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  • 13 March 2017

    OCEAN FREIGHT UPDATES
     
    Launch of mega alliances will result in the removal of many port-pairs
    source: Shippingazette
    AHEAD of the April 1 launch of the new Ocean Alliance and THE Alliance, the newly unveiled network coverage shows that on both Asia-Europe and trans-Pacific trade lanes, a significant number of direct port-to-port combinations will be scrapped, SeaIntel data shows. The maritime analyst identified 78 port-pairs that have been removed, with Northeast Asia-Mediterranean is suffering the largest loss of connectivity owing to the launch of the new alliances. In addition to this, the port-pairs that remain in both the current and new alliance networks will see a massive loss in service frequency, with 135 out of 354 remaining port-pairs seeing a decrease in service frequency, according to the analyst. Carrier preparations for the new alliances are creating problems in Europe, where repositioning or withdrawing of vessels has contributed to chronic space shortages on vessels leaving for Asia. This has affected most carriers on the Europe trade, including Japanese liner NYK Line. [Excerpted from Shippingazette]
     
    'Economies of scale' may not be answer to box shipping's woes
    source: Shippingazette
    THE term "economies of scale" is so ubiquitous in container shipping today that its perceived merits are virtually axiomatic. Vessels are getting larger to support greater economies of scale. Ocean carriers are consolidating and collaborating in unprecedented ways in pursuit of greater economies of scale. Increasingly, activity at large US ports is characterized by higher volumes of inbound non-local cargo whose final destination may be hundreds of miles away, sometimes even in another port city. This trend is predicted to intensify in coming years in conjunction not only with the continued deployment of larger container ships in both east-west and north-south trades, but with the perceived inevitability of service consolidation that is expected to follow the current round of ocean carrier merger and acquisition activity and alliance reshuffling. Big ships are here to stay. So too are the nation's large intermodal gateway ports that are so critical to the international flow of goods. But for large ports to continue to be successful, they must resolve the many challenges that have resulted from the very scale that created those challenges and stop trying to be everything to everyone. Ports of all sizes are acutely aware of the near-term challenges that larger vessels represent and, large or small, all ports must continue to make the necessary capital investments, including both dredging and landside improvements, to meet those challenges. Sacrificing service in pursuit of scale is a false choice and a race to the bottom, not a blueprint for future success. Cargo, like water, will always follow the path of least resistance. By focusing on service over scale, productivity over price and overall customer experience over bragging rights, niche ports eliminate many of the unintended negative consequences that economies of scale have forced upon larger ports. [Excerpted from Shippingazette]

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Canada Steps Up Campaign Against Possible U.S. Border Tax
    source: CIFFA
    Canada stepped up its campaign on Thursday against a possible move by Washington to impose border tariffs, telling the new U.S. commerce chief that such a move would hurt both countries. Canadian Foreign Minister Chrystia Freeland made the comments in a call with U.S. Commerce Secretary Wilbur Ross, her office said in a statement. It was the first time the two had spoken since Ross was confirmed by the U.S. Senate last week. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Manufacturing Jobs May Indeed Be Coming "Home," but Who Will Do Them?
    source: CIFFA
    A host of societal and economic trends -- growing trade barriers, volatile exchange rates, and the erosion of labour-cost benefits in places like China -- are pushing more companies to move their overseas manufacturing plants and production closer to large end-user markets. But obstacles to this general movement, known as "nearshoring," remain. Among the most significant: a lack of skilled labour. Read more here
     
    UK and China move closer to creating a free trade deal
    source: Shippingazette
    CHINA and Britain have pledged to promote free trade and cooperate on building an open world economy amid moves by the two nations to sign a bilateral free trade agreement once the UK leaves the European Union. British Prime Minister Theresa May has been invited by China to attend a major summit on the "One Belt, One Road" initiative to build a new Silk Road, diplomatic sources have told Reuters. [Excerpted from Shippingazette]
     
    NAFTA Talks to Start Late This Year, See Big Changes, U.S. Commerce Secretary Says
    source: CIFFA
    NAFTA negotiations will probably start late this year, might take about a year, and will include serious changes that could see the addition of several entire new chapters to reflect the modern digital economy and other developments in the landmark agreement. That's according to U.S. Commerce Secretary Wilbur Ross, tasked by President Donald Trump to assist negotiations. And while the president suggests he simply wants minor tweaks in the arrangement with Canada, his point man foresees substantive changes. Read more here
     
    3D Printing Offers Opportunities for Logistics Providers, but Threatens Spare-Parts Supply Chain
    source: CIFFA
    The race is on to use 3D printing to produce small-series parts, on demand and on location, for industries from aerospace to automotive. At stake is the shape of a $400 billion market for spare parts manufacturing and logistics. And those changes are not 20, or even 10, years out -- they are happening now. Read more here

  • 10 March 2017

    AIR FREIGHT UPDATES
     
    24-Hour Ground Staff Strike to Hit Berlin Airports Today
    source: CIFFA
    German trade union Verdi has called for ground staff at Berlin airports Tegel and Schönefeld to strike today. The 24-hour strike, which is scheduled to begin at 4:00 am local time, is expected to have a considerable impact on air traffic to and from Berlin. Airberlin said in a statement that flights may be canceled or delayed on short notice. Exceptions to the cancellations are likely to be long-haul flights. Read more here

    OCEAN FREIGHT UPDATES
     
    The Alliance Unveils Safety Net in Case of Bankruptcy and Final Port Rotations
    source: CIFFA
    The five member lines of THE Alliance said that they will establish an independent trustee to manage funds to be used if one of the carriers suffers a bankruptcy. Through the contingency plan, the fund will be used to continue alliance operations in the event of insolvency of one or more members of THE Alliance, which comprises Hapag-Lloyd, K Line, Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK Line) and Yang Ming. Read more here
     
    Scandinavia leading the way in maritime innovation
    source: Splash247
    Having lived in China for many years news that a giant hole was to be blasted in a mountain to allow shits through, avoiding some rough seas, I instinctively imagined that such a project could only be convinced in the People's Republic - a country that has spawned many incredible, jaw dropping engineering feats this century. However, this world-first ship tunnel - the most read story on Splash this week - is not something concocted in Chinae - it is a Norwegian creation. On reflection, I should not have been so surprised.  Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    US trade deficit hits 5-yr high while trade gap with China widens
    source: Shippingazette
    THE US trade deficit jumped in January to the higest level in nearly five years as a flood of mobile phones and other consumer products widened America's trade gap with China, according to media reports. The deficit in trade of goods and services in the first month of the year widened 9.6 per cent from December to US$48.5 billion for the first expansion in two months. It was the largest monthly gap since a deficit of $50.2 billion in March 2012. Read more here

  • 9 March 2017

    AIR FREIGHT UPDATES
     
    French, Finnish Strikes Trigger Severe Disruption
    source: CIFFA
    A five-day French air traffic control strike triggered more than 830 flight cancellations in its first two days and, separately, Finnair has warned of considerable disruption on March 10. The walkout by French air traffic controllers, which started March 6, will run until March 10. Read more here

    OCEAN FREIGHT UPDATES
     
    Innovative New Shipping Contract Would Limit Cargo No-Shows and Rollovers
    source: CIFFA
    A new contract arrangement for carriers and shippers to arrange ocean freight bookings has been launched. It would, it is claimed, dramatically limit no-shows by shippers and rollovers by carriers, and could eliminate some of the $23 billion extra costs incurred annually by the industry. Read more here
     
    FMC Relaxes Rules on NVOCC Service Agreements
    source: CIFFA
    The U.S. Federal Maritime Commission has decided to revise rules pertaining to service contracts and non-vessel operating common carrier service agreements, as it seeks to streamline regulatory costs for ocean shipping businesses. "The commission examined regulatory requirements for service contracts and NVOCC service arrangements in light of current commercial practice and has eliminated a number of burdensome regulatory requirements that served as obstacles to efficient ocean transportation arrangements, added unnecessary transactional costs, and served no regulatory purpose," said FMC acting chairman Michael Khouri. Read more here
     
