Before the start of the ICTF's commercial operations, JAXPORT is partnering with numerous US Army units, including the JAXPORT-based 832nd Transportation Battalion, reports the American Journal of Transportation.
     
    They involve exercises aimed at expediting the movement of ocean-going military cargo, rehearsing the capabilities of personnel as well as the new terminal.
     
    During the exercise, uniformed Army personnel are moving nearly 800 pieces of cargo - including vehicles, containers and equipment - from this state-of-the-art facility onto a nearby military ship. 
     

     
    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Port of Prince Rupert announces investment in Gitxaala Nation
    source: CanadianShipping
     
    PRINCE RUPERT, B.C.–The Port of Prince Rupert has announced a $244,000 investment from its Community Investment Fund that it says will help preserve traditional food production, increase nutritional education and develop new skills within the Gitxaala Nation.
     
    A celebration in the coastal village of Kitkatla, BC took place Tuesday, April 12, 2016,  to bless and commission two new community spaces: a garden and greenhouse where local produce will be grown, and a kitchen and eatery for food preparation and training. The event was attended by over one hundred Kitkatla residents that included school children and elders, as well as a delegation of staff from the Port of Prince Rupert who prepared the first community meal served out of the new kitchen.
     
    “We couldn’t be happier after seeing the impact of these projects first-hand,” said Don Krusel, President & CEO of the Port of Prince Rupert. “The community kitchen and garden are physical embodiments of the spirit of our Community Investment Fund, which was established to enable significant quality of life improvements to a broad demographic of community members. Experiencing these facilities, surrounded by members of the Gitxaala Nation, it was evident how useful these community assets already are, and will be for years to come.”
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
    California Clothing Manufacturers Flee Minimum Wage Hike
    source: The Loadstar
     
    A little local news from California. The apparel manufacturing industry is already looking to move out of the state as it introduces a $15 minimum wage. Hit by rising commercial rents and supply chain costs, the state’s home grown clothes-makers are looking further afield. American Apparel, the famed – or perhaps infamous – US-made brand, said it would outsource and but 500 jobs in California. “The exodus has begun,” said an economist.  

    Read more here.

  • 19 April 2016

    AIR FREIGHT UPDATES


    Brussels Airport sees official launch of Air Cargo Belgium
    source: AirCargoNews
     
    Air Cargo Belgium (ACB), the new air cargo community organisation at Brussels airport, had its official launch this week.
     
    The new organisation, whose formation was announced in December last year, groups all companies at BRUcargo, the airport’s airfreight cluster, as well as related stakeholders or official organisations.
     
    Said BRUCargo: “Traditionally, there have been several organisations active at Brussels Airport, grouping a certain part of the logistical chain such as airlines or forwarders.
     
    “These continue to exist but also participate in this new organisation, as they are complementary and serving different needs for the cargo community.”
     
    Brussels Airport saw 2015 full year freight volumes grow 7.8% to just over 489,000 tonnes, helped by the arrival of four new cargo carriers in the full freighter segment and the development of express services at the Belgian hub.
     
    Chairman of ACB will be Steven Polmans, head of cargo at Brussels Airport, who will be helped by two vice chairmen: Alain De Heldt — current chairman of BAFI, the forwarders organisation — and Bas van Goch, who is the current chairman of the Air Cargo Managers Association Belgium (ACMAB), the cargo airlines’ organisation. 
     
     
     
    Air Canada Cargo, Cargojet partner to deliver air freight to Latin America
    source: CanadianManufacturing
     
    The new Air Canada Cargo flights will provide 52 tonnes of net cargo capacity and are scheduled to begin June 9
     
    MONTREAL, Que. and MISSISSAUGA, Ont.—Air Canada and Cargojet Airways Ltd., a subsidiary of Cargojet Inc. are finalizing a commercial arrangement dedicated freighter services from Canada to Latin America and Europe.
     
    Using Boeing 767-300ER freighter aircraft operated by Cargojet, Air Canada Cargo will become the only provider of direct scheduled freighter service between Canada and Latin America.
     
