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  • 18 January 2018

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    AIR FREIGHT UPDATES
     
    Container lines risk CNY overcapacity
    source: lloydsloadinglist.com
    Despite the heavy spot freight rate losses incurred ahead of the 2017 festive holidays as lines continued to operate at close to full schedules, a similar strategy is now emerging ahead of Chinese New Year.  Read more here.
     
     
    Snow, Ice Cause Southeast US Flight Cancellations
    source: airwise.com
    Airports across the southeast United States are recovering from a storm which dumped snow and caused icing that led airlines to cancel more flights on Wednesday. Read more here.  
     

     
    OCEAN FREIGHT UPDATES 
      
    GCT Deltaport: Operations Resumed 
    source:  Global Terminals Canada
    Please be advised that regular operations have resumed at GCT Deltaport. Once safety checks are completed, the truck gates will reopen.
     
     
    Video Captures Moment MOL Ethane Carrier Comes Close to Major Disaster
    source: splash247.com
    Mitsui OSK Line (MOL) is in trouble in Egypt where 11 month old fully laden ethane carrier Ethane Opal, grounded and collided into a ferry berth off Port Said.  Read more here


    GROUND AND RAIL FREIGHT UPDATES 
     
    Adding Track Infrastructure Capacity to Run More Trains
    source: CN Rail
    In 2018, we have four major mainline capacity addition projects, between West Coast and the Mid-West and Central Canada. Read more here
     


    CANADIAN BUSINESS - GOVERNMENT UPDATES 
      
    Greek shipping company to be prosecuted in Canada for massive fuel spill
    source: shippingonline.cn
    GREEK Shipping company, Alassia NewShips Management Inc, accused of operating a ship that leaked thousands of litres of fuel into Vancouver's English Bay is to be prosecuted by British Columbia's provincial court on 10 pollution-related offences regardless of whether it participates in the legal proceedings. Read more here

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  • 17 January 2018

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    AIR FREIGHT UPDATES

    Miami takes aim at e-commerce cargo traffic
    source: aircargonews.net
     
    Miami-Dade Aviation Department (MDAD) has organised a strategy meeting of more than 30 air cargo industry stakeholders to discuss how the region can capitlaise on e-commerce growth. Read more here
     

     
    OCEAN FREIGHT UPDATES 
      
    Canada Issues New Safety and Pollution Rules for Shipping in Arctic Waters
    source: splash247.com
     
    Transport Canada announced it has introduced new Arctic SHipping Safety and Pollution Prevention Regulation for vessels operating the country's Arctic region. Read more here
     
     
    Evergereen Marine in for Twenty 11,000 TEU Boxships
    source: splash247.com
     
    Taiwanese shipping line Evergreen Marine has announced a major fleet expansion plan in which the compnay will bring in a total of twenty 11,000 TEU containereships, made up of eight new builds and another 12 vessels on charter.  Read more here
     
     
    Port of LA 2017 container volume hits new record of 9.3m TEU
    source: shippingonline.cn
     
    THE Port of Los Angeles has set an all-time annual record for container throughput in 2017, moving 9.3 million TEU, an increase of 5.5 -percent 2016's record-breaking year and the new high-water mark for the most cargo moved annually by a Western Hemisphere port. Read more here.
     

     
    CANADIAN BUSINESS - GOVERNMENT  UPDATES 

    Growing rail transport expected to bolster oil prices for Canadian producers
    source: canadianshipper.com
     
    Calgary, AB —Steep discounts in prices for western Canadian heavy oil are moderating and should gradually ease through 2018 to allow Canadian producers to reap bigger rewards from strengthening world oil prices, according to GMP FirstEnergy. Read more here

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  • 16 January 2018

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    AIR FREIGHT UPDATES

    US Airlines Post Improved On-Time Performance
    source: news.airwise.com
    US airlines had a good month in November for on-time performance and cancellations, with the on-time arrival rate the highest since the downturn following the global financial crisis in 2009. Read more here
     
     
    Boeing builds unmanned electric cargo air vehicle prototype
    source: shippingonline.cn
    US aircraft manufacturer Boeing has developed the prototype for an unmanned electric vertical-takeoff-and-landing (eVTOL) cargo air vehicle (CAV) that has a payload of up to 227 kilogrammes. Read more here
     

     
    OCEAN FREIGHT UPDATES 
      
    Canada Issues New Safety and Pollution Rules for Shipping in Arctic Waters
    source: splash247.com
    Transport Canada announced it has introduced new Arctic SHipping Safety and Pollution Prevention Regulation for vessels operating the country's Arctic region. Read more here
     
     
    Evergereen Marine in for Twenty 11,000 TEU Boxships
    source: splash247.com
    Taiwanese shipping line Evergreen Marine has announced a major fleet expansion plan in which the compnay will bring in a total of twenty 11,000 TEU containereships, made up of eight new builds and another 12 vessels on charter.  Read more here
     
     
    Port of LA 2017 container volume hits new record of 9.3m TEU
    source: shippingonline.cn
    THE Port of Los Angeles has set an all-time annual record for container throughput in 2017, moving 9.3 million TEU, an increase of 5.5 -percent 2016's record-breaking year and the new high-water mark for the most cargo moved annually by a Western Hemisphere port. Read more here



    GROUND AND RAIL FREIGHT UPDATES 

    Quebec railway suffers flood damage
    source: canadianshipper.com
    Montreal, QC — The St. Lawrence and Atlantic Railway has suffered significant damage from the sudden rise in the water level of the St-François River in the district of Brompton in Sherbrooke during the night of Friday, January 12 to Saturday, January 13. Part of the railway bridge was washed away. Read more here.
      