    The Alliance announces completed product and unveils unique contingency plan
    source: AJOT
    THE Alliance announced its final network after all needed preparations have been finalized. The product starting from April 2017 features fast transit times, a comprehensive port coverage and deployment of modern and most efficient ships. This is thanks to the “best ship for the loop principle” and a dedicated shuttle service design. More than 240 ships will be deployed in 32 services connecting over 75 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Sub Continent and the Middle East with a wide range of direct port-port-connections. Read more here
     
    Port of Long Beach cargo declines during Lunar New Year
    source: AJOT
    Dockworkers move containers at the Port of Long Beach’s Pier J in February 2017.Reduced economic activity in Asia associated with the Lunar New Year contributed to lower February container volumes at the Port of Long Beach. Overall, traffic totaled 498,311 twenty-foot equivalent units (TEUs), a decline of 11.2 percent compared to the same month last year, the highest-volume February in Port history. Cargo in February 2015 ballooned 35.9 percent year-over-year. Read more here
     
    Major carriers cut terminal handling charges in China
    source: Shippingazette
    ELEVEN major international shipping lines serving the trade to and from China are to modify their Terminal Handling Charges (THC) in the wake of a report titled ''THC Investigation Conclusion'' released by the Chinese Ministry of Communications, according to a statement from Japan International Freight Forwarders Association Inc. (JIFFA). "The report concluded that the terminal handling charge is in nature a component of international container transport freight and hence should be folded into freight rates or collected from the party that pays freight," the JIFFA statement said. [Excerpted from Shippingazette]
     
    Panama Canal's new locks too small for safe passage: report
    source: Shippingazette
    SEVEN months since the opening of the expanded Panama Canal, the narrow width of the canal continues to pose a serious problem for ships of up to 13,000 TEU, as well for the tugs that guide them through the expanded third lane. London-based risk management consultancy PGI Intelligence in July 2016 published a report warning of "considerable safety concerns" with the canal expansion that could lead to accidents and delays for shippers and higher claims for insurers. According to the report, at 427 metres long and 55 metres wide, the new locks are still too small for neo-Panamax ships. Since the expansion's opening in late June 2016, two per cent of vessel transits (15 of a total 700) have resulted in incidents that damaged the ship or the canal locks themselves, according to data from the Panama Canal Authority (ACP). [Excerpted from Shippingazette]
     
    Check the terminal choices before you pick your carrier, shippers advised
    source: TheLoadStar
    As the new alliance route networks finally begin to take shape – less than a month before they launch – a major US shipper urged his peers to check carriers’ terminal selection as an important criteria when choosing liner services for the next year.
    At last week’s TPM event in Long Beach, Chris Corrado, vice president of supply chain at medical supplies manufacturer Ansell, told delegates the firm had just completed its annual tender process and had been scoring carriers on their terminal selection.  Read more here
     
    Good Morning Vietnam
    source: LloydsLoadingList
    Vietnam took a large step forwards in its container shipping development last month, when Maersk Line trialled a call by one of its flagship 18,000 teu Triple-E class units sailing back from North Europe. The call at CaiMep International Terminal (CMIT), partly owned by Maersk’s sister company APM Terminals, by the Margrethe Maersk on 20-21 February made it the largest containership to ever stop in Vietnam, and the Danish company has suggested that it is seriously considering making CMIT a regular haunt of the Triple-Es.The Maersk ship was less than full as it was travelling on the weaker backhaul voyage, but Vietnam is no stranger to handling big ships, which have been arriving with greater frequency over the past two years. At present, the largest containership serving Vietnam on a consistent basis is the 15,000 teuSalahuddin from UASC on the Ocean Three alliance’s Asia-Europe FAL23 service, which started calling CMIT in October 2015. Since then more Asia-Europe and Transpacific connections (along with numerous Intra-Asia services) have been added as carriers have sought to take advantage of one of the world’s fastest-growing container markets.[ Excerpted from Lloyds Loading List]

  • 8 March 2017

    AIR FREIGHT UPDATES
     
    Passenger Traffic Growth Strongest For Five Years
    source: AirWise
    Global passenger traffic for January showed the strongest growth in demand for five years, IATA said in its monthly report. Read more here
     
    IATA urges President Trump to help US aviation industry
    source: Shippingazette
    THE director general and chief executive of the International Aviation Transport Association (IATA), Alexandre de Juniac, has called on the Trump administration to reduce the tax burden on aviation and air travellers, and to adopt a new approach to the provision of air traffic services. "Our world has grown much wealthier through trade and travel. Air travel liberates people to live better lives and makes our world a better place," Mr de Juniac told the US Chamber of Commerce 2017 Aviation Summit this week. "The US is falling behind in the introduction of new and more efficient technology. Now is the time to move forward with innovation in the provision of air traffic services. IATA supports the creation of an independent, corporatised non-profit entity to manage US skies. IATA hopes that this will be one of the achievements of the Trump Administration and the 115th Congress." [Excerpted from Shippingazette]

    OCEAN FREIGHT UPDATES
     
    Walkouts Planned across EU Ports to Back Spanish Dockworkers
    source: CIFFA
    As the Spanish government postpones voting on the port reform for another week, international dockworkers unions from neighbouring countries are planning to join industrial action in support of their Spanish colleagues. 
    As a result, Spanish dockworker unions said that they would call off the strikes scheduled for March 6 and 8 in order to continue negotiations on the port reform model. The move was taken as a sign of goodwill, hoping to encourage the Ministry of Public Works to engage in "real" negotiations that would result in amending the bill before it is passed. Read more here
     
    HMM announces new Asia-USWC links as it exits G6 Alliance
    source: Shippingazette
    RESTRUCTERED South Korean carrier Hyundai Merchant Marine (HMM) is to offer three Asia-US west coast links, deploying 19 vessels of 6,300-6,800 TEU, with a weekly capacity of some 19,000 TEU, according to Alphaliner data. HMM released PIERS data showing a big jump in its USWC liftings in January, up 55.3 per cent year on year, to 14,899 TEU a week, and is now ranked the sixth-biggest carrier on the route after Evergreen, Cosco, Maersk, MSC and APL, with a 7.5 per cent market share, versus its previous 4.9 per cent. The 2M alliance recently announced an extra Asia-US east coast service to its network from April - called TP16 by Maersk and Emerald by MSC - to accommodate the extra volumes from its new slot charter agreements on the route with HMM and Hamburg Sud. Both carriers say only their vessels will be deployed on the service and have sought to reassure shippers that containers will not be loaded onto HMM vessels without their prior agreement, after receiving a negative backlash after the cooperation agreement was signed in December. [Excerpted from Shippingazette]
     
    Shipping industry slams EU over Emission Trading System
    source: Shippingazette
    A VOTE by the European Parliament to propose that international shipping (including non-EU flag ships) be incorporated into the EU Emissions Trading System from 2023 has been met with 'disappointment but not surprise' by the International Chamber of Shipping (ICS). "Trying to include thousands of small shipping companies, including thousands of companies not based in the EU, into a system designed for major EU power generating companies and steel and cement producers is only going to complicate this reform. "Reducing CO2 from shipping is a global problem which can only be addressed successfully at global level by IMO. ICS said it is working closely with the European Community Shipowners' Associations (ECSA) in order to persuade EU members and the European Commission to reject these proposals, in view of their support for a global solution at IMO. [Excerpted from Shippingazette]
     
