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  • 15 August 2017

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    AIR FREIGHT UPDATES

     

    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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    OCEAN FREIGHT UPDATES

     

    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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    AIR FREIGHT UPDATES

     

    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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    OCEAN FREIGHT UPDATES

     

    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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    OCEAN FREIGHT UPDATES

     

    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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    AIR FREIGHT UPDATES
     

    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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    AIR FREIGHT UPDATES
     

    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

    AIR FREIGHT UPDATES
     

    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]

    CANADA BUSINESS - GOVERNMENT UPDATES


    CBSA Signs Mutual Recognition Arrangement with Australia
    source: CIFFA
    The Canada Border Services Agency (CBSA) announced on Monday the signing of a Mutual Recognition Arrangement (MRA) with Australia's Department of Immigration and Border Protection (DIBP) regarding their respective Trusted Trader programs. This MRA signifies that the CBSA's Partners in Protection program members will be recognized by, and receive trade facilitation benefits from, the DIBP. The CBSA will reciprocate by providing similar benefits to members of the Australian Trusted Trader program. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     

    This Obscure NAFTA Chapter Could Be Canada's Deal-Breaker Again
    source: CIFFA
    On October 1, 1987, days before the U.S. and Canada signed their biggest-ever trade deal, then-Prime Minister Brian Mulroney shocked the Americans by walking away from the negotiating table. It was a high-stakes gamble designed to ensure the Free Trade Agreement contained a dispute-settlement mechanism -- what Mulroney called his essential condition -- that would give Canada a way to resolve trade conflicts outside U.S. courts. The David-and-Goliath move worked, and two days later the countries reached an agreement. Read more here
     
    Ecuador Confirms Final Removal of Import Surcharges
    source: CIFFA
    WTO members welcomed Ecuador's announcement that it has completely removed import surcharges imposed in 2015 to address the country's deteriorating balance of payments situation. Ecuador told a meeting of the WTO's Committee on Balance-of-Payments Restrictions on July 21 that the final phase-out of the surcharges was made effective on June 1. Ecuador imposed the surcharges in March 2015, for 15 months, in response to a sharp drop in oil prices starting in late 2014, which led to a deterioration in the country's balance of payments. The tariff surcharges were initially fixed at between 5% and 45% and were applied to nearly 3,000 tariff lines, or 38% of the country's total. Read more here

  • 24 July 2017

    AIR FREIGHT UPDATES


    The airports of the future are here
    source: ajot.com
    No matter how well-regarded a particular airport happens to be, the slog from curb to cabin is pretty much the same wherever you go. A decades-old paradigm of queues, security screens, snack vendors, and gate-waiting prevails—the only difference is the level of stress. Read more here

    OCEAN FREIGHT UPDATES

    US allows Maersk service contract filing exemption
    source: lloydsloadinglist.com
    The US Federal Maritime Commission has agreed to Maersk Line’s request for a temporary exemption from filing service contract amendments with the commission due to complications following the Petya virus attack the carrier suffered. According to the FMC, the virus severely inhibited the system that stores Maersk’s service contract information and rendered Maersk unable to determine which service contracts and service contract rates were scheduled to expire at the end of June or early July, 2017, and to identify which shippers to contact to extend or renegotiate expiring contracts and rates. It was also unable to electronically file service contracts and amendments with the commission. “By granting this petition, the commission will allow Maersk Line to apply those rates which would have been agreed upon with customers in the absence of the cyberattack to shipments tendered during the period between June 30 and the date an appropriate contract or contract amendment is filed,” the FMC said. Maersk informed the FMC that the 20-day time period should give it sufficient time to regain access to its service contract database and filing capabilities, identify expiring contracts and rates, and obtain agreement with shippers regarding the disposition of the expiring contracts and rates.[Excerpted from Lloyd's Loading List]
     
    Twelve Indian Ports to Gain Autonomy
    source: CIFFA
    India's government has approved a draft bill to give 12 ports in the country full decision-making autonomy in a bid to enable greater efficiency. New port authorities would have the power to use their property, assets and funds as they see appropriate for the benefit of the ports they manage. They would be able to enter into and perform any contracts necessary for the performance of the ports' functions, to make regulations for the purposes of operation, development and planning, and to raise loans and issue securities. Read more in an article from Port Strategy
     
    Terminal operator GCT names new president and CEO
    source: americanshipper.com
    Vancouver, British Columbia-based privately owned terminal operator GCT Global Container Terminals Inc. (GCT) has appointed Doron Grosman as president and chief executive officer, effective immediately, the company said. Read more here