    Truck weight limit between Chittagong and Dhaka temporarily suspended
    source: shippingonline.cn
    THE Bangladesh government has bowed to pressure from the business community and has suspended a new axle load policy for three months, until March 15, as the policy had affected the movement of forty-foot container units (FEU) on the Chittagong-Dhaka highway. Read more here


    CANADIAN BUSINESS - GOVERNMENT UPDATES 
      
    Weather, Congestion Delays Affect Supply Chain; Forwarders Feel the Heat
    source: CIFFA
    It was a Blue Monday indeed on January 15 as CIFFA members reported widespread congestion across the network.
    Winter weather has wrought havoc across the country, on maritime vessel routes and on both coasts, with freeze, thaw, wind, rain, snow and ice taking turns disrupting fluidity in the supply chain.
    On-dock footage at Port of Vancouver terminals has been on the increase. Members are concerned about the lack of railcar availability with fears the backlog will not resolve quickly.  See footage, Cold weather means shorter trains.
    A January 14 CN WInter Situation report showed extreme temperatures across the Prairies and Alberta.
    Quebec railway suffers flood damage (from Canadian Shipper)
    With heavy on-dock activity, ship dockings have been delayed as well. Berth congestion and rail network issues were cited in several vessel bulletins, as were delays due to bad-weather issues in the Pacific.
    On January 15, CIFFA was informed of a dray operator that has begun implementing surcharges for wait times at container/intermodal yards. This applies to all loaded and empty containers and takes effect on January 15th, 2018 and was due to persistent wait times at container yards in Edmonton and Calgary, the operator reported.
    After heavy storms on the East Coast, and several Maritime provinces dealing with flooding, rain and washout effect after a January thaw, maritime activity has been impacted.
    In Halifax, some vessels were departing with reported 7-8 days’ delay due to accumulated delays from previous voyages and further delay because of the storm hitting the East Coast.
    Adding to the cumulative delays, container exam waits at CBSA on the West Coast 
    Vancouver terminals are longer than usual, reported at 15 days and over.
     

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  • 15 January 2018

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    AIR FREIGHT UPDATES

    New Turkish Cargo freighter to be used on Miami route
    source: aircargonews.net
     
    Turkish Cargo will use its recently delivered Boeing 777-200F on a new weekly route to Miami.
    The service will begin at Istanbul, departing on Sundays, first heading to Madrid, then new destination Miami before heading to Houston and then back to Istanbul, arriving on Tuesday mornings. Read more here
     
     
    Brussels Airport to introduce slot booking for trucks
    source: aircargonews.net
     
    Brussels Airport will launch its slot booking app for certain gates at the warehouses of Aviapartner and WFS to help reduce waiting times next week.
    The BRUcloud slot booking app, first revealed in May, will go live on January 15, allowing trucking companies and freight forwarders to book time slot at a warehouse gate ahead of arrival. Read more here
     

     
    GROUND AND RAIL FREIGHT UPDATES 
      
    Calais-UK trucks ‘still being attacked on a daily basis’
    source: lloydsloadinglist.com
     
    Despite the closure of the ‘Jungle’ migrant camp in Calais in October 2016, cross-Channel trucks are still being attacked on a daily basis, according to the UK’s Road Haulage Association (RHA), which claims it has evidence that some French officers are deliberately allowing migrants to pass their controls undetected by turning off heartbeat monitors at the French border. Read more here
     
     
    Box lines will reap consolidation benefits, but 'shippers need not be alarmed'
    source: theloadastar.co.uk
     
    Despite the radical changes in the container shipping landscape, that will see almost 90% of trade controlled by just seven operators, shippers should not be overly concerned about a loss of competitiveness in the market. Read more here.  



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES 
      
    US blacklist of counterfeit peddlers is the latest flashpoint in a potential trade row with China
    source: scmp.com
     
    The decision by the United States Trade Representative to keep the world’s largest online shopping platform on its blacklist of counterfeit peddlers is a politicised process to create a scapegoat in a trade row between the two biggest economies on earth, said Alibaba Group Holdings. Read more here

     
    Top ten logistics ‘game changers’
    source: lloydsloading.com
     
    Near the start of each New Year, we humbly endeavour to highlight the major strategic changes occurring throughout the freight transportation and logistics universe.
    Below, we present our current assessment of the ten most important game changers currently in play across the industry and the associated investment implications. Read more here

     
    China’s waste import changes impacting freight sector
    source: lloydsloadinglist.com

    New Chinese restrictions on imported waste, introduced since 1 January, are set to have significant implications for the international freight transport, logistics and supply chain sectors – particularly for backhaul east-west intercontinental container shipping trades, although the changes are also likely to lead to rising costs to supply chains from higher packaging costs. Read more here.  