    Hamburg port finishes key entrance widening process
    source: Splash247
    Hamburg port has completed the redesign of the entrance to its Vorhafen Harbour Basin, allowing larger ships to maneuver more easily at one of Europe's most important ports as well as allowing a long tidal window for ships entering and leaving the area. Ships can now manoeuvre in a space with a diameter of 450m following extensive dredging. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Canadian International Merchandise Trade, January 2017
    source: CIFFA
    Canada's merchandise trade balance with the world posted a third consecutive monthly surplus, widening from $447 million in December to $807 million in January. Exports were up 0.5% on the strength of higher exports of motor vehicles and canola. Imports edged down 0.3% in January, mainly due to lower imports of unwrought gold. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    EU Must Avoid 'Suicidal' Trade Strategy on Brexit, Hungary Says
    source: AJOT
    The European Union must avoid the “suicidal strategy” of alienating Britain by ensuring that any trade barriers it imposes after Brexit still give the world’s fifth biggest economy better terms than it can get elsewhere around the globe, Hungary’s top diplomat said. Read more here

  • 7 March 2017

    AIR FREIGHT UPDATES
     
    French ATC Strike Causing Flight Cancellations
    source: CIFFA
    A five-day strike by some French air traffic controllers has led to the cancellation of over 1,000 flights. Flights to and from French airports are affected, plus some flights using the country's airspace, as controllers in Brest and Bordeaux strike until 7:00 pm on Friday. The strikers will be joined by colleagues in the south of France, who will strike from 5:00 am on Tuesday until 5:00 am on Friday. Air France said that over 93 percent of its Paris CDG flights will operate on Tuesday, but only 74 percent of Orly domestic flights. Flight schedules will be updated on a day-by-day basis, the airline said. Read more here
     
    IATA: Air freight momentum carrying over into 2017
    source: ATW
    Global air freight traffic increased 6.9% year-over year in January, down from December 2016’s 10% growth, but more than doubling the average annual growth rate of 3% over the past five years, according to IATA’s January Air Freight Market analysis. Read more here

    OCEAN FREIGHT UPDATES
     
    Port of Oakland marine terminal night gate breakthrough hailed
    source: AJOT
    Trucking industry’s first-time award calls seaport crowding remedy ‘a win-win’ Oakland, Calif. - California’s trucking industry has honored a Port of Oakland marine terminal for easing the state’s containerized cargo crunch. Oakland International Container Terminal received the first-ever Terminal Recognition Award last week for opening its gates at night. Read more here
     
    IBM and Maersk Unite on Global Blockchain Initiative
    source: CIFFA
    IBM and Maersk have announced that they will start collaborating in using blockchain technology to help transform the global, cross-border supply chain and making the software available to the shipping and logistics industry. A new video (included in the full article accessible from the link below) explains how the paper trails of tens of millions of shipping containers from all over the world will be managed by the software, based on the Hyperledger Fabric and built by IBM and Maersk, which has the potential to save the industry billions of dollars. Read more here. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Siem Offshore wins contract extension in Canada
    source: Splash247
    Siem offshore has announced that its subsidiary Secunda Canada has received a four year contract extension plus a five-year option from a major Canadian customer for one of  its vessels. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    China-U.S. Trade Flashpoints as Trump’s Team Prepares Its Case
    source: AJOT
    With his commerce secretary sworn in, U.S. President Donald Trump is now in a position to carry out his trade threats against China—should he decide to do so. Specific measures against China will be announced “as soon as we have a proper case prepared,” Commerce Secretary Wilbur Ross said in a Bloomberg Television interview last week. The billionaire investor spoke just before Trump’s speech to Congress, which included promises to bring back “millions of jobs” and that “dying industries will come roaring back to life.” Read more here
     
    Freight forwarders send budget wish list to UK Government
    source: AJOT
    Ahead of tomorrow’s UK Budget, leading trade association, the British International Freight Association [www.bifa.org], is calling on the Chancellor to do more for the freight and logistics sector. Robert Keen, BIFA’s Director General says: “The economic outlook post Brexit looks challenging and there is considerable uncertainty concerning the UK’s future trading relations with Europe. Read more here

  • 6 March 2017

    AIR FREIGHT UPDATES
     
    E-commerce is driving the transformation of the air cargo industry
    source: Shippingazette
    E-COMMERCE has transformed the air cargo business from being supply chain focused to more "customer centric," transparent and thus more competitive, according to SkaiBlu managing director Michael Hanke, who heads an e-commerce consultancy. Today, customers determine the hours of operation since they log on whenever they want, and increasingly want to serve themselves, such as by checking the status of their shipments via e-tracking or reserving shipping space through an air cargo business website. Furthermore, e-commerce services need to be delivered to the customer's location be it an office desktop or a mobile device. The arrival of the internet and internet-based technology has forced many participants in the airline cargo business to redesign the relationship with their target audience. For example, it has cut out the middlemen as customers directly interact with airline cargo websites for shipment bookings/tracking/paper work, bypassing traditional intermediaries such as air freight forwarders. [Excerpted from Shippingazette]
     
    Global air freight demand up 6.9 percent in January: IATA
    source: Reuters
    Demand for global air freight, measured in freight tonne kilometers, rose 6.9 percent in January thanks to growth in Europe and the Middle East, the International Air Transport Association (IATA) said on Monday. Read more here

    OCEAN FREIGHT UPDATES
     
    Maersk, Hapag warn customers, transshippers of Spanish dock strike
    source: Shippingazette
    MAERSK Line has warned customers of vessel rerouting, port omissions and additional transshipment as Spain's rotating docker strikes unfold to protest impending government port reforms, reports American Shipper. "These actions will cause a serious impact on cargo flows in and out of Spain and more widely to our global network, especially due to the strategic importance of the port of Algeciras as a major transshipment port for cargo moving to/out of Europe, Africa and many other destinations," the carrier added. The Port of Bilbao announced a strike for the same dates but for complete 24 hour periods commencing each day at 8am. Dockers have called the strikes to protest the conservative Popular Party (PP) government's port liberalisation bill. The bill, which still requires parliamentary ratification, will likely result in layoffs and wage cuts of up to 60 per cent. [Excerpted from Shippingazette]
     
    Mearsk and IBM team up on 'transformative' blockchain technology 
    source: Splash24/7
    Mearsk is making blockchain a reality for shipping. The Danish conglomerate has teamed up with IBM for a new initiative which the pair claim in a release could "transform the global, cross-border supply chain". Read more here

    GROUND AND RAIL UPDATES
     
    MoveAmerica: We Can’t Toll Our Way to a $1 Trillion Transportation Investment Plan
    source: AJOT
    The President’s Address to a Joint Session of Congress on February 28 put a spotlight on the need for a massive infusion of new investments in our transportation infrastructure. There’s no denying that such investments are needed. Pouring $1 trillion into our infrastructure — as the President has proposed — would create millions of middle-class jobs and upgrade and modernize our transportation system to which our nation’s leading civil engineers give a low grade. This is something both Republicans and Democrats agree on. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    CBSA Working to Improve Compliance on Carrier Submissions 
    source: CIFFA
    As highlighted in a notice from GCT Canada published in our March 2 eBulletin, one significant cause of problems with the Deconsolidation Notice is that some carriers are not filing the correct "destination sub-loc code" on their carrier ACI filings. Although the sub-loc code is a required element for the carrier's ACI transmission, the language in the Marine ECCRD was not clear, and the CBSA has not exercised a rigorous compliance for several years. The CBSA recognizes that compliance on this data element by the ocean carriers is a critical dependency for eHBL implementation. If you are using a carrier that is not compliant, please direct them to the new CBSA website information -- which reiterates officially that this data element is required.
    It has become critically important that carriers supply this sub-location code, and forwarders are encouraged to tell their carrier suppliers that it is not an option. One would expect that, once the CBSA has updated, corrected and informed the carriers of the requirement, non-compliant carriers will face compliance action. [Excerpted from CIFFA]

  • 3 March 2017

    AIR FREIGHT UPDATES
     
    IATA memo to Trump: cut aviation taxes and return to the principles of deregulation
    source: AirCargoNews
    In a Washington policy speech aimed primarily at the new US administration of President Trump, IATA’s top boss has urged governments to support the vital role aviation plays in connecting people and commerce around the globe. Read more here

