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  • 19 October 2017

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    AIR FREIGHT UPDATES

    Hong Kong sees soaring cargo growth in September
    source: aircargonews.net
    Hong Kong International Airport (HKIA) handled 430,000 tonnes of cargo in September, "soaring" 9.1% over the same month in 2016.
     
    A spokesperson for HKIA, the world's number one cargo hub in 2016, said: "Exports registered a robust 14% year-on-year growth, continuing to lead the growth in cargo volume. Among the key trading regions, cargo throughput to Europe and Southeast Asia increased the most significantly."
     
    Over the first nine months of 2017, cargo volume has seen a year-on-year "surge" of 10.9% to 3.6m tonnes. On a rolling 12-month basis, HKIA handled 4.9m tonnes of cargo, registering growth of 10.2%.

     
    Turbulent times for Europe’s leisure airlines
    source: aircargonews.net
    Europe’s low-cost leisure airlines have faced a tough year, with airberlin, Monarch and Alitalia all filling for bankruptcy.
     
    The latest development in the long-running Alitalia saga saw Germany’s Lufthansa Group and the UK’s EasyJet submit an offer for parts of the insolvent Italian airline.
     
    Although details were thin on the ground, Lufthansa said it had submitted an offer letter expressing its interest in establishing a "NewAlitalia". Read more here
     


    OCEAN FREIGHT UPDATES

    Heavy Winds Close GCT Deltaport for Much of the Day Yesterday
    source: CIFFA
    GCT Deltaport was closed at 11:45 am PDT yesterday due to high winds, and remained closed for the remainder of the day shift.
     
     
    Gloomy picture painted for container shipping is lightening, says Alphaliner
    source: theloadstar.co.uk
    China today reported a 6.8% year-on-year increase in GDP for the third quarter – a slight decline on the 6.9% growth in the first half of the year, but nonetheless meeting government targets.
     
    Retail sales grew by 10.3% in September, while factory output, a key metric for container lines, grew 6.6% in the same month. Read more here (login required) 
     
     
    Hapag-Lloyd raises US$414m from capital increase to reduce debts
    source:shippingonline.cn
    GERMAN-BASED Hapag-Lloyd has raised US$414 million through a capital increase agreed after its merger with United Arab Shipping Co (UASC) with most of its shareholders exercising their rights to buy up 11.7 million new shares.
     
    The capital increase was supported by primary shareholders CSAV Germany Container Holding, Kuehne Maritime, Qatar Holding Germany, and The Public Investment Fund of the Kingdom of Saudi Arabia for a total of EUR352 million, IHS Media reported. Read more here
     
     
    CMA CGM's Indian subcontinent, Mideast, East Africa upgrade
    source: shippingonline.cn
    FRENCH shipping giant CMA CGM will upgrade and broaden its service offering to better link India, the Middle East and East Africa, the company announced.
     
    Starting November 15, CMA CGM will offer additional services to East Africa, a direct line to Mozambique, improved connectivity to Europe, North America and increase African export capacity. Three direct weekly services will serve 11 ports in East Africa with a total operating fleet of 14 vessels up to 3,500 TEU each. Read more here

     
    APL sees strong demand for guaranteed services
    source: americanshipper.com
    Shippers and ocean carriers have dealt unsuccessfully with booking cancellations for years, but APL is confident that its recently-announced guaranteed service solution will change that.
    The age-old debate about how to deal with overbooking and cancellations has resurfaced after multiple large carriers have imposed cancellation fees in recent months, and now with APL launching a guaranteed service product for a limited number of ports. Read more here

     
    Maersk COO: Maritime shipping industry could consolidate further
    source: americanshipper.com
    The trend of mergers and consolidations in the maritime shipping industry in recent years could and maybe should continue, a Maersk Line executive has said.
    During a recent media briefing, Maersk Chief Operating Officer Soren Toft said that as growth in the shipping industry slows, merger and acquisition activity may begin to pick up again, according to a report from Singapore news outlet the Straits Times. Read more here.


    GROUND AND RAIL FREIGHT UPDATES 

    CN says two derailments during Alberta wind storm being cleaned up
    source: canadianshipper.com
    Wainwright, AB — Canadian National says work is continuing on cleaning up a pair of train derailments in central Alberta during the windstorms that swept through parts of the Prairies on Tuesday.
     
    Train traffic resumed Wednesday morning near Huxley, Alta., where a freight train lost 67 of its cars on Tuesday as winds gusted to 120 kilometres an hour. Read more here.  
     

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  • 18 October 2017

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    AIR FREIGHT UPDATES

    Tianjin Airlines Cargo is seeking an aircraft operating certificate (AOC) from the Civil Aviation Administration of China (CAAC).
    source: theloadstar.co.uk
    The move comes on the back of strong air freight volume growth this year: two other carriers are looking to expand their reach and another reportedly has been granted its AOC. Read more here (login required) 
     


    OCEAN FREIGHT UPDATES

    Chinese Consortium Snaps Up 70% Stake inn Proposed Myanmar Port Project
    source: splash247.com
    A Chinese consortium led by CITIC Group has agreed to take a 70% stake in a deepwater sea port project in Myanmar Retuers has reported.
    According to Oo Maung, vice chairman of a government-led committee overseeing the project, Myanmar reached an agreement with the consortium in September for the development of a deep sea port in Kyauk Pyu in Rakhine state. Read more here
     
     
    APL extends terminal lease at Port of Kaohsiung for 10 years to 2027
    source: shippingonline.cn
    FRENCH shipping giant CMA CGM's subsidiary American President Lines (APL) has renewed its terminal lease at the Port of Kaohsiung in Taiwan for another ten years.
    APL's Taiwan branch signed an agreement with Taiwan International Ports Corporation Ltd which allows the Singapore-based shipping liner to retain its current terminal plot in the Kaohsiung port for another 10 years from January 1 2018 to December 31 2027, according to a company statement. Read more here
     


    GROUND AND RAIL FREIGHT UPDATES

    The CSX anomaly: new management on the right track?
    source: theloadstar.co.uk
    Despite being quizzed by the US Surface Transportation Board following a flurry of customer complaints, US rail operator CSX is not heading towards the abyss, argues Seeking Alpha. The carrier has faced strong criticism as new chief executive Hunter Harrison enacts his precision scheduled railroading model, with the process resulting in significant reductions in train speed. Read more here (login required) 
     
     
    Tighter gate-in rules at India's JNPT for DPE shipments
    source: shippingonline.cn
    DIRECT port entry (DPE) shipments moving via Jawaharlal Nehru Port Trust's (JNPT) terminals will be subjected to tighter gate-in rules by Indian customs authorities, in an effort to boost productivity at the state-owned port.
     
    A customs' decree stated that any DPE container that has showed up in the customs processing site alongside truck parking space must be loaded onto the ship for which that box has been booked, reportedIHS Media. Read more here



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    NAFTA tensions erupt: Countries admit talks struggling, push deadline into 2018
    source: canadianshipper.com
    Washington, DC — The NAFTA countries haven’t broken up. But they are publicly bickering. They are delaying their next get-together date. And they appear to have agreed they won’t be resolving their differences by the end of this year.
     
    The tensions at the negotiating table have exploded into public view. Read more here

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  • 17 October 2017

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    AIR FREIGHT UPDATES

    Air freight boom in China means more airlines clamouring for operating licences
    source:theloadstar.co.uk
    Tianjin Airlines Cargo is seeking an aircraft operating certificate (AOC) from the Civil Aviation Administration of China (CAAC).
     
    The move comes on the back of strong air freight volume growth this year: two other carriers are looking to expand their reach and another reportedly has been granted its AOC.
     
    Reports claim Tianjin has already received launch approval from the CAAC, although The Loadstar was unable to confirm this – the latest CAAC statement notes the carrier is under “preliminary examination”. Read more here

     
    Airbus, Bombardier Agree CSeries Deal
    source: news.airwise.com
    Airbus has agreed to buy a controlling stake in the Bombardier CSeries airliner, and plans to assemble some of the aircraft in the US.
     
    Airbus will acquire a 50.01 percent stake in the CSeries Aircraft Limited Partnership (CSALP), diluting Bombardier’s share in the aircraft programme to 31 percent and Investissement Québec to around 19 percent. Read more here
     


    OCEAN FREIGHT UPDATES

    Peak season a let-down for China-US carriers as ocean rates continue to slide
    After eight consecutive weeks of declining spot freight rates on the headhaul legs between China and the US, the remainder of this year’s peak season is set to be worse for carriers than the corresponding period in 2016.
     
    According to the Freightos International Freight Index, last year’s peak season was in three phases, beginning with a four-week rate rebound from the Hanjin bankruptcy.
     
    Rates subsequently dropped during the Chinese Golden Week holiday, when cargo volumes effectively disappear, then began to rise from mid-October.
     
    This year is beginning to look very different. Online pricing platform Freightos said in a commentary: “After an initial August spurt, China-US rates have steadily declined.
     
    “If this peak season follows last year’s trend, prices would jump up next week. But two ominous signs indicate that this may not happen: ocean carriers aren’t optimistic – it’s been over a month since the last peak season GRI, with October rates staying flat; and capacity remains available on core lanes.” [Excerpted from theloadstar.co.uk]
     
     
    Don't believe the hype - there is a long way to go before digitisation revolutionises container shipping, says Alphaliner
    source: theloadstar.co.uk
    Predictions that the current crop of disruptive digital start-ups will revolutionise container shipping has been disputed by a leading liner analyst.
     
    Alphaliner this week suggested that, despite the considerable hype and hundreds of millions of dollars raised by freight and logistics start-ups in Silicon Valley and elsewhere, evidence suggests that the container shipping industry is peculiarly resistant to being radically transformed. Read more here
     
     
    General Cargo Ship Sinks After Hitting Reef Near Fujian
    source:  splash247.com
    Chinese general cargo ship  Quan Hai 88 sank after hitting a reef near Quanzhou, Fujian yesterday evening
    The ship, which was enroute to Dongguan in Guangdong to Jiaxing in Zhejiang, suffered a hull breach after hittting the reef under rough sea conditions forcing the crew to abandon the ship. Read more here
     
     
    Hanjin Boss Accused of Misappropriating Funds
    source: splash247.com
    Police are seeking the arrest of Cho Yang-ho, the CEO of Korean Air Lines and Chairman of Hanjin Group, over his alleged  misuse of company funds for renovating his home.  Cho, who presided over the fall of Hanjin Shipping last year is accused of siphoning off KRW3bn ($2.65m) to renovate his house in Seoul over a 15 month period from 2013 to 2014. Cho denies the accusations. Read more here
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES 

    US Gulf of Mexico oil output almost back to normal in wake of Nate
    source: splash247.com
    US Gulf of Mexico oil and gas production is practically to full output following the widespread shut-ins caused by Tropical Storm Nate.
    In the latest report by the Bureau of Safety and Envitonmental Enforcement (BSEE), which regulates offshore energy and mineral extration, only 0.72% of oil production and 1.12% of natural gas production were still shut in. Read more here
     
     
    Investment oppportunities in shipping could perhaps be the best in over 30 years
    source: splash247.com
    The latest quarterly report from Clarksons Platou Securities arguers that now is the best time in the last 30 years to invest in shipping, a view not 100% held by other shipping analysts and investors contacted by Splash today. Read more here
     

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  • 16 October 2017

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    AIR FREIGHT UPDATES

    Lufthansa Agrees Air Berlin Deal
    source: news.airwise.com
    Lufthansa has agreed to acquire parts of insolvent German airline Air Berlin in a EUR€210 million (USD$248 million) deal.
     
    Lufthansa will buy Austrian leisure airline Niki and German regional carrier LG Walter, plus a number of Air Berlin aircraft which it will transfer to its growing Eurowings subsidiary.  Read more here. 
     


    OCEAN FREIGHT UPDATES

    Looming sea freight overcapacity
    source: lloydsloadinglist.com
     
    Lines are failing to remove enough slot capacity on key trades now the Q3 peak season surge in demand is fading, according to one analyst.
     
    SeaIntel said the traditional Q4 culling of deployed capacity relative to the peak season had not so far happened. “2017-Q4 is currently slated for massive overcapacity,” it concluded, adding that the amount of capacity that would need to be removed varied hugely by trade based on current Q4 schedules.
     
    According to SeaIntel, if liner strategy over the past five years is used as a guide, operators will need to blank 25 sailings on the Asia-Europe trade and blank a huge 67 average-sized sailings on the Transpacific to bring any semblance of balance to the market. [Excerpted from lloydsloadinglist.com]
     
     
    LA hit by China anti-waste paper policy as empties drive 22pc growth
    source: shippingonline.cn
    THE Port of Los Angeles posted a 22 per cent year-on-year increase in September container throughput to 763,785 TEU with empties rising 15.4 per cent.
     
    The port said empties drove up overall gain last month due to China trade policy changes impacting waste paper exports from the US. Read more here.
     
     
    HMM Details New Share Plan
    source: splash247.com
    South Korea's Hyundai Merchant Marine (HMM) detailed plans on Friday to raise KRW693.6bn ($614m) for two share sales. Cash raised will go on new ships and terminals HMM said in a release.  Read more here
     
     
    Maersk: Full operations remain suspended at Durban port
    source: shippingonline.cn
    MAERSK operations have been suspended in South Africa's Port of Durban in the aftermath of a severe storm, and continuing heavy rainfall affected harbour conditions.
     
    Said Maersk Line: "Landside operations recommenced for a short period to reduce congestion at Bayhead Road. All truck dispatch should remain halted until otherwise advised."  Read  more here 
     
     
    Hapag-Lloyd imposes Hong Kong late bill of lading pickup fee
    source: shippingonline.cn
    GERMAN shipping giant Hapag-Lloyd has informed customers that that it will impose a late original bill of lading pickup fee of HK$800 (US$102.47) in Hong Kong or CNY200 (US$30.40) in South China chargeable after the 15th day from the departure date of the mainline vessel or feeder.
     
    In its notice to trade, Hapag-Lloyd said the step was taken in the interest of facilitating the prompt processing of freight settlement.

     
    ZIM Seven Stars Express Service to add a Kaohsiung call
    source: ajot.com
    ZIM is pleased to announce that starting November 2017, ZIM’s popular Seven Stars Express Service (Z7S) will add a call in Kaohsiung, Taiwan, offering unique advantages to customers, including...Read more here
     


    GROUND AND RAIL FREIGHT  UPDATES
     
    OmniTRAX issues response to Transport Canada
    source: canadianshipper.com
    Winnipeg, MB –  OmniTRAX Canada today provided the following response to recent actions taken by Transport Canada with respect to the ongoing negotiations regarding the repair and future ownership of the Hudson Bay Railway (HBR):
    Merv Tweed, President of OmniTRAX Canada, said, “Culminating in the threat of legal action from Transport Canada today, it has become clear to us that the federal government has no intention of constructively solving this problem for Churchill. Read more here

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  • 13 October 2017

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    OCEAN FREIGHT UPDATES

    New ocean freight digital players ‘over-hyped’
    source: lloydloadinglist.com
    Alphaliner claims a digital reality check is needed as it reveals that demand for new services is less strong than many new entrants advertise
     
    New e-forwarding companies are struggling to penetrate container shipping markets because many are over-hyped and offer only ”piecemeal” solutions, according to Alphaliner.
     
    One reason offered by Alphaliner for the lack of penetration by more recent digital entrants was their failure to address specific supply chain challenges facing the industry, with many offering only “fragmented” services that “lack the ability to integrate all relevant processes”.
     
    The analyst added: “Even within their individual focus markets, actual demand appears to be overstated and the industry’s poor track record of embracing change could undo most of the promised benefits that these new digital initiatives are supposed to deliver.”
     
    Although container lines are now intensifying efforts to digitise some of the transactional parts of their business, Alphaliner said it was still “unclear” whether digital technologies would ever truly transform container shipping as they have other industries. [Excerpted from lloydsloadinglist.com]

     
    Vietnam's Cai Mep has potential to become major regional gateway
    source:shippingonline.cn
    THE successful accommodation of the 18,000-TEU Margrethe Maersk at the beginning of the year at Cai Mep International Terminal (CMIT), a joint venture terminal established by Vietnam National Shipping Lines, Saigon port andAPM Terminals, in Ba Ria- Vung Tau, marks a big step in the development of Vietnam's maritime logistics sector.
     
    This achievement puts the Cai Mep-Thi Vai port group on track to make good use of their geographical advantages to develop into a regional international gateway. Read more here
     
     
    MSC's 6,880-TEUer breaks moorings, runs aground in Durban storm
    source:shippingonline.cn
    THE 6,880-TEU MSC Ines broke its mooring and goes adrift when it ran aground, blocking the navigation channel a storm at Durban, South Africa.
     
    Port operations in Durban ground to a halt as a result of a storm, reported London's Container Management. Read more here
     
     
    Hyundai tops chart as world's best on-time ocean carrier
    source:shippingonline.cn
    KOREA's Hyundai Merchant Marine (HMM) is the best ocean carrier in the world for being on-time for port calls, according to SeaIntel's latest report.
     
    The Denmark-based market global intelligence provider revealed that HMM, the 14th largest container shipping company in the world by TEU capacity, has made its debut appearance at the top of the charts after reaching an 85.4 per cent on-time maintenance of its sailing schedule for August 2017. Read more here


     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    The U.S. has started delivering its bombshell demands at NAFTA talks
    source: canadianshipper.com
    Washington, DC — The NAFTA negotiations have now entered their most difficult phase with the United States beginning to drop its bombshell proposals on the negotiating table at a just-begun round outside Washington.
     
    U.S. officials had foreshadowed that this week-long round would be where the most contentious discussions opened and that is coming to fruition, with the American side levelling one demand deemed a non-starter — and preparing to deliver another one. Read more here

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  • 12 October 2017

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    AIR FREIGHT UPDATES

    Delta Vows Not to Pay U.S. Duties on Bombardier's C Series
    source: bloomberg.com
    Delta Air Lines Inc. pledged not to pay import duties on Bombardier Inc.’s marquee jetliner, which was socked in the last two weeks with 300 percent tariffs by the U.S. Commerce Department.
     
    It’s possible Delta will delay deliveries of the C Series planes, which are scheduled to begin next year, Chief Executive Officer Ed Bastian said Wednesday. The airline is also considering “various other plans” if the preliminary duties are finalized, he said without elaborating. Delta last year agreed to buy at least 75 of the jets at a list price of more than $5 billion.
     


    OCEAN FREIGHT UPDATES

    Sombre Outlook at TPM Asia
    source: splash247.com
    Pragmatism was very much the modd on the opening day of TPM Asia, the regions' leading container conference, with plenty of calls for restraint amid overcapacity concerns.
    Keen to pull all talk of a recovery in perspective was Zhang Ye, President of the Shanghai Shipping Exchange, who said it was too early to assume box shipping was back on track.  Read more here
     
     
    Shippers and carriers debate benefits of consolidation at TPM Asia
    source: splash247.com
    The container shpping market will continue to see positive signs of recovery in the coming months due to improved demand, top executives at two liner companies told delegates attending TPM Asia conference in Shenzhen today.
    Nicolas Sartini, CEO of APL, noted his company's interims this year were their best result since the second half of 2010. Read more here
     
     
    Port of Long Beach sets record for September
    source: ajot.com
    Cargo volume continues to break records at the Port of Long Beach, which moved more containers last month than any September in its history.
    The 701,619 twenty-foot equivalent units (TEUs) processed in Long Beach for September — up 28.3 percent — also resulted in the Port’s best quarter ever. In the third quarter (July, August and September), the Port of Long Beach handled 2,114,306 TEUs, as volumes swelled 15.9 percent over the same period last year. Read more here.  
     

     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Digital Disruption or Social Media Distribution?
    source: splash247.com
    Unknown marketing effectiveness is a problem almost every marketing initiative in the shipping (or any) industry faces. Marekting teams fail to qualify the impact of lawyers' functions and 'seminars' through to brokers' lunches, golf days, conferenes, and advertising in the trade press. Much of hte marketing and communications companies are doing is because they did it last year....read more here
     
     
    Trudeau still bullish on NAFTA, but admits Canada is ‘ready for anything’
    source: canadianshipper.com
    Washington, DC - Prime Minister Justin Trudeau emerged from a day of meetings in the U.S. capital Wednesday continuing to champion a continental trade deal that many around him suggest may be doomed.
    But even Trudeau finally acknowledged his enthusiasm for the North American Free Trade Agreement can only go so far and there exists the possibility the trilateral pact with the United States and Mexico is in trouble.  Read more here

     
    Gen Z Holiday Shoppers: What You Need to Know
    source: nrf.com
    Gen Z, the generation born after 1995, has already proven to be a force for the retail industry to watch closely. With their influence on household spending (even if they’re not doing the spending themselves) and new attitudes toward brand relationships, it would be a mistake not to keep Gen Z top of mind in retail strategy. Read more here

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  • 11 October 2017

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    AIR FREIGHT UPDATES

    Changes to Air Dangerous Goods Regulations for 2018
    source: CIFFA
    Changes have been made to the latest ICAO technical instructions and IATA Dangerous Goods Regulations. The first link below contains a summary of the significant changes document for edition 59, which is produced by IATA for your reference. This document may be used in conjunction with last year’s 58th edition of the IATA DGR. 
     
    IATA DGR Significant Changes document here 
     
    As well, IATA has produced a recorded webinar that will provide a summary of and rationale for the changes in place for the 59th Edition of the IATA DGR. All that is required is that you put your name in the registration field when prompted.
     
    IATA Webinar on Significant Changes here – Available until November 30



    OCEAN FREIGHT UPDATES

    Delay in announcing blanked sailings could backfire, pushing rates even lower
    source: theloadstar.co.uk
    The major container lines plying the Asia to Europe and transpacific tradelanes have yet to announce their winter slack season blanking programmes, prompting concerns of significant overcapacity.
    Having withdrawn a number of sailings this month to mitigate weak post-Golden Week demand, carriers are understood to be uncertain about booking prospects and are delaying decisions on capacity to be deployed over the next few months.
     
    One carrier told The Loadstar today the closure of hundreds of polluting factories in China in August and September was the root cause of the problem, and that “the hangover from this could last a while”.
    Alphaliner noted that in previous years the carriers normally announced winter capacity programmes this month.
    “This inaction could backfire if freight rates continue to fall while carriers keep battling for market share,” said the consultant.[Excerpted from theloadstar.co.uk]


    Temporary Truce Reached on Asia-Europe
    source: splash247.com
    In the period 2011-2016 the Asia-Europe market was subjected to escalating levels of freight volatility, outright rate wars and far more blank sailings-the industry's euphemism for cancelling promised products.
    In 2017 all of this has been completely reversed. The spot rate levels have become extremely stable - the volatility measured as the diffference between the highest and lowest spot rates has dropped by more than 70% compared to hte past six years.  Read more here.   
     

     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    India: The Future of Shipping?
    source: splash247.com
    October marks the start of the annual conference season. Hotels areound the world have sent the tourists home and are bursting with delegates wielding goddy bags containing packed agendas, USB powered trinkets and rubber ducks. Our own Fotios Katsoulas speaks about tanker markets in Cyprus this week while I am in Dubai talking aobut the technological outlook for shipping markets. Read more here 

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  • 10 October 2017

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    AIR FREIGHT UPDATES

    Air Berlin To Stop Flying This Month
    source: airwise.com
    Air Berlin will stop flying by October 28 at the latest as the administrators for the insolvent airline continue discussions with prospective buyers.
     
    The airline had already announced the end of its long-haul routes as aircraft lessors started taking back planes from the bankrupt carrier, now all Air Berlin flights will cease, although subsidiaries Niki and LG Walter will continue flying.  Read more here
     
     
    ICAO Removes Thailand’s Aviation Safety Red Flag
    source: airwise.com
    The ICAO has taken Thailand off its list of countries red flagged for concerns the UN body had over its aviation safety.
     
    The International Civil Aviation Organisation red flagged Thailand in June 2015 as the country’s aviation safety inspection standards were not in compliance with ICAO standards.  Read more here
     


    OCEAN FREIGHT UPDATES

    CMA CGM adds Tripoli to Lebanon port offering
    source: lloydsloadinglist.com
    Global container line CMA CGM is to strengthen its service offering to and from Lebanon by serving the port of Tripoli, Lebanon’s second-largest commercial port after Beirut, on a weekly basis.
     
    This new offer is aimed at local exporters located in northern Lebanon, who generates more than 20% of the country’s trade volumes.
     
    The rotation will be: Marseille, Barcelona, Valencia, Malta, Mersin, Iskenderun, Tripoli, Beirut, Alexandria, Malta, Algiers, Marseille.
     
    “Thus, with its WEMED service linking the eastern Mediterranean countries with those in the west, the port of Tripoli will become the second stop in Lebanon, linking this production area to France, Spain, Algeria, Turkey and Egypt,” the company said.
     
    CMA CGM said four vessels were being deployed on this line, with a nominal capacity ranging from 1200 TEU to 1700 TEU. [Excerpted from lloydsloadinglist.com]
     
     
    CMA CGM subsidiary APL has launched a premium service it says will “promise equipment and vessel space” on specific Asia to US services
    source: theloadstar.co.uk
    Jesper Stenbak, APL senior vice president for the route explained: “Eagle Go Guaranteed seeks to address the concerns of equipment and vessel space shortages as the transpacific trading season goes full steam.
     
    “It guarantees priority shipments on APL services, allowing shippers to optimally capitalise on the year-end holiday shopping season.”
     
    The money-back guarantee is applicable to 20 routes from Shanghai, Ningbo and Yantian in China and Cai Mep in Vietnam, including the Eagle Express (EX1), South China 1 (SC1) and Pendulum Loop 1 (PE1) services, which serve the US west coast, and six loops to the east coast.
     
    APL said the new product complemented premium service offering Eagle GET and Eagle REACH, which guarantee shippers priority discharge of containers and “day-definite” arrival on nominated transpacific services.
     
    The priority shipment product subtitled “No roll. Sure to GO” will be available on APL’s transpacific services effective 1 November, with rates apparently quoted on application. [Excerpted from theloadstar.co.uk]
     
     
    General Cargo Ship Sinks Near Fuzhou
    source: splash247.com
    Ten crew onbaord cargo ship Fu Shun 67, owned by Shantou Fushun Shipping, were rescued after the vessel sank near Fuzhou waters yesterday morning.  The ship, which was transporting steel products to Fuzhou, started to capsize in rough sea condition at 2am yesterday and the crew abandoned ship after sending a distress signal.  Read more here.  