    GROUND AND RAIL UPDATES
     

    Union ratifies five-year agreement with CP
    source: canadianshipper.com
    Calgary, AB — Canadian Pacific and the Teamsters Canada Rail Conference Maintenance of Way Employees Division announced they have ratified a new five-year agreement. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES


    Four stowaways discovered in container at Port of Montreal
    source: americanshipper.com
    Four men, reportedly from the former Soviet republic of Georgia, were found Thursday in shipping container aboard the OOCL Montreal at the Canadian port, and officials are treating this as a case of illegal entry. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATE
     

    Musk claims US approval for world’s longest tunnel
    source: ajot.com
    Elon Musk says he won “verbal” government approval to build the world’s longest tunnel for an ultra-high-speed train line to connect New York to Washington. The train, known as a hyperloop, would make the 220 mile connection in 29 minutes, Musk said in a post on Twitter Thursday. He provided few details, and a spokesperson for his new digging enterprise, called the Boring Company, declined to comment on the project. Read more here
     
    In a China win for Trump, US can now ship rice for first time
    source:ajot.com
    The U.S. can now ship rice to China for the first time ever, signaling a win for President Donald Trump in his efforts to reshape the trade relationship just after talks between the nations broke down Wednesday. Officials from the nations finalized a protocol to allow for the first-ever American shipments, the U.S. Department of Agriculture said Thursday in a statement. China is the world’s biggest rice consumer, importer and producer. Read more here

  • 21 July 2017

    AIR FREIGHT UPDATES


    New open skies agreement between Singapore and Armenia
    source: Shippingazette
    SINGAPORE has wrapped up an Open Skies agreement (OSA) with Armenia that permits their airlines to operate any number of services between both countries as well as beyond to any third country, with no restrictions on capacity, frequency, aircraft type and route schedule. In addition, cargo carriers of both Singapore and Armenia will be able to base aircraft in the other country for operations to any third country, announced the Civil Aviation Authority of Singapore (CAAS). [Exceprted from Shippingazette]


    Climate Change Likely to Take a Toll on Air Travel
    source: CIFFA
    In recent weeks, American Airlines has been forced to cancel more than 40 flights in Phoenix. The reason: With daytime highs hovering around 120 degrees, it was simply too hot for some smaller jets to take off. Hotter air is thinner air, which makes it more difficult -- and sometimes impossible -- for planes to generate enough lift. As the global climate changes, disruptions such as these are likely to become more frequent, researchers say, potentially making air travel costlier and less predictable with a greater risk of injury to travellers from increased turbulence. The problem in Phoenix primarily affected smaller jets. "When you get in excess of 118 or higher, you're not able to take off or land," said Ross Feinstein, a spokesman for American Airlines, referring to the smaller aircraft. Bigger jets, such as Boeing 737s and Airbus A320s, have higher operating thresholds (126 and 127 degrees, respectively), he said. Robert Mann, the president of airline industry analysis firm R.W. Mann & Co., said that although airlines were working to become more efficient now, they were not doing much to prepare for the longer-term effects of climate change. 
    Read more here
     

    OCEAN FREIGHT UPDATES

    Vessels Transiting Off Vancouver Told to Slow Down to Protect Endangered Whale Species
    source: splash247.com
    Then Vancouver Fraser Port Authority has launched a pilot project in the Haro Strait to get ships to slow down in order to protect the critically endangered southern resident killer whales.  
    Read more here
     
    Officials Take Action as Congestion Sees Boxships Waiting for 12 Days Off Chittagong
    source: splash247.com
    Chittagong Port Authority has moved to alleviate the congestion situation at Bangladesh’s top port. Gearless boxships have had to wait on average 12 days to call at the port since May as a result of bad weather, equipment shortages and Ramadan.  
    Read more here
     
    Maersk has promised to share with its customers and partners the lessons learned from last month’s Petya cyber attack.
    source: lloydsloadinglist.com
    In an update yesterday designed to reassure customers that its systems were now safe, the world’s largest container line said it would “engage closely with customers and partners to share lessons from this incident and ensure you can benefit from our learnings”.
    The line said that although it was “conducting a forensic investigation into the virus attack”, its efforts currently were “primarily focused on full recovery to return to our normal customer service levels as quickly as possible”. But it added: “In response to this new type of malware, we have put in place different and further protective measures. Due to confidentiality we cannot share details on these measures at this stage.” [Excerpted from Lloyd’s Loading List]
     
    New port agency model proves attractive to bulk shipping markets
    source: AJOT
    Following a strong take-up of its services since its February 2017 launch, global ship agency company WaterFront Maritime Services (WaterFront), has added a further three regional ship agency companies, Ultramar (West Coast South America), ACGI (West Coast USA and Canada) and Royal Burger Group (Northern Europe), as network partners. Read more here.