    OCEAN FREIGHT UPDATES
     
    The future of container shipping may be smaller than we think
    source: AJOT
    The term “economies of scale” is so ubiquitous in container shipping today that its perceived merits are virtually axiomatic. Vessels are getting larger to support greater economies of scale. Ocean carriers are consolidating and collaborating in unprecedented ways in pursuit of greater economies of scale. Ports too are expanding and collaborating as never before in order to achieve, what else, greater economies of scale. Read more here
     
    Port Awarded Zero-Emissions Equipment Grant
    source: CIFFA
    The California Energy Commission has announced a grant that will help pay for zero-emissions cargo-handling equipment at the Port of Long Beach. Among other projects, diesel-electric rubber tire gantry cranes like this one at SSA Marine terminal will be converted into fully electric equipment.The Port of Long Beach is poised to receive a major grant to fund one of the nation’s largest demonstration projects for zero-emissions cargo-handling equipment. Read more here
     
    Lines brace for further wave of port strikes across Spain
    source: Splash247
    Over the past weeks, labour disputes have escalated in Spanish ports as a conseqence of announced governement plans to reform the Spanish Ports Act and change the existing labour system in ports in accordance with European Union regulations. This has caused discontent with he stevedores' unions, who opted for several industrial actions against the proposed law, which was presented to the parliament on February 24. Read more here
     
    Docker Absenteeism Diverts Cargo from Gothenburg to Varberg in Sweden
    source: CIFFA
    Because of deliberate docker absenteeism at Sweden's Port of Gothenburg, Hapag-Lloyd has diverted its Gothenburg Express Service to Varberg until further notice, and Maersk Line has levied a congestion fee on cargo to and from Gothenburg. Although the dockers union has withdrawn the threat of all-out strikes, which were initially announced to take place last week, its go-slows have caused congestion. [Excerpted from Shippingazette]

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Alberta Chamber recognizes CN for excellence in Aboriginal Relations
    source: AJOT
    MONTREAL - CN (TSX: CNR) (NYSE: CNI) has been recognized for excellence in Aboriginal Relations by the Alberta Chamber of Commerce, receiving the Alberta Business Award of Distinction in the Indigenous Relations – Best Practices category.
    “We are very pleased and honoured to be recognized with this award,” said MélanieAllaire, lead of the Aboriginal Affairs team at CN. “This award is a clear recognition of CN’s commitment to Aboriginal Relations and our Aboriginal Vision adopted in 2013. CN remains committed to proactively developing respectful and mutually-beneficial relationships with all Aboriginal people across Alberta and Canada.” Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Eleven Shipping Firms to Cut Terminal Handling Fees in China
    source: CIFFA
    Eleven shipping companies will cut terminal handling costs in China, saving 3.5 billion yuan (US$509 million) a year for domestic trading companies, the National Development and Reform Commission [of China] said yesterday. Global shipping giants such as Cosco Group, Maersk Line and Mediterranean Shipping Co. have written to the NDRC seeking a reduction in costs after the commission "probed on the extra payments shipping companies charge cargo owners," China's top economic planner said. Read more here

  • 2 March 2017

    AIR FREIGHT UPDATES
     
    Lithium Batteries in Cargo: New IATA Guidance Document Available
    source: CIFFA
    IATA has developed a guidance document that addresses the use and carriage of lithium-battery-powered devices, such as cargo-tracking devices and temperature data loggers. Read more here
     
    LaGuardia Runway Closes After Lightning Strike
    source: AirWise
    A runway at New York’s LaGuardia Airport closed briefly on Wednesday morning after a lightning strike caused minor damage. Read more here

    OCEAN FREIGHT UPDATES
     
    Capacity crunch on box ships to Asia: Maersk first to stop taking bookings, as air freight awaits boost
    source: TheLoadStar
    Maersk Line today stopped booking export containers from Europe to Asia and the Middle East, according to market sources, while capacity is said to be extremely tight for other lines. Air freight could feel the benefit, if the capacity crunch continues, according to one forwarder. Read more here
     
    ILA Calls off Strike in U.S., Seeks Meeting with Congress
    source: CIFFA
    The International Longshoremen's Association (ILA) urged its members not to stage any strikes, as the union intends to seek an emergency meeting with members of the U.S. Congress. Last week, the association called for a one-day shutdown of U.S. East Coast and Gulf Coast ports to protest over job losses. Read more here

    GROUND AND RAIL UPDATES
     
    Remember railroads when talking infrastructure
    source: AJOT
    In a time defined in large part by polarization and rancor, one area of public policy remains remarkably popular among the American electorate: reinvigorating U.S. infrastructure. A February Quinnipiac University poll found a whopping 87 percent of Americans support increased spending towards America’s aging and deteriorating public transportation systems. This includes areas frequently mentioned by the Trump administration – roads, bridges and airports. Read more here
     
    CN plans to invest US$1.9 billion on mainly infrastructure projects in 2017
    source: Shippingazette
    CANADIAN National Railway (CN) plans to invest C$2.5 billion (US$1.91 billion) this year in programmes designed to improve its core infrastructure, enhance safety and support long-term growth. CN said it plans to invest C$1.6 billion on track infrastructure. The planned work includes the replacement of 2.2 million rail ties and installation of 600 miles of new rail, plus work on bridges, branch line upgrades and other general track maintenance. It will also spend C$400 million in 2017 to advance the implementation of PTC, the safety technology mandated by the United States Congress, along parts of its US network. The railway operator will install the hardware on 3,500 route-miles, and plans to invest a total of US$1.2 billion on the entire project by 2020. [Excerpted from Shippingazette]

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    China February Factory Growth Beats Expectations as Global Demand Improves
    source: CIFFA
    China's factory activity expanded faster than expected in February as domestic and export demand picked up, adding to signs that the global economy is regaining momentum even as fears grow of a surge in trade protectionism. Growth in both output and orders accelerated last month, according to official and private factory surveys on Wednesday, giving the government more room to focus on tackling financial risks to the economy as debt continues to rise. Read more here
     
    International Chamber of Shipping urges UN to head off local CO2 regulations
    source: Shippingazette
    THE International Chamber of Shipping (ICS) urges the UN's International Maritime Organisation (IMO) to formulate carbon emission regulations itself before national and provincial governments create a chaotic worldwide regulatory hodgepodge. Speaking in Indonesia at The Economist newspaper's World Ocean Summit, Mr Poulsson: "We are confident IMO can adopt an ambitious strategy by 2018 matching the spirit of the Paris Agreement." The ICS, the association of shipowners and operators representing 80 per cent of the commercial tonnage afloat, says world shipping has reduced CO2 by 10 per cent from 2007 and 2012, but dramatic reductions will be difficult to achieve until alternative marine fuels become widely available, given trade growth and populations increase. [Excerpted from Shippingazette]

  • 1 March 2017

    AIR FREIGHT UPDATES
     
    e-AWB Penetration Rate Dips as Shippers Call for More Digitization
    source: CIFFA
    While the newly formed Shippers' Advisory Committee, created last year by the International Air Cargo Association (TIACA), today released a position paper calling for greater transparency and digitization of the global supply chain, the International Air Transport Association (IATA) recently reported that the penetration rate for its electronic air waybill (e-AWB) initiative dipped from 49.2 percent in December 2016 to 48.5 percent in January 2017. Read more here
     
    Air Canada Cargo Service to Rome, Milan and Venice Starts Soon
    source: CIFFA
    Air Canada Cargo's direct service to Rome begins soon, with wide-body service to and from Toronto starting on March 2, and to and from Montreal on March 4.
    Direct service to and from other cities in Italy begins in May: 
    - Toronto to Venice begins May 4
    - Montreal to Venice begins May 5
    - Toronto to Milan begins May 17
     
    Air France-KLM's weak cargo figures to be hidden in overall financial results
    source: Shippingazette
    AIR FRANCE-KLM plans to merge the financial performance of its struggling cargo business within the overall financial results of the wider AF-KLM airline's operations and calculated on the basis of the cargo business's "contribution margin."  Read more here. [Excerpted from Shippingazette]

    OCEAN FREIGHT UPDATES
     
    Capacity crunch on box ships to Asia: Maersk first to stop taking bookings, as air freight awaits boost
    source: TheLoadStar
    Maersk Line today stopped booking export containers from Europe to Asia and the Middle East, according to market sources, while capacity is said to be extremely tight for other lines. Air freight could feel the benefit, if the capacity crunch continues, according to one forwarder.  Read more here.
     