    GROUND AND RAIL FREIGHT UPDATES

    Truckers on strike as GST causes logistics chaos in India
    source: firspost.com
    New Delhi: The government’s back and forth over implementation of the E-Way bill, seen as a crucial piece of legislation for India’s road transport and logistics industry, seems to characterise the pitfalls in the ambitious GST regime. Never more than now, as India’s truckers and goods transporters continue to struggle with state enforcement machineries like in the pre-GST days, even as they complain about high input cost structure and under-the-radar goods’ transportation continues unabated.  Read more here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    US Adds Import Duty To Bombardier CSeries, Now 300 Percent
    source: airwise.com
    The US Commerce Department has added to Canadian plane maker Bombardier’s problems with the announcement of a further import duty on its CSeries aircraft.
    The department proposed a duty of 79.82 percent in a preliminary determination in its antidumping investigation of 100- to 150-seat large civil aircraft imported from Canada. The duty comes on top of a 219.63 percent duty announced last week for “countervailable subsidies” in financing the CSeries aircraft. Read more here

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  • 6 October 2017

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    OCEAN FREIGHT UPDATES

    Time is money: report shows carrier reliability leads to higher profits
    source: lloydsloadinglist.com
    Reliability does positively impact container line profitability – at least according to SeaIntel’s latest Sunday Spotlight.
    Recently, there has been a belief that a carrier’s relative profitability was independent of its reliability relative to competitors.
    To test this, SeaIntel calculated coefficients between profitability and reliability across 14 quarters, using data from the major carriers that publish financials on a quarterly basis. Read more here (login required). 
     
     
    'Forwarders are the real integrators of logistics in the supply chain'
    source: lloydloadinglist.com
    Sea freight forwarders are in a strong position to survive industry disruption from digitisation, but they must make better use of supply chain data or risk losing out to shipping lines and IT-driven logistics startups.
    In a defiant speech at the FIATA World Congress in Kuala Lumpur today, FIATA sea working group chairman Jens Roemer laid out a positive vision for the sector’s future.
    “Many times the demise of traditional forwarders has been predicted, only to have been proved wrong. Read more here (login required). 
     
     
    Department of Homeland Security Says No Need toExtend Jones Act Waiver for Puerto Rico
    source: splash247.com
    The US govenrment's Department of Homeland Security (DHS) siad on Thursday it does not think it is necessary to extend the temporary waiver of the Jones ACt to help  Puerto Rico, acccording to Reuters.
    A 10-day waiver was issued on September 28 and expires Sunday.  Read more here
     
     
    Rigs in Gulf of Mexico Begin Evacuation Ahead of Possible Strike by  Hurricane Nate
    source:splash247.com
    Offshore oil and natural gas production platforms in the GUlf of Mexico are being evacutated again as another tropical strom bears down on the area, according to Reuters. Read more here
     
     
    APM Terminals Exits from Tacoma
    source: splash247.com
    APM Terminals has ended its operations at Tacoma an d transferred the leasae, which expires at the end of thi year, to Seattle based SSA Marine wh o are f orming a joint venture with Matson called SSAT to operate the terminal.  Read more here.
     
     
    Maersk makes changes to transpacific services in October
    source: shippingazette.com
    MAERSK Line has announced it will advance a Ningbo port call to Friday morning and the Long Beach and Oakland port calls as well.
    The first effective sailing will depart from Xingang on Monday, October 16 with Gjertrud Maersk (742N).
     
    Changes to the TP10 service come in the form of a swap of Qingdao and Xingang port calls, pushing a Charleston call to Wednesday at 0800 and one to Wilmington to Thursday at 1300 - Friday 0200. 
    The first effective sailing will depart from Xingang on Thursday, October 12 with Maersk Dhahran (741E).
     


    GROUND AND RAIL UPDATES

    Still no rail service in Churchill as winter approaches
    source: canadianshipper.com
    Churchill, MB – With winter looming and still no sign of a functioning rail line, some people in Churchill, Man., are talking about a blockade to try to force someone – either the federal government or rail line owner Omnitrax – into action.
     
    The subarctic town of 900 people lost its only land connection to the outside world in the spring when severe flooding damaged the rail line. Since then, people and goods have had to be flown in at much higher cost.
    Via Rail is planning to retrieve two locomotives and five passenger cars stuck in the town by loading them onto a ship, and residents are not pleased.


    CANADIAN BUSINESS - GOVERNMENT UPDATES

    CBSA Longroom Port 395 Update: “Controlled Situation?”
    source: CIFFA
    CIFFA continues to hear from forwarders and their supply chain partners that stamping delays at the CBSA Montreal Longroom are problematic.
    Some members have been logging the delays. In one case, turnaround times reached 86 hours. Another member reported re-manifests taking as long as 5 to 7 days, with thousands of dollars in storage now “unrecoverable.”  
     
    CIFFA members have also reported inadequate staffing at the Longroom, and re-manifests that were rejected in error.

    On October 5, CBSA told CIFFA that staffing was increased at the Longroom and that document turnaround was below 24 hours. CBSA said the Longroom is in a “controlled situation.”
     
    On October 4, CBSA said that up to seven employees were on hand to stamp documents.
     
    CBSA asked industry to make more but smaller pouches of documents, so that these can be spread to more staff and stamped faster. 

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  • 5 October 2017

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    AIR FREIGHT UPDATES

    Avianca To Bring In Foreign Pilots As Strike Continues
    source: news.airwise.com
    The Civil Aviation Authority of Colombia (Aerocivil) has approved Avianca to bring in pilots from other countries on a temporary basis to fly aircraft grounded by striking staff pilots.
    The Aerocivil approval is for a maximum of three months and Avianca said it will start bringing in pilots immediately. Up to now, the airline has had to wet lease aircraft from other airlines to fill some of the gaps in its schedule. Read more here. 


    OCEAN FREIGHT UPDATES

    The container segment will experience mixed results for this year’s peak season.
    source: americanshipper.com
    In a study which covered more than 160,000 port-to-port pairings, Xeneta found that U.S. ports are busier than ever, while rates for 40-foot-containers (FEUs) jumped 65 percent year-over-year from China to North Europe.

     
    Xeneta's CEO said, “High consumer confidence and strong job growth in the U.S. bodes well for the industry, with shops intent on stocking up for the expected Thanksgiving-Christmas rush. The Washington, D.C.-based National Retail Federation has forecast U.S. container imports to grow by as much as 13 percent in October (year-over-year). Demand is impressively strong, but in Europe it’s a different story.”
     
    Danish ocean carrier Maersk Line has already seen a 10 percent capacity decrease on its Asia to Europe trade lane, with the OCEAN and THE Alliances cutting an Asia-Europe route each, said the CEO of Xeneta.
     
    “The contrasting fortunes are so strong that Maersk CEO Soeren Skou recently commented that ‘Christmas will come to America, but probably not to Europe.’ [Excerpted from americanshipper.com]
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    U.S. Adds Wine to Its Growing List of Trade Disputes With Canada
    source: ajot.com
    The U.S. filed a second complaint Monday with the World Trade Organization against Canada over British Columbia’s restrictions on wine sales. The U.S. alleges the province’s regulations discriminate against imports by only allowing B.C. wine to be sold on regular grocery store shelves and has requested WTO consultations on the matter, the trade organization said in a statement. Read more here
     
     
    Before you dig: 11 questions to ask before breaking ground on a new DC
    source: dcvelocity.com
    With complex DC design and construction projects, small oversights can lead to big holdups and delays. Asking the right questions beforehand can help keep your project on track.
    Opening a new distribution center (DC) is a major event for any company, but—unless you're Amazon—it's typically not something that you do every month. So it's all too easy to overlook some issues or concerns that could affect the success of the facility (and your entire supply chain) for years to come.  Read more here


    Adidas Brings the Fast Shoe Revolution One Step Closer
    source: bloomberg.com
    In a production hall as clean as a hospital, pea-size beads of white plastic pour into what looks like a minivan-size Adidas shoe box, complete with three white stripes down the side. That’s fitting, because in just a few seconds the machine heats and molds the stuff into soles of Adidas running shoes, with only one worker needed to wedge in pieces of plastic called stability bars. This is Adidas AG’s “Speedfactory,” where the shoemaker aims to prove it can profitably produce footwear in high-cost, developed economies. By next fall the facility, as large as half a soccer field, will employ about 160 people to make 1,500 pairs of shoes a day, or 500,000 annually. Read more here (login required). 

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  • 4 October 2017

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    AIR FREIGHT UPDATES

    Airports Company South Africa is warning of a possible nationwide strike today 
    source: aircargonews.net
    While it is not aware of specific strike action focused on airports, it is possible that there could be traffic delays that would affect airport access routes and is advising airport users to allow for delays and longer travelling time to the airport.
    They should also follow local news updates on the strike action.


    OCEAN FREIGHT UPDATES

    Megamax shortage ‘could hinder The Alliance’s competitiveness’
    source: lloydsloadinglist.com
    Container shipping consortium The Alliance is falling behind on orders of ‘Megamax’ vessels as its member lines fight indebtedness or concentrate on internal reorganisation. The result, according to Paris-based research firm Alphaliner, could be a decline in cost-competitiveness on key East-West trades.
     
    The analyst said large ship orders by rival alliances last month, further piled the pressure on members of The Alliance, which were falling behind in the megamax vessel stakes.
     
    The upshot for The Alliance could be limited future growth on the Far East-North Europe trade where Megamax ships are slated to be deployed and where its members’ lack of large vessels could stymie competitiveness; Maersk claims the cost advantage of a 20,000 teu ‘Megamax’ vessel over older 14,000 teu ships could be as large as $500 per teu. [Excerpted from lloydsloadinglist.com]
     


    CANADIAN BUSINESS - GOVERNMENT UPDATES

    Paper Pileups: Delays Ongoing at CBSA Longroom Port 395 Montreal
    source: CIFFA
    As CIFFA previously reported, on September 15, the Canada Border Services Agency (CBSA) at Montreal Port 395 is facing the same pressures as everyone else in the inbound movement of goods these days, with regard to a heavy level of import activity. 
     
    Now, at week 41, CIFFA members continue to advise the association of delays for the CBSA to stamp and return re-manifest documents at the Montreal Longroom.
     
    On October 3, the Agency confirmed it is facing a 48-hour delay in stamping documents at the Longroom, which has been faced with a steady increase in paper manifests lately. The CBSA is acutely aware of the problem and said it is taking steps to address it. CBSA said it will address the situation by adding on more employees and more overtime hours. 
     
    CIFFA has communicated to CBSA that forwarders need the agency to “maintain adequate productivity” with levels of service that are adequate.

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  • 3 October 2017

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    AIR FREIGHT UPDATES

    ICAO chief calls for more backing for security plan
    source: aircargonews.net
    ICAO secretary general Dr Fang Liu called on United Nations Security Council (UNSC) to promote greater international awareness and implementation of its new Global Aviation Security Plan (GASeP) at the UN headquarters in New York on 28 September.  Read more here
     
     
    Monarch Airlines in Administration, Flights Cancelled
    source:news.airwise.com
    UK leisure carrier Monarch Airlines entered administration on Monday, causing the cancellation of all flights and future holidays, with around 110,000 of its customers currently abroad.
    The UK Civil Aviation Authority is making arrangements for Monarch customers to get back to the UK at the end of their holiday, but passengers due to depart on a Monarch flight over the next few days have been told not travel to the airport as none of the airline’s flights are operating.  Read more here


    OCEAN FREIGHT UPDATES

    Warning of thousands of polluting factories face closures in China
    source:shippingazete.com
    THOUSANDS of factories across China face closure under Beijing's anti-pollution drive. The shuttering of polluting factories is viewed by some in the supply chain sector as a move to push manufacturers of low value goods out of China.
     
    "The sentiment is that these heavy polluters mainly make low value items and China is willing to allow these industries to move out of China and to India, Cambodia, etc," international director and co-chairman of the AmCham Shanghai Supply Chain Committee, Gary Huang, was quoted as saying in a report by IHS Media.
     
    The tough enforcement of regulations enacted in 2013 is being carried out by China's Ministry of Environmental Protection. This action has already shut down thousands of factories in the north of the country. The inspectors have now switched their focus to auditing manufacturers in the southern provinces.
     
    "We believe this will create an impact on Ningbo shipping volumes as there are numerous small manufacturers involved in producing lower end consumer articles of all sorts," a supply chain expert was cited as saying. [Excerpted from shippingazette.com]
     
     
    JNPT cautious about government's plan to cut gate-in hours for exports
    source: shippingazete.com
    INDIA's Ministry of Shipping is urging the Jawaharlal Nehru Port Trust (JNPT) to shorten terminal gate-in hours for export traffic to three days, down from the current average of four days, to enable the port to accommodate more vessels and in turn bolster productivity and throughput.
     
    However, JNPT is treading cautiously on the government's proposed measure that is part of a larger dwell-time reduction programme. Port authorities are concerned any change in established operating practices could have major commercial repercussions as the rival private port of Mundra aggressively woos hinterland shippers, reported IHS Media.
     
    JNPT has already started consultations with user groups on a proposal to lower free storage time for all railed cargo to and from inland container depots (ICDs) from seven days at present to three days. The revision is expected to be implemented in November, trade sources told JOC.com.  [Excerpted from shippingazette.com]
     
     
    Creation of Ocean Network Express will be a turning point for NYK, says president
    source: theloadstar.co.uk
    The merger of NYK’s liner division with Japanese compatriots K Line and MOL next April will mark “a major turning point” for the company, says its president.
    Addressing staff in Tokyo yesterday on NYK’s 132nd anniversary, Tadaaki Naito said: “This liner integration will have far-reaching impact.”
    Mr Naito said he believed K Line and MOL “would be good partners”, given that they are “familiar with one another” and both belong to THE Alliance. Read more here
     
     
    Panama Canal Authority Will Allow Alliance Boxships to Swap Booking Slots
    source: splash247.com
    The Panama Canal Authority (ACP) has announced that it will allow, for a limited time only, booking slots to be swapped or substituted between container ships that belong to one of the alliances. 
    Efftective on December 1, the swap or substitution will be allowed only if the boxships involved are of the same type and classification, are transiting in the same direction and belong to services uner the same alliance.  Read more here
     

    GROUND AND RAIL FREIGHT UPDATES

    Gate at Empty Depot at Vaughan Terminal Closed due to Damage: CP Rail
    source: CIFFA
    CP Rail advised that lightning during a storm on Monday night cut power at its Vaughan intermodal terminal, causing the entrance to the empty depot to be closed all day yesterday. As of this morning, CP expects that power will be restored by about 2:00 pm today.
    During the outage, all traffic is required to enter the terminal via the main entrance gates at "A" building. Drivers entering the terminal should expect to be delayed.

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  • 2 October 2017

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    AIR FREIGHT UPDATES

    August 2017: Double digit growth again - most trends continue
    source: worldacd.com
    With a worldwide volume increase in August of 12.9% year-over-year (YoY), air cargo continued its recent trend by again showing double-digit growth. At 14.6%, YoY growth in Direct Ton Kilometers (DTK's) was even higher, underscoring another trend, namely that the average distance between point of origin and point of destination of air cargo shipments keeps growing, just like the average shipment size. Revenues (in USD) increased with more than 23%, helped by an average YoY yield increase of 15 USD-cents. This uncommonly high yield increase was no doubt helped by the strengthening of the Euro against the dollar.  Read more here


    OCEAN FREIGHT UPDATES

    DP World Says Dwell Times Normalized at Prince Rupert
    source: CIFFA
    DP World issued a customer advisory that DP World Prince Rupert dwell times have been normalized as planned and are currently in the range of 3 to 4 days. Additionally, the four-week plan of balancing volume between two terminals, as well as with the strategic scheduling of vessel arrivals, is seeing progress, said the advisory. As a result, the amount of traffic diverted to Vancouver will be significantly less than initially planned.
     
    “We recognize the impact the dwell times have had to our clients over the last two weeks, and we greatly appreciate your cooperation and understanding as we worked to quickly restore them.
     
    “The flexibility offered by our global network of DP World terminals, along with your support and the collaboration of our partners has provided us with the ability to meet challenging market conditions with practical solutions. It is because of this that we were able to restore dwell times within two weeks, and we would like to thank all of our customers for working with us during these disruptions,” the advisory said.
     
    Further to previous updates, DP World also informed customers it remains on schedule to release the terminal’s full capacity of 1.35-million TEU by the end of October.

     
    'Extreme Caution' Still Needed When Calling at Libya
    source: splash27.com
    The Libyan port of Benghazi reopened yesterday after a three-year closure as civil war has battered the North Africa nation.  Despite the reopening, experts are urging any ship transiting near Libya to proceed with "extremem caution".
    "Although all major Libyan ports, except Derna and Sirte, are reported to be open and in operation, ships approaching Libyan waters must proceed with extreme caution while transiting in or near Libya's territorial waters," P&I Club Gard noted in a message to clients.  Read more here

     
    Reefer supply shortage means rates set to soar
    source: lloydsloadinglist.com
    Reefer rates are set to skyrocket, as the increasing pressures from carrier consolidation collide with acute shortages of reefer containers, according to new analysis by Drewry.
    Data derived from Drewry’s Reefer Shipping Market Review and Forecast 2017/18 shows that, using 2010 as a base, 2016 is the first year where demand had outgrown supply.
     
    “The number of reefer boxes joining the fleet was very low in 2016, at around 60% of its historical average for the last decade. And it will be low again in 2017,” the analyst noted. “Shipping lines and leasing companies are not collectively sitting by and letting it happen: there have been a few big orders recently and the reefer box manufacturers are now fully booked for Q4 deliveries.”
     
    Drewry continued: “All of this is putting many reefer shippers in a particularly unpleasant spot: due to the perishability of their cargo, they are extremely sensitive to supply-side disruptions. And they have seen plenty of those of late.” [Excerpted from lloydsloadinglist.com]


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    C-TPAT Minimum Security Criteria to be Strengthened, Expanded
    source: strtrade.com
    U.S. Customs and Border Protection is moving ahead with plans to strengthen the existing minimum security criteria for the Customs-Trade Partnership Against Terrorism and add new criteria to reflect evolving threats. Updated criteria and a new best practices framework that could give C-TPAT participants more flexibility in obtaining Tier 3 benefits could start being rolled out as early as next year.  Read more here (login required). 
     
     
    CBP updates in-bond process with rulemaking
    source:americanshipper.com
     U.S. Customs and Border Protection (CBP) this week released a bundle of regulatory changes to the nation’s in-bond process for imported goods that will take effect Nov. 27, according to a notice in the Federal Register.
    Transportation of merchandise in-bond is the movement of imported goods - secured by a bond - from one port to another without the payment of duties. There are three types of in-bond transportation entries: Immediate Transportation (IT), Transportation and Exportation (T&E), and Immediate Exportation (IE).  Read more here

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  • 29 September 2017

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    GROUND AND RAIL FREIGHT UPDATES

    CN to Accept Containers at MISC as of October 2, Company Advises
    source: CIFFA
    The following advisory was sent to CN’s customers on Thursday afternoon and was also shared with CIFFA:

    “Improved production at our Brampton Intermodal Terminal has continued over this past week, the average carter turn time in the yard continues to be reduced from July and August by 7% month to date and the daily number of intermodal containers that we are handling per day has increased by more than 300 units over that same period. MISC turn times have also been reduced significantly; month to date (not including this current week), the terminal has reduced turn times by more than 10% when compared with July and August.

    Since the closure of MISC on Monday, September 25th, the ground count at our container yard has been reduced by more than 2,000 units. With this necessary reduction of ground count, we are able to accept containers at MISC starting Monday, October 2nd.

    As mentioned in the previous notification, tariff 9100 charges will apply (with the exception of storage fees) for all new ingates at MISC starting from Monday, October 2nd. We will advise at a later date when storage fees will apply.”
    CN also asked its customers to please make sure that daily reservation allocation at Brampton is being filled on a daily basis.

    “If your carter is experiencing issues filling daily allocation, please contact IMX-OSM@cn.ca for assistance. In previous weeks, we noticed that carters are dropping empty containers at MISC in the morning only for the same carter to ingate empty into Brampton to pick up an import. This is unproductive and is also adding to the overall problem. Please work with your carters to ensure that import pickups are linked with empty drops whenever possible,” CN said in the advisory.
     

    INTERNATIONAL - BUSINESS -GOVERNMENT UPDATES

    Indian Textile Companies to Be Severely Affected Under New Duty Drawback Rates
    source: CIFFA
    Micro, small and medium-sized enterprises (MSMEs) in India's textile sector fear severe impacts from the government’s introduction of new duty drawback rates, says the Southern India Mills Association (SIMA).
    SIMA said that the sector is already grappling with several issues, including compliance complications under the new tax regime.

    The revised duty drawback rates will add to the woes of the sector and reduce its capacity to compete globally against companies in countries including Sri Lanka, Bangladesh, Vietnam and Cambodia.

    The Tirupur Exporters Association has raised similar concerns over the new duty drawback rates, saying the announcement has come as a shock to exporters and manufacturers.
    The associations have written to the Finance Ministry urging the government to reconsider its decision. Read more here


    US waives Jones Act for Puerto Rico'
    source: lloydloadinglist.com
    The US government waived the Jones Act for Puerto Rico on Thursday with immediate effect, according to White House Press Secretary Sarah Sanders.

    The Department of Homeland Security said in an email that the waiver would last for 10 days after it is signed and will cover all products shipped to Puerto Rico.

    “The decision follows yesterday’s request from the governor of Puerto Rico and the Secretary of Defence’s determination that a waiver is in the interest of national defence,” the DHS said.

    The announcement comes after news that US president Donald Trump was considering waiving the Jones Act for the Hurricane Maria-stricken country, which mandates that vessels voyaging between ports in the United States be US-built, US-flagged and crewed by US seafarers.

    DHS acting secretary Elaine Duke said: “This waiver will ensure that over the next 10 days, all options are available to move and distribute goods to the people of Puerto Rico. [Excerpted from lloydsloadinglist.com]

    Minimize
  • 27 September 2017

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    U-turn by Qatar Airways Cargo on 'too risky' B747-8 freighter
    source: theloadstar.co.uk
    Qatar Airways Cargo has changed its tune after two years ago, saying 747-8Fs were  “too risky, too expensive, [with] too much capacity”.
    “We are very cost-conscious,” the carrier argued, justifying only a short-term wet lease of the aircraft type.
    However, yesterday the Gulf carrier ordered two 747-8Fs and received one, citing a strong market, boosted by a demand surge since neighbouring countries began their blockade of the tiny state.  Read more here (login required).

     
    US Imposes 220 Pct Duty on Bombardier Aircraft
    source: news.airwise.com
    The United States has imposed a 220 percent duty on aircraft imported from Canada, in response to a petition by Boeing on the terms of a Delta Air Lines order for 75 Bombardier CSeries planes.
    The US Commerce Department announced the preliminary determination on Tuesday, imposing a 219.63 percent countervailing duty after finding that “exporters of this merchandise received countervailable subsidies” in financing the aircraft. Read more here.
     


    OCEAN FREIGHT UPDATES

    India's Largest Port Renamed
    source: splash247.com
    India's largest port in terms of cargo throughput has been renamed.
    Kandla Port, locatd on the Gulf of Kutch in Gujarat, will now be known as Deendayal Port in honour of one of India's most famous politicians.  The port notched up a nationwide leading throughput of 105m tonnes last year.  Read more here
     
     
    China's Arctic Ambitions Become Clearer with Planned New Archangel Port
    A host of Chinese state-backed companies are keen to invst in a new port project called Belkomur near Archnagel as Beijing's Arctic transportation intentionas become even clearer.
    A delegation from ARkhangel has visited the Chinese capital eariers this month and received backing for a new railway that will take raw materials to a new port 55 km north of the city of Arkhangel.  Read more here



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    China Postpones Controls on Food Imports after Global Outcry
    source: scmp.com
    China has delayed enforcing sweeping new controls on food imports following complaints by the United States, Europe and other trading partners that they would disrupt billions of dollars in trade.
    Rules requiring each food shipment to have an inspection certificate from a foreign government were due to take effect on Sunday. But Beijing has decided to grant a “transitional period of two years” following comments by other governments, according to a document submitted to the World Trade Organization on Monday. Read more here.  

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  • 26 September 2017

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    AIR FREIGHT UPDATES

    Airfreight rate rises – is the published process out of date?
    source: theloadstar.co.uk
    In a series of articles our author Mark Grinsted, a true industry veteran, is critically assessing the state of the cargo industry. So far, he has put these five topics under his magnifying glass: disruptions in airfreight, rate structures, surcharges, reliability and documentation.
    In this piece, Mark focuses on the ritual of price adjustments. Next to come is a critical survey about developments in trucking and road feeder services.   Read more here.
     
     
    The long, slow road to the XML message standard
    source: aircargonews.net
    Cargo agents are frequently blamed for failing to embrace e-freight, but others assert that carriers are also still clinging to outdated messaging formats.
    One freight forwarder, who wishes to remain anonymous, says he is frustrated by the slow progress towards the use of XML messaging, which offers a standard format across the industry and helps reduce the administrative burden of messaging.  Read more here
     
     
    Asian airlines put in solid August performance
    source: aircargonews.net
    Expansion in international air cargo continued unabated, said the Association of Asia Pacific Airlines (AAPA) in its August traffic results, published on 26 September. was supported by high business confidence levels in services and manufacturing, it added.  Read more here.


    OCEAN FREIGHT UPDATES

    Ocean carriers increasingly targeting better-paying reefer containers
    source:theloadstar.co.uk
    Container lines will “accelerate their assault” on the seaborne reefer market, but their aspirations could result in equipment shortages, according to Drewry.
    In its latest edition of the Reefer Shipping Market Review and Forecast, the shipping consultant predicts that, by 2021, the perishable reefer cargo modal split will have increased to around 85% carried on containerships, compared with 79% in 2016.
    Read more here

     
    Hapag-Lloyd Sends Three Boxships for Scrap
    source: splash247.com
    Germany's Hapag-Lloyd has sold three older containershp Deira, Najran and Sakaka to ship recycling yards as part of the company's efforts to optimise its fleet.
    The three vessels have a capacity of 4,1010 TEU each and were delivered to UASC from Japanese shipyards in 1997 and 1998.  
    They will be transferred to shipyards in China and Turkey which are specially equipped and certified for safe and evnironmentally sound recycling.  Read more here


    GROUND AND RAIL FREIGHT UPDATES

    Driverless Trucks Will Be (Mostly) Great
    source: bloomberg.com
    For generations, the open road has provided good jobs for Americans, whether truckers, novelists or country-music lyricists. 
    Soon it may be crowded with some less sympathetic protagonists: self-driving robots.
     
    Trucks with some degree of automation are already plying ore mines, hauling freight and making beer runs. Investment is pouring into the industry. As Congress debates a new law to promote self-driving technology, however, it may exempt big commercial vehicles in the hope of saving trucking jobs. That won’t work. But it might succeed in holding back innovation and growth.  Read more here
     
     
    CN Temporarily Suspends Empty Returns at MISC Effective Yesterday
    source: CIFFA
    CN has notified its customers and CIFFA that, with the number of containers currently at MISC, its container yard is at its limit so, as of Monday September 25, CN will not be accepting empty returns at MISC until further notice. CN will review the situation next week and will advise the plan for Monday, October 2 by Thursday.
     