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  • 12 January 2018

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    Boeing's Giant Drone Prototype Can Carry 500 Pounds of Cargo
    source: The Verge 
     
    Boeing has unveiled a giant drone that’s capable of lifting a 500-pound payload. Calling it an “unmanned electric vertical-takeoff-and-landing (eVTOL) cargo air vehicle (CAV) prototype,” the company said it could serve as a precursor for future autonomous flying aircraft. The company has successfully completed initial flight tests at its research lab. 
    The prototype is 15 feet long, 18 feet wide and 4 feet tall, and weighs 747 pounds. Read more here

     
    Air Canada Cargo Announces New Services for 2018
    source: Air Canada 
     
    Air Canada Cargo's network expansion continues in 2018 with direct wide-body service to three new cities, as well as new routes providing more flights and capacity. Read more here
     

     
    OCEAN FREIGHT UPDATES
      
    Rising Oil Price Poses Another Profitability Problem for Containership Operators
    source: The Loadstar 
     
    Escalating fuel prices are posing a renewed risk to carrier profitability, adding to the twin threats of new container capacity coming on stream as softer demand hits after Chinese New Year.
     
    Brent crude is forecast to top $70 a barrel this week – its highest level since mid-2015 – having risen by 35% in the past six months, and the trend shows little sign of abating. Bunker costs for ships are rising virtually every day, with heavy fuel oil (HFO) now around $370 per tonne, compared with approximately $300 a year ago.
     
    And with the new 0.5% global sulphur cap coming into force in 2020, carriers will also be casting an apprehensive eye at the rising cost of low-sulphur fuel oil (LSFO), currently around $600 per tonne, compared with $460 12 months ago. Ship operators must soon decide on the fuel strategy for their vessels: Do they go for LNG? Fit exhaust-gas cleaning systems, known as scrubbers? Or simply use LSFO? Some carriers have decided not to fit scrubbers, but if fuel prices continue to rise they may have to rethink. Read more here
     


    GROUND AND RAIL FREIGHT UPDATES 
      
    French Ports to Launch Shuttle to Switzerland
    source: International Transport Journal
     
    Marseille Fos and Haropa, two major French ports, together with Naviland Cargo, a French intermodal transport provider, are to launch a thrice weekly train service to Switzerland in mid-March. The shuttle will link the two ports to the Terco terminal in Cavornay, near Lausanne, Switzerland, via the Dijon-Gevrey terminal in Burgundy, France.
     
    It is estimated that the new rail service will handle 350,000 to 400,000 TEU per year. At present, only a small percentage of those containers flow through the French ports. Read more here



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES 
      
    Chinese Commerce Minister Supports Free-Trade Ports
    source: Port Strategy 
     
    China's commerce minister Zhong Shan has shown his support for the construction of free-trade ports in the country. In a statement published by the Chinese Ministry of Commerce, Mr. Zhong pushed for greater freedom to be given to local governments in running free-trade zones (FTZs) in the country – areas that would eventually be developed into free-trade ports.
     
    China’s mainland has 11 FTZs, including those in the Zhejiang, Guangdong and Fujian provinces. Speaking about Mr. Zhong’s comment, Frank Feng, chief executive of a visa service firm, said: “The commerce minister’s statement is at least a positive message to businesses around the world that China wants to attract and retain them." Read more here
     

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  • 11 January 2018

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    OCEAN FREIGHT UPDATES
      
    Yemen’s Houthis Threaten to Block Red Sea Shipping Lane
    source: G Captain
     
    Yemen’s armed Houthi movement threatened to block the strategic Red Sea shipping lane if the Saudi-led coalition it is fighting keeps pushing towards the port of Hodeidah it controls, the Houthi-run SABA news agency reported. Yemen lies beside the southern mouth of the Red Sea, one of the most important trade routes in the world for oil tankers, which pass near Yemen’s shores while heading from the Middle East through the Suez Canal to Europe.
     
    While SABA gave no details on how Houthis could carry out any such move, the Bab al-Mandab strait, where the Red Sea meets the Gulf of Aden in the Arabian Sea, is only 20 km (12 mile) wide, making hundreds of ships potentially an easy target. Yemen, one of the Arab world’s poorest countries, is embroiled in a proxy war between the Houthi armed movement, allied with Iran, and a U.S.-backed military coalition headed by Saudi Arabia. Read more here. 
     

      
    GROUND AND RAIL FREIGHT UPDATES
      
    Navigating the Driver Shortages
    source: Inbound Logistics 
     
    The industry’s driver shortage is no secret. About 100,000 seats need to be filled at a time when the pipeline for new drivers is getting thinner. But what’s the practical impact on shippers as this shortage gets worse?
     
    Tighter capacity will lead to fewer choices. Regulations mandating the use of electronic logging devices (ELDs) will result in driver productivity losses. Some marginally profitable carriers won’t survive, reducing available capacity. The remaining carriers, including owner-operators, will be more selective about the freight they accept, and shippers will have no choice but to be more carrier friendly.
     