    The new Air Canada Cargo flights will provide 52 tonnes of net cargo capacity and are scheduled to begin June 9, 2016, subject to obtaining the necessary regulatory approvals.
     
    Initial service will operate from Toronto to Bogota, Colombia and Lima, Peru via Atlanta, Ga; Toronto to Mexico City via Dallas/Fort Worth, Texas.
     
    Under the arrangement, Air Canada Cargo also plans to introduce dedicated freighter service to Europe from Toronto in the second half of 2016.
     
    “Working with Cargojet, we are able to leverage and build upon Air Canada’s extensive North American and international networks,” said Lise-Marie Turpin, vice-president, Air Canada Cargo. “We look forward to continuing to grow our dedicated freighter network to Europe later this year and for a successful and mutually beneficial relationship with Cargojet into the future.”
     

    OCEAN FREIGHT UPDATES


    Piraeus a done deal unless Greek assembly votes it down this week
    source: Shippingazette
     
    GREECE stands to benefit from China's growing global influence, while Chinese-owned Port of Piraeus can play a pivotal role in the development of its economy, said China Cosco Shipping president Xu Lirong.
     
    "Greece will have many benefits from China's growing influence and power in the global market," said Mr Xu at the signing ceremony, reported the UK's Seatrade Maritime News.
     
    But many remain opposed to the deal, claiming it is illegal until ratified by the Greek parliament this week.
     
    But Mr Xu spoke of it as if it were a done deal. "Chinese companies see huge investment opportunities in Greece and this is something backed by the Chinese government," said Xu, saying his aim is to make Piraeus the Mediterranean's most competitive port.
     
    After Greek Prime Minister Alexis Tsipras signed the deal, he noted it makes the "Silk Road" faster and shorter at a time when Greece is putting emphasis on economic recovery.
     
    "This investment will be the start for a series of new investments," he said.
     
     
     
    Drayage Delays, Gate Closings Plague India's Top Port Again
    source: CIFFA
     
    Logistics providers out of Jawaharlal Nehru Port Trust are again reporting long truck queues and frequent gate closings at terminals in India's busiest public container gateway. Trade is facing massive traffic and port congestion on a regular basis at all three terminals i.e. NSICT (DP World NhavaSheva), GTI (APM Terminals Mumbai) and JNCPT (the port-run facility) said one source. It is reported that it takes an average of 24 to 36 hours to move a trailer carrying export cargo through terminal gates because of the slowdowns and that drivers have been forced to wait up to 14 hours inside the terminals to pick up import units. In a notice to customers on Monday, APM Terminals' Inland Services said roads leading to the terminals are heavily congested with long truck lines. (Excerpted from JOC Online)
     
     
    Cost Reductions Announced at Port NY & NJ
    source: CIFFA
     
    Port officials Monday announced cost reductions for use of the Port of New York and New Jersey. Effective May 1, 2016, the container charge for containers whose destination lies within 260 miles of the port has been reduced by 5.3 percent from $94.00 to $89.00 in all trades except in the Bermuda Trade, which retains its rate of $25.00. Cargo containers whose destination lies within 260 miles of the port comprise approximately 60 percent of all containers handled, making this a significant rate reduction for international carriers.

     
    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Government of Canada Designates Niagara Foreign Trade Zone Point
    source: CIFFA
     
    On Friday, the Government of Canada announced the designation of the Niagara Foreign Trade Zone (FTZ) Point, serving the region's 12 municipalities from east of Hamilton to the United States border. To foster a supportive business climate, we need to help spur innovation and investment and open up international markets. This Point will serve as a one-stop shop for businesses to access information on Canada's FTZ policies and programs. This is the first FTZ Point established in Ontario. The FTZ Point will promote Niagara as a hub for international trade and will attract foreign and domestic investment. Designating a FTZ Point in Niagara aligns with the Government of Canada's priorities to help businesses integrate into foreign markets and global value chains.
     