    CN advises that with the recent operational changes made at CN Brampton Intermodal Terminal, the terminal has been operating more efficiently and productively over the past weeks. The average carter turn time in the yard has been reduced by more than 8% month to date compared with the previous two months, and the daily number of intermodal containers handled per day has increased by more than 300 units over that same period. 
     
    Earlier this month, CN held engagement sessions with the cartage community outlining the initiatives that are taking place at the Brampton terminal to improve production. These interactive sessions went very well and the railroad expects to continue the dialogue with cartage companies as their initiatives continue to unfold.
     
    However, in the past few weeks, there has been a very large increase in the number of empties being returned to MISC. The volume returning to CN’s MISC yard exceeds the average imports that Brampton receives on a weekly basis. CN understands that this spike in demand may be a reflection of Golden Week, but is aware that there may be other factors. 
     
    CN writes that it, “notices at Brampton that significant empty container allocation is going unused daily, which is compounding the issue at MISC. Allocation for drops at Brampton remains open while MISC is not accepting containers, so please ensure that all allocation is filled on a daily basis. If you are experiencing issues filling your allocation, please 
    contact IMX-OSM for assistance. We have also noticed that carters are dropping empty containers at MISC in the morning only for the same carter to ingate empty into Brampton to pick up an import. This is unproductive and is also adding to the overall problem.
     
    Once MISC starts accepting empty containers again, we will begin charging regular tariff fees for empties that are dropped at the container yard. The fees will apply to empties that are returned after MISC starts accepting containers again. We will be monitoring the situation at MISC daily and will provide updates as new information becomes available.”

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  • 25 September 2017

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    OCEAN FREIGHT UPDATES

    Damage to Lock in Beauharnois Canal Causes Delays
    source: CIFFA
    The ship arrestor in lock no. 3 in the St. Lawrence Seaway Beauharnois Canal was struck by a vessel on Sunday morning. Repairs were expected to take 12 to 16 hours to complete.
     
     
    Cochin Shipyard Plans Dramatic Expansion Across India
    source: splash247.com
    Cohchin SHipyard (CSL) will establish shipbuilding and repair facilities in the Andaman and Nicobar Islands,k Gujarat, Kolkata and Mumbai, according to the nation's shipping minister, Nitin Gadkari. The move is in line wiht the current Indian govenrment's 'Make in India' campaing. Read more here
     
     
    Hong Kong authorities investigate near miss at HKIA
    source: shppingazette.com
    AUTHORITIES are investigating an incident at Hong Kong International Airport (HKIA) after a departing passenger plane was forced to urgently stop on the runway to avoid colliding with a cargo aircraft, a Civil Aviation Department spokesman said.
     
    The two planes were 1km apart when the incident happened last Friday morning, when Hong Kong Airlines flight HX236 was about to take off for Shanghai, the spokesman said.
    Hong Kong's SCMP reported that pilots had to slam on the brakes when they noticed the Air Cargo Global B744, flight number CW831, was also crossing the runway horizontally.
     
    "The A333 airliner later flew to the destination according to the schedule," the spokesman added. "No one injured in the incident and airport operation was not affected.
    "The Civil Aviation Department is investigating the incident."
     
     
    Vancouver’s maritime cluster ambition
    source: ajot.com
    Vancouver is aggressively pursuing shipowners from around the world in an ambitious effort to build a world class maritime cluster in the city.
    For more than two years, Kaity Arsoniadis-Stein has been ardently promoting an ambitious goal from her office overlooking the spectacular waterfront of Canada’s largest port.  Read more here
     
     
    Port Condition updates for Puerto Rico, U.S. Virgin Islands
    source: ajot.com
    SAN JUAN - The following is a port condition update for the ports in Puerto Rico and the U.S. Virgin Islands. Guayanilla, Puerto Rico - Open
    Read more here


    ROAD AND GROUND FREIGHT UPDATES
     
    French Truck Drivers Prepare for Strike
    source: CIFFA
    French trade unions representing truck drivers have called a strike starting today for an unlimited period in protest to the reform of labour legislation launched by new president Emmanuel Macron.
    Previous actions have blocked or impeded access to fuel depots and distribution centres, and disrupted traffic on major routes.
    The CGT union has called for “massive support” for the strike. 
    Read more in an article from Lloyd's Loading List


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Mexico – The Race for E-commerce Dominance Starts with Logistics
    source: logisticstrendsandinsight.com
    When one reads about Mexico, it’s typically in relationship with the US and NAFTA. Indeed, the country has long been known as an outsourced manufacturing location for primarily the US market and in fact, upwards of 80% of its exports are destined to the US. However, there’s much more to Mexico. Read more here

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  • 22 September 2017

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    Puerto Rico Disaster Zone Must Get Ports Up and Running, Says Governor
    source: splash247.com
    Puerto Rico's governor has declared reopening the island's ports a priority as it tries to recover from the huge devastation brought by Hurricane Maria.  Read more here
     
     
    Maersk Launches Financial Transactions Platform
    source: splash247.com
    Maersk's rapid digital transformation continues apace with news Denmark's companies register recorded on Tuesday a notable new corporate formation.
    GateTu is a joint venture between A.P. Moller-Maersk and Danske Bank.  Read more here.
     
     
    HMM Stands Out as Only Carrier to Fail to Secure Higher Rates in Q2
    source: splash247.com
    With interim results in for the leading containerlines around the world, one company sticks out for its failure to make the most of the improved fortunes seen in freight rates this year.  All of the main carriers, with the notable exception of South Korea's Hyundai Merchant Marine (HMM), posted rate gains of between 4% and 22%...read more here
     
     
    Port of Montreal Officially Welcomes Provisional Application of CETA
    source : canadianshipper.com
    Montreal, QC – At the Port of Montreal’s Viau Terminal,the Government of Canada, represented by the Minister of International Trade, the Honourable François-Philippe Champagne, officially heralded the first day of the provisional application of the Canada European Union Comprehensive Economic and Trade Accord (CETA).   Read more here.
     
     
    2017 growth forecast for US container imports is downgraded
    source: shippingazette.com
    IHS Markit senior economist Mario Moreno has lowered his growth forecast for US imports in 2017, from 6.6 per cent to 5.3 per cent, and predicts the country will import a total of 21.7 million TEU this year.
     
    Mr Moreno said his downgrade was prompted in part by the "lower-than-expected performance in the second quarter," and diminished demand for auto parts, the US' second largest import category, reported IHS Media.
     
    The reduction jars slightly with the confidence of the container shipping industry that cargo volumes are way ahead of those last year, and that could lead to a far more profitable year for ocean carriers. Some analysts believe demand growth will outstrip the increase in vessel capacity, and push up rates.
     
    Maritime analyst Drewry in July predicted carriers would net US$5 billion in profit this year, after six years of losses, as a result of higher rates and volume.
     
    CMA CGM reported a second-quarter profit of $219 million, compared to a loss in the 2016 quarter, and Maersk Line reported its first profit in five quarters. Carriers OOCL, "K" Line, and Zim Integrated Shipping Services each saw greater increases in unit revenue than volumes.
     
    Mr Moreno, a maritime analyst, cited the "modestly slow pace" of 3.3 per cent real spending on goods - slower than in 2016 - as one reason for his downgrade of the growth rate for US imports. He expects spending to pick up a little in 2018 for a 3.7 per cent growth.
     
    Although imports got a slight boost this year from the softening exchange rate of the dollar, "import prices (excluding oil) are forecast to stabilise this year after falling for two consecutive years," Mr Moreno said. However, he expects growth of new light vehicles to pause this year as "pent-up demand has already played out."
     
    "With domestic production of auto parts strengthening, the outlook for second-ranked import auto parts continues to look grim in the short run," he added.

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  • 21 September 2017

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    OCEAN FREIGHT UPDATES


    Maersk, COSCO divert cargo due to congestion at Prince Rupert
    source: americanshipper.com
    Ocean carriers Maersk Line and COSCO Shipping will temporarily divert cargo to Vancouver as dwell times at the Port of Prince Rupert have reached seven days, according to a statement from the carriers. Read more here.



    Yangtze River Delta Ports to be Shut for 18 days as China's National Congress Meets
    source: lloydsloadinglist.com
    China’s forthcoming National Congress meeting will effectively shut down Yangtze River Delta ports for 18 days next month.

    Jiangsu Maritime Safety Administration has announced temporary restrictions on all shipments from ports along the Yangtze River while all loading and berthing operations will be suspended from October 11 until October 28.
    The week-long 19th National Congress meeting, which is held only twice a decade, is expected to see Chinese president Xi Jinping consolidate his position and be re-elected for another five years or even longer.

    The major worry for vessels operating in the region is that the suspension of port operations will take place immediately after China's Golden Week holidays, which will end on October 8. Traditionally, the holiday period in China leads to limited
    shipping activity as major Chinese charterers drop out of the market for a week. However, the shipping market will then return to life once the holidays end mainly due to restocking activities.

    The main ports operating in the Yangtze River Economic Zone include Port of Shanghai, Port of Ningbo and Port of Nanjing. [Excerpted from Lloyds List]



    Arms race for super-sized dominance is back on as MSC orders new ships
    source: lloydsloadinglist.com
    The arms race for super-sized container dominance is back on. Mediterranean Shipping Co chief executive Diego Aponte has confirmed that the Geneva line is to order a series of 22,000 teu ships. News of the decision came on the same day that CMA CGM signed a contract for six of the same size with options for another three. Not to be outdone by its French rival MSC is ordering 11.

    Until recently, the line had played down rumours that it was talking to shipyards despite signals to the contrary from South Korea. Whether these new ships will be built there or in China is unclear at this stage.
    A long-term lease arrangement is seen by some industry sources as a likely option.
     
    Mr Aponte said the reason for the change of thinking reflected the fact that a large number of chartered 13,000 teu and 14,000 teu ships will come off hire in the years ahead. The new tonnage will replace that fleet rather than add to the line’s
    capacity.[Excerpted from Lloyds List]



    DP World Not to Review Operating Contract in Indonesia
    source: theloadstar.co.uk
    Dubai, United Arab Emirates, 17 September, 2017: DP World Limited announces that the
    company has reached a decision not to renew its operating contract for PT Terminal Petikemas Surabaya (TPS) in Indonesia at the end of the agreement in 2019. DP World is a 49% shareholder in TPS, which represents a gross capacity of 2.1 million TEUs (twenty-foot containers) out of 85 million TEUs for the Group. There will be no material financial impact on the Group as a consequence of this action. Read more here


    CANADIAN BUSINESS - GOVERNMENT UPDATES
     
    'Captive' shippers call for more data to address 'rail service failures'
    source: financialpost.com
    OTTAWA — Teck Resources Ltd., a Vancouver-based metals and mining giant, told a federal committee this week that “rail service failures” has been costing the company anywhere between $50 million and $200 million over 18-month periods during the past decade. The company is Canadian Pacific Railway Ltd.’s largest rail customer, and one of Canada’s biggest rail user.  Read more here.


    Canada EU trade enters new era of openness as CETA comes into force
    source: canadianshipper.com
    Ottawa, ON – Canadian companies have much greater access to one of the world’s largest markets starting Thursday, as a major trade deal between Canada and the European Union enters into force.
    Known as the Comprehensive Economic and Trade Agreement, or CETA, the deal clears barriers to trade for Canada’s largest trading partner after the United States.  Read more here.


    Trudeau Threatens to Halt Boeing F-18 Deal on Bombardier Dispute
    source: bloomberg.com
    Prime Minister Justin Trudeau says Canada won’t buy Boeing Co. fighter jets while the company pursues a trade challenge against Montreal-based Bombardier Inc. over its commercial aircraft.
    Trudeau made his threat to halt what he called Canada’s “significant procurement” of F-18 Super Hornets alongside U.K. Prime Minister Theresa May on Monday. Both leaders are pressing the U.S. firm to drop its challenge of Bombardier’s C Series program.  Read more here.

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  • 20 September 2017

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    Air cargo ban to UK may be lifted
    source: thedailystar.net
    The UK prime minister's trade envoy for Bangladesh, Ms Rushanara Ali has hinted that the British ban on direct cargo flights from Hazrat Shahjalal Airport may be withdrawn in the foreseeable future. These comments come in the backdrop of a weeklong visit to Dhaka. However, no exact date of the withdrawal was given. Bangladesh had appointed a British company to make necessary changes with regard to ensuring security at the airport and the changes are still ongoing. Read more here
     
     
    Volumes surge 10% at HKIA
    source: lloydsloadinglist.com
    Hong Kong International Airport saw cargo traffic soar 10.1% year-on-year to 412,000 tonnes in August, despite operational disruptions due to typhoons.
     
    The result at HKIA, the world’s largest international air cargo hub, was yet more evidence of the air freight market’s surprising recent strength - demand generally slows during the summer months ahead of the traditional Q4 peak.
     
    Airport Authority Hong Kong attributed the result primarily to strong exports, which registered a robust increase of 12% year-on-year. “Transhipments also rose by 10% during the month,” it added. “Amongst the key trading regions, Europe and Southeast Asia increased the most significantly.”
     
    In the first eight months of 2017, cargo volume at HKIA registered 11.1% year-on-year growth as the hub handled 3.15 million tonnes, keeping Hong Kong on track to maintain its position as the world leading international freight airport.


    OCEAN FREIGHT UPDATES

    Carrier rate discipline crumbles as liners fight for market share: Alphaliner
    source:shippingazette.com
    OCEAN carriers appear to be heading for a rate war as capacity discipline and rate stability crumble just as shipping conditions were improving, says Alphaliner in its weekly report.
     
    A "clear sign" of trouble, says Paris research house, is the fall of the Shanghai spot rate that has recorded six consecutive weeks of declines, despite strong peak season demand.
    Carriers in August and September failed to push rate increases through, something Alphaliner said was evidence of rate cutting starting to take hold.
     
    "The rapid depletion of the idle fleet since April and continued deliveries of 14,000 to 21,000-TEU ships have added over one million TEU to the global fleet in the last year.
    While strong cargo demand has kept fleet utilisation levels at above 90 per cent on most headhaul routes this year, the onset of the slack winter season from October is expected to put pressure on rates, Alphaliner warned.
     
    "The rate truce that carriers have largely abided by since Hanjin's sudden exit one year ago, now appears to be crumbling. 
    Rate slashing just ahead of the October holidays in China points to further rate instability as carriers continue to jostle for market share," said the report. [Excerpted from shippingazette.com]

     
    Latin American trades restructure ahead of Hamburg Süd takeover by Maersk
    source:theloadstar.co.uk
    MSC and Hapag-Lloyd are launching a new Mediterranean-east coast South America service next month, as part of the enforced restructuring of services resulting from Maersk’s acquisition of Hamburg Süd.
     
    The joint weekly service will call at Valencia, Barcelona, Genoa, Fos, Gioia Tauro, Valencia, Suape, Salvador, Rio de Janeiro, Santos, Paranagua, Itapoa, Montevideo, Navegantes, Santos, Rio de Janeiro, Las Palmas, Valencia and then back to Barcelona. Read more here (login required) .

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    BIFA updates its STCs to protect members as global trade evolves
    source: theloadstar.co.uk
    The British International Freight Association (BIFA) is to issue a revised set of standard terms and conditions (STCs)next month to reflect the changes in international trade.
    BIFA director general Robert Keen told The Loadstar the revisions would focus on three main areas.
     
    The changes are largely as a result of the 2016 amendment to the Safety of Life at Sea (Solas) regulations which introduced the concept of verified gross mass (VGM) of containers; the increasing use of fulfilment centres, caused by the rise of e-commerce; and growing arbitration rather than litigation to resolve commercial disputes outside UK law. Read more here (login required).

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  • 19 September 2017

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    AIR FREIGHT UPDATES

     
    Freight demand stays strong into H2, alongside a rising yield trend
    source: iata.org
    Air cargo yields have risen at their fastest annual pace since 2010, rising 7.9% in July. In fact, IATA’s latest cargo chartbook shows that – as expected – air freight demand has continued strong in the second half, with FTKs seeing 11.8% growth in July, another record since 2010. As ever, IATA can’t resist a cloud, and it notes that “signs suggest that the cyclical upturn in FTK growth may be nearing a peak – not least the fact that the inventory-to-sales ratio has stopped falling”.  Read the full report here.


    OCEAN FREIGHT UPDATES

    CMA CGM invests in digital transformation
    source: lloydsloadinglist.com
    The CMA CGM Group has signed a seven-year strategic partnership with technology solutions provider Infosys.
     
    The France-based container line, which recently confirmed orders for nine 22,000 TEU vessels, said the deal would “simplify and transform” its IT applications and improve customer service.
     
    The partnership will see Infosys open a centre for development and innovation in Marseilles on behalf of the box giant.
     
    The technology provider will also take over CMA CGM’s IT development centre in Dubai, a move the line said would strengthen its presence in the Middle East. [Excerpted from Lloyd's Loading List]

    NTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Toys R Us can keep supply chain moving despite bankruptcy ahead of peak season
    source: theloadstar.co.uk
    Toys R Us last night filed for Chapter 11 bankruptcy protection. It has debts of some $51.2m for shipping and storage and expects a further bill of $35.9m.
    The toy store was forced to file for protection in the US and Canada after it claimed a news story this month questioning its liquidity had resulted in suppliers refusing to ship product without cash on delivery.
     
    It claimed the article “started a dangerous game of dominos”.
    It added: “Within a week nearly 40% of the company’s domestic and international product vendors refused to ship product without cash on delivery, cash in advance or, in some cases, payment of all outstanding obligations.”
     
    The company that instead of its normal 60-day trade terms, these demands would mean it must immediately obtain more than $1bn in new liquidity.  Read more here.

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  • 18 September 2017

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    AIR FREIGHT UPDATES

     
    Qatar Airways Cargo adds fifth US freighter destination this year
    source: aircargonews.com
    Qatar Airways Cargo will become the first international airline to offer a freighter service to Pittsburgh,  Pennsylvania, when a new operation gets underway next month.
    The airline said that when the new B777F service is launched, on October 11, it will become the fifth freighter destination in the Americas added this year and the thirteenth in total. Read more here


    OCEAN FREIGHT UPDATES

    CMA CGM 'outperforms the industry' as Q2 profits hit $227m
    source: theloadstar.co.uk
    CMA CGM posted a net profit of $227m for the second quarter of the year, turning around a loss of $127m in the same period of 2016, with the assistance of a “significant” contribution from subsidiary APL.
    The French carrier was the last of the liner majors that publish results to report its Q2 performance and it was the third full quarter to include figures from Singapore-based APL. Read more here.  
     
     
    Hapag Lloyd orders 7,700 new reefer containers as demand grows
    source: theloadstar.co.uk
    Hapag-Lloyd is buying 7,700 new reefer containers, with part of the order seemingly with Maersk’s reefer manufacturing subsidiary, Maersk Container Industry (MCI).
    The German carrier said 1,000 units would be manufactured at a facility (pictured above) in the Chilean port of San Antonio – where MCI began producing reefer units in May 2015. Read more here


    CANADA BUSINESS - GOVERNMENT UPDATES
     
    CBSA Montreal Works Overtime to Clear Re-Manifest Backlog
    source: CIFFA
    The Canada Border Services Agency (CBSA) at Montreal 395 has advised that stamping delays as of Friday morning were down to less than 12 hours, after using all personnel available and working overtime on Thursday to tackle the backlog. In reality, this means that documents dropped off Friday morning should be available by Monday afternoon, dropped Monday afternoon by Wednesday morning at the latest.

    Everyone is also reminded that, if you receive a reject notice where the cause of the reject is not readily understood or easy to correct, your first point of contact is to call the person who signed the reject notice. If that person can’t explain the reason for the reject – or if the reason for the reject is wrong – then email your questions/ concerns to the generic email for Montreal Operations: e-manifest395@cbsa.gc.ca. The officer manning that email is a re-manifest expert.



    CBSA Issues Notices on Canada-European Comprehensive Economic Trade Agreement
    source: CIFFA
    CBSA has issued Customs Notice 17-29 and Customs Notice 17-30 advising stakeholders that the
     Canada–European Union Comprehensive Economic and Trade Agreement (CETA) will be implemented on September 21, 2017 and announcing regulatory amendments and new regulations proposed by the CBSA in support of that implementation. With the exception of a few agricultural goods, the CETA will essentially eliminate the customs duties on all imports from a European Union (EU) country or other CETA beneficiary, either immediately upon implementation of the agreement, or through a tariff phase-out.

    The complete list of countries eligible for the preferential tariff of the CETA is defined in the Regulations Defining “EU country or other CETA beneficiary.” This regulation will be published on the Department of Justice Canada website on or before September 21. In the interim, this regulation is available in Part II of the Canada Gazette, Canada Gazette – Regulations Defining “EU country or other CETA beneficiary” (Extra Vol. 151, No.1).

    Information regarding the CETA and the text of the agreement can be found on the Global Affairs Canada website.

    The CETA implementing legislation, Bill C-30, received Royal Assent on May 16, 2017 and is scheduled to come into force on September 21, 2017.
    Proposed regulatory amendments and new regulations under the Customs Act related to the CETA will be announced in a separate customs notice.
     

    Minimize
  • 15 September 2017

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    THE Alliance Reveals It has Set Aside $50m in the Event One of its Members Does a Hanjin
    source: splash247.com
    THE Alliance, a new container grouping which launched this April, has revealed the amount it has set aside in the event of the five partners follows Hanjin Shipping by going bust. The five lines -  Hapay Lloyd, K Line, NYK, MOL and Yang Ming - have put $50m into an insolvency contingency fund designed to protect cusotmers' cargo and the ocean transportation chain should one of THE Alliance's carriers experience financial distress or an insolvency event.  Read more here.  

     
    Intra-Asia box rates war predicted
    lloydsloadinglist.com
    New entrants and the cascading of capacity from other trades could spark a rate war on the intra-Asia trades in the coming months, according one analyst.
    “Substantial additional capacity is expected to be introduced into the intra-Asia container shipping routes in 2017/18, raising the threat of a new rate war on these trades,” said a note from Drewry Maritime Financial Research.
     
    The Intra Asia Discussion Agreement (IADA) recently recommended ambitious rate hikes of US$100/feu every month starting from August, for exports from Japan to all intra-Asia destinations. But Drewry said attempts to push the hikes through could be stymied by excess capacity.
     
    One new entrant, SM Line, recently added seven new services − four independent and three via slot share − on the trade and Drewry said the South Korean line had “been aggressive on this route” and “plans to add more services and increase the frequency to Southeast Asian markets”.  Evergreen is also expected to deploy six vessels of 2,800 teu capacity on intra-Asia trades by the end of this year. [Excerpted from Lloyds Loading List]
     
     
    Stop Loss 17 - Guidelines for Carriage of Cargo in Non-Operating Reefers
    source: TT Club
    In order to minimise empty repositioning costs, container operators frequently use reefer containers in a ‘non-operating’ mode to carry approved dry cargo – either on a return leg or to re-position the equipment without operating the refrigeration machinery.
     
    Transporting ‘non-operating reefer’ (NOR) cargo enables the carriage of additional cargo, where reefers need to be positioned for their next cargo move, but are competing for slot space with revenue-earning dry cargo. Because of the differences between General Purpose and Refrigerated containers (both the design and the materials), additional considerations are necessary in relation to approval of cargo to be carried in this way and the packing requirements that need to be taken into account.  Read more and download the guide here
     
     
    COSCO to Switch Port of Discharge from Prince Rupert to Vancouver, on Temporary Basis
    source: CIFFA
    In an unusual step, COSCO announced to its customers that it will temporarily switch the port of discharge for its containers destined to Canadian inland points aboard the vessels below. These containers will be unloaded at Vancouver (terminal Centerm), instead of at Prince Rupert.

    XIN OU ZHOU Q94 031N
    CSCL AMERICA RXH 009N
    XIN FEI ZHOU R27 036N
    CSCL OCEANIA R55 012N

    The carrier indicates the decision was made in an effort to alleviate the growing congestion and dwell times experienced recently at Prince Rupert.
     
    The other steamship lines that share space on these vessels have not made similar announcements as of this time. Therefore, containers that are aboard these vessels but not moved by COSCO might still be unloaded at Prince Rupert. In its customer advisory, COSCO advised the changing of port of discharge will not affect any rate agreements currently in place, and diversion fees will not be applied by COSCO. COSCO said it will update the change of routing to CBSA.
     
    In its September 12 bulletin, CIFFA indicated that forwarders and their customers can expect ongoing delays and increased dwell times at Canadian west coast ports for the next several weeks, especially at Prince Rupert and Deltaport. Volumes are high. Container stacks are growing higher at terminals and service levels are certainly not where they should be. 
     
    There is a combination of contributing factors and, while investments are being made to alleviate congestion in the system, these efforts may not bear fruit as quickly as needed. In the meantime, dwell times on the docks at Prince Rupert are edging up, with week 37 expected to average 6 to 7 days. Dwell times are expected to slowly decrease during weeks 38 and 39 and, by November, Prince Rupert dwells are expected to be back to its usual, under-three-day average. The Port of Vancouver container terminal performance update shows Centerm in the green, with dwell times under three days. 


    CANADA BUSINESS - GOVERNMENT UPDATES

    A Mountain of Paper: CBSA Taking Steps to Reduce Stamping Delays at CBSA Longroom Port 395 Montreal 
    source: CIFFA
    The Canada Border Services Agency (CBSA) at Montreal Port 395 is facing the same pressures as everyone else in the inbound movement of goods these days, plus a few problems unique to this specific time and place. Although members advise delays of +4 working days (+ weekend days) for the CBSA to stamp and return re-manifest documents at the Montreal Longroom, the Agency advises that, although delays did spike up to 3 days earlier this week, the delays have reduced somewhat, although they are much longer than planned.

    The CBSA is acutely aware of the problem and is taking steps to address it. Forwarders can receive help with re-manifest questions at the Montreal Operations by contacting e-manifest395@cbsa.gc.ca.
     
    First, what has caused the longer-than-usual time to stamp and return documents? Click here to read Executive Director Ruth Snowden's blog on how an extended peak season, the almost total failure of eHBL, refugees and normal human resource problems all contribute to yet another stressor.