    On inbound freight, the percentage of no-shows is rising, as drivers run out of hours. Warehouses that staffed to receive these incoming loads end up paying idle workers. On the outbound side, loaded pallets accumulate on the dock, as transport delays slow inventory turn times. Companies that have cut tens of millions of dollars of inventory through great planning and just-in-time delivery may need to increase safety stock for the first time in years.
     
    Some carriers, in an effort to fill seats and avoid turning down loads, are hiring less-experienced drivers. While this practice gets freight moving, it creates other challenges, such as higher accident rates and more frequent cargo damage incidents. Read more  here.



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
      
    Millennials Upset E-Commerce Assumptions
    source: Transport Topics

    The common assumption that millennials shop only online and avoid brick-and-mortar merchants just doesn’t fit their behaviour patterns, according to a survey from a Texas A&M Transportation Institute researcher. The purchasing behavior of millennials – who now account for about 25% of the U.S. population – impacts freight policy, trade, economic trends and infrastructure, said Sarah Overmyer, assistant transportation researcher at TTI.
    She disputed the notions that millennials are glued to their smartphones, rent a place in a city and need immediate delivery of their online purchases.
     
    To better understand millennial e-commerce purchasing, Overmyer conducted a panel survey of 1,310 Texans between the ages of 18 and 34, gathering demographic data and questioning them on their shopping preferences. “The survey shows that millennials may not be as different as we thought,” Overmyer said. “They live in the suburbs, they shop in stores, and they don’t require two-day delivery.” Read more here
     
     

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  • 10 January 2018

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    GROUND AND RAIL FREIGHT UPDATES
      
    Tight U.S. Trucking Market Has Retailers, Manufacturers Paying Steep Prices
    source: The Wall Street Journal 
     
    Retailers and manufacturers grappling with an unusually tight trucking market are paying the steepest prices in years to keep their goods moving.
     
    Freight demand had been ticking up for months, closely tracking the strengthening U.S. economy. The market got a boost from retailers needing to restock stores and distribution centres amid the biggest jump in holiday sales since 2011. That wave of demand hit the trucking market just as a new federal safety rule kicked in, leading some drivers to idle their big rigs. Read more here.
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Overloaded Ports Weigh Down Vietnam
    source: Asia Time 

     
    Vietnam’s over-burdened shipping infrastructure is taking a big toll on freight operations; the port authority estimates the industry loses US$2.4 billion a year because it can’t reach the country’s best docks.
     
    Cai Mep International Terminal (CMIT), 50 km southeast of Ho Chi Minh City, the nation’s commercial hub, provides deep-water access for larger vessels, with capacity of 18,000 TEUs. But shippers prefer to use the far smaller Cat Lai Port, which is closer to the manufacturing districts of Binh Duong, Ba Ria-Vung Tau, Dong Nai and Ho Chi Minh City itself. Read more here

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  • 9 January 2018

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    AIR FREIGHT UPDATES

    India's air cargo market to grow 15pc in FY2018
    source: Shipping Online CN

    INDIA's air cargo segment is forecast to grow by 14-15 per cent in fiscal year 2018, up from 12 per cent growth the previous year, according to rating agency Crisil. The sector is expected to expand by double digits over the next five years in terms of both international and domestic volumes on the back of enhanced connectivity, a conducive regulatory environment and improved infrastructure. Read more here
     
     
    Cambodia's Lanmei Airlines links up with HK's Asia Airfreight Terminal
    source: Shipping Online CN
     
    CAMBODIA-BASED Lanmei Airlines has become the first airline to start a new direct air link between Sihanoukville and Hong Kong, and the airline has appointed Asia Airfreight Terminal (AAT) as its cargo terminal operator in the territory.
    Sihanoukville is a coastal city and has a rapidly developing tourism industry. It also has a vibrant logistics sector due to its deep-water port and designated industrial zone.
     
    Established in 2016, Lanmei Airlines has expanded its international network to Vietnam, Macau and Palau. It has now launched three direct passenger flights per week to Hong Kong using A321 aircraft. General manager of AAT, Kuah Boon Kiam, said: "There is great potential for cooperation between Cambodia and Hong Kong to grow tourism and trade, and AAT is keen to work closely with Lanmei Airlines to further develop its business in Hong Kong."

     
    CSafe and China Airlines sign MLA
    source: Pay Load Asia 
     
    The CSafe RKN active temperature-controlled system is the only compressor-driven air cargo container with approval to fly on upper... Read more here


    TIACA Strengthens Presence in Key Latin American Markets
    source : The Canadian Shipper 
     
    TIACA has signed three Memoranda of Understanding (MoU) with key Latin American organizations and has appointed a sales agent to further grow its presence in the region.
    The MoUs are with Buenos Aires, Argentina-based Americas Alliance (AA), Bogotá, Colombia-headquartered Federation of National Associations of Cargo Agents and International Logistical Operators of Latin America and the Caribbean (ALACAT), and Santiago, Chile-based logistics provider AGUNSA. AGUNSA has also been appointed as TIACA’s sales agent for Latin America, to encourage companies in the region to attend and exhibit at TIACA’s events and to grow membership.
     