    Singapore wins, HK and Port Klang the losers, in alliance reshuffle
    source: TheLoadStar
    Hong Kong and Port Klang are set to lose out on Asia-Europe port calls when the Ocean Alliance and THE Alliance launch on 1 April. According to Alphaliner, Hong Kong will be the “biggest loser” as carriers rationalise their services. Read more here.  
     
    DP World Vancouver Issues Pre-Gate Processing Update for Centerm Terminal
    source: CIFFA
    Starting on March 6, all trucking companies with Gateway Compliance accounts in arrears will be denied entry at Centerm Terminal. This includes banned/deactivated companies operating on behalf of third parties (loading facilities and trucking companies) in good standing. When the truck driver arrives at Centerm pre-gate, a security guard will ensure the trucking company's Gateway Compliance account is in good standing prior to granting terminal access. If the trucking company is banned/deactivated by Gateway Compliance due to outstanding invoices, the truck driver will be turned away, and missed appointments will not be vouchered. If you have questions on this, contact Gateway Compliance.
     
    Teamster militants break into TPM Long Beach session to blast XPO
    source: Shippingazette
    TEAMSTER union militants burst into a morning session of the Journal of Commerce's annual TPM Conference in Long Beach to protest what they consider the illegal misclassification of drivers on the part of XPO Logistics and other third-party providers. Said Mr Jacobs: "The Teamsters are out of control. I believe in some unions; I don't believe in the Teamsters. In Europe, we have cordial, respectful, courteous [labour relations], it works well, it's very functional." Said Teamster Ryan Janota: "When we raised concerns with management we were ignored, so we decided to organise. Instead of respecting our rights, XPO spent a fortune on high-priced union-busting consultants to try and silence us. It didn't work and we elected to join the Teamsters so Bradley Jacobs will have to listen!" [Excerpted from shippingazette.com]

    GROUND AND RAIL UPDATES
     
    Enhancements to CBSA's Free and Secure Trade (FAST) Benefit
    source: CIFFA
    The CBSA announced this week two enhancements to its Free and Secure Trade (FAST) benefit for members of the Agency's Trusted Trader programs: Customs Self Assessment (CSA) and Partners in Protection (PIP). With the launch at Fort Erie, FAST is now offered at Canada's four busiest commercial highway border crossings; an additional lane is forthcoming for Emerson, Man., as well. Also starting on February 28, the Pacific Highway port of entry will convert to the FAST-1st model, which continues to offer priority access to FAST eligible vehicles, while also reducing overall congestion at the border. These enhancements are part of the CBSA's ongoing efforts to simplify the border-crossing experience and offer further benefits to companies enrolled in its Trusted Trader Programs. [Excerpted from CIFFA]
     
    CN plans to invest US$1.9 billion on mainly infrastructure projects in 2017
    source: Shippingazette
    CANADIAN National Railway (CN) plans to invest C$2.5 billion (US$1.91 billion) this year in programmes designed to improve its core infrastructure, enhance safety and support long-term growth. "We once again are investing with a focus on advancing safety, service and productivity through infrastructure maintenance, strategic growth initiatives and new technology," said CN's president and CEO Luc Jobin.   CN said it plans to invest C$1.6 billion on track infrastructure. The planned work includes the replacement of 2.2 million rail ties and installation of 600 miles of new rail, plus work on bridges, branch line upgrades and other general track maintenance. It will also spend C$400 million in 2017 to advance the implementation of PTC, the safety technology mandated by the United States Congress, along parts of its US network. The railway operator will install the hardware on 3,500 route-miles, and plans to invest a total of US$1.2 billion on the entire project by 2020. A further C$500 million is expected to be spent on equipment, expansion projects and information technology initiatives to serve growing business, improve service for customers and advance safety. [Excerpted from shippingazette.com]

  • 28 February 2017

    OCEAN FREIGHT UPDATES
     
    New Intra-Asia Alliance Launches Tomorrow
    source: Splash247
    Hyundai Merchant Marine (HMM) has said it will dip into state-backed ship financing funds in the coming couple of months in order to buy new ships and acquire more terminals. Seoul-headquartered HMM,  which went through massive restructuring last year and was spared unlike bust compatriot Hanjin Shipping. Read more here
     
    Zim Concludes Network Restructuring
    source: Splash247
    Isreali carrier ZIM has unveiled the final phase of its restructured network.  
    Commenciing in April, the ZIM MED PACIFIC (ZMP) will serve both the Asia-PNW trade and the Asia-East-Med/Black Sea trades.  Read more here.  
     
    Hapag-Lloyd warns shippers to and from Spain to brace for dock strikes
    source: Shippingazette
    GERMAN shipping giant Hapag-Lloyd has warned customers that all Spanish ports will be affected by strikes this month to protest the government's plan allow employers to hire non-union labour. In Week 10, there will be a strike on March 6, 8 and 10 every other hour, starting 8am, reports the American Journal of Transportation. In Week 11, there will be a strike on March 13, 15 and 17 every other hour, starting 8am. In Week 12, there will be a strike on March 20, 22 and 24 every other hour, starting 8am. The Port of Bilbao announced a strike for the same dates but for complete 24 hour periods commencing each day at 8am. Dockers have called the strikes to protest the conservative Popular Party (PP) government's port liberalisation bill. The bill, which still requires parliamentary ratification, will likely result in layoffs and wage cuts of up to 60 per cent. [Excerpted from Shippingazette]
     
    Evergreen sees bottom, an end to the bad times in 2017
    source: Shippingazette
    EVERGREEN Marine chairman Anchor Chang says the weak global container shipping market should recover gradually over this year as freight rates increase. "We are anticipating a turnaround this year, as the industry is bottoming out," Mr Chang told a news conference in Taipei. He noted that the long declining freight rates started to move upward last quarter across major routes, with demand staying healthy during the lean season. Some notable consolidation deals include the acquisition of Neptune Orient Lines (NOL) by CMA CGM, the merger of Japan's "K" Line, NYK and NOL, and the merger of Hapag-Lloyd and UASC. Evergreen Marine itself is a member of the Ocean Alliance, which includes CMA CGM, Cosco Shipping Lines, and Orient Overseas Container Line (OOCL). The Ocean Alliance is scheduled to start operations in April this year. [Excerpted from shippingazette]

    GROUND AND RAIL UPDATES
     
    CP Network Overview -- Week of February 27
    source: CIFFA
    Operations:
    Canada East Corridor: 
    The Quebec Ministry of Transport has implemented the annual spring thaw weight restrictions. Effective February 27, CP will not accept or in-gate any overweight containers. Overweight loads will be returned to the shipper at their own expense. For domestic shipments where CP performs the drayage, weights must be reduced and evenly distributed in the unit in order to avoid possible charges and fines associated with the restrictions. Shippers retain responsibility for any such charges. 
    Canada West Corridor: 
    Operations in the western corridor are back to normal levels. CP is still metering business to the Union Pacific over Eastport; throughput is improving and CP expects to see continued improvements through the course of the week.
    South Corridor: 
    No issues.