     
    Ontario to widen Highway 401 in Mississauga to 12 lanes from six
    source: CanadianManufacturing
     
    $81 million project will create 800 construction jobs over three years
     
    The project will widen a narrow, six lane stretch of the 401 in Mississauga to 12 lanes. PHOTO: Ryan Stubbs, via Wikimedia Commons
    MISSISSAUGA, Ont.—The Ontario government will widen a four-kilometre stretch of Highway 401 in Mississauga to 12 lanes from six.
     
    Premier Kathleen Wynne made the announcement alongside transportation minister Steven Del Duca April 15.
     
    “Adding six lanes on this stretch of Highway 401 will help improve traffic flow for residents and businesses,” Del Duca said.
     
     
     
    Greenhouse gas emissions continued their slow climb in 2014
    source: CanadianManufacturing
     
    The energy sector made up 81 per cent of Canada's GHG emissions in 2014, with agriculture the next biggest sector at eight per cent
     
    OTTAWA—A new government inventory report says Canada’s greenhouse gas emissions are still growing.
     
    The national inventory released by Environment Canada shows emissions were estimated to be 732 megatonnes of carbon dioxide and other equivalents, a 20 per cent increase over 1990 levels, when Canada first committed to cutting emissions growth.
     
    Prime Minister Justin Trudeau will be in New York later this week to sign the latest global climate agreement, under which Canada commits to slash emissions 30 per cent below 2005 levels by 2030.
     
    The latest inventory shows that emissions in 2014 were 15 megatonnes below 2005 levels, but slowly rising.
     
    Emissions actually fell steeply in 2009 due to the global economic downturn, but the report says emissions have climbed 5.2 per cent since then.
     
    The energy sector made up 81 per cent of Canada’s GHG emissions in 2014, with agriculture the next biggest sector at eight per cent.
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     
     
    China woos East Africa to enter in more cooperative projects
    source: Shippingazette
     
    CHINA has written to the Secretary General of the East Africa Community (EAC) proposing to negotiate a comprehensive free trade agreement between the EAC and China.
     
    China also requested to undertake a joint feasibility study with the EAC on the proposed FTA, outgoing Secretary-General Richard Sezibera informed the Council of Ministers at a meeting in Arusha, reported Nairobi's East African.
     
    The Council directed the Secretariat to undertake a comprehensive cost-benefit analysis on the implications of negotiating FTAs with third parties.
     
     
     
    Study says collaboration technology improves supply chain efficiencies
    source: CanadianShipper
     
    HOUSTON, Tex.–New research released  from the University of Tennessee’s Global Supply Chain Institute, in collaboration with B2B integration provider DiCentral, discovered the supply chain trends, issues and challenges expected in 2016 and beyond. The survey of over 200 organizations from a wide range of industries asked respondents to weigh in on such issues as inventory visibility, supply chain costs, new ERP integration, responsiveness to customer demands, and more.
    The study indicates that more organizations today are investing in B2Bi (business to business electronic integration) to cut costs and increase business flow efficiency. Of those surveyed, 94% saw significant improvement in their electronic connectivity capabilities and 68% reported that their clients said they were easier to do business with after using cloud-based B2Bi Managed Services.
     
    Another major finding suggests that the opportunities for streamlining processes are richer than the resources to achieve it, as increased pressures on internal IT departments to meet core business objectives can lead to potential gaps in knowledge and technology.
     

  • 18 April 2016

    AIR FREIGHT UPDATES


    Hundreds Of Flights Cancelled In Denver Blizzard
    source: AirWise
     
    A powerful blizzard swept through Colorado on Saturday, dumping at least 2 feet (61 cm) of snow in some parts of the state and forcing the cancellation of most of the scheduled flights at Denver Airport.
     
    United Airlines cancelled all of its flights to and from Denver, the airport said in a statement.
     
    All told, more than 800 flights were grounded on Saturday, or more than 65 percent of all scheduled take-offs and landings there, the FlightAware airline tracking website showed. Dozens of other flights were delayed.
     