    TIACA has pledged to work with the three organizations on new air cargo events, training, and to promote industry best practice across Latin America. TIACA also recently signed an MoU with the African Airlines Association (AFRAA) as part of its global expansion drive. 


    Who's Going to Fly the Plane? Pilot Shortage Could Get Worse for Regional Carriers
    source : CBC News 
     
    A pilot shortage across Canada is causing some regional carriers to cancel flights and put less-experienced pilots in the cockpit. A combination of factors is causing the shortage: ever-increasing air travel by Canadians, a shortage around the world and a large number of pilots reaching retirement.
     
    A soon-to-be released report by the Canadian Council for Aviation and Aerospace says Canada should be producing an extra 300 pilots a year to meet demand. Furthermore, the report warns that demand for new hires for expansion and replacement of retirees could mean a shortfall of 6,000 pilots by 2036. Read more here
    .

     
    OCEAN FREIGHT UPDATES
      
    Turbocharging the slow boat to China’s FTZ success 
    source: Seatrade Maritime News
     
    Could it be second time lucky for China’s new impetus to push through its flagship free trade zone in Shanghai?
    China’s desire to set up free trade ports is not new and has so far met with limited success but there now seems to be added impetus, with more overt official support, that may make it different this time around. Read more here.
     
     
    China ports brace for more bad weather
    source: Seatrade Maritime News 
     
    Already hampered by heavy snowfall across wide swathes of the country last week which affected deliveries of key commodities such as thermal and coking coal and liquefied natural gas (LNG), China looks set for more supply issues as a cold front brings continued bad weather this week, wire reports said read more here
     

      
    GROUND AND RAIL FREIGHT UPDATES
      
    CN Provides Update on Track Status after Disruption in Ophir, Manitoba
    source: Ciffa
    CN sent a customer advisory on Monday to update on the status of tracks that were affected by a service disruption that occurred in Ophir, Man., 120 km east of Winnipeg. Service resumed on Sunday at 12:00 CST. 
     
    The advisory said: 
    “Customers should expect delays due to a traffic backlog up to 48 hours, as we continue working to expedite traffic through this area. Thank you and, as always, we appreciate your business. CN Corporate Marketing & Service Delivery”

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  • 8 January 2018

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    AIR FREIGHT UPDATES

    Lanmei Airlines becomes latest addition to AAT
    source: Payload Asis 

     
    Cambodian based airline, Lanmei Airlines became the first carrier to launch a new air link between Sihanoukvile and Hong. Read more here.
     


    OCEAN FREIGHT UPDATES

    Montreal’s port eyes another record year in 2018 for cargo and cruise passengers
    source: The Canadian Press
     
    The Port of Montreal started 2018 with hopes of another record year for cargo traffic as the Canadian free trade agreement with Europe begins to bear fruit. Canada’s second-largest port anticipates cargo traffic increasing about four per cent after ending 2017 up almost seven per cent Read more here


    DP World first terminal operator to handle 50 million TEU in India 
    source: Shipping Online CN
     
    DP World Indian Subcontinent has become the first container port operator in India to handle a total of 50 million TEU across its terminals in 2017. DP World has invested in the development of five international gateway ports in India since it commenced terminal operations in the country in 1999, starting with its Nhava Sheva International Container Terminal (NSICT). Nowadays the company handles 30 per cent of India's container trade. Read more here.
     


    GROUND AND RAIL FREIGHT UPDATES
     
    NAFTA uncertainty presents risk for Canadian railways, says analysts
    source: The Canadian Shipper  

     
    Montreal, QC — The potential dismantling of the North American Free Trade Agreement poses the biggest risk to Canada’s railways not benefiting this year from healthy economies and higher demand to move crude oil, say industry observers. “What keeps us" Read more here. 



    CANADIAN BUSINESS - GOVERNMENT UPDATES
     
    Canada Deepens Ties with Pacific Alliance
    source: The Canadian Trade Commissioner Service 
     
    As one of the first countries invited to become an Associated State of the Pacific Alliance, Canada is gearing up for talks in Australia this month to negotiate a free trade agreement with Alliance members as a bloc.
     
    The Pacific Alliance is a regional integration initiative created in 2011 by Chile, Colombia, Mexico and Peru. The Alliance’s overarching goals are to foster the free movement of goods, services, capital and people and to promote greater competitiveness and economic growth for member countries. In June 2017, Canada was among the first countries invited to become an Associated State of the Pacific Alliance, along with Australia, New Zealand and Singapore.
     
    This process requires the negotiation of a free trade agreement with the Pacific Alliance as a bloc. With a combined GDP of almost $2.3 trillion, and more than 220 million inhabitants, the Pacific Alliance constitutes an important market for Canada.
     
    Developing closer ties with the Pacific Alliance in general, is a move welcomed by members of the Canadian business community, and the launch of talks to become an Associated State is viewed as an important milestone by many. Read more here.



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    DP World invests over $1 billion in 2017
    source: The Canadian Shipper 

    Dubai, United Arab Emirates — Growing global trade opportunities, diversifying its business across the supply chain and exploring smart innovation technologies were key strands of DP World’s operations in 2017 which included over USD $1 billion in capital expenditur. Read more here.
     