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    The Inventory Diet: How Retailers Are Learning to Do More With Less
    source: sourcingjournal.com
    The turmoil facing much of the apparel retail sector has put inventory in the spotlight.
    Faced with rampant store closures, meager foot traffic and sagging comp sales, execs are actively trying to reduce the glut of product in the market while developing new goods with more appeal.
    Through this better inventory control coupled with improved merchandising, stores are looking to reduce the need for perpetual promotions, boost full-price sell-throughs and fatten up margins.  Read more here (login required)

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  • 14 September 2017

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    AIR FREIGHT UPDATES

     
    No peak season for China's air freight market – 'it's been peak season all year'
    source: theloadstar.co.uk
    China’s air freight market may not see much of a peak in volumes this year – because it has been at peak levels all year and there is little available capacity for more.

    Despite concerns in July that the Chinese market was slowing, Pudong International Airport Cargo Terminal (PACTL) continued a record-breaking year in August, reporting 13.9% year-on-year growth to 157,000 tonnes.  Read more 
    here.


    OCEAN FREIGHT UPDATES
     
    Preparing for China's Golden Week: Chinese Celebration Will Disrupt Supply Chains
    source: Global Trade
    The Golden Week festival in China will be celebrated this year from October 1 to 8. Factories will close for the extended holiday week, with operations resuming on Monday, October 9.
     
    As we approach October 1, importers are rushing to make pre-Golden Week sailings, which will further constrain space, already very tight during peak season. Carriers will likely be more overbooked than usual, which may result in cargo being rolled.
     
    We'll also probably see blank sailings immediately after Golden Week; because factories will be closed during the holiday, carriers will implement these blank sailings to optimize vessel utilization.  Read more in the article from Global Trade.


    China sent a ship to the Arctic for science. Then state media announced a new trade route
    source: washingtonpost.com
    China's state news agency Xinhua reported last week that a Chinese ship had conducted a successful test of a trading route along the long-fabled Arctic Northwest Passage.
    This was a major milestone, according to the agency, which proclaimed that “a new channel” between North America and Northeast Asia had been opened. Read more here.


    Hapag-Lloyd to levy US$5.94 per box fee for Malaysian export rollovers
    source: shippingazette.com
    GERMAN shipping giant Hapag-Lloyd announced for all export shipments where you initiate a second rollover request, a booking cancellation fee (BCF) will be levied.
    The fee (BCF) of MYR25 (US$5.94) per container will be chargeable from November 1.
    Customers will be permitted to roll their shipments once only. Subsequent rollover requests will result in the booking being cancelled and subject to the fee.
    The existing Booking Cancellation Fee policy for all cancellations within seven days from vessel ETA remains unchanged.


    UK Ports Can’t Deal With Even ‘Minutes’ Of Customs Checks Post-Brexit, Philip Hammond Reveals
    source: huffingtonpost.co.uk
    Britain’s ports would grind to a halt after Brexit if lorries had to spend just “minutes” undergoing customs checks, Philip Hammond admitted today.
    The Chancellor made the dire warning of the UK’s preparedness for life outside the EU’s customs union as he admitted there would be “significant disruptions to patterns of movements” at Dover if no Brexit deal was reached with Brussels.   Read more here.


    CANADA BUSINESS - GOVERNMENT UPDATES

    Finance Minister Morneau Says, Despite Higher Canadian Dollar, Economy Shows Strength
    source: Reuters
    Canada's finance minister indicated on Tuesday that he could live with a more robust Canadian dollar, saying the recent rise of the currency reflected the country's economic strengths.
    The dollar has rallied more than 13 percent against the U.S. greenback since early May and touched its strongest point in more than two years on Friday.
    "I see the positive trajectory of the Canadian dollar as a clear reflection of our economic strengths," said Finance Minister Bill Morneau.  Read more in an article from Reuters.
     
     
    As NAFTA negotiations turn tense, Canadians look beyond U.S
    source: canadianshipper.com
    Vancouver, BC — As negotiators for Canada, the United States, and Mexico revealed this week they’ve made little progress on revising the North American Free Trade Agreement (NAFTA), the latest public opinion survey from the Angus Reid Institute finds Canadians increasingly looking to partners other than the U.S. to safeguard international trade.   Read more here. 


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Bangladesh gains on China's market share as top EU apparel supplier
    source: shippingazette.com
    BANGLADESH stands to overtake China as the EU's biggest apparel supplier by 2020, says Textile Outlook International from the global business information company Textiles Intelligence, of Auckland, New Zealand.
     
    In 2016 EU apparel imports from Bangladesh increased for the ninth straight year, almost doubling the country's European market share to 23.4 per cent.
     
    China, by contrast, suffered further losses in market share in the EU apparel import market in 2016, said the latest issue of the publication. 
     
    "This trend has been apparent for some time now and it seems set to continue as the Chinese apparel industry grapples with problems of rising costs and labour shortages," said the report.
     
    In 2016 the share of EU apparel imports which came from China fell in volume terms for the sixth consecutive year to 37.9 per cent. In 2010 over half of the volume of EU apparel imports came from China but by 2016 barely a third did so - reflecting a sustained trend by EU buyers towards sourcing from alternative locations.
     
    To hold market share, Chinese exporters appear to be having to cut prices. In 2016 alone, the average price of EU apparel imports from China fell 8.2 per cent.
     
    The success of Bangladeshi garment exporters can be attributed to their ability to export garments to the EU duty-free under the EU's Generalised Scheme of Preferences (GSP).

    Minimize
  • 13 September 2017

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    AIR FREIGHT UPDATES

     
    Sick Pilots Ground 100 Air Berlin Flights
    source: news.airwise.com
    Some Air Berlin pilots added to the carrier’s problems on Tuesday after 200 called in sick, causing the cancellation of more than 100 flights.
    The airline’s chief executive Thomas Winkelmann said some employees are “playing with fire”, as the number of short-notice sick days was much higher than usual.  Read more here
     
     

    OCEAN FREIGHT UPDATES
     
    Carrier Rate Truce Crumbling: Alphaliner
    source: splash247.com
    The capacity and rate stability seen since Hanjin Shipping sought court protection just over a year ago, is now being eroded with battle lines being drawn up among competing carriers for a freight rate war, Alphaliner warns in its most recent weekly report.  Read more here.
     
     
    Prince Rupert Port Authority CEO retires after 25 years
    source: americanshipper.com
    Don Krusel, the president and chief executive officer of the Prince Rupert Port Authority, will retire, effective immediately, and Joe Rektor, the port authority’s chief financial officer, will assume the role of interim president and CEO.
    After leading the organization for 25 years, Prince Rupert Port Authority (PRPA) President and Chief Executive Officer Don Krusel is retiring, the port announced Sept. 11.  Read more here.
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    France: Strikes and Protests against Macron's Labour Reforms Kick Off
    source: CIFFA
    French unions held a day of strikes and street protests on Tuesday against President Emmanuel Macron's labour reforms, a key test as he stakes his presidency on overhauling the sluggish economy.
     
    More than 180 street protests were held nationwide against the reforms, which are intended to tackle stubbornly high unemployment by loosening the rules that govern how businesses hire and fire people.  Read more in an article from The Local.  
     
     
    100 Days of the Big Gulf Feud: Now Pick Sides
    source: bloomberg.com
    A spectacular display of acrobatics and pyrotechnics marked the opening of Qatar’s new $7.4 billion port last week, but it was the timing that was more striking than the extravaganza.
    With officials invited from Iran, Kuwait and Oman, the Sept. 5 event sent a defiant message: Qatar won’t be confined by a Saudi-led embargo and you’re either with us or against us.  Read more here.
     
     
    NRF: Major U.S. container ports see record imports in July
    source: americanshipper.com
    Ports covered by the National Retail Federation's Global Port Tracker handled 1.78 million TEUs of imports in July, the highest monthly volume recorded since the report began in 2000, but growth is expected to slow in 2018.
    Major retail container ports across the United States are expected to collectively set a new yearly import record for 2017, according to the latest monthly Global Port Tracker report by the National Retail Federation (NRF) and Hackett Associates.  Read more here

    Minimize
  • 12 September 2017

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    Miami International to restart operations today
    source: aircargonews.net
    Miami International Airport (MIA) will resume operations today on a limited basis following the devastation caused by Hurricane Irma.
     
    In a statement, the airport said that some cargo and passenger flights would resume today, but added that many airlines would still not be operating to a full schedule and therefore airlines should be contacted for full details.  Read more here.
     

    OCEAN FREIGHT UPDATES
     
    APM Terminals Sell Out to Coscos at Zeebrugge
    source: splash247.com
    A.P. Moller - Maersk's APM Terminals has agreed to sell a 76% majority shareholding in the APM Temrinals Zeebrugge container terminal to Cosco Shipping Ports.
    The sale will give Cosco Shipping Ports 100% ownership of the terminal, once APM Terminals acquires a 25% stake from China's SPIG to add to its own 51% stake. Read more here.  
     
     
    Bayonne Bridge raising 'risks west-to-east cargo shift'
    source: shippingazette.com
    THE raising of the New York-New Jersey Bayonne Bridge marks the removal of the last major obstacle in the transfer of substantially more market share from west to east coast ports, say experts.
     
    As the 14,400-TEU CMA CGM Theodore Roosevelt glided under the newly elevated Bayonne Bridge to Elizabeth, New Jersey, completing a maiden voyage from Shanghai via Panama Canal, it became the biggest ship to ever dock at the east coast port, reported London's Financial Times. 
     
    The widening of the Panama Canal could shift as much as 10 per cent of east Asia-origin container imports to the US east coast from the west coast by 2020, says Boston Consulting Group and major forwarder CH Robinson.
     
    Companies in Ohio and Tennessee may now find it cheaper to bring Asian imports through Atlantic ports than have them trucked or railed from Pacific ports. 
     
    Portions of the US Midwest are a "battleground" for ports on either coast, said Bethann Rooney, an assistant commercial director of the Port Authority of New York and New Jersey. [Excerpted from Shipping Gazette]
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Largest US Refinery Restarts Production After Harvey Shutdown
    source: splash247.com
    America's biggest oil refinery, the Motiva Enterprises facility at Port Arthur in Texas restarted production on MOnday after being shut since August 30 because of flooding form Hurricane Harvey, according to Reuters.  Read more here
     
     
    World's First Class Approved 3D Printed Propeller Produced
    source: splash24.com
    A prototype of the worlds' first class approved ship's propeller has been produced using 3D printing techniques. The 1,350 mm diameter propeller named WAAMpeller, is the result of a cooperative consortium of companies that include Damen Shipyards Group, RAMLAB, Promarin, Autodesk and Bureau Veritas. Read more here

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  • 11 September 2017

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    Beijing approves OOIL sale to Cosco with Shanghai Port owning 9.9pc
    source:shippingazette.com
    CHINA Cosco Shipping's purchase Hong Kong's Orient Overseas International Ltd (OOIL), parent of Orient Overseas Container Line (OOCL), was approved this week by the regulating State-owned Assets Supervision and Administration Commission, it was announced.
     
    OOIL stated that the Chinese state-run buyer received clearance from the commission to move forward with the sale.
     
    After finalisation, Cosco will own 90.1 per cent of OOIL, while Shanghai International Port Group will hold 9.9 per cent.
     
    Cosco is now the fifth biggest container carrier in the world in terms of operating fleet capacity, while OOCL clocks in at seventh place, according to ocean carrier schedule and capacity database BlueWater Reporting's Carrier Ranking tool. 
     
    Based on present figures, the combined entity would operate vessels with an aggregate capacity of 2.19 million TEU, making it the world's third largest ocean carrier.

    GROUND AND RAIL UPDATES
     
    Truckers Welcome Extra Capacity at North America's Busiest Border Crossing
    source: Canadian Trucking Alliance
    The Canadian Trucking Alliance welcomed news the Government of Canada will permit the Detroit International Bridge Company to 
    build a six-lane crossing to eventually replace the current Ambassador Bridge.
     
    Along with the planned Gordie Howe International Bridge set for construction a few kilometers away, the new span to be built next to the original Ambassador will significantly increase commercial truck crossing capacity at North America's busiest border crossing.  
     
    The 87-year-old, four-lane Ambassador will be dismantled once the new bridge has opened. 
     
    The Ontario-Michigan gateway sees over 4.2 million trucks cross between the two existing Michigan and Ontario bridges (Ambassador and the Blue Water bridge in Sarnia-Port Huron) carrying C$210 billion worth of trade between Canada and the United States. 
     
    From a press release from the Canadian Trucking Alliance.


    CANADIAN BUSINESS - GOVERNMENT UPDATES

    Canadian ports maintain growth amidst challenging trends
    source: ajot.com
    With Canada’s economy growing, the nation’s ports are expanding to keep pace.
    Ocean shipping lines continue to grapple with low freight rates and overcapacity, but Canadian port officials note the outlook remains positive for international trade as economic trends improve or remain robust in Europe and Asia.

    Against this background, managers of key Canadian ports are charting strategic plans for the future while recording rising cargo numbers. They are investing in new infrastructures to enhance competitiveness, to meet rising demand and generally to deliver sustainable growth. And the positive trend is continuing in 2017, aided by more stable commodity prices.  Read more
    here (login required). 


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Poland Threatens to Block Part of EU-Canada Trade Deal
    source: Financial Times
    Poland is threatening to block a part of the EU's trade deal with Canada because of its concerns over a planned mechanism for 
    resolving disputes between governments and multinational companies.
     
    Through the EU's pact with Canada, CETA, a panel of judges would be appointed to hear cases, consisting of five EU judges, five Canadian judges, and five judges from third countries, a system that Brussels has said would provide improved transparency and democratic oversight.
     
    However, Warsaw is worried that this could lead to cases involving Poland being heard without a Polish judge. It is, therefore, pushing for the panel to be expanded to include a judge from each of the EU's current 28 nations.
     
    Failing that, it wants clarity on how the EU judges on the panel will be assigned to cases, to ensure that the procedure is fair and does not favour particular countries.  Read more here.
     
     
    Look Who's Emerging Again: EDC Weekly Commentary
    As we swing into the fall, exporters have a lot of issues to wrestle with. Top of the list is concern about the state of global trade, and the popular backlash to globalization. With NAFTA renegotiation in full swing, most are hoping for the best...but also considering opportunities in other markets. With CETA soon to be inked, eyes are on European possibilities. 
     
    There are also rumblings about a future agreement with China, and the CEPA deal with India is still a possibility. Small wonder that there's now more talk about trade diversification than I have heard for a while. With growth picking up in the U.S., Europe and other OECD markets, is there any sign of a spillover into the emerging world?
     
    Read what Peter Hall thinks in EDC's weekly commentary.
     
     
    Who will deliver Christmas in 2019? asks FTA after Home Office plan is leaked
    source: theloadstar.co.uk
    Pleas to consider the logistics industry appear to have been ignored, as leaked documents reveal plans to end free movement of European labour in the UK after Brexit.
    Proposals in Home Office documents seek to end free movement of all but the most highly skilled EU workers from entering the UK from 2019. Read more here

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  • 8 September 2017

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    Delta and American update Hurricane Irma cargo embargoes
    source: aircargonews.com
    Delta Cargo and American Airlines Cargo have updated their restrictions on freight operations in the Caribbean and Florida as Hurricane Irma continues to batter the region.

    The hurricane, now downgraded to category four, yesterday hit Turks and Caicos Islands following on from the destruction it caused on other Caribbean islands over the past couple of days. Read more here.

     


     
    OCEAN FREIGHT UPDATES
     
    Maersk credit rating downgrade threats are a red herring, argues financial analyst
    source: theloadstar.co.uk
    According to one research investor analyst a potential downgrading of A P Moller Maersk’s credit rating is an overreaction to a perceived worsening of container industry fundamentals.
     
    On 23 August Standard & Poor’s announced that it was placing its BBB rating of Maersk on CreditWatch negative following the Danish firm’s proposed $7.45bn sale of its oil and gas subsidiary to Total.  Read more here (login required). 
     
     
    Becalmed panamax owners need a big hike in charter rates to survive
    source: theloadstar.co.uk
    The survival of panamax containerships is threatened by the impact of low charter rates and industry cascading.
     
    According to an Alphaliner review of the sector, there remain 543 classic panamaxes of 4,000-5,300 teu, of which 504 are deployed on trades across the world, 30 are laid-up and nine under repair.  Read more here (login required)  
     
     
    Shipping can learn from the Korean mess
    source: splash247.com
    When one looks at the current problems between the Deomcratic People's Republic of Korea (DPRK) and the United States of America along with the Repulic of Korea, dismay is the natural reaction. Here is a war put on hold by an armistice over six decasdes ago when it should have been ended by a peace treaty.  Read more here
     
     
    Container volume at top North American ports rises 9.1pc in July
    source: shippingazette.com
    BIG North American ports achieved 9.1 per cent year-on-year growth in container volume through July - up 20 basis points on June. 
    Results have remained robust across west, east and Gulf coasts this year, with non-US and Gulf coast seaports continuing to lead performance, reported New York's Seeking Alpha.
     
    Laden imports remain the driver for improved traffic as laden exports continue to marginally drop.
    Class I TEU traffic results continue to improve, and intermodal pricing may be getting back on track soon, the report said.
     
    During 2016, top seaports in North America were on track to witness a decline in container traffic. This was the case through September for laden and empty imported/exported boxes. It was not until October through December, that positive momentum was sustained to end the year with an overall 1.2 per cent gain.

    GROUND AND RAIL UPDATES
     
    Depot Entrance at Vaughan Intermodal Terminal Remains Closed
    source: CIFFA
    CP continues to have a problem with the power at the Vaughan IMS depot entrance. It will remain closed until further notice.
    Drivers must access the facility through the main gates. Delays can be expected.


    CANADIAN BUSINESS - GOVERNMENT UPDATES

    Liberals give go ahead for construction of Ambassador Bridge replacement
    source: canadianshipper.com
    Ottawa, ON — The federal government has given the green light for a new bridge connecting Ontario and Detroit to replace the aging Ambassador Bridge.
     
    Transport Minister Marc Garneau says the private owner of the 87-year-old bridge, the busiest border crossing between Canada and the United States, can begin building a six-lane replacement bridge.  Read more here.  


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Hurricane Harvey's Supply Chain Impact May Be Worse than Expected
    source: espnews.com
    The impact of Hurricane Harvey on the global supply chain will be worse than expected due to the dependence on chemicals and intermediate products across a range of industries, according to Resilinc, a provider of supply chain risk and resiliency solutions. Other contributing factors are an interconnected global supply chain and a lack of sub-tier supplier visibility.  Read more here.
     

    U.S. requires enhanced screening of cargo from Turkey
    source: reuters.com
    WASHINGTON (Reuters) - The U.S. Transportation Security Administration said on Thursday it is issuing a new security directive requiring enhanced screening of cargo from Turkey.
    The change was “to adequately address emerging threats to cargo and raise the baseline for global aviation security,” TSA spokesman Michael England said.  Read more here

    Minimize
  • 7 September 2017

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    Caribbean and Florida cargo operations hit by Hurricane Irma
    source: aircargonews.com
    Air cargo operations in the Caribbean are facing major restrictions as the devastating Hurricane Irma wreaks havoc across the region, while preparations are being made for when the storm hits Florida.
     
    The category five hurricane, which is the highest possible rating, has left at least nine people dead and is reported to be the most powerful storm in the Atlantic in more than a decade.  Read more here.
     
     
    Air cargo up 11% in July, but signs that growth may have peaked
    source: aircargonews.com
    Air cargo traffic increased again in July, compared with a year earlier, but airline organisation IATA has warned that there are a growing number of signs that improvements may have peaked.
     
    In total, air cargo traffic in freight tonne km terms increased by 11.4% year on year in July, while supply was up by the lower amount of 3.7%. As a result, cargo load factors reached 43.7% against 41.3% last year.  Read more here.

     
    OCEAN FREIGHT UPDATES
     
    'Incident' injures 11 dockers, forces shutdown of Prince Rupert terminal
    source: shippingazette.com
    DP WORLD's Canadian west coast container terminal at Prince Rupert, British Columbia has reopened after an unidentified "incident" forced it to shut down over the Labour Day weekend, reports Fort Lauderdale's Maritime Executive.
     
    At about 0500 hours on Sunday, an undisclosed event at the Fairview terminal injured 11 dockers. The facility was evacuated, and the affected workers were taken to the hospital to treat respiratory complaints and eye irritation. 
     
    DP World performed air quality tests in the area and found no contaminants; an industrial hygienist declared the facility safe to reopen at 0430 hours on Monday. 
     
    In a statement, the Port of Prince Rupert said that there is "no inhalation hazard to the community of Prince Rupert nor hazard to the marine environment as related to this incident." [ Excerpted from shippingazette.com]
     
     
    Maersk Line releases Golden Week network changes from Far East Asia to North America
    source: AJOT
    In connection with the upcoming Golden Week period, Maersk Line has endeavored to balance their network to match reduced demand for the next several weeks. The aim is to minimize the impact to customers by securing alternative routings wherever possible. Read more here
     
     
    Hapag-Lloyd revision of Local Surcharges for Thailand (amendment)
    source: ajot.com
    Effective October 6, 2017 Hapag-Lloyd will implement and revise its Service Fees in Thailand as follows...Read mor here


    GROUND AND RAIL UPDATES
     
    CN Responds to CIFFA Letter about Delays, Capacity and Fluidity Issues at Terminals
    source: CIFFA
    CN provided CIFFA with a letter yesterday in response to the association's own letter addressed to CN on September 1 about terminal delays and congestion affecting the forwarder community.
     
    In the letter, signed by Martin Guimond, Vice President Multimodal Operations, CN, said the company "recognizes that service is not where we want it to be and that CN will be taking the necessary steps to increase capacity and fluidity in Brampton."
     
    Over the next couple of weeks, CN said it will be hosting a series of sessions at its Brampton offices with the carter community to discuss, among other issues, investment in the terminal footprint to increase physical capacity, investment in Malport Yard to increase rail capacity, investment in equipment to increase lift capacity and investment in human resources.
     
    CN said it has already begun reaching out to the carter community to schedule these sessions.  


    Depot Entrance at Vaughan Intermodal Terminal Remains Closed
    source: CIFFA
    CP continues to have a problem with the power at the Vaughan IMS depot entrance. It will remain closed until further notice.
    Drivers must access the facility through the main gates. Delays can be expected.

    Minimize
  • 6 September 2017

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    Airlines are hiking air freight rates “significantly” as demand remains strong, and it could grow further.
    source: theloadstar.co.uk
    Yesterday, Lufthansa Cargo announced that its net cargo rates in western Europe would rise between 5% and 10% from October 1, and even higher in other regions.  Read more here
     
     
    Supermarket shelves full, Qatar Cargo gets back to normal, despite trade blockade
    source: theloadstar.co.uk
    Qatar has seen airfreight demand return to pre-crisis levels following the introduction of new shipping routes from Asia and Oman, as the Gulf state continues to battle a Saudi-led blockade. Read more here

     
    OCEAN FREIGHT UPDATES
     
    Shippers need to review their game plan ahead of new contract talks
    source:theloadstar.co.uk
    With the Asia-Europe contract renewal negotiating season fast approaching, Drewry is advising shippers to rethink their procurement strategy or risk hefty price hikes and service failures.  Read more here
     
     
    NYK Places Orders for Four VLCCs
    source: splash247.com
    Japan's Nippon Yusen Kaisha (NYK) is keeping compatriot shiyards busy.  The giant shipping line has just inked contracts for four VLCCs at two local shipbuilders for delivery in 2019 and 2020.Read more here
     
     
    Shanghai-Yangshan to be world's most automated port in December
    source:shippigazette.com
    SHANGHAI's Yangshan Deep Water Port will start operating seven new berths from December 10, boosting the harbour's annual handling capacity to 40 million containers.
     
    As many as 130 automated guided vehicles (AGVs) will be deployed at the port, the largest number of automatons installed in any container terminals worldwide, reports Hong Kong's South China Morning Post.
     
    The seven new berths of the CNY12.8 billion (US$1.95 billion) fourth phase of the port will boost the total capacity 11 per cent, or by four million TEU, eventually expanding to 6.3 million TEU a year. 
     
    A press officer said the harbour is equipped with some of the most advanced cranes, lifts and carriers with the latest technology in loading, discharging and transshipping cargo quickly and safely. 


    CANADIAN BUSINESS - GOVERNMENT UPDATES
     
    Gate at Empty Depot at Vaughan Terminal Closed due to Damage: CP Rail
    source: CIFFA
    CP Rail advised that lightning during a storm on Monday night cut power at its Vaughan intermodal terminal, causing the entrance to the empty depot to be closed all day yesterday. As of this morning, CP expects that power will be restored by about 2:00 pm today.
     
    During the outage, all traffic is required to enter the terminal via the main entrance gates at "A" building. Drivers entering the terminal should expect to be delayed.


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Shippers and forwarders stand to gain with automated payment technology
    source: theloadstar.co.uk
    Shippers and forwarders alike could win significant cost savings through new technology to automate the auditing of freight payments and invoicing.
     
    According to a new white paper published today, How Automated Payment Processes Will Cut Costs for Shippers and Forwarders and Create Healthier Relationships, as much as 70% of invoice processing costs are wrapped up in document handling, auditing and payment processes.  Read more here.
     
     
    Eurozone economy heads for decade high growth as UK stalls
    source: canadianshipper.com
    London, UK – While Britain and the rest of the EU are struggling to agree on divorce terms, it’s increasingly clear that on the economic front they are diverging sharply. In closely watched surveys of economic activity, financial information company…  Read more here.  

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  • 5 September 2017

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    Slowing Air Freight Exports from China Fail to Dampen Market
    source: CIFFA
    China pulled back from its position as the "world's air cargo engine" in July, according to the latest data from WorldACD.
     
    While the country has seen air freight exports grow in double-digit figures every month this year, in July growth shrank from the H1 average of 19% to just 8%. Import growth, however, remained high, at 21% year on year.
     
    The slowdown has not affected the air cargo market overall, which continues to be buoyant in comparison with recent years. 
     
    High growth from Hong Kong, India, the UK, Singapore and the Netherlands kept the industry healthy. And with several product launches, including a new iPhone expected in coming weeks, it is likely that China could bounce back.  Read more in an article from The Loadstar.


    Ontario Airport, an emerging global gateway
    source: ajot.com
    ONTARIO, Calif - China Airlines’ statement confirms the airport’s status as an emerging global gateway, one with the infrastructure, facilities and services to accommodate the increasing demand for international air travel to Southern California.
     