    GROUND AND RAIL UPDATES
     

    Union ratifies five-year agreement with CP
    source: CanadianShipper
    Calgary, AB — Canadian Pacific and the Teamsters Canada Rail Conference Maintenance of Way Employees Division announced they have ratified a new five-year agreement. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATE
     

    Five key NAFTA battlegrounds to watch when negotiations get underway
    source: CanadianShipper
    Ottawa, ON — U.S.-initiated negotiations to overhaul the North American Free Trade Agreement are bound to be long and hard.
    Canadian officials maintain that Mexico is the real target of President Donald Trump’s determination to renegotiate what he considers to be a bad deal for America. Nevertheless, there are a number of issues bound to spark friction between Canada and the United States. Read more here
     
    Tax Overhaul Reshaping India Logistics Sector
    source: CIFFA
    The shift to a unified national tax has set off a wave of change in India's notoriously inefficient logistics sector as companies alter the way they store, move and account for goods, according to the Agility Mid-Year Emerging Markets Review. India's Goods and Services Tax (GST), introduced July 1, rolled more than a dozen state and federal levies into a single tax. The GST is already prompting logistics providers and their customers to consolidate warehousing, revamp road freight strategies, and invest in system upgrades to improve the efficiency of their supply chains, said the report. Read more here.

  • 20 July 2017

    AIR FREIGHT UPDATES


    New tax could hit Indian airfreight exports
    source: aircargonew.net
    An Indian trade organisation has warned that a proposed tax on airfreight exports will stifle growth in the country’s air cargo sector, while it has also called for investment in the sector.
    At its annual Air Cargo Summit, PHD Chamber of Commerce and Industry warned that moves to include airfreight exports in its goods and services tax (GST) is “totally unfair” and will “stifle the growth of air cargo”.  Read more here

    OCEAN FREIGHT UPDATES

    Officials Take Action as Congestion Sees Boxship Waiting for 12 Days Off Chittagong
    source:  splash247.com
    Chittagong Port Authority has moved to alleviate the congestion situation at Bangladesh’s top port.  Gearless boxships have had to wait on average 12 days to call at the port since May as a result of bad weather, equipment shortages and Ramadan. Two cranes were bashed by a ship in late June, adding to port woes. Read more here
     
    Maersk still feeling effects of cyber attack, but FMC provides breathing space
    source: theloadstar.co.uk
    Maersk is to conduct a “full post-mortem” on last month’s Petya cyber attack that crashed its global computer information systems. In a customer advisory, Maersk said that no data loss to third-parties was known to have occurred, to date, and again sought to reassure worried customers that the virus has not spread “between networks or across the internet”.  Meanwhile, the US Federal Maritime Commission (FMC) has granted Maersk Line a 20-day exemption from service contract filings after it accepted that the attack had “severely inhibited” its computer systems, rendering the carrier unable to determine which service contracts and rates were scheduled to expire. The temporary exemption runs from the date of Maersk’s 30 June petition to the FMC, which the carrier said should provide it sufficient time to regain access to its contract database. FMC commissioner William Doyle explained: “Basically, by granting the petition, Maersk will not require customers to pay higher tariff rates to shipments tendered during the 20-day period, but rather, this action permits Maersk to apply service contract rates to such shipments that were agreed upon and filed after the date of cargo receipt without violating the Shipping Act.”  [Excerpted from The Loadstar]

    Port of Antwerp Forms Action Committee to Tackle Ongoing Barge Congestion
    source: TheLoadStar
    The port of Antwerp has formed a committee to tackle the severe barge congestion hampering major European container gateways. The move came as port chief executive Jacques Vandermeiren warned that greater capacity was required to meet surging demand. Antwerp's head of intermodality & hinterland, Pascale Pasmans, said the delays to barge services are "the consequence of a number of factors, including a shortage of dock labour and handling capacity, as a result of rising volumes of shipping." He added that a consultation meeting had been held with supply chain partners on July 6, and that together they had signed a declaration of intent to improve efficiency and throughput of barges. Read more here
     