     

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  • 5 January 2018

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    AIR FREIGHT UPDATES

    China Airlines signs up to offer CSafe pharma containers
    source: Air Cargo News 
     
    China Airlines will be able to offer pharma customers access to CSafe Global's temperature-controlled air cargo containers after the two firms signed. Read more here.
     

     
    OCEAN FREIGHT UPDATES
      
    Record cargo year at Port of Montreal 
    source: Ajot 
     
    As early winter’s deepest freeze in many years hampered normal shipping operations on the St. Lawrence River, the Port of Montreal announced record performances in 2017 total and container cargo. The occasion was the special annual ceremony on Jan. 3 honouring the captain of the first ocean-going vessel to reach the port in the new year. Read more here.



    GROUND AND RAIL FREIGHT UPDATES
     
    Railways continue to reduce emissions in Canada: RAC
    source: Canadian Shipper 
     
    Ottawa, ON — Canada’s railways are on pace to meet greenhouse gas (GHG) reduction targets set out by the rail sector and the federal government, according to the latest Locomotive Emissions Monitoring (LEM) Program report released by the Railway Association of Canada. Read more here



    CANADIAN BUSINESS - GOVERNMENT UPDATES
      
    Forwarders Could See Effect of Carbon Tax Surcharge Adjustments
    source: Ciffa
     
    The federal government’s environmental requirement for all provinces to implement a carbon tax by 2018 has resulted in rail companies issuing notice this month of adjusted tariffs for a carbon tax by province and invoicing steamship lines for the charge. For forwarders, this could mean increased fees being passed on to cargo. Some steamship lines were absorbing fees when the amount was much less, but since the tax now applies by province, some policy revisions are taking place.
     
    Some steamship lines will be adding to their tariffs, such as Hapag-Lloyd, which indicated it will begin charging an adjusted carbon tax surcharge from February 1, 2018 on import and export rail moves within Canada and across the border into the United States. 
     
    Every province is different. For example, Quebec’s tax is $1 and several maritime provinces have not listed their carbon tax yet. A year ago on January 1, Ontario and Alberta adopted broad-based carbon pricing policies. Alberta opted for a carbon tax, while Ontario chose a cap-and-trade system.
     


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
      
    Winter storm 2018: What's closed, canceled in New York, New Jersey, Connecticut
    source: Canadian Shipper
     
    NEW YORK (WABC) -- With a massive winter storm battering the New York area, many municipalities and organizations are canceling events and functions in New York, New Jersey and Connecticut.
     
    * The New York State Department of Transportation (NYSDOT) is advising motorists that the High Occupancy Vehicle lane on the Gowanus Expressway will be closed for the morning rush hour (6 a.m. to 10 a.m.) on Thursday, January 4.

     
    Extension of In-bond Regulation Enforcement Dates
    source: Csms
     
    U.S. Customs and Border Protection will extend the time frame for initial implementation of the following regulatory changes for six months. The new implementation schedule is available here

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  • 4 January 2018

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    OCEAN FREIGHT UPDATES
      
    Port of Halifax Storm Alert
    source: Port of Halifax 
     
    The Port of Halifax issued an alert to advise that a winter storm is expected to begin this morning and last for a period of 12 to 20 hours. Read more here.
     


    GROUND AND RAIL FREIGHT UPDATES
      
    CP Rail Free Time Reduced at Vaughan Terminal
    source: ciffa
     
    In its Tariff 3 – Intermodal Supplemental Services issued in July 2016, CP Rail reduced the free time at Group Five Terminals (Vaughan) from 48 hours to 36 hours. (See page 11 of the document, accessible through the link below.) However, implementation was deferred until January 1, 2018. And it seems that, without any reminders or secondary communication, everybody forgot about the change. Dray operators, freight forwarders, customs brokers and importers appear to have been caught by surprise.
     
    A message from CP Customer Service to a CIFFA member stated that "the 36-hour Vaughan window has been in place for some time; there was a grace period reflecting 48 hours to allow the change to be absorbed."
    • July 2016 Tariff 3 
    • January 2018 Tariff 


    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Statements to be Deployed to ACE on January 6
    source: Sandler Travis Trade
     
    On January 6, the Automated Commercial Environment will become the system of record for all statements, with the exception of reconciliation statements, which will be deployed to ACE on February 24.
    U.S. Customs and Border Protection states that, no later than January 13, it will deploy ACE statement reports with ACE statement data, and the legacy ACE account revenue reports universe will no longer be available. The new ACE statement reports will be available under the statements tab found in the applicable trade account workspace. Read more here.

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  • 3 January 2018

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    AIR FREIGHT UPDATES

    Air Canada Cargo Warns of Probable Delays in Toronto due to Cold Weather
    Source:ciffa 
     
    Air Canada Cargo issued a notice on Tuesday that, due to extreme cold weather conditions in the Greater Toronto area that have impacted airport operations, domestic and transborder cargo shipments to, from or transiting through Toronto are subject to delay.



    OCEAN FREIGHT UPDATES

     
    HMM CEO outlines plans to double fleet size by 2022
    source: Maritime Asia 
     
    In a new year’s address to employees Yoo Chang-Keun has laid down plans to double the size of Hyundai Merchant Marine’s (HMM) fleet by 2022. Detailing how HMM had come through resturcturning and saw growth in 2017. Read more here.