    “We are grateful for China Airlines’ interest in beginning service to Ontario. Nonstop service to Taoyuan would add to the growing number of international and domestic routes that have made ONT a gateway airport for the Southern California region,” 
    said Alan D. Wapner, president of the Ontario International Airport Authority and Mayor pro Tem of the City of Ontario. Read more here

     
    OCEAN FREIGHT UPDATES
     
    And then there were three: Musical Chairs and Containerships
    source:splash247.com
    This column contains speculation.  I hope that it is speclation based on the principle that, to a certani extent, the past may provide, if not a guide, then at least a greasy handrail on the ladder to the future.  Hardhat and safety boots are recommended. Read more here
     

    Hapag-Lloyd security related surcharges announced for France
    sourc: ajot.com
    We wish to inform you that effective as of sailings of October 1, 2017 and valid until further notice the security-related surcharges for Le Havre, Fos sur Mer and Dunkirk will be as follows:
     
    TSO: EUR 15 / 15 per 20’ / 40’ container
    TSD: EUR 15 / 15 per 20’ / 40’ container
     
    The Ocean Tariff rates as well as Bunker-related surcharges, Peak Season surcharges (if applicable) and Terminal Handling Charges (THCs) remain unchanged respectively as announced and can be found here.
     
    Other local charges and contingency surcharges may apply.
     

    CANADA BUSINESS - GOVERNMENT UPDATES

    CIFFA Asks CN for Immediate Action Regarding Delays and Congestion at Toronto Terminals
    source: CIFFA
    CIFFA sent a letter to CN on September 1 requesting their immediate action to address delays and congestion at Toronto terminals.
     
    If the delays cannot be improved immediately, CIFFA has urged CN to take immediate action to reduce the financial burden to dray operators and their customers.
     
    In the letter, CIFFA noted that, after months of long wait times to get in at the gate and long delays in service once in the gate, the drayage community and the customers they serve are reaching the end of their ability to cope. These delays and 
    increasingly poor service have existed since late 2016 and have not been adequately addressed by CN. 
     
    CIFFA suggested some of the following actions might help address the issues:
     
    • CN could begin monitoring wait time outside its gates to implement a program whereby CN pays the trucking company for wait time after a reasonable wait -- perhaps after 30 to 45 minutes. The wait-time payment would be at a rate that would reasonably compensate drivers for their time.
    • CN could monitor service time from in-gate to exit. After a reasonable service allowance -- for example after 90 minutes -- 
    • CN pays the trucking company a wait-time payment that would reasonably compensate drivers for their time.
    • CN must immediately change its storage policy at Toronto terminals. It is CN's inability to serve its customers that has created the situation. Lack of fluidity is not, in this case, the fault or responsibility of the shipping community -- it is the fault of CN. In this situation, storage should apply only after a reasonable time, perhaps after 48 hours.  
       
    We ask that, for this long weekend and every weekend until fluidity returns to its terminals, CN gives free time for Saturdays, Sundays and statutory holidays, beginning the storage timer only after the free time and the weekend days have expired.
     
    With the long wait times to in-gate at its terminals, CN should not charge storage to dray operators who have been waiting to in-gate for several hours and so have missed their reservation window and have incurred storage through no fault of their own. This consideration should be back-dated at least until the beginning of August, when delays at the gates became unreasonable. 


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Mumbai supply chains still tangled after worst rain for a decade
    source: theloadstar.co.uk
    Flood waters in Mumbai are reportedly receding, but delays plague the airport and sea terminals as another global supply chain hub succumbs to incremental weather.
    Reporting its heaviest rainfall in more than a decade, India’s second-largest city joins Hong Kong and Houston, both hit by severe storms in the last week.  Read more here
     
     
    Florida and Carribean on alert for Hurricane Irma
    source: splash247.com
    With Tropical Storm Harvey now spent afer causing havoc in Texas and Lousiana, a new storm is looming that could affect Florida and parts of the north Caribbean, posing threats to ports, shipping and offshore oil rigs.  Read more here.  
     
     
    Gasoline Falls as Refineries Shut by Harvey Prepare to Reopen
    source: ajot.com
    Gasoline prices fell for the first time in almost two weeks, after rising 25 percent last month, as traders assessed the impact of Tropical Storm Harvey.
    Motor fuel prices slipped 1.8 percent on Friday amid signs some Gulf refineries are preparing to restart operations. Crude in New York declined 0.2 percent. About 4.4 million barrels a day of U.S. refining capacity remains shuttered. Read more here

    Minimize
  • 1 September 2017

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    AIR FREIGHT UPDATES

     

    Air China sees air cargo traffic rise on international demand
    source: aircargonews.net
    Air China registered a 6.2% year-on-year improvement in revenue freight tonne kms (RFTKs) during the first half of the year thanks to its international routes.
    The Chinese flag carrier handled 6.4bn RFTK during the first half of the year, while capacity increased by the lower amount of 1.9%.  Read more here.
     
     
    An open letter to IATA: 'Lies, damned lies and loadfactor statistics'
    source: theloadstar.co.uk
    Dear IATA,
    In your recently published Annual Review there is a small, but disturbing, graph that shows how global passenger and cargo loadfactors developed between 2000 and 2016. While the passenger loadfactor increased from around 70% to close to 80%, the cargo loadfactor moved sideways between 45% and 50%. Read more here (login required).


    Asian air freight export volumes surge
    source: lloydsloadinglist.com
    Air freight demand growth continues to surpass expectations, suggesting the buoyancy of markets will continue throughout the remainder of the third quarter (Q3), according to the latest monthly figures from Asia.
     
    The Association of Asia Pacific Airlines (AAPA) reported that the region’s airlines saw international air cargo demand surge 10.9% in July, supported by new business orders from developed economies, particularly in Europe.
     
    The average international freight load factor recorded by the region’s carriers of 66% was 3.8 percentage points higher than the same month last year, after accounting for a 4.4% expansion in offered freight capacity.
     
    Load factor improvements are also now being reflected in higher air freight rates. Drewry’s East-West Airfreight Price Index increased 1.9%, month on month, in July and is now almost 1.5% higher than a year earlier.
     
    “In anticipation of a strong peak season, several forwarders have upped their capacity allocations out of Asia and have lined up charter capacity, said the analyst’s Sea & Air Shipper Insight. Drewry expected air freight rates to show further increases for August. [Excerpted from loydsloadinglist.com]
     

     
    OCEAN FREIGHT UPDATES
     
     
    Mumbai supply chains still tangled after worst rain for a decade
    source: theloadstar.co.uk
    Flood waters in Mumbai are reportedly receding, but delays plague the airport and sea terminals as another global supply chain hub succumbs to incremental weather.
    Reporting its heaviest rainfall in more than a decade, India’s second-largest city joins Hong Kong and Houston, both hit by severe storms in the last week. Read more here (login required). 
     
     
    Peak season demand reduces laid-up container tonnage to two-year low
    source:theloadstar.co.uk
    Ocean carriers have raided the idle containerships fleet to bolster their peak season offerings, reducing the cellular capacity of vessels in lay-up to a two-year low.
    According to Alphaliner data, capacity in hot or cold lay-up has fallen sharply in past weeks: by 94,000 teu in 14 days to 151 ships for a capacity of 377,925 teu as recorded on 21 August.  Read more here (login required). 
     
     
    Cosco argues OOCL bid is not overpriced
    source: splash247.com
    The $6.3bn Cosco Shipping has bid to take over Orient Overseas Container Line (OOCL) and the assests of its parent are not over the top, a senior Cosco official argues on Thursday. Read more here.
     
     
    Carriers prepare for the slack season by blanking Asia-Europe sailings
    source: theloadstar.co.uk
    The Ocean Alliance is to cancel four Asia-Europe voyages early next month – two North Europe loops and two Mediterranean loops – as the peak season ends. 
    The lines concerned, OOCL, CMA CGM, Cosco and Evergreen, said the blanked sailings were in response to “expected weak demand” after the China National Day “Golden Week” holiday from 1-8 October.  Read more here. (login required)  
     
     
    Schedule reliability: does it matter anymore?
    source: theloadstar.co.uk
    According to discussions with The Loadstar recently, many shippers appear to have lost some interest in carrier schedule reliability.
     
    Perhaps it has something to do with the Hanjin bankruptcy and the wave of mergers and acquisitions in the liner industry over the past two years that has distracted shippers from keeping tabs on schedule integrity.  Read more here. (login required) 
     

    CANADA BUSINESS - GOVERNMENT UPDATES

    Foreign Trade Zone Point Created in the Québec City Metropolitan Area
    source: CIFFA
    A new Foreign Trade Zone (FTZ) point has been created in the Quebec City area. The FTZ point will promote the Quebec City metropolitan area as a hub for international trade, leveraging its location in North America, direct access to the United States and solid manufacturing base to attract new investors.
    Learn about FTZ points on the Department of Finance FTZ information page.  


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Spoiling for a fight: combative mood in Mexico for Round 2 of NAFTA talks
    source: canadianshipper.com
    Mexico City, Mexico – A second round of NAFTA negotiations gets underway Friday in a country that has long served as Donald Trump’s political whipping boy. Increasingly, there are indications Mexico is willing to whip back.  Read more here.

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  • 31 August 2017

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    Chicago opens second phase of cargo expansion ahead of schedule
    source: shippingazette.com
    CHICAGO's O'Hare International Airport has officially opened the second phase of its US$220 million Northeast Cargo (NEC) development.
     
    The second phase of the project opened ahead of schedule in "direct response to the strong demand for moving air cargo through Chicago," said a spokesperson for the mayor city. Read more here
     

     
    OCEAN FREIGHT UPDATES
     
    Shippers up in arms a boxes are rolled over and GRIs rain on the transpacific
    source: splash247.com
    With peak season onb the transpacific container trade enjoying volumes not seen for many years, s hippers are getting anxious about liners enforcing massive general rate increases (GRIs), especially as evidence emerges that some boxes are being rolled over at ports in Asia.  Read more here. 
     
     
    Line landscape radically changed but still vulnerable one year on from Hanjin's collapse
    source: splash247.com
    Today marks the one-year anniversary since South Korea's flagship carrier Hanjin Shipping sought court protection, sparking global supply chain chaos and ultimately the largest container shipping casualty to date. A year on the question remains whether liner shipping has learned its lesson from such a high profile bankruptcy?  Read more here
     
     
    Shipping lines weigh options as Harvey disrupts cargo chain
    source: splash247.com
    Shipping lines are scrambling to reroute cargo in response to the upheaval to supply chains caused by Tropical Storm Harvey in Texas, according to Fox and Dow Jones.
    With several US Golf of Mexico seaports- including the key Houston hub - closed and land-based transportation systems disrupted, shipping lines are weighing their options. Read more here
     
     
    Container throughput at the NY/NJ port increases by 8pc in July
    source: shippingazette.com
    THE North Atlantic Port of New York and New Jersey (NY/NJ) handled a total of 576,947 TEU in July 2017, an 8.4 per cent increase from the same month a year ago, according to figures released by the port authority.
     
    Of the total volume, 291,760 TEU were loaded imports and 112,694 TEU were loaded exports. Compared to July 2016: Loaded imports rose 6 per cent to 291,760 TEU; loaded exports rose 3.2 per cent to 112,694 TEU; empty imports rose 2.2 per cent to 1,473 TEU; and empty exports rose 16.8 per cent to 171,020 TEU.  Read more here
     

    CANADA BUSINESS - GOVERNMENT UPDATES

    Household spending, exports drive economy past expectations with 4.5% growth
    source: timescolonist.com
    Ottawa, ON – The economy surged past second-quarter expectations with growth at an annual rate of 4.5 per cent, giving the country its best start to a calendar year since 2002, Statistics Canada said Thursday.
     
    Household spending and exports, particularly in the form of energy products, drove the increase in real gross domestic product, the agency said.  Read more here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Mexico and China to Take Trade Talks Deeper as NAFTA Fate Dangles
    source: sourcingjournalonline.com
    China and Mexico said in July that they were interested in developing a closer trade relationship, and now leaders from the two nations will meet next week with talks potentially leading to a free trade deal.
     
    The goal for Mexico? To decrease its dependence on the North American Free Trade Agreement, which is currently under renegotiation, and according to President Trump, the outlook for the deal doesn’t look good. Read more here (login required). 

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  • 30 August 2017

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    Mumbai Hit by Heavy Rains
    Mumbai is slowly limping back to normal a day after heavy rain battered the city. The rainfall recorded in Mumbai yesterday is said to be the heaviest in 12 years, recording almost 300 millimeters in some locations. Today, several roads have been cleared for traffic and water has receded from some public areas. Local trains are also running, though most of them are behind schedule. The weather office has, however, forecast more rain in Mumbai today. The India Meteorological Department and the Union Water Ministry have also issued an advisory on "very heavy rainfall" over the next three days in parts of 12 states, including Madhya Pradesh and Maharashtra. The rain on Tuesday, 30 times the average, had brought Mumbai to standstill on Tuesday with water flooding low lying areas. Thousands waded through waist-deep water, abandoning cars to walk.
      
    Only skeleton staff available at some CFS at JNPT.  At Air Cargo Complex, no Customs staff on duty yet and possibility of they coming is very low.  The cleaning of the export shed area is underway which was  flooded yesterday.  Since Govt of Maharashtra has declared Public Holiday for Mumbai today, most of the offices will remain closed.
     
    The State Disaster Management Authority has said rain in Mumbai is likely to be lesser today. "The India Meteorological Department has predicted heavy rainfall for today. However, it is likely to be lesser compared to yesterday," a senior SDMA official said. "Also, there is much lesser congestion expected as the government has already announced that schools and offices will remain shut today," he added.

    Refer to article form the Times of India.


    Typhoon Hato making waves in the east
    source: theloadstar.co.uk
    Hurricane Harvey may have dominated recent headlines – including our own today – but for supply chain managers, Typhoon Hato, which battered Hong Kong and Southern China last week may have the longer-lasting impact. Ignoring that this report from Supply Chain Dive may seem a bit dated – Hurricane Harvey had yet to it when it was published – the insight it gives on the effect of Hato is fascinating and a reminder of supply chain fragility. Read more here (login required) 
     
     
    Zim sails back into the black
    source: theloadstar.co.uk
    Another day, another ocean carrier that has turned the corner from loss to profit in Q2.
    In the case of niche container line Zim, unlike rival Hapag-Lloyd, it was also in the black for the half-year.  Read more here
     
     
    Port of Prince Rupert completes Fairview Terminal expansion
    source: canadianshipper.com
    Prince Rupert, BC — Port of Prince Rupert can now accommodate the largest container vessels in the world, following DP World’s expansion of its Fairview Container Terminal that increases the Port’s container-handling capacity to 1.35 million TEUs annually.
     
    The conclusion of the two-year “Phase 2 North” expansion project was celebrated today by shippers, supply chain partners, local labour and First Nations and community leaders with a ribbon cutting and community open house attended by thousands.  Read more here.
     

     
    GROUND AND RAIL FREIGHT UPDATES
     
    CN: Port of Prince Rupert container terminal a model of supply chain collaboration
    source: ajot.com
    PRINCE RUPERT, BC - CN (TSX: CNR) (NYSE: CNI) today joined its supply chain partners, the Port of Prince Rupert and DP World, in marking the 10th anniversary of the Fairview Container Terminal and celebrating the facility’s expansion.   Read more here.
     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Attacks on Supply Chains Up by 16% as Terrorists Target Business Weak Spots
    source: CIFFA
    The British Standard Institute (BSI) reports a spike in terrorist incidents in the global supply chain last year. According to the study, there was a total of 346 attacks in 2016, a rise of 16% on the previous year.
     
    Reports describe cargo theft, extortion, hijacking, kidnapping and smuggling, as well as more violent attacks. These incidents have affected 58 countries.
     
    The institute also noted that cargo itself is increasingly becoming a target, with incidents such as arson, assault and bombings on the rise.  
     
    Read more in an article from Forbes.

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  • 29 August 2017

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    Qatar Airways CEO to Chair IATA Board
    source: airwise.com
    Qatar Airways Group chief executive Akbar Al Baker has been elected chairman of IATA’s Board of Governors.
    Al Baker’s term will start in June 2018 when he replaces Singapore Airlines’ chief executive Goh Choon Phong at the global industry body.  Read more here.  


    OCEAN FREIGHT UPDATES

     

    Cosco still on the acquisition trail, with a $900m war chest
    source:theloadstar.co.uk
    Having tabled a $6.3bn bid for OOCL, it seems Cosco has not ended its shopping spree. Splash 24/7 reports that senior management at the Chinese shipping line is “studying” merger and acquisition opportunities amid a revival in the sector. And the carrier’s managing director, Liu Gang, claims Cosco has cash reserves in the region of $973m that it will use towards these purchases. Read more here (login required)
     
     
    Mid-sized tonnage being squeezed ot of the future container fleet
    soure: splash247.com
    The future global containership fleet will have little by way of mid-sized tonnage, according to a new report by brokers Braemar ACM.  
    "The container ship orderbook is gradually becoming a feeder ship and ultra-large container ship oderbook, with little mid-sized containers ship investment," Braemar ACM noted in a quarterly review of the container trades. Read more here
     
     
    MOL joins blockchain consortium
    source: splash247.com
    Japan's Mitsui O.S.K. Lines (MOL) has annouced it will participate in a Japanese consortium to develop a trade data sharing platform using blockchain technology.
    The consortium is comprised of 14 trade-related companies such as banking, insurance, total logistics providers and export/import companies.  Read more here.  
     

     
    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Airport Operations In Mumbai Resume, Sea-Link Open: 10 Points
    source: ndtv.com
    Mumbai is bracing for what weather officials believe could be the heaviest and longest bout of rain since July 26, 2005, when the city was paralysed by floods.
    Mumbai's residents have been advised to stay home as the city is lashed by what the weatherman says could be the heaviest and longest bout of rain in 12 years. There is thigh-high water in many parts of the city, vehicles are half submerged, with people abandoning cars to walk. Trains and flights have been delayed.  Read more here
     
     
    Freight Companies Scramble to Reroute Goods in Wake of Harvey
    source: CIFFA
    Trucking fleets, railroads and shipping lines are rerouting cargo and setting up alternate supply lines as Tropical Storm Harvey promises to disrupt freight traffic across southeast Texas for days.
     
    Seaports in Houston and Corpus Christi have been closed to most ships since before Harvey made landfall Friday, and rising waters from days of heavy rains and catastrophic flooding are threatening long stretches of highways and railroad tracks, bringing freight transportation in a major American hub to a virtual standstill.
     
    The number of Houston-area trucking runs requested plunged 80% Sunday, according to the most recent data from DAT Solutions, an online load board. Union Pacific Corp. has halted all freight rail traffic bound for Houston and surrounding areas, while United Parcel Service Inc. has suspended freight service in Houston and Beaumont, Texas, and is offering limited service as far west as San Antonio. Two Maersk Line container ships remain anchored in the Gulf of Mexico, joining oil tankers and cruise ships waiting for Houston's port to reopen.
     
    The gridlock will likely reverberate beyond Texas, threatening to snarl international trade routes. Houston is a key consolidation point for imports of vehicles and appliances made in Mexico, and stores as far away as Denver bring in foreign-made goods via the city's port.
     
    Read more in an article from The Wall Street Journal.  
     
     
    Will cyber hacking continue to plague transportation?
    source: ajot.com
    Maersk’s recent attack left a black mark on the reliability of global documentation. Working through the backlog of issues, the mega carrier admitted this attack took its toll not only on container operations but on customer confidence. If a transport giant like A.P. Moller could be hit with the Petya virus, what are the chances that your data can remain secure?
    Read more here

    Minimize
  • 28 August 2017

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    CIFFA Writes to GTAA Requesting Action to Reduce Impacts of Strike
    source: CIFFA
    "As we face the fourth week of the strike by Teamsters Local 419 against Swissport at Toronto's Pearson Airport, several members of the Canadian International Freight Forwarders Association (CIFFA) have requested that we write to you expressing their concern about the delays and costs associated with the strike and asking the GTAA to take immediate action to improve the movement of goods at the airport."
    Click here to read the full letter. 

    OCEAN FREIGHT UPDATES

     

    Hurricane Harvey impact to the port fully transitioned to post storm recovery
    source:ajot.com
    Corpus Christi, TX, USA – In response to the impacts of Hurricane Harvey, the Port of Corpus Christi Authority (PCCA) has now fully transitioned to Post Storm Recovery in accordance with the Port Hurricane Readiness Plan.
    Port personnel are continuing to assess hurricane impacts with initial assessments indicating light to moderate damage and debris.  Read more here
     
     
    DP World predicts higher volumes for 2017 after first half growth
    source: americanshipper.com
    Dubai-based port terminal operator DP World handled 33.9 million TEUs during the first half of 2017, an increase of 7.7 percent compared to gross throughput during the same period last year, according to recent data from the company.
    On a reported basis, profit attributable to owners of the company, before separately disclosed items, stood at $606 million, while earnings per share totalled $0.73 for the first half of 2017. Read more here
     
     
    Demurrage Fees are Doubled at Chittagong Port to Ease Congestion
    source: shippingazette.com
    The penalty for leaving containers in yards past free time at Bangladesh's Chittagong Port has been doubled to US$12 per TEU per day and $24 per FEU, in a bid to ease congestion.
     
    Previously, the Chittagong Port Authority (CPA) allowed importers to store containers free of charge for four days after unloading from a vessel before charging $6 and $12 per TEU and FEU, respectively, and after seven days in storage the rate doubled, reported IHS Media.
     
    The country's prime sea port is reeling from the lack of adequate space compared with its growth, leading to congestion throughout the port area. It now can store a total of 36,357 TEU, of which 26,857 TEU are import containers, 4,000 TEU are export containers, and 5,500 TEU are empty containers.
     

     
    GROUND AND RAIL FREIGHT UPDATES

    Rail giant CSX issues new performance metrics as freight customers vote with their feet
    source: theloadstar.co.uk
    CSX has updated its performance metrics – including the key criteria of train velocity, terminal dwell time and cars on-line.
     
    According to the rail giant’s management, the new measures “better reflect end-to-end railroad performance” and show where opportunities for time saving exist.  Read more here (login required). 

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Trump’s America First Version of the U.S. Home Comes at a Cost
    source: ajot.com
    Last year, Jim Brown and other home builders around Atlanta could get a good framing crew at a rate of $3.25 per square foot. This year, the few framers they can find demand, and get, almost double that.
     
    “They can ask anything,” Brown said. “There aren’t enough of them left.”
     
    A high-end home builder who supported President Donald Trump last year, Brown said the president’s immigration policies have dried up the already stretched supply of Hispanic-dominated framing labor.  Read more here.

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  • 24 August 2017

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    Air freight rates continue to climb, with a strong peak season on the radar
    source: theloadstar.co.uk
    Air freight rates are continuing their climb, with the sector enjoying back-to-back monthly increases and year-on-year growth.
    In Drewry’s latest East-West Airfreight Price Index, rates were up 1.9% in July, compared with June, and up around 1.5% against July 2016. Read more here (login required).
     
     
    Hong Kong air cargo operations returning to normal after typhoon strikes
    source: aircargonews.net
    Cargo operations at Hong Kong International Airport (HKIA) are returning to normal this morning after typhoon Hato battered the region, leaving 12 dead.
    The typhoon struck Hong Kong yesterday morning, causing several airlines to cancel freighter flights from HKIA.  Read more here
     
     
    Cargo expansion at Chicago Airport just in time to buffer peak impact
    source: theloadstar.co.uk
    Chicago O’Hare airport (ORD) has added capacity in its cargo area – with impeccable timing.
    The second phase of the airport’s expansion of its cargo section is coming onstream just as freight volumes are building for a strong peak season.  Read more here (login required).  
     

     
    OCEAN FREIGHT UPDATES

    OOCL takes delivery of 21,000 TEU+ capacity box ship
    source: lloydsloadinglist.com
    OOCL has taken delivery of its second new 21,000+ TEU capacity container ship.
    The OOCL Germany, a 21,413 TEU newbuilding constructed by Samsung Heavy Industries shipyard on Geoje Island in South Korea, is the second of six 21,000 TEU class vessels on order at the shipyard.  Read more here (login required). 
     
     
    DP World gains ground as H1 investments and acquisitions bear fruit
    source: theloadststar.co.uk
    DP World has continued to gain ground on its competitors, announcing growth in revenues, earnings and volumes over the six months to June.
    Revenues for the Dubai-based port operator climbed 9.6%, year on year, to $2.3bn, thanks in large part to a 7.7% increase in volumes (up to 34m teu).  Read more here. 

     
    When the huge 'goodie-bags' arrive, will the party be over for ocean carriers?
    source: theloadstar.co.uk
    At least two Asia and Europe loops will need to be closed in the fourth quarter of the year, or sailings blanked, to avoid the prospect of excess capacity throwing supply and demand out of kilter.
    According to new SeaIntel analysis, a capacity increase of 11.5% by the three east-west alliances between H2 2017 and H2018 will result in a weekly excess of some 28,300 slots between October and December this year – a change in fundamentals that will spark fears of a new rate ...  Read more here (login required)  

     
    Carriers will need to cut Asia-Europe services as deluge of new tonnage arrives
    source: splash247.com
    Seaintel data shows that the coming 12 months will see an 11.5% capacity injection on the Asia-Europe tradelane, giving rise to a need for each alliance to close on service.
    Comparing the second half of 2019 with today, 2M will only experience a 3.2% growth in deployed capacity, whereas THE Alliance will experience a growth of 11.9% in their deployed capacity and Ocean Alliance will see a significantly higher capacity increase of 24.6%.  Read more here.
     
     
    APL introduces new Asia Latin America Express 3 service
    source: ajot.com
    SINGAPORE - APL today announced the addition of a new weekly Asia Latin America Express 3 (AE3-AW3) service that is now connecting China, Hong Kong, Taiwan and other key Asian markets to Mexico and the West Coast South America. Read more here

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  • 23 August 2017

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    Cargo operations disrupted as typhoon strikes Hong Kong
    aircargonews.net
    Cargo operations from Hong Kong International Airport (HKIA) have been severely disrupted as Typhoon Hato batters the region.
     
    In a notice to customers, Cathay Pacific said that the majority of flight services into and out of Hong Kong between 6am and 5pm (Hong Kong time) have been cancelled.  Read more here.
     

    Airfreight prices jump in July, but rate of improvement narrows
    source: aircargonews.com
    Airfreight rates climbed again in July as volumes continue to soar and forwarders anticipate a strong peak season, but the rate of growth has narrowed.
    The latest Sea and Air Shipper Insight report from consultant Drewry shows that the average all-in buy rate across 28 major east-west lanes reached $2.64 per kg*, an increase of 1.5% against last year.  Read more here
     

     
    OCEAN FREIGHT UPDATES

    China-built ships for Chinese goods
    theloadstar.co.uk
    Confirmation came yesterday that CMA CGM is to order nine 22,000 teu ultra-large container vessels (ULCVs) at a total cost of $1.44bn – new tonnage the industry says is not needed.
     