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    What Will Happen to WTO Dispute Settlement Under the Trump Administration?
    source: CIFFA
    America's relationship with the World Trade Organization is about to get a lot more complicated. President-elect Donald Trump already has threatened to withdraw from the Geneva-based organization, but his recent selection of Robert Lighthizer to be the next U.S. Trade Representative increases the odds that the U.S. will turn the WTO into a major battlefield. Read more here
     
    WTO chief says world body has means to deal with 'unfair trade' concerns
    source: Shippingazette
    WORLD World Trade Organisation director-general Roberto Azevedo said the WTO has the mechanisms to deal with many of the "unfair trade" concerns raised by US President Donald Trump. "I heard the US team complaining about unfair trade," MrAzevedo said in a Bloomberg Television interview from Geneva. "Every single country in the WTO complains about unfair trade. What you do about that is the big question." President Trump has pulled the US out of the Trans-Pacific Partnership and plans to open talks to renegotiate the North American Free Trade Agreement (NAFTA) the 23-year-old deal binding the US, Canada and Mexico. US lawmakers are also mulling over the introduction of a border tax on corporations. [Excerpted from shippingazette]

  • 27 February 2017

    AIR FREIGHT UPDATES
     
    Air Canada Cargo Adds Freighter Capacity To/From Bogotá
    source: CIFFA
    Air Canada Cargo is adding a direct all-freighter flight between Toronto and Bogotá starting on Wednesday this week. This flight is in addition to its regular, twice-weekly all-freighter service between the two cities.

    OCEAN FREIGHT UPDATES
     
    US west coast ports increase market share in 2016, says PMSA report
    source: Shippingazette
    US west coast ports increased their market share in 2016 indicating losses to east coast and Gulf ports are being reversed, reports the American Journal of Transportation. According to the Pacific Merchant Shipping Association (PMSA) West Coast Trade Report, the US west coast ports increased their container market share. Read more here

    GROUND AND RAIL UPDATES
     
    North American Rail Shippers announce meeting theme
    source: CanadianShipper
    CHICAGO, Ill.–“Achieving Agility in a Dynamic Environment” will be the theme for the Annual Meeting of the North American Rail Shippers Association (NARS) to be held May 23–25, 2017 at the Parc 55 Hilton Hotel in San Francisco, California.

The two-day meeting will feature keynote presentations from Association of American Railroads Chairman Lance Fritz, who is president and CEO of Union Pacific, and Pat Ottensmeyer, president and CEO of Kansas City Southern.
     
    Exercise Athéna to simulate derailment incident
    source: CanadianShipper
    LÉVIS, Que.–Transport Canada and Defence Research and Development Canada’s Centre for Security Science were to host a guided media tour of Exercise Athéna February 26. The tour was to include a simulated train derailment where participants would be faced with an actual fire using a replicated railcar prop, and a simulated virtual derailment tool developed specifically for this exercise, said a release. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    The MPA welcomes establishment of the Montreal Industrial Port Zone
    source: CanadianShipper
    MONTREAL, Que.–The President and CEO of the MPA, Sylvie Vachon, together with the Minister for Maritime Affairs, Jean D’Amour, the Mayor of Montreal, Denis Coderre, and the Mayor of the Borough of Mercier–Hochelaga-Maisonneuve, Réal Ménard, have announced the signing of an agreement for the establishment of an industrial port zone (IP Zone) in Montreal. Read more here

  • 24 February 2017

    AIR FREIGHT UPDATES
     
    January air freight market closes out on stable footing
    source: AirCargoWorld
    Drewry’s East West Airfreight Price Index fell by the lowest monthly margin in January since the research firm began indexing rates in 2012. Rates fell just 13 cents, holding at about the US$3 mark in January, at $3.01, indicating greater stability in the market. Read more here
     
    IATA: New Trade Facilitation Agreement a shot in the arm for global trade
    source: AirCargoWorld
    A trade agreement promoting faster, cheaper and easier trade that entered into force this week is “great news for airlines, which deliver about a third of the goods traded across borders by value,” said Alexandre de Juniac, IATA’s director general and CEO. The Trade Facilitation Agreement (TFA), which passed Wednesday, follows the ratification of the treaty by two-thirds of the members of the World Trade Organization. Read more here

    OCEAN FREIGHT UPDATES
     
    Cutting Shipping Cost Dramatically with More Durable, Collapsible IBCs
    source: AJOT
    Reusable crates can be shipped thousands of times and avoid the high cost of traditional single-use containers. IBCs (International Bulk Containers) have long been utilized for storing and transporting bulk liquids and powders. Considered more durable than cardboard boxes or wood pallets and containers, yet smaller and easier to manage than shipping containers, these intermediate-sized options are ideal for bulky or heavy items. Read more here
     
    US east coast dockers threaten one-day strike to protest automation
    source: Shippingazette
    The International Longshoremen's Association (ILA) has called for an unscheduled one-day strike at all US east and Gulf Coast ports to march on Washington to protest the loss of jobs, according to a press release in New York's Maritime Executive. The shutdown and protest is to happen with in 30 days. The ILA also protests over regulation, blasting the South Carolina Ports Authority and the New York Waterfront Commission for interfering in hiring. A month ago, the ILA staged a slowdown at South Carolina's Port of Charleston to protest increased automation and the non-ILA workers being hired to operate the new technology. The two sides met last week for informal talks ahead of the official negotiations, after which the ILA predicted two main issues would dominate the talks: the role of automation in job loss and the fulfilment of local contracts prior to the Master Contract's conclusion. At present, no statement has been issued by the Port of New York and New Jersey or the South Carolina Ports Authority on plans to mitigate the disruption. ILA members expressed concerns that potential companies were dissuaded from starting businesses at the New York-New Jersey waterfront "because of the interference and harassment of the Waterfront Commission". [Excerpted from Shippingazette]
     
    Spain Moves Forward with Longshore Reforms
    source: CIFFA
    Spain's Ministry of Public Works is moving forward swiftly with plans to liberalize the nation's longshore labour policies. Despite the objections of union leaders and the possibility of rolling strikes, the agency intends to finalize a "royal decree-law" on port reform -- an administrative ruling with the force of law -- as early as today. Read more here

    GROUND AND RAIL UPDATES
     
    Chengdu-Europe rail route to be operated by 1,000 trains in 2017
    source: Shippingazette
    THE number of freight trains operating between China's southwestern city of Chengdu and Europe is expected to double in 2017 compared to last year, according to the Chengdu International Railway Services Company. New routes linking Chengdu to Istanbul and Moscow will be launched this year, according to company chairman Fan Jun. The train journeys to Istanbul and Moscow will take 16 days and 10 days, with each route to be operated by 200 and 150 trains, respectively. [Excerpted from Shippingazette]

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Brexit Bulletin: Team May Hits Back
    source: AJOT
    Brexit negotiations have yet to formally begin, but U.K. lawmakers are already balking at the European Union’s position. Senior Conservatives are hitting back against claims from Austrian Chancellor Christian Kern, made in a Bloomberg interview yesterday, that Britain should be charged about 60 billion euros when it leaves the EU. Read more here
     
    There's a New Trade Deal in Town. But What is the TFA and Who Will Benefit?
    source: CIFFA
    You may not have heard much about the new World Trade Organization (WTO) Trade Facilitation Agreement (or TFA). On the web, it's eclipsed by the Star Wars movie The Force Awakens, which has the same three-letter acronym. Through the TFA, governments have agreed to publish, online where possible, a wide range of customs-specific information, including measures to help speed up the processing and clearance of goods -- such as procedures for accompanying documents to be processed ahead of the arrival of a package, and options for electronic payment of import or export duties. Participating countries have been encouraged to use international standards for import, export and transit formalities, to help minimize the number of different procedures businesses might have to master to move goods between countries. Read more here

  • 23 February 2017

    AIR FREIGHT UPDATES
     
    Alitalia Cancels Many Thursday Flights
    source: AirWise
    Alitalia has cancelled 60 percent of its flights on Thursday, February 23 as several of its unions called a 24 hour strike. Domestic and international flights are affected by the industrial action. The airline said flights operating between 07:00 and 10:00, and between 18:00 and 21:00 will operate as scheduled, but some unions will strike from 14:00 until 18:00, potentially causing further disruption.  Read more here
     