    Denver International is the fourth-largest hub for United and Southwest, and the primary hub for Frontier.
     
    The heavy snow began falling on Friday night and was expected to continue through Sunday, the National Weather Service said.
     
     
     
    Four major airport hubs to handle US imports by air, expert says
    source: Shippingazette
     
    LOGISTICS Capital & Strategy managing director Brian Clancy says US freight forwarders are consolidating volumes and using major gateways to handle imports from Asia and Latin America.
     
    Speaking at the CNS Partnership Conference in Nashville, Mr Clancy explained that the patterns by which air freight entered the US has changed, the New York's Air Cargo World reported.
     
    Such patterns highlight the tendency of freight forwarders to consolidate volumes - a pattern which he says will likely lead the establishment of four major gateways.
     
    During 2010-2015, Miami International Airport (MIA), Los Angeles Airport (LAX) and O'Hare International Airport (ORD) all gained market share, while New York's JFK declined.
     
    Forwarders he claimed, found ways to utilise road-feeder services to deliver cargo from Chicago that was previously destined for JFK. During the five-year period, other major gateways including San Francisco (SFO), Dallas/Fort Worth (DFW) and Atlanta (ATL) have remained stable, but of those, he said, one is likely to join the ranks of ORD, MIA and LAX as larger growth hubs. 
     

    OCEAN FREIGHT UPDATES


    Carriers raise fuel surcharges
    source: LloydsLoadingList
     
    Carriers have begun increasing their fuel surcharge levels in response to the partial recovery in oil prices seen over the last few weeks, although analysts doubt whether the rise in oil prices will continue following yesterday’s failed attempt at an oil-output deal.
     
    In a note to its French customers late last week, container line Hapag-Lloyd announced that, with effect from 15 May, it would be revising upwards its fuel surcharges for European inland haulage. Those using road freight would see fuel surcharges rise from 7% to 8.5% for inland haulage via ports in France, Belgium, Netherland, Germany from and to France and Monaco or via ports in France from and to Switzerland.
     

     
    More say carriers should be responsible for securing the container weights
    source: Shippingazette
     
    THERE appears to be a gathering consensus to have the carriers responsible for gathering verified container weights as they seem to be the most interested in securing them.
     
    Speaking at the Global Liner Shipping Conference in London earlier last week, US Federal Maritime Commissioner William Doyle said carriers should be responsible for reporting the weight of containers.
     
    A report in Lloyd's List said Mr Doyle also called on shippers and ocean carriers to come together and find a solution, saying it would be unacceptable for US exports to be left at the dock for lack of a verified gross mass (VGM).
     
    FMC Commissioner Richard Lidinsky agreed with Mr Doyle. This was also the position taken by the big farm shipper lobby, the Agriculture Transportation Coalition.
     
    Last month, European port organisation FEPORT also agreed the container weight verification guidelines did not provide enough guidance. 
     
    "A lack of national guidelines will ultimately provoke confusion in the implementation and will have an adverse impact on operations and lead to possible competitive distortion," FEPORT said.
     
     
     
    Carriers accelerate moves to ease supply-demand mismatch
    source: Lloyd’sLoadingList
     
    Container vessel owners are accelerating scrapping levels, a move that will help ease the mismatch between vessel supply and demand, according to Drewry Maritime Research.
     
    Last year saw record deliveries of newbuilds into an already over-supplied market. This was exacerbated by “an unusually low scrapping total” linked to renewed demand for Panamax vessels and low scrapping prices, said the analyst.
     
     
     
    New CSL video explains how self-unloading ships work
    source: CanadianShipper
     
    MONTREAL, Que.– Gravity-fed self-unloaders are highly specialized vessels that can quickly and efficiently discharge dry bulk cargo without the assistance of shore-side equipment or personnel.
     