    The letter of intent has been signed by the French carrier with two Chinese yards, Hudong-Zhonghua and Shanghai Waigaoqiaso Shipbuilding, marking another blow to the sustainability of South Korean yards. According to sources, South Korea’s Hyundai Heavy Industries competed for the deal, but was outbid. Read more here. (Login required )
     
     
    MOL Liner announces June 2017 KPI results for Americas region
    source:ajot.com 
    HONG KONG – MOL Liner Ltd. announces the June 2017 results of Regional Key Performance Indicators (KPI) in the Americas in the following categories: customer service, and electronic data interchange (EDI). The results are available on a monthly basis and posted in greater detail at www.CountOnMOL.com. The results of the Shipment Management Center Customer Commitments are included.  Read more here. (Login required).


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Freight forwarders want more detail on post-Brexit Customs proposal
    aircargonews.net
    UK freight forwarders would like to see more detail on the government's post-Brexit trade and customs arrangements.
     
    Earlier today, the government issued a position paper suggesting that the UK could ask Brussels to establish a “temporary customs union” after it leaves the EU in March 2019. Read more here.
     
     
    One week into negotiations, Trump says he’ll ‘probably’ cancel NAFTA
    canadianshipper.com
    Washington, DC – Donald Trump has threatened to blow up NAFTA less than one week into the renegotiation of the trade agreement, providing an early indication that the upcoming talks might occur under a cloud of menace.  Read more here.

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  • 22 August 2017

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    United calls for increased collaboration to build on good first half for air cargo
    source: theloadstar.co.uk
    United Cargo is calling for increased, industry-wide collaboration to help governments and regulators recognise the importance of air cargo and solve the issues restricting the sector’s growth.
     
    The comments come as the industry gears up for what is expected to be a strong peak period following the best six months air cargo has had in seven years.  Read more here.
     

     
    OCEAN FREIGHT UPDATES

    Exchange Promises A Digital Solution to No-Show Bookings and Rolled Containers
    source: theloadstar.co.uk
    The New York Shipping Exchange (NYSHEX) has announced the completion of a $13m Series A round of funding as it continues its quest for digital enforceable contracts in the container liner industry.
     
    NYSHEX is working with Hapag-Lloyd, CMA CGM, MOL and OOCL on building a “comprehensive exchange”, with the German and French carriers having joined the investment round. Read more here
     
     
    Transpacific ocean spot rates forecast to strengthen
    source: lloydsloadinglist.com
    Asia-US ocean spot rates are set to rise this week but Asia-Europe prices are forecast to soften having been largely stable last week, according to the World Container Index (WCI) assessed by Drewry.
     
    “Loadings to Europe from Asia are soft in August, and as such, the GRIs lost traction this month,” said the analyst in its latest weekly freight rate assessments report.  Read more here
     
     
    Record volumes through Philippine ports and no return of congestion
    source: theloadstar.co.uk
    First half results indicate a potential banner year for Philippine container trades, with volumes up double-digits and no sign of a return to port congestion in Manila.
     
    Last month, Philippine Ports Authority (PPA) said it would need to revisit its cargo volume forecasts for 2017 following strong growth in imports and a resilient domestic market. From January to May, container throughput at the country’s ports reached 2.9m teu, up 14% year-on-year.  Read more here.  
     
     
    OOCL celebrates arrival of sister to the world's biggest containership
    source: theloadstar.co.uk
    Following repeated denials of takeover talks with Chinese carrier rival Cosco, Orient Overseas International (OOIL) last month finally admitted it was selling to the state-owned firm.
     
    Just weeks before, its container arm OOCL, proudly took the hotly-contested mantle of the ocean carrier operating the biggest (by capacity) container vessel in the industry, as the 21,413 teu OOCL Hong Kong completed its maiden voyage around North Europe.  Read more here
     
     
    Maersk Oil Sold to Total for $7.45bn
    source: splash247.com
    A.P. Moller - Maersk has found a buyer for its oi division. French energy giant Total has swooped for Maresk Oil & Gas in $7.45bn share and debt transaction.
    Under the agreed terms, A.P. Moller - Masersk will receiv a consideration of $4.95bn in Total shares and Total will assume $2.5bn of Maersk Oil's debt. Read more here
     
     
    MSC, Hapag-Lloyd shake up Europe-ECSA trade
    source: americanshipper.com
    Ocean carriers Mediterranean Shipping Co. (MSC) and Hapag-Lloyd are launching a joint service between North Europe and South America’s East Coast, according to the companies.
    The service will commence operations Sept. 27, departing from Rotterdam, the carriers said.  Read more here

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  • 21 August 2017

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    Chicago opens second phase of cargo expansion
    source: aircargonews.com
    Chicago’s O’Hare International Airport has celebrated the official second phase opening of its $220m Northeast Cargo (NEC) development.
     
    City mayor Rahm Emanuel joined the Chicago Department of Aviation (CDA), project developers Aeroterm and cargo executives for the ceremony. Read more here.  
     
     
    Air Berlin loses Etihad's support, pushing carrier into insolvency
    source: shippingazette.com
    DISCOUNT carrier, Air Berlin has filed for insolvency after its main shareholder Etihad Airways withdrew its financial support. However, the German airline said it will continue flying with the help of government loans.
     
    Air Berlin has stacked up EUR2.7 billion (US$3.2 billion) in losses over six years and has a net debt of EUR1.2 billion. 
     
    Etihad acquired a 29 per cent stake in Air Berlin in 2012 as part of a plan to feed more passengers through its Abu Dhabi hub by building a network of minority investments, a strategy that it's now unravelling after suffering losses itself of $1.87 billion in 2016, reported Bloomberg.
     
    Deutsche Lufthansa AG said it may buy parts of Air Berlin, its main national rival. Lufthansa and another unidentified airline are "far advanced" with plans for a partial rescue and a deal could be finalised in coming weeks, Air Berlin and Germany's economic ministry said in separate statements. [Excerpted from shippingazette.com]

     
    OCEAN FREIGHT UPDATES

    UPDATED: Ten Missing After U.S. Warship Collides with Tanker Near Singapore
    source: gcaptain.com
    SINGAPORE (Reuters) – Ten sailors are missing after a U.S. warship collided with an oil tanker east of Singapore before dawn on Monday, tearing a hole beneath the waterline and flooding compartments that include a crew sleeping area, the U.S. Navy said.  Read more here
     
     
    Egypt cuts transit fees through Suez Canal by half
    source: middleeastmonitor.com
    The Egyptian government announced yesterday that transit rates for container vessels in the northern and southern Suez ports will be reduced from between 3 – 50 per cent depending on the number of containers they carry.
    Chairman of the Suez Canal Authority Mohab Mamish announced that this will begin on 1 October.  Read more here
     
     
    BlackRock in discussion to invest in Hyundai Merchant Marine
    source: splash247.com
    BlackRock, the world's largest asset manager, in in discussions to make a sizeable investment into SoutheKorea's Hyundai Merchant Marine (HMM).  The Korea Economic Daily reports today that BlackRock is looking at investing up to KRW1trn ($880m) into South Korea's largest shipping line. Read more here


    GROUND AND RAIL FREIGHT UPDATES
     
    Construction at Brampton Intermodal Terminal
    source: CIFFA
    CN has advised that construction will likely cause service interruptions at the Brampton Terminal on Monday and Tuesday this week.


    CANADIAN BUSINESS - GOVERNMENT UPDATES
     
    Canada orders vessels to reduce speed in Gulf of St Lawrence to save whales
    source: shippingazette.com
    THE Canadian government has ordered that vessels 20 metres long or more to temporarily reduce their speed to a maximum of 10 knots when travelling in the western Gulf of St Lawrence from the Quebec north shore to just north of Prince Edward Island, 
    to prevent further deaths of endangered whales in the area. The move takes immediate effect.
    If they fail to do so, they face a fine of US$19,600. 
    Canadian Minister of Transport Marc Garneau and Minister of Fisheries, Oceans and the Canadian Coast Guard Dominic LeBlanc said in a statement that North Atlantic right whales have been increasingly present in the Gulf of St Lawrence in recent years. They described the recent deaths of several North Atlantic right whales in the gulf as being "extremely concerning". [Excerpted from shippingazette.com]

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  • 18 August 2017

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    OCEAN FREIGHT UPDATES

     

    Nine out of ten US-bound containers are uninsured
    source: loadstar.co.uk
    As marine cargo insurers fret about massive claims they could face from an ULCV casualty, rather than spreading the risk across smaller ships, their exposure may not be quite as much as they fear.
     
    According to this LinkedIn blog by Steve Fodor, director at the US-based Association For Trade Compliance, 90% of US-bound cargo moves without any insurance coverage. Read more here (login required).
     
     
    Maersk results signal a liner recovery as the tide turns for carriers
    source: loadstar.co.uk
    The interim results from Maersk Line this week are a bellwether, indicating a welcome recovery for container lines, but challenging times for shippers.
     
    Maersk Line’s average freight rate for the 5.4m teu carried on its vessels in the second quarter of the year lwas up 22% on the same period of 2016, but for east-west trades in particular, there was a spike of 36%.  Read more here (login required).
     
     
    Nobu Su Lines Up Yet Another Court Case
    source: splash247.com
    Nobu Su, the failed Taiwanese shipowner turned serial maritime inventor, is linimg up yet another court fight.
    Since the dramatic collapse of his firm TMT in the wake of the global financial crisis, Su has become embroiled  in many court cases, notably against former senior management at Royal Bank of Scotland (RBS) as well as miner BHP Billiton and shipbroker Clarkson. Read more here

     
    GROUND AND RAIL FREIGHT UPDATES

     

    CN Rail Works to Improve Service at Toronto's Brampton Intermodal Terminal
    source: CIFFA
    In response to CIFFA's requests over the past few weeks, CN has provided the following update on actions taken to improve carter turn times at Brampton Intermodal Terminal (BIT). As of writing, we have not received any information on other terminals and will advise when other updates are available.
     
    In response to your inquiry on behalf of the forwarder and drayage community. 
     
    We are experiencing solid volumes and we expect this pace through the traditional international import peak season as the Canadian economy continues to perform well. 
     
    CN acknowledges the carter turn times challenges and we apologize for the current Brampton carter time service level. We would like to offer an update on the status on initiatives we first reported mid-June;
    • Additional chassis are being delivered. They will be used to mount domestic business direct to chassis, which will free up lift capacity.
    • One new crane was received and is in service.
    • A second crane has arrived this week. It is under commissioning and will be in operation in the week of August 28.
    • We continue to add new employees; a new recruit training class started last week and another Brampton class is starting on August 21.
    • More classes are scheduled for September 5 and 18. By the end of September, we will have hired close to 40 new employees in two months.
    • Malport is added to function as a satellite domestic terminal, which will draw domestic volumes out of Brampton and free up Brampton capacity for more international throughput capacity.
    • CN will elevate our focus on the carter turn times and follow up with truckers who are waiting in the Brampton Terminal to be served.  
    • CN will reissue terminal map and coach drivers to reduce waiting time related to less-productive positioning of drivers in the terminal.
    • CN will be engaging with the carter community and will continue to engage in connecting with this community throughout the ramp-up of resources.
    With the above initiatives, CN expects to see carter turn times for the import and export trucking community to improve during the fall peak. 
     
     
    CP Rail: Potential Delays Next Week at Vaughan Terminal
    source: CIFFA
    Canadian Pacific has advised that, due to construction, the entrance to the empty depot at Vaughan IMS will be closed from August 21 to August 23, reopening at 0600 on Thursday, August 24.
     
    During this time, all traffic will be required to enter the terminal via the main entrance gates at "A" building. This will likely cause higher volumes through the main gates; as a result, drivers may experience delays.


    CANADIAN BUSINESS - GOVERNMENT UPDATES
     
    Feds contribute to Vancouver Fraser Port Authority project
    source: canadianshipper.com
    Vancouver, BC — The Government of Canada announced a federal contribution of $250,000 to the Vancouver Fraser Port Authority towards a project to assess real-time information on the supply chain performance for all rail cargo moving to and from the Port of Vancouver.  Read more here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    CBP, CBSA Port hours to change along Maine, New Brunswick border
    source: ajot.com
    Houlton, ME – U.S. Customs and Border Protection (CBP) and the Canada Border Services Agency (CBSA) are reminding travelers that the hours of operation at three ports of entry along the Maine/New Brunswick border will be changing this coming weekend. Read more here.
     
     
    U.K. proposes borderless customs procedure post-Brexit
    source: americanshipper.com
    Britain would prefer to eliminate border checks on imports and exports with the European Union after it officially leaves the EU in 2019, according to a report from the Wall Street Journal.
    The U.K. government has proposed a customs arrangement with the European Union (EU) that may eliminate the need for border checks on imports and exports after Brexit, the Wall street Journal reported.  Read more here.

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  • 17 August 2017

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    OCEAN FREIGHT UPDATES

     

    Niche carriers often outperform the top 16 global container lines
    source: lloydloadinglist.com
     
    According to SeaIntel’s latest Spotlight report, the top 16 carriers have both a lower degree of volatility than the niche carriers, and are grouped much closer together. “This consistency in the top 16 carriers can, to a large degree, be explained by their high level of interconnectedness, through alliances, VSAs, and slot charters,” said the report.
     
    “The niche carriers, however, are a completely different story. They in general have greater schedule reliability volatility, and we can see the trend go upward as we move down the rankings, meaning that the smaller niche carriers are more volatile.”
     
    SeaIntel CEO, Alan Murphy said such volatility made choosing a niche carrier over a top 16 carrier potentially risky. “There is the obvious reward of getting higher on-time performance if the right niche carrier is chosen, but there is also the obvious pitfall of extremely poor schedule reliability if the wrong niche carrier is chosen,” he added. [Excerpted from lloydsloadinglist.com]
     
     
    Yang Ming Still Viewed As High Risk Despite Soaring Stock Price
    source: Splash247.com
    Despite an improved showing in the second quarter Yang Ming, Taiwan's second larges containerline, remians high rsik, according to a report out today from Drewry Martitime Financial Research.  Read more here
     
     
    Final Hanjin Boxshp Renamed Maersk Iyo
    source: splash247.com
    It has taken less than a year for all Hanjin Shipping's boxships to be renamed. Two weeks today, will mark the first anniversary since Hanjin Shipping sought court protection becoming one of the most famous shipping bankruptcies in history.  Read more here


    New service between Qatar and Kuwait aims to beat cargo blockade
    source: theloadstar.com
    Qatar’s neighbours may be blockading it but that hasn’t stopped the country’s logistics industry. In fact, further up the Gulf peninsula it seems to have found a new partner, launching its first ever direct container feeder service to Kuwait. The Handy Shipper reports that Qatar-based Milaha will operate the weekly service between Hamad Port and Shuwaikh Port using a 515 teu vessel.   Read more here (login required) 

     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     

    Funding for freight transportation infrastructure needed to keep U.S. economy moving
    source: ajot.com
    Infrastructure is the backbone of developed nations. Our ability to move raw materials and finished products between domestic and world markets is critical to economic success. Right now, the U.S. freight transportation industry is at a crossroads and infrastructure funding is urgently needed to grow our economy. Read more here.

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  • 16 August 2017

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    Leisure Cargo airfreight services not affected by Air Berlin insolvency
    source: aircargonews.com
    Leisure Cargo has moved to assure customers that its airfreight services have not been affected after its parent, Air Berlin, yesterday filed for insolvency.
     
    The company, which is a virtual airline, marketing cargo capacity on 14 low-cost and tourist airlines, said that all flights operated by Air Berlin and Austria-based subsidiary NIKI would continue as planned following support from the Federal German Government. Read more here.  
     
     
    Cargo handler Hactl implements VR training system
    source: aircargonews.com
    Cargo handler Hong Kong Air Cargo Terminals Limited (Hactl) has introduced virtual reality (VR) training so new staff can gain experience before working in the challenging ramp environment.
    Hactl’s COSAC-VR system provides users with an interactive, fully immersive, 360 degree, four-dimensional experience.  Read more here
     

    OCEAN FREIGHT UPDATES
     
    Cyber-attack wiped up to $300m from Maersk's books
    source:splash247.com
    Soren Skou, the CEO of A.P. Moller - Maersk, has for the first time put an approximate dollar figure on the hit in revenues ithe Danish conglomerate suffered in the wake of being hit by the malware Not Petya at the end of June.  Read more here.
     
     
    HMM looks at regular Arctic liner service to Europe
    source: splash247.com
    Busan could get a whole lot closer to Rotterdam if Hyudai Merchant Marine's (HMM) nascent Artctic abmitions gather pace. 
    The Korean flag carrier is looking at creating a regular liner service from Asia to Europe via the artctic, with a trial run earmarked for 2020, according to local news outlet Pulse. Read more here
     
     
    THE Alliance Files Amendment to FMC on Insolvency Protection
    source: CIFFA
    Container line consortium THE Alliance has filed amendments to its Federal Maritime Commission Agreement for a contingency fund designed to protect against the effects of one of the parties experiencing financial distress or an insolvency.
     
    THE Alliance, which comprises Hapag-Lloyd, the three Japanese lines and Yang Ming, has requested an expedited review of the amendment by the FMC to the plan it announced earlier this year that is designed to offer shippers security in the wake of the Hanjin Shipping bankruptcy last year, and allows for THE Alliance to take collective responsibility should any of the partners face a similar situation.
     
    Commissioner William Doyle welcomed the move, saying the Hanjin failure had been a wake-up call for the entire industry, when over $14 billion of cargo was stranded at sea.
     
    Read more in an article from Lloyd's Loading List


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     

    Flood of Cheap Chinese Imports May Hurt India’s Factories
    source: ajot.com 
    A troop standoff along the border with China isn’t the only worry for Indian policy makers.
    The weaker yuan is intensifying a flood of cheap Chinese goods into the country, threatening to hurt India’s struggling factories and blow out its biggest bilateral trade deficit. So authorities should take steps to support domestic companies as well as curb gains in the rupee, said Soumya Kanti Ghosh, chief economic adviser at State Bank of India, the nation’s biggest lender and one of its top currency traders.  Read more here
     
     
    The Most Over-Hyped U.S. Trade Deal Is About to Get a Makeover
    source: ajot.com
    More than 23 years in, and the North American Free Trade Agreement still hasn’t lived up to the hype.
     
    President Bill Clinton pitched it as a jobs engine that would contribute to world peace. One of his opponents in the 1992 election, Ross Perot, predicted it would trigger a “giant sucking sound” as American jobs flowed to Mexico. Unions trashed it. Corporations lionized it.  Read more here.

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  • 15 August 2017

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    New airline and forwarder air cargo program - IFACP - launches in Canada
    source: aircargonews.com
    Freight forwarder association FIATA and airlines' body IATA have launched their long-awaited Air Cargo Program (IFACP) in Canada.
     
    The programme, developed to meet the changing needs of the air cargo industry, will be rolled out globally following the Canadian pilot, and replaces the existing Cargo Agency Program. It will be managed jointly by freight forwarders and airlines as equal partners in the decision-making process. Read more here
     
     
    Heathrow has fastest-ever cargo growth
    source: aircargonews.net
    A 44% surge in American Airlines volumes in July  contributed to a 15.1% rise in cargo at London Heathrow airport in July - the fastest rate ever recorded. The gateway also reported that overall cargo traffic with North America was up 16% while Asian traffic was up 14% on the back of strong growth to China, Hong Kong and Singapore.  Read more here
     

    OCEAN FREIGHT UPDATES
     
    Giant Cosco boxship refloated off Antwerp
    source: splash247.com
    Cosco Shipping's 14,000 TEU containership CSCL Jupiter, which ran aground on the Scheldt Estuary off Bath near Antwerp Port yesterday, has been sucessfully refloated.  
    An initial attempt to refloat the vessel failed yesterday morning, however lat night around 8:30pm a seond attempt was made utilising a dozen tugs and the vessel was refloated a little over 30 minutes later. Read more here.
     
     
    Container consolidation is not over: Maersk's Skou
    source:  splash247.com
    Consolidation within the container space still has a way to go whereby there will be as few as just five global liners a decade from now, the head of AP Moller-Maersk has predicted in an interview with the Financial Times. Soren Skou, speaking ahead of Wednesday's quarterly results, said the wave of merger and acquisition seen in  the past couple of years was not over. Read more here
     
     
    Issuing Shares Helps Loosen the Shipping Finance Conondrum
    source: splash247.com
    While most of the debate in shipping is focused on any recovery of the freight markets, the small world of shippnig finance keeps living one day at a time, one long day after another that is. Freight markets have been moving up and down in the last years, and so have shipping asset prices; however, for ship finance, most of the news has been disheartening for shipowners. Read more here

     
    Bangladesh welcome major port operators for first time as chaos grows
    source: shippingazette.com
    BANGLADESH will open its seaports to global port operators for the first time in the face on chaotic dock operations which threaten the flow of the nation's vital exports upon which the country depends.
    The country's export-import activities are facing severe blow as feeder vessel operators have imposed additional surcharges as congestion in Chittagong mounts.
     
    The country now aims to increase port capacity, according to Chittagong Port Authority (CPA) chairman Rear Admiral M Khaled Iqbal, reports Dhaka's Financial Express. 
     
    Under a new landlord port arrangement, international firms will design, build, finance, operate and maintain new port terminals. The country's biggest port, Chittagong, will withdraw from dock management and become a landlord. 
     
    Chittagong port handles 92 per cent of the country's total import and exports, with cargo worth around US$77 billion annually, said Adm Iqbal. 
    He hopes that engaging globally established firms in the construction, operation and maintenance of new terminals will help reduce the port's turnover period and increase handling capacity. 
     
    Currently a privately owned local firm is involved in the operation of a small container terminal owned by the CPA.
     
    Bangladesh's economic growth has exceeded six per cent over the past several years, and container traffic at CPA has risen in tandem, reaching 2.4 million TEU in 2016. 
    The port's total container handling capacity is 2.64 million TEU per year, which is set to be saturated by 2019 if the increasing trend of container volume continues, according to Mohammad Zafar Alam, an official in administration and planning for CPA. 
     
    Chittagong port witnessed around 16-17 per cent growth in cargo and container handling over for the past few years, but no new terminals have been constructed, resulting in congestion at the port. 
    But dock chaos is serious. Operators have limited the number of their voyages to the port, industry people said.
     
    Feeder vessel operators bound for Chittagong from Australia, Singapore and Colombo ports have imposed additional surcharge following the ongoing congestion in Chittagong port. [Excerpted from shippingazette.com]
     


    GROUND AND RAIL FREIGHT UPDATES

     

    CP launches direct rail transportation service from Vancouver to Detroit
    source: canadianshipper.com
    Calgary, AB — Canadian Pacific Railway announced the launch of the most direct rail transportation service between Vancouver and Detroit, a service that extends CP’s reach and increases optionality and access to key markets for shippers.  Read more here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

     

    Forwarders urge US lawmakers to 'get real' on cargo security
    source:theloadstar.co.uk
    Forwarders are urging US lawmakers to update cargo security legislation to bring key elements of the current regime in line with commercial realities.
    However, vital aspects appear stuck in Washington at the moment, while Congress is mulling an update of another element, the Customs – Trade Partnership Against Terrorism (C-TPAT). Read more here (login required)

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  • 14 August 2017

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    US West Coast port sees record July volumes
    source:lloydsloadinglist.com
    The Port of Long Beach set a new record for container handling in July, offering further evidence that US box imports are surging as the ocean shipping peak season builds momentum.  Read more here
     
     
    HMM becalmed in the red, 'challenged' by high slot costs and low rates
    source: theloadstar.co.uk
    Hyundai Merchant Marine (HMM) handled 46% more containers between April and June this year than last, but its freight rate strategy has kept the South Korean carrier heavily in the red.
    HMM’s revenue was up by 22% to KRW1.24trn on liftings of 986,000 teu, but it appears that the carrier has opted for a business plan of growth over profit, as its trading resulted in a KRW128bn ($112m) loss for the quarter. Read more here (login required). 
     
     
    14,000 teu Cosco containership runs aground off Antwerp
    source: splash247.com
    Cosco Shipping's 14,000 teu containership CSCL Jupiter has run aground on the Scheldt Estuary off Bath while en rout from Antwerp to Hamburg this morning.
    Initial attempt to refloat the vessel failed and a a second attempt can only be made around 8pm this evening. Read more here
     
     
    Containerships to pay less under new toll structure for Panama Canal
    source:shippingazette.com
    AMENDMENTS to the Panama Canal tolls structure could enable containerships to pay less, while LNG and LPG carriers pay more.
     
    The new structure, which has been approved by Panama's government, is scheduled to start on October 1. It comes in response to a recommendation from the Panama Canal Authority (ACP) board of directors aimed at safeguarding the competitiveness of the waterway.  Read more here
     
     
    Over a Year On, How is the Weighing of Export Freight Containers Progressing?
    source: CIFFA
    Over a year ago, we saw the introduction of compulsory declarations of gross weight for export containers, a ruling that is truly global, having received full implementation under the auspices of the International Maritime Organization (IMO) with the ratification of the extension of the Safety of Life at Sea (SOLAS) regulations.
     
    The regulations were put in place because of the accidents that all too often occur when container weights are misdeclared. 
     
    The stacking of one box on top of another is something that ships master's particularly have to ensure is done in a rational way; the wrong information on the manifest can lead to a fatal imbalance or the collapse of a stack.
     
    So, more than a year on, what is the global situation? Regrettably, the answer may be "passable" but certainly not great. Read more in an article from the Handy Shipping Guide.
     
     
    Deltaport Starting Construction on August 21 on Container Truck Staging Facility 
    source: CIFFA
    The first phase of construction for the Deltaport truck staging facility starts the week of August 21.
     
    The facility is designed to address long-standing road safety concerns by alleviating traffic congestion when port-destined container truck queues reach more than 15 container trucks in length along the Deltaport Way causeway, which can occur when trucks arrive early for their reservations, or when there is a closure at Deltaport container terminal.
     
    The facility will have the capacity to accommodate up to 140 port-destined container trucks, including early arrivals, and will include a secure vehicle access gate requiring a valid Port Pass, a Commercial Vehicle Safety and Enforcement (CVSE) area for truck safety inspections, a new highway exit ramp to facilitate access from Highway 17 and an additional road entrance ramp to allow traffic access onto Deltaport Way. The Vancouver Fraser Port Authority will operate the staging area.
     
    The project is part of the Deltaport Terminal, Road and Rail Improvement Project (DTRRIP), and is a joint partnership with the Government of Canada (Transport Canada), the British Columbia Ministry of Transportation and Infrastructure, and the Vancouver Fraser Port Authority.
     

    GROUND AND RAIL FREIGHT UPDATES
     
    Drayage Carriers Concerned About Dwell Times at Rail Terminals and Impacts on Drivers
    source: CIFFA
    Drayage Carriers Concerned About Dwell Times at Rail Terminals and Impacts on Drivers
    Over the past several weeks, freight forwarding members and associate member drayage operators have contacted CIFFA, raising concerns about increased delays in service at rail terminals in Montreal and Toronto. Several members have documented instances of long wait times, more recently at Toronto rail facilities.
     