    MSC has Qingdao yard add 3,000 TEU to eleven 14,000-TEU ships
    source: Splash 24/7

     
    THE Mediterranean Shipping Company (MSC) has ordered Qingdao's Beihai Shipbuilding to raise the capacity of eleven 14,000-TEU vessels to 17,000 TEU by inserting new sections amidships lengthening them from 365 to 394 metres. The two companies have signed a firm contract to upgrade the capacity of nine 14,000 TEU vessels, and the carrier will confirm the contract for the conversion of a further two 14,000 TEU vessels at the beginning of next year, reported Singapore's Splash 24/7. MSC currently has eleven 22,000-TEU ships under construction at South Korea's Daewoo Shipbuilding and Marine Engineering.


    Port of Shanghai again breaks world record lifting its 40 millionth TEU 
    source: shippingonline

     
    SHANGHAI International Port Group reached a record breaking 40 millionth TEU crossing its Yangshan dock on December 29, making the city's port the first and only in the world to move that many containers in 2017.


    Ocean freight rates rise as New Year GRIs partially succeed
    Source :Lloydsloadinglist  

     
    Attempts by container shipping lines to implement New Year general rate increases (GRIs) appear to have partially succeeded, according to the latest Shanghai Containerised Freight Index (SCFI) figures. Read more here

     
    China hits back at Donald Trump’s ‘zero-sum mentality’ on trade, threatens retaliation 
    source: South China Morning Post
     
    US politicians, with a ‘deep-rooted mistrust’, have failed to catch up with China’s understanding of cooperation, Xinhua commentary says. Read more here.



    INTERNATIONA BUSINESS - GOVERNMENT UPDATES

    China's environment ministry to  'encourage' more recycling
    source: The Loadstar 

     
    Intrinsically connected to the ban on imported paper, cardboard and plastic scrap products in China, the Ministry of Environmental Protection is set to roll out new recycling facilities across a swathe of second-tier cities to encourage more domestic recycling. It claimed these volumes would replace those that come from abroad – though what happens to those mounting piles of scrap elsewhere in the world remains a fundamental question for shipping and scrap recycling forwarders this year. Read more here.
     
     
    Global Manufacturers Strain to Keep Up With Faster World Economy 
    source: Transport Topics

     
    Factories across the globe warned they are finding it increasingly hard to keep up with demand, potentially forcing them to raise prices as the world economy looks set to enjoy its strongest year since 2011. 
    A slew of Purchasing Managers Indexes published on January 2 from China, Germany, France, Italy and the U.K. all pointed to deeper supply constraints.
     
    Shrinking capacity may mean companies have to hire or invest more to avoid overheating, yet it could also force them to push up prices, propelling inflation enough to squeeze the expansion. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among the banks predicting worldwide growth will be around 4% this year, which would be the fastest since a post-recession rebound seven years ago. Read more here.
     

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  • 2 January 2018

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    OCEAN FREIGHT UPDATES

    Global fleet of 14,000-TEUers plus to swell to 200 by end of 2018
    Source:shippingtribune.com 
     
    THE global container shipping industry will take delivery of 108 ships in excess of 14,000 TEU, doubling the number of mega ships in operation to 200 by the end of 2018, according SeaIntel Maritime Analysis. SeaIntel said shipping alliances 2M and THE Alliance will phase-in the new vessels primarily to augment existing services and reduce unit costs by deploying a few more ultra-large vessels. Read more here.
     


    GROUND AND RAIL FREIGHT UPDATES

    Bitter Cold Affects Rail Operations: Impacts Across the System
    Source:ciffa.com
     
    CN is experiencing the prolonged effects of severe cold weather conditions in our Canadian and U.S. Midwest rail network. As part of CN’s winter preparedness and train operating plan, when cold temperatures fall below -25°C, to ensure safe train operations, train length restrictions go into effect. As a result, our trains operating in the corridors from Toronto and Chicago through to Prince Rupert and Vancouver have to be shorter trains, which means subsequently reduced weekly intermodal capacity. To support our winter train operating plan, we have moved all available crews and locomotives into key locations. We have also established critical situation rooms in Canada and the U.S. to drive optimized traffic control. We are committed to moving your goods as safely and quickly as possible. However, the weather outlook predicts this Arctic cold will persist for another 7 to 10 days in key areas. 