    In a recently released video, CSL demonstrates how these vessels use gravity to release cargo onto conveyor belts through gates located at the bottom of the vessel’s cargo holds. The cargo is then transported to an elevating system, lifted above deck level, transferred onto a discharge boom conveyor and offloaded via a discharge boom.
     

     
    Panama Canal Video on New Locks
    source: CIFFA
     
    The Panama Canal Authority has released a virtual tour of how the new Neopanamax locks will operate within the Expanded Panama Canal once inaugurated on Sunday, June 26. Using a combination of video clips and animation, it visually illustrates a virtual tour of a Neopanamax vessel's transit through the Expanded Canal. The 11-minute video, titled "A New Experience - Transits Through the Expanded Panama Canal," is available to watch through at the following link: http://youtu.be/DrQrKAku3e0.


    GROUND AND RAIL UPDATES


    CN Reminder to Carrier and Drivers
    source: CIFFA
     
    CN would like to remind carriers and drivers that for all CN Terminals, 4 way flashers must be on at all times while on CN property.

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Cooperative agreement renewed between the Ports of Antwerp and Montreal
    source: CanadianShipper
     
    MONTREAL, Que.-–Following a joint trade mission in Montreal April 12, the port authorities of Montreal and Antwerp, Belgium have renewed their cooperative agreement.
     
    The first agreement, signed in March 2013, resulted in four trade missions to Montreal and Antwerp during which extensive business contacts were developed. These meetings also enabled productive exchanges of information on issues such as sustainable development, land use, the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union, global trends in the markets, and the development of port logistics zones, said a release.
     
    As Sylvie Vachon, President and CEO of the Montreal Port Authority (MPA), pointed out, this agreement’s renewal is a great fit with the Port of Montreal’s commitment to strengthen its ties with its largest European trading partner. “In the last three years, we were able to realize how much our two ports share the same concerns. We got to know each other, to collaborate effectively and we are now at a level of mutual trust that lets our departments discuss many issues of common interest and take concrete action on joint business development. The renewal of this agreement beautifully illustrates our commitment to further our collaboration and in doing so, continually provide better service to our clients.”
     
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    The Trucker’s Nightmare That Could Flatten Europe’s Economy
    source: Bloomberg
     
    Trucking companies are facing rising costs as EU member states impose new border controls because refugees continue to enter. Border controls now mean waiting times of about four hours, slowing supply chains and reducing trucking capacity. Bertelsmann Foundation research points to a loss of €470bn in GDP from the EU economy over the next 10 years if there is a permanent return to border controls. As Bloomberg points out, that’s the equivalent of losing a company almost the size of BMW every year for a decade.  
     
     
     
    Government to track freight containers movement via smart chip
    source: EconomicTimesIndia
     
    NEW DELHI: The government is set to kick off an ambitious scheme to track the movement of freight containers through a smart chip as it looks to speed up cargo movement and decongest ports.
     
    In the first phase, beginning May 1, it will track all containers moving along the Delhi-Mumbai corridor to identify the hurdles on the way to Jawaharlal Nehru Port Trust (JNPT) in Mumbai, which handles 50% of the container traffic in the country.  
     

  • 15 April 2016

    AIR FREIGHT UPDATES


    Atlas weighs into US air traffic control debate: 'modern technology could save $30bn'
    source: TheLoadStar
     
    Supply chain efficiencies would be significantly enhanced, and environmental costs lowered, if the US accelerated the modernisation of its air traffic control system.
     
    A new system would save $30bn in annual costs, as well as shaving 10-15% off carbon emissions.
     
    In a significant keynote speech at the CNS Partnership event in Nashville, Bill Flynn, CEO and president of Atlas Air, brought the air cargo industry into the debate with a plea for the US government to act fast.
     
    There are 27,000 flights each day in the US, and 50,000 tons of cargo moved, while aviation accounts for 5% of GDP, noted Mr Flynn.
     
    OCEAN FREIGHT UPDATES


    Mergers to remake shipping alliance structure as carriers make plea to regulators
    source: Shippingazette