    Air Canada Cargo Enhances Its Track & Trace Function
    source: CIFFA 
    As of today, an improved version of Air Canada Cargo's Track and Trace function is live on aircanadacargo.com
    Improvements include:
    - A new milestone checklist -- See where your shipment is in the process
    - New information filters -- Narrow down the information you get to just what you need
    - New status sorting -- Choose whether you want your information by date, flight or status
     
    BIFA welcomes entry into force of the WTO Trade Facilitation Agreement
    source: AJOT
    On behalf of its members, the British International Freight Association (BIFA) has welcomed the entry into force of the WTO Trade Facilitation Agreement. The trade association for UK freight forwarding and logistics companies notes that the ratifications by Chad, Jordan, Oman and Rwanda today means the deal has reached the pre-determined threshold of 110 WTO members required for its immediate entry into force. Read more here

    OCEAN FREIGHT UPDATES
     
    Strike threat to port of New York as dockers' union hits out over jobs
    source: TheLoadStar
    International Longshoremen’s Association (ILA) vice president Kenneth Riley has called for a shutdown of US east coast ports in a protest over mounting job losses. The action, including a march of dockworkers on Washington, will start on 27 February. This coincides with the first day of the Transpacific Maritime Conference in Long Beach, and comes as union leaders and terminal employers prepare for the next round of master contract negotiations.  [Excerpted from loadstar.co.uk]
     
    9-day dock strike in Spain unless state port reformers relent on hiring
    source: Shippingazette
    SPANISH dockers have called for nine days of strikes from Monday March 6 to protest government plans to allow ports to hire non-union labour, Reuters reports. The nine days of stoppages across dozens of Spanish ports would take place on alternate days, meaning disruptions will continue for three weeks.  [Excerpted from Shippingazette]

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    The Trade Facilitation Agreement Enters into Force
    source: CIFFA
    A major milestone for global trade was reached on February 22, when the World Trade Organization's Trade Facilitation Agreement (TFA) entered into force with the ratification of the deal by the required two-thirds of WTO's 164 members. Upon the entry into force of the agreement, which seeks to expedite the movement, release and clearance of goods across borders, WTO Director-General Roberto Azevêdo said that it shows members' commitment to the multilateral trading system, and will help to cut trade costs around the world. Read more here
     
    Canada and Mexico Stress That Talks on NAFTA Will Involve All Three Members
    source: CIFFA
    Any talks to renew the North American Free Trade Agreement would involve all three member nations, Foreign Minister Chrystia Freeland said on Tuesday, dampening speculation the United States might seek to sit down with Canada first and then Mexico. "We very much recognize that NAFTA is a three-nation agreement and, were there to be any negotiations, those would be three-way negotiations," Freeland said. Read more here

  • 22 February 2017

    OCEAN FREIGHT UPDATES
     
    2M Alliance makes changes to services - adding Wilmington, NC call
    source: Shippingazette
    THE 2M shipping alliance of Mediterranean Shipping Company and Maersk Line has altered its transatlantic network to add a call at the port of Wilmington, North Carolina, and a second weekly call to the port of Savannah, starting from April 1. The port rotation of the string MSC calls the NEUTAL2 and Maersk brands the TA2 will then be: New York, Bremerhaven, Felixstowe, Antwerp, Le Havre, New York, Baltimore, Norfolk, Wilmington, Savannah and New York, American Shipper reported. [Excerpted from Shippingazette]
     
    Surging Steel Price Boosts Scrap Value of Redundant Containerships
    source: CIFFA
    A sharp increase in steel prices has prompted a new wave of vessel scrapping, bringing the supply-demand ratio in container shipping further into balance. According to the latest report from London shipbroker Braemar ACM, containership scrapping this year has already reached 56, amounting to 185,500 TEU. This compares with 16 ships (45,000 TEU) in the same period of 2016. Moreover, the delivery of new-build tonnage has slowed considerably, with only 18 vessels, totalling 91,500 TEU, having been delivered so far this year. Read more here
     
    ILA Calls for Shutdown of U.S. Ports 
    source: CIFFA
    International Longshoremen's Association locals along the U.S. Atlantic and Gulf coasts are calling for a shutdown of ports and a march on Washington next week. The daylong protest in Washington -- the date is yet to be announced -- is intended to highlight hiring practices in some U.S. ports aimed at reducing the number of dockworkers, and to call for the elimination of the Waterfront Commission of New York Harbor. Read more here

    GROUND AND RAIL UPDATES
     
    CP president says ‘beaver is back’; railway brings back beaver logo
    source: CanadianShipper
    CALGARY, Alta.– Canadian Pacific is bringing back its “iconic” beaver logo, the railway announced today. “I am excited to say that ‘the beaver is back,'” said Keith Creel, CP President and Chief Executive Officer. “Thanks to a lot of hard work in the last few years, we have taken our rightful place as an industry leader and the time is right to re-connect with our past by bringing back this iconic symbol for Canada, and for CP.” Read more here
     

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Canada's high commissioner to UK says speedy trade deal likely post Brexit
    source: Shippingazette
    CANADA and the United Kingdom should be able to strike a speedy trade deal after Britain leaves the European Union, according to Canada's high commissioner to London, Janice Charette, reports Bloomberg. "We'll be able to arrive at something as quickly as the political leadership in both countries want it to happen," MsCharette said in a television interview. "Trade agreements will be easy to reach." MsCharette said that while Britain is still an EU member, it will benefit from tariff reductions enshrined in the new trade deal, which is known as the Comprehensive Economic and Trade Agreement. The pact is to end 98 per cent of tariffs on goods from the outset and 99 per cent after seven years. After Brexit, the CETA agreement should serve as a model for the new UK-Canada deal, she said. [Excerpted from Shippingazette]

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Dubai Customs calls for greater collaboration on trade and security
    source: AirCargoNews
    Dubai's top customs official has said that greater co-operation is needed between local, regional and international authorities to facilitate trade and sustain high levels of security.
    "With the UAE’s positioning as a world-class transport and integrated logistics hub, it has become more important than ever to deploy effective screening and detection technologies at all borders.Read more here.

  • 21 February 2017

    AIR FREIGHT UPDATES

    Air France Pilots Agree on Carrier’s Plan to Form `Boost’ Unit
    source: AJOT
    Air France pilots approved the carrier’s plan to carve out a new, lower-cost business to counter increasing pressure from rivals, marking a rare agreement with workers after years of contentious labor relations at the carrier. Flight-deck employees represented by the SNPL union, who account for two-thirds of pilots at the French arm of Air France-KLM Group, voted 58.1 percent in favor of the proposal to create the unit, provisionally dubbed Boost, the labor group said Monday in a statement. Read more here
     
    Air Canada Cargo Adds Flights to and from Tel Aviv
    source: CIFFA
    Air Canada Cargo is adding a new route, Montreal to Tel Aviv, two days a week beginning on June 22. 
    Service between Toronto and Tel Aviv will be daily as of May 29. Click here to see the flight schedule. 