    While they are aware that volumes have been spiking of late at rail terminals with an early and strong peak season, drayage carriers have approached CIFFA, asking the association to inform freight forwarders and their customers that carters/drayage operators are experiencing unusually long dwell times at all rail terminals. The situation is exacerbated by longer than normal wait times to get in at the gate during busy times of the day and much longer than usual time to be served once in the gate.
     
    Cartage companies are asking the rail carriers to provide more information and communication about turn times that reflects not just the 24/7 average turn times but also what is happening during peak periods during the day. For example, if carters know in advance that lifting equipment is dedicated to building trains during certain hours of the day, they will not dispatch drivers to the terminals during those hours. Or, as everyone knows, drivers line up at rail terminals to pull containers in the hours before storage begins - and, although CN did change the time for storage to begin from 07:00 to 09:00 (see eBulletin June 16th), the impacts of that change on wait time have not been measured.

    Some drayage operators have told 
    CIFFA they plan to start monitoring the time it is taking them to wait in line, when they in-gate and when they out-gate, in order to prove wait times on a case-by-case basis at this point. Drivers are rightly concerned about longer wait times and their economic impacts. 
     
    CIFFA has asked both CN and CP for updates on the situation in Toronto and for any additional actions they may be able to undertake to alleviate the congestion and improve efficiency during this very busy period. We'll update membership accordingly.  
     
    In the meantime, be aware of congestion at the rail terminals. Be aware of the impacts of drivers waiting. Inform importers and exporters of possible consequences of these delays.
     


    CANADIAN BUSINESS - GOVERNMENT  UPDATES

     

    Port of Montreal shore power project complete
    source: ajot.com
    Montreal - The Montreal Port Authority (MPA) is pleased to announce that its shore power project has been completed and that vessels docking at the Port of Montreal’s new cruise terminal can now be powered by electricity. This two-pronged project is expected to reduce greenhouse gas (GHG) emissions by 2,800 tonnes per year.  Read more here.

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  • 11 August 2017

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    Urgent call for alternatives to large electronic restrictions
    source: payloadasia.com
    The International Air Transport Association (IATA) called on governments to urgently find alternatives to recently announced measures by the United States and the United Kingdom to restrict the carry-on of large electronic items on certain flights departing the Middle East and North Africa.  Read more here
     

    OCEAN FREIGHT UPDATES

     

    Yang Ming stays in the red as THE Alliance fine-tunes its contingency fund
    source: theloadstar.co.uk
    Although troubled Taiwanese ocean carrier Yang Ming managed to improve its financial position in the second quarter of the year, it remains in the red.
    Yang Ming reported revenue of $1.1bn for the period, up 19.6% on the same quarter of 2016, from a 6.8% increase in volume to 1.15m teu.  Read more here (login required).
     
     
    HMM not out of the woods yet with $112m second quarter loss
    source: splash247.com
    While most of its continaer shipping rivals have managed to turn around results for the second quarter, South Korea's Hyundai Merchant Marrine (HMM) remains firmly in the red.
    HMM, whcih went through a severe rewstructuring last year, notched an operating loss of KRW128bn ($112m) in the second quarter throuh to the end of June...read more here
     
     
    Hong Kong secures its shipping hub status with nod to vessel-sharing agreements
    source: theloadstar.co.uk
    However, it declined to issue a similar exemption for vessel-discussion agreements (VDAs).
    The order, announced on Tuesday, follows two years of legal uncertainty for shipping lines after the city’s Competition Ordinance came into effect in 2015.  Read more here (login required).
     
     
    Another Hanjin Debacle Must Not Happen: FMC's Doyle
    source: splash247.com
    Federal Maritime Commissioner William Doyle has issued a statement three weeks prior to the one-ear anniversary of the Hanjin bankruptcy, calling for line alliances to shoulder losses and ensure shipments reach their destinations even in the event of a member going under. Read more here.
     
     
    Port of Los Angeles records busiest July in its history
    source: ajot.com
    SAN PEDRO, Calif. - July container volumes at the nation’s busiest port climbed by 16 percent compared to July 2016 volumes. 796,804 Twenty-Foot Equivalent Units (TEUs) came through the Port of Los Angeles, the busiest July in the port’s 110-year history. Read more here
     
     
    FMC releases statement on THE Alliance proposed amendment
    source:ajot.com
    Below is a statement from Federal Maritime Commissioner William P. Doyle. The expected date of notice publication in the Federal Register is Monday, August 14, 2017.
    THE Alliance files an amendment to add further detail to protections in the event of an insolvency.  Read more here
     
     
    Maersk Line levies raft of transpacific rate hikes from September 1 
    source: shippingazette.com
    MAERSK Line, the world's biggest container carrier, has an announced a rate increase on cargo from the Far East to the United States and Canada of US$800 per TEU, $1,000 per FEU, $1,000 per FEU high cube and reefer, and $1,250 more per 45-footer from September 1.
     
    Maersk has also announced a rate increase on cargo from the Middle East bound for the US and Canada of US$400 per TEU, $500 per FEU, $500 per FEU high cube and reefer and $575 per 45-footer from September 1.
     
    Maersk Line will also raise rates United States and Canada to Philippines $250 on reefer cargo (frozen meats) per FEU starting September 1. 
     
    Maersk said the increase applies to all contract rates expiring on August 31.


    INTERNATIONAL BUSINESS - GOVERNMENT  UPDATES

     

    Forwarders struggling to get Bangladesh exports out by air and sea
    source: theloadstar.co.uk
    Forwarders in Bangladesh are struggling to get goods to Europe as air cargo carriers cut capacity in response to new security measures and severe delays continue to plague Chittagong port.  Read more here (login required).

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  • 10 August 2017

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    EU trade agreement creates healthy tailwind for Japan's ONE group
    source: theloadstar.co.uk
    Consultant Lars Green points out in this article that the recent news of a trade deal between Japan and the EU will be great news for ONE, the Japanese shipping lines alliance. EU exports are expected to increase 34% and Japan should see 29% more exports to the EU. While there has been concern that the merger could result in a loss of Japanese customers for the lines, the trade deal makes the cake rather bigger, argues Mr Green.  Read more here.
     
     
    India Port Customs Defy Bill of Lading Agreement
    source: CIFFA
    India's plan to speed up cargo clearances through Jawaharlal Nehru Port (JNPT) has had the unfortunate side effect of challenging the precedent set up by bills of lading. Shipping lines have decried the move as it deviates from existing global procedure and may extend their liability for cargo damage.
     
    The introduction of the Direct Port Delivery (DPD) service was intended to speed up transport to pre-approved clients by delivering containers directly to them at the port itself, rather than to a container freight station (CFS) on the port outskirts, where they would await clearance.
     
    However, problems arose when containers were not cleared by DPD clients within 48 hours of their entry into the port's yard, or entry was not granted by customs (whichever came later). If the DPD client had not indicated its preferred CFS in the shipping documents, container terminal workers were told to move the containers to a CFS designated by customs officials. In some cases, shipping lines allege, containers that were destined for the container yard of a port were being sent to a customs-designated CFS, which violates the bill of lading.
     
    Read more in an article from Fairplay (log-in required, but not a subscription). 
     
     
    Panama officially approves canal toll modifications
    source: americanshipper.com
    The Cabinet Council of the Republic of Panama on Aug. 8 officially approved a proposal to modify the Panama Canal tolls structure, following a recommendation from the Panama Canal Authority (ACP) Board of Directors.  Read more here

    INTERNATIOANL BUSINESS - GOVERNMENT UPDATES

     

    China’s export growth slowed in July as demand from the US and EU faltered.
    source: lloydsloadinglist.com
    Analysts had predicted further gains in the lead up to the ocean shipping peak season but instead export growth in US dollar terms fell to 7.2% year-on-year last month after rising 11.3% in June.
     
    Japanese investment bank Nomura said the result had disappointed expectations - Nomura had a predicted a 10.5% year-on-year surge in July exports and the consensus among analysts was for an 11% year-on-year increase.
     
    The analyst said growth was “mainly weighed on by exports to the US and EU which fell sharply by 10.9 percentage points and 5.0 percentage points, respectively, to 8.9% y-o-y and 10.1% in July”.
     
    Export growth to Japan and some Asian economies improved slightly but Nomura predicted that trade tensions between the US and China “may escalate due to geopolitical issues, putting pressure on China’s export growth in the short term”.[Excerpted from Lloyd's Loading List]
     
     
    Imports set to hit new monthly and annual records as retail sales continue to increase
    source: ajot.com
    WASHINGTON - Boosted by continuing sales growth, August is expected to be the busiest month on record for imports at the nation’s major retail container ports and 2017 is on track to set a new annual high, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates. Read more here
     
     
    TT Talk - Appreciating supply chain cyber risk
    source: ttclub.com
    Few in the international freight supply chain can be unaware of the ‘NotPetya’ cyber event that struck at the end of June 2017. The repercussions should have caused organisations to review every existing assessment of the risk exposures arising from cyber activity. Read more here
     
     
    An issue for upcoming NAFTA talks: Getting Mexicans a pay raise
    source: canadianshipper.com
    Washington, DC – The cost of Mexican labour will be an issue in the renegotiation of the North American Free Trade Agreement, participants acknowledged at an auto-industry conference, touching on one of the key sectors up for discussion.  Read more here.

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  • 9 August 2017

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    Cotton shippers are hit by severe congestion at Port of Chittagong
    source: theshippingazette.com
    THERE are concerns among US cotton exporters that capacity will be insufficient to move their containerised commodities to Bangladesh's textile and apparel factories due to severe congestion at the Port of Chittagong.
    In response to the congestion that has been mounting for weeks, the port authority has introduced tighter limits on the time ships can stay in port.

    Bangladesh cotton importers said they have been advised of a surcharge of US$150 per TEU because of congestion that is reaching a "critical level" at Chittagong, reported IHS Media.

    "All shipping lines calling Chittagong terminals are heavily impacted, with vessels waiting an additional seven to ten days on average above the normal berth wait times," a said a notice from ANL.

    Unlike Vietnam and China, whose ports are called by numerous weekly mainline services from the US east and west coasts, Bangladesh is served mainly by feeders.
    Bangladesh Textile Mills Association secretary Monsoor Ahmed said, "If the present situation continues, cotton prices may go up and the problem may turn worst."  

    One textile industry executive commented, "Now both our imports and exports are affected due to the severe congestion in the port impacting our competitiveness," he said. "The government should have had looked into the problems at the port much earlier to keep the lifeline of the country's economy unhindered." [Excerpted from The Shippingazette]


    Workers at Jakarta Port End Strike Early, Citing National Interests
    source: CIFFA
    Workers at one of Indonesia's busiest ports ended their strike on Monday, sooner than planned, out of consideration for "national interests", the chairman of the labour union said.
     
    More than 600 workers at PT Jakarta International Container Terminal (JICT) had been on strike since Thursday to demand bonus payments, disrupting operations at the biggest terminal of Jakarta's Tanjung Priok port.
     
    JICT operates the largest container terminal at Tanjung Priok, handling 70 percent of the port's exports and imports.
    The JICT Labour Union had originally planned to extend the action until Aug. 10.  Read more in an article from Reuters.
     

    Guangzhou Introduces Subsidies to Attract Shipping Services
    source: splash247.com
    The Guangzhou government has introduced a new subsidy policy to attract shipping service companies in the city as part of its efforsts to develop as an international shipping centre. Under the new policy, the government will offer up to RM3m in subsidies...read more here. 


    Korean carriers must consolidate further to survive: Alphaliner
    source: splash247.com
    South Koreaa's 14 container carriers coming together on intra-Asia trades will not be enough for them to compete in today's massively consolidated  liner sector, analysts at Alphaliner claimed today.  Just ahead of the first anniversary sine Hanjin Shipping sought bankruptcy protection, South Korea's remaining 14 container carriers last week announced they are teaming up on the intra-Asia trades. Read more here.


    MSC Daniela finally reenters service four months after massive fire
    source: splash247.com
    Eleven weeks after it limped in to dock at a repair yard in Shanghai the fire ravaged 13,800 TEU MSC DAniela boxship finally left today to resume normal service.
    The vessel suffered a fire on April 4 this year in its aft section off Sri Lanka.  The ship continued to smoulder for weeks after the blaze was extinguished. Read more here. 


    GROUND AND RAIL UPDATES

     

    CN conductors in Canada ratify new labour agreement
    Montreal, QC — CN announced that the  Teamsters Canada Rail Conference – Conductors, Trainpersons and Yardpersons (TCRC-CTY) union that represents the company’s conductors and yard crews in Canada has ratified a new collective agreement with the company.  Read more here.

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  • 8 August 2017

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    Pilotless freighters ‘by early 2020s’, says report
    source: aircargonews.com
    Pilotless freighter aircraft could be a reality by the early years of the next decade, considers a report by UBS evidence lab.
    In a report by its aerospace, airline and logistics analysts published on August 7 , it postulated that the first full size pilotless all cargo planes could be flying by the early 2020s. Read more here
     
     
    Kazakhstan to set up all-cargo airline
    source: cargoforwarder.eu
    Air Astana and national rail operator Kazakhstan Temir Zholy (KTZ) are joining forces to create a freight carrier before the end of this year.  Read more here
     

    OCEAN FREIGHT UPDATES
     

    Larger orderbooks to force ocean carriers to pursue increased market share
    source: lloydsloadinglist.com
    The delivery of ultra-large tonnage will force two ocean carriers in particular,  COSCO and Evergreen, to attempt to grow their market share significantly in the coming 18 months, according to  maritime research company, SeaIntel.
     
    “Given that both (carriers) are in the same alliance, we should therefore expect the market dynamics to reflect an Ocean Alliance that will be attempting to assert their power in the main deep-sea trades,” it said.
     
    COSCO and Evergreen have with very large orderbooks. "Unless we see exceptionally high demand growth, charter redelivery will be entirely insufficient to absorb the excess capacity. They will need to either increase their market share or sell existing assets, which will be a very unattractive option, since it will have to be in the very large vessel segment as well.”
     
    Seaintel's CEO, Alan Murphy added: “Even if a positive view of demand is adopted assuming stronger growth on the head haul East-West trades, it is exceedingly unlikely that this is sufficient to match the capacity injection by Ocean Alliance, especially if the new CMA CGM order of nine 22,000 TEU vessels is confirmed.” [Excerpted from lloydsloadinglist.com]
     
     
    Hanjin creditors can expect to get back less than two cents in the dollar
    source: theloadstar.co.uk
    Thousands of creditors of bankrupt ocean carrier Hanjin Shipping can expect to get back less than two cents in the dollar, after it was revealed that claims approved so far total some KRW12tr ($10.5bn).
     
    The mind-boggling extent of the South Korean carrier’s indebtedness was revealed in a declaration and status report filed with the US Bankruptcy Court District of New Jersey on Friday.  Read more here

     
    US ports rent rises the effect of Panama Canal expansion
    source: porttechnology.org
    Real Estate company Transwestern's analysis has found US ports expanding terminals and facilities to handle larger ships from Asia are creating knock-on land price effects.
    Panama canal expansion may be affecting market dynamics like container throughput, yet New York and Los Angeles/Long Beach Port retain their thrones as container entry points. Read more here.
     
     
    OOCL needed cash and the 'weight' of Cosco to challenge the mega-competition
    source: theloadstar.co.uk
    OOCL was too small to compete with mega-carriers and needed access to a large capital base to succeed, its chairman said today.
    OOCL returned to the black in the first six months of the year, contributing a net profit of $25.3m to the H1 result of its parent, Orient Overseas International Ltd, (OOIL). Read more here
     
     
    Port of Oakland Refinances $324m of Debt with Bond Sale
    source: splash247.com
    The Port of Oakland on Monday announced it has sold a significant quantity of bondds to lower debt costs.  Read more here
     
     
    Sea freight rebound expected to taper off, while confidence stays high in air cargo
    source: theloadstar.co.uk
    The growth in sea freight during the first half of the year is expected to taper off – but confidence remains high in the air sector.
    Following a prosperous start to the year, the market is predicting a “significant decline” in sea freight volume growth, according to Transport Intelligence’s Logistics Confidence Indices. Read more here. Read more here.

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  • 7 August 2017

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    Asian airfreight rates on the up, but transatlantic feels the squeeze
    source: aircargonews.net
    Airfreight rates on services from Asia continued to track ahead of last year’s levels in July, while some weakness was noticed on the transatlantic.
    The latest figures from TacIndex show that airfreight rates on services from Hong Kong to the US increased by 33% year on year in July to reach $3.34 per kg.  Read more here
     

    OCEAN FREIGHT UPDATES
     

    CC Tung: OOCL didn't have the capital base to compete with the big boys
    source: splash247.com
    CC Tung, the veteran chairman of Hong Kong liner Orient Overseas Container Line (OOCL), has outline why he felt he had to sell his company to China's Cosco Shipping and Shanghai International Port Group (SIPG).  Tung, speaking at OOCL's interims, said that the dramatic consolidation seen within the liner sector had left his company withot the necessary capital base to compete with larger companies whose fleet size were now more than double his own.  Read more here
     
     
    Korea's 14 container shipping lines to form national partnership
    source: lloydsloadinglist.com
    AMID a slow recovery in the sector, South Korea’s container shipping companies are banding together to present a united front in the face of an increasingly competitive global market and in light of Hanjin Shipping’s demise.
     
    According to a statement from the Korea Shipowners Association, the nation’s 14 boxship owners are scheduled to ink a memorandum of understanding as they seek to form a national shipping consortium, named Korea Shipping Partnership.
     
    The companies are Hyundai Merchant Marine, CK Line, Dongjin Shipping, Don Woo Shipping, Dong Young Shipping, Hansung Line, Heueng-A Shipping, KMTC, Namsung Shipping, Pan Continental Shipping, Pan Ocean, Sinokor Shipping, SM Line and Tai Young Shipping, according to an HMM official.
     
    Through the agreement, the shipping lines intend to make themselves more competitive by sharing cargo capacity on vessels, rationalising trade routes, jointly forming and operating new routes, and implementing the joint utilisation of overseas terminals to optimise costs and improve the quality of services to clients.   
     
    The partnership plans to establish operational guidelines this year and expects to start operations in full by 2018. [Excerpted from Lloyds Loading List]
     
     
    Dock workers at Port of Long Beach injured in chemical spill
    source:latimes.com
    Twelve dock workers suffered minor injuries Sunday morning when a container of flammable liquid began to leak at the Port of Long Beach, officials said.
     
    One worker exposed to the fumes, along with a firefighter who fell while responding to the spill...Read more here
     

    Brazil ending exclusionary maritime shipping agreement with Chile
    source: americanshipper.com 
    Brazil’s Chamber of Foreign Trade (CAMEX) says it has decided not to renew a 42-year-old maritime agreement with Chile which stipulates that only Brazilian- or Chilean-flagged vessels could operate between the two countries.  Read more here.    

     

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Globalization Thrives in Asia as Export Revival Buoys Growth
    source: ajot.com
    For all the talk of globalization’s retreat amid the mercantilist rhetoric of Donald Trump, it’s proving to be a very different story in Asia.
     
    Exports are resurgent, governments are pursuing free-trade deals, and rather than bringing jobs back home, American automakers are planning new facilities in China. That early-2017 angst over potential for a trade war is now turning into recognition there’s been something of a trade bonanza as the global economy’s strongest synchronized upswing in seven years drives demand for Asian-made goods.  Read more here.

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  • 4 August 2017

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    Global Air Freight Demand in First-Half Strongest in Seven Years - IATA
    source: nytimes.com
    (Reuters) - Demand for global air freight rose 11 percent in June, lifting first-half growth to the highest since 2010, due to a surge in global trade, the International Air Transport Association (IATA) said on Wednesday.  Read more here.
     
     
    British Airways cabin crew to extend strike again
    source:airwise.com
    British Airways cabin crew working under ‘mixed fleet’ employment terms have announced a two week extension to their current strike.
    The additional strike days are from Wednesday August 16 to Wednesday August 30, including the August public holiday weekend.  Read more here
     

    OCEAN FREIGHT UPDATES
     

    Hapag-Lloyd adds 15,000-TEU newbuilding to its fleet
    source: shippingazette.com
    GERMAN shipping line Hapag-Lloyd has taken delivery of a new 15,000-TEU containership, the Afif. The vessel will serve the trades with South Korea, and was making its way to Busan.
    By merging with Dubai-based United Arab Shipping Company (UASC), Hapag-Lloyd is strengthening its position as the fifth-largest liner shipping company in the world.
     
    Its 230 vessels have a total transport capacity of 1.6 million TEU. The average capacity of the ships is growing by 1,000 TEU, from 5,860 to 6,839 TEU. [Excerpted from The Shipping Gazette]

    CANADA BUSINESS - GOVERNMENT UPDATES
     

    Mexico’s disproportionate share of auto investment, jobs seen as key NAFTA issue
    source: canadianshipper.com
    Ottawa, ON –  The auto sector rates nary a mention in the published list of U.S. objectives for the renegotiation of NAFTA.
    But senior Canadian officials privately believe the automotive industry is actually at the root of American demands for changes to the North American Free Trade Agreement and will be the key to the success – or failure – of negotiations to revamp the trilateral deal. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    'Faster, cheaper, cleaner': experts disagree about Elon Musk's Hyperloop claims
    source: theguardian.com
    Elon Musk’s plans for magnetically-levitated pods are back in the news after South Korea signed an agreement to develop a full-scale Hyperloop testbed, with the intention of ultimately building a system to zip across the country in 20 minutes. 
    Read more here.

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  • 3 August 2017

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    Misfortune Strikes Two Maersk Ships in Brazil
    source: Splash247
    Two Maersk-operated containerships in Brazil have been involved in serious incidents. In the wrost instance, 2009-built Mercosul Santos collided with a tug pulling multiple barges in the Amazon River between the ports of Jurutie and Obidios. Read more here
     
    Ocean Alliance Closing the Gap with 2M as Market Share Battle Heats Up
    source: Splash247
    The Ocean Alliance will pursue a “hard drive” for market share in the coming couple of years as a flood of new ultra large tonnage joins the new container grouping, a leading analyst claims.Lars Jensen, founder of Seaintelligence Consulting and a regular Splash contributor, took to LinkedIn in the wake of yesterday’s Splash contributor, took to Linkedin in the wake of yesterday’s Splash exclusive that CMA CGM will shortly order up to nine record breaking 22,000 TEU ships.  Read more here
     
    Week-long Strike Kicks Off at Jakarta’s Main Box Terminal
    source: Splash247
    A one-week strike at a key terminal in the heart of Southeast Asia’s largest nation kicks off today. Workers at Jakarta International Container Terminal (JICT) will down tools over what the International Transport Worker’s Federation (ITF) describes as “ruthless attacks to workers’ right” in particular to pension rights and performance bonuses which terminal management has been pursuing in the course of negotiations over a new collective bargaining agreement.  Read more here.  
     
    Insurers grow twitchy as containerships get bigger and cargo more valuable
    source: TheLoadStar
    The prospect of yet more behemoths being put into service has reignited the concerns of insurers. In a LinkedIn post today, Michael Hauer, head of marine reinsurance for the Singapore branch of Munich RE, says the insurance industry needs to try to understand the likely exposure when – not if – a ULCV gets into trouble. Indeed, when the 2008-built 8,110 teu MOL Comfort broke its back off the coast of Yemen in 2008, resulting in a total loss of the ship and 4,380 containers, the insured cargo loss was reported at some $300m. Marine insurers typically calculate their average exposure per box at $50,000-$100,000, but MrHauer said amounts recorded for single containers lost from the MOL Comfort were considerably higher. 
    “We are aware that these expectations are, for a number of – largely perishable – commodities, becoming increasingly unrealistic. We are aware of a number of instances where the value of a single pallet can be $1m or more.”
    He argued that the insurance industry could not “continue making assumptions based on what has gone before”. “Too much has, and is, changing. If we as underwriters do not recognise and manage these trends, it is certain that our capital providers will,” warned MrHauer. [Excerpted from The Loadstar]
     
    CMA CGM 'Pelleas' starts NY & NJ calls on Ocean Alliance's Loop 3 service
    source: Shippingazette
    CMA CGM's 9,900-TEU, CMA CGM Pelleas, has started calling at APM Terminals at the Elizabeth-Port Authority Marine Terminal in the port of New York and New Jersey. The vessel is deployed on the Ocean Alliance's Loop 3 service. The three additional members of the Ocean Alliance are: Cosco Shipping, Evergreen, and OOCL. Read more here

    GROUND AND RAIL
     

    We need freight ready cities
    source: OwnerDriver
    The Australian Logistics Council (ALC) urges the importance of efficient and safe supply chains a submission to the House of Representatives Inquiry into the Australian Government’s role in the development of cities. The ALC submission highlights the importance of building cities that offer efficient freight routes, citing concerns with commercial and residential development. "The essential items most Australians take for granted — our food, household appliances, clothing, medications and cars, to name just a handful — are generally not grown or manufactured close to the cities where most of us live," said ALC Managing Director, Michael Kilgariff. Read more here
     
    Despite floods, Railways' July freight and passenger biz up
    source: EconomicTimes
    NEW DELHI: The railways, which has been losing business to the roadways, seems to be gaining ground with both its freight and passenger traffic showing an upward trend in July, which is generally considered a lean month. This year, July has seen a robust growth with the freight loading being at an all-time high for the month at 94.09 million tonnes, 4.75 million tonnes more than July last year, said a senior official of the ministry.  Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     

    U.S. to Start China Trade Investigation
    source: CIFFA
    The Trump administration is reportedly preparing a Section 301 investigation against China. News outlets reported on Wednesday that an announcement by the United States Trade Representative was imminent. The result could aim to curb China's use of U.S. intellectual property, punish Chinese companies for intellectual property theft, and place tariffs on Chinese imports. The focus of the investigation could be complaints by U.S. companies that they are forced to share technology with Chinese counterparts as a condition of doing business. Section 301 of the Trade Act of 1974 allows the U.S. to impose duties against countries that impede U.S. exports, but also includes some potential procedural traps. Read more here.