    Tempers rise as Hamburg container port expansion is awarded to Chinese consortium
    source: TheLoadStar
    A storm is brewing in the city of Hamburg over the port authority awarding the development of the 42ha Steinwerder South container terminal project to a Chinese conglomerate. Hamburg Port Authority (HPA) launched an ‘ideas’ competition in January for the development of the redundant area on the south side of the city to include up to 1,100m of quay wall to accommodate ultra-large container vessels (ULCVs). Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATE
     

    Tough ‘Brexit’ Terms Could Prompt UK Pivot to Emerging Markets
    source: AJOT
    BAAR, Switzerland – July 19, 2017 – The UK will try to spark its economy through trade with emerging markets if it is unable to preserve the basic outlines of its current relationship with European Union trading partners, says the Agility Mid-Year Emerging Markets Review. Read more here
     
    No rush: Canada’s U.S. ambassador wants quick NAFTA deal but won’t take bad one 
    source: CanadianShipper
    Edmonton, AB — Canada’s ambassador to the United States says he is pushing hard for a timely resolution on the NAFTA renegotiation, but he won’t accept a bad deal to get it. “We’ve heard from Canadian business (and) from the provinces that there’s a certain amount of uncertainty that is causing people to perhaps delay investments,’’ David MacNaughton said Tuesday on the opening day of the premiers annual summer meeting. Read more here
     
    China will ban imported recyclables - 55pc of US output is China bound
    source: shippingazette.com
    CHINA has notified the World Trade Organisation (WTO) that it plans to ban recyclable paper and plastic entering the country, which would be a major blow America's vast recycling industry. President Xi Jinping heads a committee called the Central Leading Group for Comprehensively Deepening Reforms which has been focussing on these imports with a view to stopping them. The US recycling group RISI says 55 per cent of exported recovered paper goes to China. Brent Bell, vice president of recycling for Waste Management, said China is the "predominant player in the export market", adding that the industry was "dependent on China for moving of materials". The import ban, which will enter into force by the end of 2017, will also cover slag from steel making, and many kinds of waste wool, ash, cotton and yarn, Reuters reports. Read more here.

  • 19 July 2017

    AIR FREIGHT UPDATES


    JFK Airport on Track For $10 Billion Renovation
    source: news.airwise.com
    New York Governor Andrew Cuomo announced the next step in his plan to redevelop John F Kennedy Airport at a cost of USD$10 billion. The Request for Proposals is for preliminary engineering and design work “to reimagine the airport's terminals, roadways, AirTrain, parking, cargo facilities, airside and aeronautical improvements, and support infrastructure,” a statement from the Governor’s office said. Read more here

    OCEAN FREIGHT UPDATES

    New CEO could push Zim towards a fourth IPO bid to raise new cash
    source: theloadstar.co.uk
    A fourth attempt by Israeli shipping line Zim for an initial public offering (IPO) could be on the cards now new chief executive Eli Glickman has taken the helm, according to Alphaliner. Attempts to list the company failed in 2008, 2011 and 2016, due to “weak market conditions and a poor earnings track record”. Read more here.  
     
    HMM Slashed Capacity by 28% in Just Three Months
    source: splash247.com
    Hyundai Merchant Marine (HMM) has drastically slashed the operating capacity of its box fleet by more than a quarter in the space of three months. Alphaliner statistics show that between April and the end of June, HMM cut its opearting capacity by 28%, from 479,000 TEUs to 344,000 TEUs as it "relinquished control" of some of hte its biggest and newest ships to Maersk and MSC under the terms of the 2M-HMM strategic cooperation agreement signed in December last year, the analysts  noted in their most recent weekly report.  Read more here.

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATE
     

    Worries about intentions next door fail to dent Mexican export momentum
    source: theloadstar.co.uk
    What wall? The plans by northern neighbour to build this wall has so far failed to dent Mexican exports – including those to the US. Outbound shipments are up sharply, which has created challenges for carriers in balancing equipment, and operators are stepping up their presence in the country. Read more here.  
     
    The Hyper-Personalized Supply Chain is Coming: Are You Ready?
    source: spendmatters.com
    The concept of the demand-driven supply chain has been around for a decade or more. For supply chain organizations in consumer-centric markets, the model requires the ability to ramp production up and down based on demand fluctuations in short cycles. Think that change was a roller coaster ride? Well, fasten your seat belts. Read more here

  • 18 July 2017

    AIR FREIGHT UPDATES