     
    Freight Rail Analysis to Assess Impacts of Potential Rail Improvements in Peterborough-Toronto Corridor
    Source:ciffa.com
     
    The federal government announced funding in December for the Peterborough-Toronto Freight Rail Analysis project. Both the Government of Canada and the Government of Ontario will contribute up to $65,000 to the project, which will define freight infrastructure requirements and outline the projected economic impact of potential future freight rail improvements along the Peterborough-Toronto-Havelock-Blue Mountain rail corridor. Specifically, the project will evaluate the benefits and impacts associated with enabling increased freight rail capacity along the corridor. Read more here



    CANADIAN BUSINESS - GOVERNMENT UPDATES

    Truck Turnaround for Major ACI AMPS Penalties Extended
     
    The Canadian Trucking Alliance (CTA) was notified in December by the CBSA that the truck turnaround option for major ACI AMPS penalties will be extended to the end of 2018 in the highway mode. This will be the second extension of the truck turnaround, which was first put in place in June 2017. The turnaround option allows carriers to avoid costly monetary penalties for failure to submit ACI data by returning to the U.S. and submitting their paperwork before entering Canada. Read more here



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Spanish Truckers to Strike in Protest of New Highway Toll
    Source:ciffa.com
     
    Spanish truckers have called a national strike to take place from January 2 to 5 to protest the introduction of a new truck toll on several stretches of a major ‘A’ road.
    The dispute concerns part of European route E05 that links the Spanish road network to the French border. Several thousand HGVs, the majority of them foreign-registered, use the route each day. The toll is designed to take pressure off what has become one of Spain's busiest highways by encouraging truckers to use motorway alternatives in the vicinity, and to contribute to road infrastructure costs in the region.The exact date for the introduction of the toll has yet to be announced. Read more here


    2017: The Year the West Woke Up to the Opportunities of the Belt and Road
    Source:ciffa.com 
     
    Discourse on China’s Belt and Road Initiative has evolved dramatically over the last year. Belt and Road has had a high profile in Asia since the Chinese government committed to the scheme in 2013. But Western companies and experts are scrambling to catch up, in part due to the realization that the initiative looks set to transform East-West trade flows and terminal operations. Read more here
     
     
    U.S. Passes Landmark Tax Bill: Impacts on Canada?
    Source:ciffa.com 
     
    As the U.S. prepared to pass its most far-reaching tax reform in decades, one senator mentioned how it would also touch its northern neighbour, Canada. He predicted it would pull companies south. “We’re not gonna have any more ... companies [moving] their headquarters to get a lower tax rate,” said Sen. Johnny Isakson. “It’s an incentive to stay in America if you’re located there, and come to America if you’re not.” Read more here

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  • 1 January 2018

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    OCEAN FREIGHT UPDATES
      
    Yemen’s Houthis Threaten to Block Red Sea Shipping Lane
    source: G Captain
     
    Yemen’s armed Houthi movement threatened to block the strategic Red Sea shipping lane if the Saudi-led coalition it is fighting keeps pushing towards the port of Hodeidah it controls, the Houthi-run SABA news agency reported. Yemen lies beside the southern mouth of the Red Sea, one of the most important trade routes in the world for oil tankers, which pass near Yemen’s shores while heading from the Middle East through the Suez Canal to Europe.
     
    While SABA gave no details on how Houthis could carry out any such move, the Bab al-Mandab strait, where the Red Sea meets the Gulf of Aden in the Arabian Sea, is only 20 km (12 mile) wide, making hundreds of ships potentially an easy target. Yemen, one of the Arab world’s poorest countries, is embroiled in a proxy war between the Houthi armed movement, allied with Iran, and a U.S.-backed military coalition headed by Saudi Arabia. Read more here. 
     

      
    GROUND AND RAIL FREIGHT UPDATES
      
    Navigating the Driver Shortages
    source: Inbound Logistics 
     
    The industry’s driver shortage is no secret. About 100,000 seats need to be filled at a time when the pipeline for new drivers is getting thinner. But what’s the practical impact on shippers as this shortage gets worse?
     
    Tighter capacity will lead to fewer choices. Regulations mandating the use of electronic logging devices (ELDs) will result in driver productivity losses. Some marginally profitable carriers won’t survive, reducing available capacity. The remaining carriers, including owner-operators, will be more selective about the freight they accept, and shippers will have no choice but to be more carrier friendly.
     
    On inbound freight, the percentage of no-shows is rising, as drivers run out of hours. Warehouses that staffed to receive these incoming loads end up paying idle workers. On the outbound side, loaded pallets accumulate on the dock, as transport delays slow inventory turn times. Companies that have cut tens of millions of dollars of inventory through great planning and just-in-time delivery may need to increase safety stock for the first time in years.
     
    Some carriers, in an effort to fill seats and avoid turning down loads, are hiring less-experienced drivers. While this practice gets freight moving, it creates other challenges, such as higher accident rates and more frequent cargo damage incidents. Read more  here.



    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
      
    Millennials Upset E-Commerce Assumptions
    source: Transport Topics

    The common assumption that millennials shop only online and avoid brick-and-mortar merchants just doesn’t fit their behaviour patterns, according to a survey from a Texas A&M Transportation Institute researcher. 
    The purchasing behavior of millennials – who now account for about 25% of the U.S. population – impacts freight policy, trade, economic trends and infrastructure, said Sarah Overmyer, assistant transportation researcher at TTI.She disputed the notions that millennials are glued to their smartphones, rent a place in a city and need immediate delivery of their online purchases.
     
    To better understand millennial e-commerce purchasing, Overmyer conducted a panel survey of 1,310 Texans between the ages of 18 and 34, gathering demographic data and questioning them on their shopping preferences. “The survey shows that millennials may not be as different as we thought,” Overmyer said. “They live in the suburbs, they shop in stores, and they don’t require two-day delivery.” Read more here

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