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  • 2 August 2017

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    IATA air cargo results add to the good news
    source: TheLoadStar
    The air cargo results keep pouring in – and if you are an airline, they are good. IATA today released its six-month figures showing it was the best first half-year since 2010. Global freight tonne km (FTKs) rose 10.4%, year-on-year, with carriers from Asia Pacific and Europe accounting for some 65% of the increase. June FTKs slowed slightly from May, to 11% down from 12.7%, but remained higher than the five-year average pace of 3.9%. Read more here

    OCEAN FREIGHT UPDATES
     

    CMA CGM Set to Order Series of Record Breaking 22,000 TEU Behemoths
    source: splash247.com
    CMG CGM will shortly put pen to paper for up to nine world-beating 22,000 TEU class shps. Shanghai Waigaoquiao Shipbuilding (SWS) and South Korea’s Hyndai Heavy Industries (HHI) are the only two companies in the final running for this landmark order. Read more here
     
    DP World Prince Rupert Phase II North Expansion Update
    source: CIFFA
    DP World announced on July 31 that the marine portion of its Phase II North expansion project at the Port of Prince Rupert has been successfully completed and commissioned. This is the largest and most complicated part of the terminal development. The full capacity of 1.35 million TEUs will be released over the coming weeks, as related equipment commissioning and the rail yard infrastructure are completed. The company also said that, in recent weeks, an unexpected surge in volume, in conjunction with construction activities, resulted in a backlog of import containers and higher-than-usual dwell times. It anticipates that the level of service will return to normal "very shortly." The terminal is expected to achieve full capacity by the end of September. [Excerpted from CIFFA]
     
    Spectre of overcapacity returns to haunt liner shipping as newbuilds queue up
    source: TheLoadStar
    The spectre of overcapacity is clouding recent analyst optimism that ocean carriers could be heading for a period of sustained profitability. During the first six months of this year, 26 newbuild ships of 14,000 teu-plus have been delivered – many of which will have been deployed between Asia and Europe, and according to Alphaliner, at least one new ultra-large vessel a week is set be delivered before the market slips into the traditional slack season in OctoberPlus, encouraged by better-than-expected demand, several carriers have brought forward the delivery dates of large newbuild orders, added the consultant.
    They had pushed back the deliveries, based on the less-optimistic forecast a year ago. Bringing forward ULCV delivery dates has also been prompted by a dearth of spot tonnage charter availability in the larger sectors. And with the height of the peak season still to come, carriers are getting worried that they might not be able to take full advantage of the strong demand. With more than 700,000 teu of new capacity expected to hit the water during the next five months, supply could once again get out of control, Alphaliner warned. suggesting that laid-up tonnage could rocket to just under 1m teu again by the end of the year. [Excerpted from The Loadstar]
     
    Port of Oakland is gearing up to handle forecast surge in imports during peak season
    source: Shippingazette
    IN response to expectations that the next two-to-three months could set new containerised import records in the US, port of Oakland maritime director John Driscoll announced confidently that the port is ready for such a spike in volumes. We're ready; we've got plenty of equipment to move cargo and our terminals are operating with high efficiency," Mr Driscoll was quoted as saying in a report by American Shipper. According to the port of Oakland, it is confident in its peak-season preparedness due to numerous factors, including marine terminals loading and unloading ships with a 24-hour average turnaround; and terminals requiring appointments for truck drivers to pick up import containers, easing crowding at terminal gates. Furthermore, night gates are also improving cargo flow, with the port saying Oakland International Container Terminal is processing 1,200 transactions a night, roughly 20 per cent of its daily volume; and an exclusive, off-terminal empty container yard is helping to smooth out traffic. [Excerpted from Shippingazette]

    CANADA BUSINESS - GOVERNMENT UPDATES
     

    Minister Goodale Announces Mutual Recognition Arrangement with Israel
    source: CIFFA
    The Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness, following his meeting with Israeli Public Security Minister Gilad Erdan, announced on July 31 the Canada Border Services Agency (CBSA) Mutual Recognition Arrangement (MRA) with the Israel Tax Authority (ITA) regarding their respective Trusted Trader programs. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     

     
    Global Container Traffic is Like the Global Economy's Heartbeat 
    source: CIFFA
    Global container traffic is like the global economy's heartbeat. The more freight movements there are, the greater the economic activity. To know how fast that heart is beating, we can consult the RWI/ISL Container Throughput Index. This index is based on the throughput data of 82 international ports accounting for about 60% of global container traffic, and gives a good indication of whether global trade -- and hence the global economy -- is going up or down. Read more here.

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  • 1 August 2017

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    Delays at Vista Cargo Terminal, Toronto Pearson Airport, Up to Three Hours 
    source: CIFFA
    Drivers picking up or dropping off items at Vista Cargo Terminal are facing long delays due to a Swissport ground crew strike in its fourth day at Pearson International Airport. More than 700 workers employed by Swissport and represented by Teamsters Local Union 419 walked off the job on July 27 after contract negotiations broke down. Ruth Snowden, Executive Director of the Canadian International Freight Forwarders Association (CIFFA), says individual members reported backlogs of 20 to 30 minutes getting into the cargo terminal over the weekend, which increased to a delay of up to three hours on Monday morning. Read more here
     
    Air cargo markets continue to surprise
    source: AJOT
    For well over half a year now, we have seen air cargo volumes growing strongly year-over-year (YoY) and USD-yields stopping their 2015-2016 free fall. This trend did not show the slightest tendency of tapering off in June, on the contrary. The volume increase year-over-year (YoY) for the month was 10.5%, accompanied by an increase in Direct Ton Kilometers of 12%, showing that the average distance between origin and destination of shipments continues to increase. And yield worldwide, measured in USD, was 7% higher, a big bonus for airlines and a development we have not been able to report since the recovery of 2010-2011. Read more here

    OCEAN FREIGHT UPDATES
     

    3-year contract extension is expected to be approved by USWC dock workers union
    source: shippingazette.com
    INTERNATIONAL Longshore and Warehouse Union (ILWU) has voted on a proposed extension to its existing collective bargaining agreement with the Pacific Maritime Association (PMA). Early indications suggest that the extension will be approved by a 67 per cent majority, meaning a three-year contract extension with the terminal operator employers could be finalised. The ILWU, which represents dockworkers on the US west coast, will announce the official results of the vote on August 4, reported American Shipper. The current ILWU-PMA labour deal, which was struck in 2015 after a lengthy and contentious negotiation that left many west coast ports highly congested and the supply chains of those that depended on them in disarray, was scheduled to expire on July 1, 2019. [Excerpted from shippingazette.com]
     
    Hong Kong Startup Launches Blockchain Project Designed to Transform Container Shipping
    source: Splash247
    A Hong Kong startup has launched a new blockchain initiative today that it claims could transform container shipping. 300 cubits announced it will conduct it initial token sales of its brand new crypto currency called TEU on August 16. Read more here
     
    Yangshan's new automated container wharf is due to start trial operation by year end
    source: Shippingazette
    THE automated container wharf at Yangshan deep-water port in Shanghai has reached the fourth phase of construction. Upon completion, its seven deep-water berths with depths of 15 metres will be able to handle four million TEU annually. China's largest automated cargo wharf is on course to start trial operation by the end of 2017, according to Xinhuanet. As an initiative of the Central Committee of the Communist Party of China and State Council, the construction of Yangshan deep-water port supports Shanghai's status as an international economic, trade, financial and shipping centre, and is intended to boost trade growth in the Yangtze River Delta region. [Excerpted from Shippingazette]
     
    Port of Halifax riding high with bigger ships and more traffic
    source: Shippingazette
    CONTAINER traffic at the Port of Halifax is booming due to the arrival of new shipping lines, bigger vessels, and increasing co-ordination between the local players in the industry, resulting in volumes for the second quarter of the year increasing 19 per cent to 143,850 TEU compared to the same period in 2016. During the first six months of 2017 container traffic was up 17 per cent compared to the same period last year. And that's coming off a banner year, reported the Halifax Chronicle Herald. The port is also receiving the biggest container ships it has ever seen. In late June, the 10,062-TEU capacity Zim Antwerp called on the port's Halterm International Container Terminal. "At Halterm we have invested and continue to invest in the equipment, people and services required to handle the larger ships that have followed the widening of the Panama Canal," Kim Holtermand, Halterm's CEO, said in a statement. "The arrival of the Zim Antwerp at Halterm plays to our strengths as a deep-water, big ship international container terminal." [Excerpted from Shippingazette]

    CANADA BUSINESS - GOVERNMENT UPDATES
     

    Nafta Battle Will Test Strength of Renewed Canada-Mexico Ties
    source: AJOT
    Free trade between Canada and Mexico is in part an accident of history: two nations, each the other’s afterthought, came together in their shared race to capitalize on the U.S. market. Now, after President Donald Trump threatened to leave the North American Free Trade Agreement, the pact’s junior partners are working more closely than ever to save it. Trump has called Nafta the worst trade deal in history and blames it for millions of lost manufacturing jobs. Canada and Mexico have overcome distance and patched over differences to become its last line of defense, and the real test is approaching. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     

    Qatar dispute goes to World Trade Organisation
    source: AirCargoNews
    Qatar is reported to have filed an official complaint with the World Trade Organization (WTO) in its ongoing dispute with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt. The three neighbouring countries have accused Qatar of destabilising the region through its support of extremist group, which it denies.  Read more here

  • 31 July 2017

    AIR FREIGHT UPDATES
     

    Air freight rates on east-west trades to rise further in July: Drewry forecasts
    source: shippingazette.com
    AIR freight rates across 21 major east-west trade lanes are up this summer by 1.1 per cent, year on year, to reach US$2.81 per kilogramme.
     
    The latest Drewry's East-West Airfreight Price Index rose by 1.2 per cent in June, compared to May, which saw a slight dip after April. With the index now about one per cent above the same month last year, Drewry said that a surge in freight tonne kilometers "outlines a strong market."
     
    The index also indicates that, as load factors increase, demand for air freight is outstripping new capacity entering the market, reported New York's Air Cargo World.
     
    The latest numbers also provide a strong base rate to build on as the industry moves from the summer into the peak season this autumn. The UK-based research firm also noted that it "expects the air freight rates to further grow in July."
     

    OCEAN FREIGHT UPDATES
     

    'Premier league' lines get better charter rates despite tight supply
    source: shippingazette.com
    THE world's four largest container lines are using their enormous buying power to keep charter rates at depressed levels, despite a tightening of supply.
    The increased influence of Maersk, MSC, CMA CGM and Cosco during charter negotiations with owners has shown a disconnect between supply and demand, with daily hire rates continuing to disappoint owners, London's Loadstar reported.
     
    There is also emerging evidence that the top carriers have been able to obtain better daily hire rates and terms and conditions than their mid-sized peers.
    According to the latest data from Alphaliner, Maersk charters 51 per cent of its 3.4 million TEU capacity, MSC 65 per cent, CMA CGM 63 per cent and Cosco 73 per cent.
    "Further weaknesses in charter rates have been seen in segments where the supply of spot tonnage is relatively tight, demonstrating once more the increasing bargaining power of the large shipping lines," noted the consultancy.
     
    It remains to be seen how long even the top four carriers can avoid paying higher charter rates, given the very tight supply, particularly in the 7,500-10,000 TEU vessel segment.
    And in the smaller, 5,300-7,500 TEU sector, the scarcity of available tonnage cannot meet the strong demand reported one broker.
    Notwithstanding the clout of the top carriers, if ships are simply not available, eventually charter rates will have to move up.[Excerpted from shippingazette.com]

     
    Retailers say early West Coast port contract would bring needed ‘stability and predictability’
    source: ajot.com
    WASHINGTON - The National Retail Federation today welcomed reports that the International Longshore and Warehouse Union and the Pacific Maritime Association appear close to extending their existing contract at West Coast ports nearly two full years before it is set to expire.
     
    “We applaud ILWU members for taking the unprecedented step of approving a contract extension well in advance of the contract expiration,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said.  Read more here

    GROUND AND RAIL UPDATES
     

    Update on the BC wildfire situation
    source: CN
    The BC government has given CN permission to resume limited operations on BC interior line including resuming operations between Lillooet and Williams Lake.
    All affected customers will be contacted by a CN representative as operations resume today. 
    As wildfires remain a concern in other parts of the B.C interior CN continues to closely monitor the situation and will advise if any additional adjustments are be required to ensure safe operations.   

    CANADA BUSINESS - GOVERNMENT UPDATES
     

    Canada pleased by U.S. decision to scrap border tax proposal: Freeland
    source: canadianshipper.com
    Ottawa, ON – Canadian officials are praising a U.S. decision to drop a contentious border tax proposal, suggesting its death signals an open-mindedness in the Trump administration on open borders and free trade.  Read more here.  

  • 28 July 2017

    AIR FREIGHT UPDATES
     

    Cargo Handlers on Strike at Toronto Pearson 
    source: CIFFA
    Hundreds of cargo and baggage handlers at Pearson International Airport are now on strike after rejecting the latest offer from their employer. Teamsters Local 419 officially walked off the job just after 10 pm last night, after about 95 percent of the membership voted to reject the contract offer. The workers, who include 700 baggage and cargo handlers and cabin cleaners, are all employees of Swissport. The company is contracted to service 30 of the 74 airlines at Pearson. Read more here. 
     
    Shippers warned to book now or face rate spikes and delays in busy peak for air cargo
    source: aircargonews.net
    Shippers are being warned to book their airfreight shipments as early as possible to avoid a spike in prices and capacity shortages during what is expected to be a busy peak period.
    The summer period is traditionally a calmer period, but this year has been an exception with a strong market development which it said is likely to continue for the rest of the year, further widening the gap between supply and demand.
    The Far East peak season is expected to start earlier and be even stronger than last year’s, while the transatlantic trade is already seeing tight belly capacity during a period where airlines have added capacity for the summer season.
    This will eventually be phased out, tightening supply and demand on the trade further.
    The airfreight market, especially from Asia to North America, is the strongest is has been for the past six to seven years driven by e-commerce, new product launches and quarter-end project shipments tying up capacity and the residual effect of ocean alliance shift in April. [Excerpted from Air Cargo News]
     
    UK to develop new aviation strategy to remove barriers to trade
    source: Shippingazette
    THE UK government has decided to develop a new aviation strategy to "help shape the future of the aviation industry to 2050 and beyond." The new strategy will focus on cargo, airport capacity issues, passenger services and the environment. Under the theme global connectivity, the government will look at how the UK can improve its global connectivity for freight and passengers as Britain leaves the European Union (EU) and how it can remove barriers to trade, reported London's Air Cargo News. News of the aviation strategy proposal comes after UK Transport Secretary Chris Grayling announced that the UK's recent general election meant that there was a delay in any House of Commons vote on at third runway at Heathrow. FTA's head of air cargo policy, Alex Veitch, said: "The document is refreshingly transparent about the scale of the challenge to improve the position of air freight and we look forward to working with Government to find ways to improve air cargo trade. "The other top priority is dealing with the implications of Brexit, particularly air services agreements, and we are pleased to see that this is already a priority for ministers." [Excerpted from Shippingazette]

    OCEAN FREIGHT UPDATES
     

    Freight rates on the rise and box carriers get ready to reap the rewards
    source: theloadstar.co.uk
    Container spot rates from Asia to the US, and Asia to Europe were given a lift this week ahead of August GRI and FAK increases.The increase was most notable on the transpacific where the Shanghai Containerized Freight Index (SCFI) components for the US west coast and the US east coast leapt 37.6% and 20.2% respectively. Spot rates between Asia and North European and Mediterranean ports enjoyed more modest increases, with the full impact of $250 per teu FAK hikes not being felt so far.The SCFI recorded freight rates for North Europe up 4.8% on the week. Anecdotal reports coming in to The Loadstar suggest that carriers plying both tradelanes are operating an unofficial two-tier system of “premium-paying” containers that get shipped, and “those not paying enough”, which often get rolled.
    One Asia-Europe NVOCC told The Loadstar some of its peers were still offering “low-cost options” to clients to secure business, but many customers were then suffering delays and spilt shipments. He added that as the industry heads into the peak season weeks, container shortages were also becoming a risk factor on both routes, especially for shippers with low-paying cargo.Meanwhile, Drewry this week predicted an average 16% rate increase across all routes this year, “with more increases to come” and “much higher contract rates on some routes”.Specifically, the consultant said, according to its Benchmarking Club data, contract rates between Asia and Europe were, on average, 19% higher in the second quarter of this year than in the same period of 2016. Drewry noted that within the data “some rates have doubled”.
    Indeed, the tide seems to have turned for ocean carriers after a turbulent few years that resulted in the bankruptcy of Hanjin Shipping and mass consolidation. [Excerpted from The Loadstar]
     
    Panama Canal Locks Lane and Culvert Outages, Early to Mid-August
    source: CIFFA
    For 10 days, between July 31 and August 10, the east lane of the Panama Canal's Miraflores Locks will be out of service for scheduled repair work on and installations of several miter gates. Read more here
     
    Frustrated Shippers Say There's No End in Sight to Barge Congestion at Ports
    source: CIFFA
    Shippers say they feel powerless over the barge congestion crisis in northern Europe. Stanley Black & Decker's senior transportation manager for EMEA-ANZ, David Lenaers, told The Loadstar congestion at Antwerp had been a problem since last year. "Although things may have seen a slight improvement over the last month, delays persist," he said. "Furthermore, it seems there is no immediate solution in sight - with shippers being left out of the discussion and nobody willing to talk to, or represent, us." Mr. Lenaers said delays of five to seven days had become increasingly frequent, with peak periods seeing even more severe congestion. He said whenever he tried to speak to the inland terminals about the delays, they had directed him to the ocean carriers, who pointed him back to the inland terminals and port authorities. Read more here

    CANADIAN BUSINESS - GOVERNMENT UPDATES
     

    Canada wants renewed NAFTA to include easier cross border movement of labour
    source: CanadianShipper
    Ottawa, ON — Enhanced labour mobility is high on the list of goals for the Canadian government as it gears up for next month’s start of negotiations on a renewed North American Free Trade Agreement. Read more here
     
    Canada pleased by U.S. decision to scrap border tax proposal: Freeland
    source: CanadianShipper
    Ottawa, ON – Canadian officials are praising a U.S. decision to drop a contentious border tax proposal, suggesting its death signals an open-mindedness in the Trump administration on open borders and free trade. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     

    China-US Trade Relations
    source: stimson.org
    Last week’s CED session with China was surprising because it avoided the standard outcome of these things — a long list of minor accomplishments which are hailed as significant breakthroughs. In other words, instead of putting lipstick on the pig, for the first time they just trotted out the pig.  Read more here

  • 27 July 2017

    OCEAN FREIGHT UPDATES


    Cosco acquisition of OOCL still faces “a degree of uncertainty”
    source: theloadstar.co.uk
    Cosco Shipping Holdings resumed trading on the Shanghai Stock Exchange (SSE) today, more than two months after its shares were suspended on the bourse.
    The move brings an end to speculation that Cosco had another carrier target on its radar, after it announced plans to scoop up OOIL’s OOCL earlier this month. Read more here
     
    Autonomous Cargo Ships Look Set to Upend the Logistics Industry
    source: CIFFA
    The world's first semi-autonomous cargo ship could begin operating in the second half of 2018 and become fully autonomous by 2020, according to The Wall Street Journal. The ship was built by Yara International and Kongsberg Gruppen, two Norwegian firms, and is equipped with sensors, cameras, radar and a global positioning system that give it the ability to navigate through the seas and dock on its own. Read more here
     
    FMC plans to strike off names of boxships on 'controlled carrier' list
    source: Shippingazette
    SEVERAL container carriers no longer majority owned or fully controlled by foreign governments, or no longer have business in the US trades, are to be removed by the US Federal Maritime Commission (FMC) from its so-called "controlled carrier" list. American President Lines, Ltd and APL Co Pte will be removed from the list, because they are now owned by privately held French carrier CMA CGM and the Singapore government is no longer a majority owner. The FMC is charged with monitoring foreign government control of ocean shipping lines, and maintains the controlled carrier list, which it periodically updates as circumstances warrant. Under the Shipping Act, the commission "at any time after notice and opportunity for a hearing, may prohibit the publication or use of a rate, charge, classification, rule, or regulation that a controlled carrier has failed to demonstrate is just or reasonable." The controlled carrier rules were developed by Congress nearly 40 years ago to isolate and regulate the activity of the Soviet Bloc's ocean carriers during the Cold War. The rules have been changed over the years, especially after the collapse of the Soviet Union in the early 1990s. In 2002, 13 foreign carriers were on the FMC's controlled carrier list. [Excerpted from Shippingazette]

    GROUND AND RAIL UPDATES

     

    CN declares third-quarter 2017 dividend
    source: AJOT
    MONTREAL - CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a third-quarter 2017 dividend on the Company’s common shares outstanding. A quarterly dividend of forty-one-and-one-quarter cents (C$0.4125) per common share will be paid on Sept. 29, 2017, to shareholders of record at the close of business on Sept. 8, 2017. Read more here
     
    Five Principles for Safely Automating the Freight Transportation Sector
    source: MorningConsult
    In just the past few weeks, committees in both the U.S. House and Senate have held hearings on opportunities and challenges related to the advent of automated vehicles. But while self-driving passenger cars attract most of the attention, it is the freight transportation sector that has advanced the furthest in adopting the new technologies. Read more here

    CANADIAN BUSINESS - GOVERNMENT UPDATES


    Petronas Deals Fresh Blow as World Exits Canada's Energy Patch
    source: CIFFA
    Petroliam Nasional Bhd.'s decision to back out of a giant gas-export project on Canada's Pacific Coast is the latest hit to the country's energy sector, and to Prime Minister Justin Trudeau's plan of balancing energy exports and climate action. The Malaysian state-run oil and natural gas producer cited an "extremely challenging environment" of low prices and other changes in declining to proceed with the liquefied natural gas project. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    Three things every shipper should know about cyber security
    source: theloadstar.co.uk
    The Maersk cyber attack sounded bad enough. But this blog post on cyber security by DB Schenker is even more frightening. It points out that increased use of computers on things such as trucks makes them a possible victim. “Technologies also open the door to potential cyber hackers eager to gain control of these ‘computers on wheels’.”   Read more here
     
    Industry welcomes decline in protectionism as global trade facilitation grows
    source: theloadstar.co.uk
    Despite all the recent protectionist talk, global trade facilitation is improving.
    A World Trade Organisation (WTO) report published yesterday shows the lowest monthly average of new trade restrictions since 2008.  Read more here

  • 26 July 2017

    AIR FREIGHT UPDATES
     

    Unpredictable economy: the new normal for air freight
    source: ThehinduBusinessLine
    The air freight industry is seeking to find ways of staying competitive in a digitising world roiled by a persisting energy crisis, nagging slow-down in China, and unrest in the global shipping segment. This unpredictable world economy is the new normal, says VK Mathews, Executive Chairman, IBS Software Services, a Thiruvananthapuram-based software services provider for the transportation sector. Read more here

    OCEAN FREIGHT UPDATES


    Calls to scrap congestion surcharges at Chittagong
    source: Shippingazette
    SHIPPERS at Chittagong port in Bangladesh are seeking the port authority's intervention after the Asian Feeder Discussion Group (AFDG) levied surcharges on containers from Singapore, Port Klang and Colombo since the average time containerships spent at Chittagong port surged by 43 per cent to 84.3 hours between January and June. The AFDG introduced from July 1 an "emergency cost recovery surcharge" of US$150 per TEU for laden containers and $75 per TEU for empty containers as congestion has worsened owing to draft restrictions preventing fully laden ships from entering and leaving Chittagong port, and an accident that took out half of the port's crane capacity. "Exporters are worried about the new surcharge and they are largely affected," SCB chairman Rezaul Karim wrote in the letter. "The new surcharge will lessen our profit further," Mr Karim said. An official at the ministry of shipping said that the Chittagong Port Authority has been officially asked to discuss the matter with the AFDG and a meeting to do so will take place soon. [Excerpted from Shippingazette]

    GROUND AND RAIL UPDATES


    CN declares third-quarter 2017 dividend
    source: AJOT
    MONTREAL - CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a third-quarter 2017 dividend on the Company’s common shares outstanding. A quarterly dividend of forty-one-and-one-quarter cents (C$0.4125) per common share will be paid on Sept. 29, 2017, to shareholders of record at the close of business on Sept. 8, 2017. Read more here


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES


    WTO Members Record Lowest Monthly Average in New Trade Restrictions Since 2008
    source: CIFFA
    Between mid-October 2016 and mid-May 2017, WTO members recorded the lowest monthly average of new trade restrictions since the financial crisis of 2008, according to the World Trade Organization's Director-General's mid-year report on trade-related developments. The report calls on members to continue improving the global trading environment, including by implementing the WTO Trade Facilitation Agreement, which entered into force in February this year.

    Brexit Bulletin: Summer Days Drifting Away
    source: AJOT
    The Brexit negotiations are entering a summer break with no plans for formal talks before the last week of August. The problem, as Bloomberg’s Nikos Chrysoloras writes on Wednesday, is that very little headway has been made in two rounds of discussions. Critical issues such as the rights of European Union citizens in Britain and how much the U.K. should pay on leaving have still to be resolved. Read more here.

  • 25 July 2017

    OCEAN FREIGHT UPDATES


    CMA CGM: Port congestion Surcharge in Chittagong
    source: AJOT
    Considering the severe port congestion to reach Bangladesh, which is causing severe disruptions, CMA CGM will be implementing a Port Congestion Surcharge (PCS) for all cargoes discharging in Chittagong as follows:
    Effective July 18th, 2017 (B/L date) and until further notice:
    Trade: Asia / Med and North Europe / Baltic / UK and Scandinavia trade
    Port Discharge: Chittagong
    Quantum: USD 150/container
    Cargo: Dry and Reefer
    Application on collect basis or prepaid
     
    As carriers consolidate, can major terminals be far behind?
    source: Shippingazette
    KOREA's Hyundai Merchant Marine (HMM) has decided to close its Los Angeles container terminal because the new alliances have cost it volumes it can no longer afford to lose, reports IHS Media. This, it is widely speculated, is just the beginning of consolidation among marine container terminals to match well-establised trends in the carrier world. About 90 per cent of PAG's volume migrated to SSA, leaving the Outer Harbour Terminal vacant. To the north, the Northwest Seaport Alliance has nine container terminals between Seattle and Tacoma ports. Alliance CEO John Wolfe said it will eventually reduce the number to four, with two in the North Harbour and two in the South Harbour. Things are more complicated in LA-Long Beach, where 10 waterfront terminal operators, many affiliated with carriers, operate 13 terminals. The stage is set for terminal consolidation when NYK Line, 'K' Line, and MOL begin operating as Ocean Network Express (ONE) next year. [Excerpted from Shippingazette]
     
    Chittagong fights congestion as backlog extends to 12-day wait
    source: Shippingazette
    GEARLESS containerships suffer 12-day waits for berths at Chittagong since May after bad weather, equipment shortages with two cranes damaged in a ship collision, reports Singapore's Splash 24/7 marine news portal. The Chittagong Port Authority has convened meetings with local port operators, shipping lines and agents to mitigate the chaos. Bigger ships will now be allowed to call at night, when more space can be assigned to containers at nearby yards. The port authority hopes severe congestion will be over in two weeks at Chittagong, a draft constrained river port, which accounts for 90 per cent of Bangladeshi international seaborne traffic. The port's two container terminals, handled 2.3 million TEU last year, which is well above its 1.7 million TEU design capacity. [Excerpted from Shippingazette]