    OCEAN FREIGHT UPDATES
     
    New Crane at Port of Vancouver Centerm Will Increase Operational Capacity
    source: CIFFA
    By now, a new quay crane, manufactured by ZMPC in Shanghai, should have arrived at DP World Vancouver. The crane was expected to be delivered on the MV Zhen Hua around February 17. The new crane will increase Centerm's operational capacity with twin-twenty capability, 23 rows wide and 10 containers high on deck. The vessel will be using Berth 5 and is expected to be there for a period of five days during the off-loading process. The new crane is expected to commence regular operation around April 2. Until then, Berth 5 will be only partially available. Read more here
     
    On the Brink: Launch of New Mega-Alliances on April 1
    source: CIFFA
    There are only six weeks left before the container industry welcomes the next big chapter in its evolution as two groups of carriers join forces to create two new and bigger alliances to take on the might of Maersk Line and MSC in the 2M network. Yet, not much more about the two new networks -- Ocean Alliance and THE Alliance -- is known since the original announcements were made in early November, which is giving some industry stakeholders cause for concern. Read more here
     
    Strikes Scheduled for Spanish Ports Called Off
    source: CIFFA
    Spanish port workers have called off planned strike action that was set for later this month, Reuters reports. The International Transport Workers' Federation (ITF) had said that, in response to Spanish government plans to reform the country's port system, Spain's trade unions were set to strike on February 20, 22, and 24. Read more here
     
    Dock Workers Call Off Strike at APM Terminals Gothenburg
    source: CIFFA
    The Swedish Dockworkers Union (SDU) has agreed to cancel industrial action in the Port of Gothenburg, scheduled for February 17 to 28. The decision to call off the action, which included stoppages and strikes, was a condition set by Henrik Kristensen, CEO of terminal operator APM Terminals Gothenburg, after he confirmed he will meet with the International Dockworkers' Council (IDC) and the SDU on February 23. Read more here

    GROUND AND RAIL UPDATES
     
    Government of Quebec Thaw Period Restrictions
    source: CIFFA
    The Government of Quebec reminds users of heavy vehicles and shippers that authorized load limits are reduced during the thaw period on all public roads. This is done every year to account for the road network's lower bearing capacity during this period.
     
    For the 2017 thaw period, the following are the projected start and end dates of the load-restriction period for each thaw zone:
     
    Zone 1 -- From March 13 to May 12 
    Zone 2 -- From March 20 to May 19 
    Zone 3 -- From March 27 to May 26 
     
    Depending on weather conditions, the start and end dates of the load-restriction period may change.
     
    Find thaw map here

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Canadian Trade Minister Encouraged by Trump’s Nafta ‘Tweak’
    source: AJOT
    Canada was heartened by U.S. President Donald Trump’s remark he may yet tweak his neighbor’s side of the North American Free Trade Agreement, rather than demand wholesale change, according to Trade Minister Francois-Philippe Champagne. Read more here

  • 20 February 2017

    AIR FREIGHT UPDATES

    IATA releases nominees for annual Cargo Innovation Awards
    source: AirCargoWorld
    IATAAfter honoring a successful group of cutting-edge cargo entrepreneurs and established firms in 2015, IATA has revived its Cargo Innovation Awards program for 2017 and released the names of five finalists for this year’s award. Read more here
     
    Lufthansa reaches agreement on pay deal with pilots
    source: Shippingazette
    THE dispute over pay between Lufthansa and its pilots looks to be ending as both groups have agreed to mediator recommendations, according to media reports. The two parties said they agreed to the mediator's recommendation of an annual pay rise of 2 per cent backdated to January 2016, another rise of 2.3 per cent from January 2017, another rise of 2.4 per cent in 2018 and a further 2 per cent in 2019. The new agreement will cover Lufthansa, Lufthansa Cargo and Germanwings and will run until the end of 2019, and the airline said it'll costs EUR85 million annually in implementing the agreement. [Excerpted from Shippingazette]

    OCEAN FREIGHT UPDATES
     
    Maersk to switch terminals in LA and Long Beach on TP2 and TP6 services
    source: Shippingazette
    MAERSK Line has announced that the TP6 service will call Total Terminals International (TTI) in Long Beach and the TP2 will call APMT Pier 400 in Los Angeles soon and henceforth.  Read more here. [Excerpted from Shippingazette]
     
    Yang Ming set to receive further government cash to help keep it afloat
    source:The LoadStar
    In a further move to reassure shippers of its continued financial viability, Taiwanese container line Yang Ming has revealed that its government has upped its stake in the carrier, and is likely to do so again. Yang Ming is set to raise US$54.4m through a privately placed rights issue with six Taiwanese investors and companies. The key participant here is the NDF, established by the Taiwan government and which will hold a 6.39% stake in Yang Ming after the first round. The total government-owned Yang Ming stock, including the holdings of the ministry of transport and communications, will increase to 36.62% after the completion of this first round. The company published a financial recovery plan in late January, after industry analysts had questioned its financial strength in the wake of the Hanjin bankruptcy and after itself accumulating some $1.2bn in losses since the 2009 financial crisis. [Excerpted from theloadstar.com.uk]
     
    IndustriALL: Workers to Strike against HHI Split-Up
    source: WorldMaritimeNews
    Workers of South Korean shipbuilding company Hyundai Heavy Industries (HHI) plan to go on strike on February 22-27 to block a shareholders’ meeting with the firm’s restructuring plans on the agenda, IndustriALL Global Union informed. Read more here
     
    US agency used selective ship data to boost global warming
    source: Shippingazette
    THE National Oceanic and Atmospheric Administration (NOAA), the world's leading source of climate data, stands accused of abandoning findings that showed no support for global warming and used other data that fanned fears of climate change. When NOAA compiled its dataset for the UN Paris conference, it took reliable readings from buoys but then "adjusted" them upwards - using readings from seawater intakes on ships that act as weather stations instead, reports London's Daily Mail. This recalls the 2009 "Climategate" when scientists at the primary source for UN climate data at the University of East Anglia at Norwich were caught attempting to "hide the decline" in temperatures gathered from Siberian tree rings by inserting nearby warmer airport "real temperatures", instead to strengthen global warming arguments. [Excerpted from Shippingazette]

    GROUND AND RAIL UPDATES
     
    CP appoints railroading business veteran John Brooks as CMO
    source: Shippingazette
    CANADIAN Pacific has appointed John Brooks as its new senior vice-president and chief marketing officer, with immediate effect, in a bid to enhance its sales and marketing team to "better meet the needs of its current and potential customers." CP president and chief executive officer, Keith Creel, said: "We are confident that John and his talented team can leverage our superior operating model, diversify our book of business and deliver for our customers and shareholders." With more than 20 years in the railroading business, Mr Brooks began his railroading career with Union Pacific and later helped start I&M Rail Link, LLC, which was purchased by the Dakota, Minnesota and Eastern Railroad (DM&E) in 2002. Mr Brooks was vice-president of marketing at the DM&E prior to it being acquired by CP in 2007. [Excerpted from Shippingazette]

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    Brexit Bulletin: How to Solve a Problem Called France?
    source: AJOT
    “French likely to be most difficult,” was one of the messages visible on a scribbled page of notes photographed in the arms of a Conservative Party aide leaving Downing Street in November. Now, as the prospect of “Frexit” increasingly keeps investors awake at night, the visit of a French presidential candidate to London this week is likely to largely confirm that the Entente Cordiale won’t extend into Brexit negotiations. Read more here

  • 17 February 2017

    AIR FREIGHT UPDATES
     
    Air Canada launches daily year-round flights from Montreal to Shanghai, China
    source: CanadianShipper
    MONTREAL, Que.– Air Canada is launching daily year-round flights from Montreal to Shanghai, China, the airline’s first direct service to Asia from Montreal, offering one-stop access to points throughout Quebec, Atlantic Canada and the United States. Read more here

    OCEAN FREIGHT UPDATES

    Work Stoppages Next Week at APM Terminals at Port of Gothenburg, Sweden
    source: CIFFA
    As part of an ongoing dispute between the Swedish Dockworkers' Union and APM Terminals at the Port of Gothenburg, there will strikes next week with total work stoppage.
    - Tuesday, February 21, from 1:00 to 5:00 pm
    - Tuesday, February 21, from 10:00 pm to Wednesday, February 22 at 2:00 am
    - Thursday, February 23, from 12:00 to 8:00 pm
    This action has been scheduled for some time, as part of a ban imposed by the union on new recruitment, overtime and the use of hourly paid contract workers during the evening and at night, between January 6 and February 28, unless the dispute is resolved before then. Other terminals at the Port of Gothenburg are currently not affected by the dispute.
     
    Funding allocated for Trois-Rivières port facilities expansion project
    source: CanadianShipper
    OTTAWA, Ont.–The Canadian Environmental Assessment Agency (the Agency) has allocated $83,985 in federal funds to three recipients to assist their participation in the federal environmental assessment of the proposed Trois-Rivières Port Facilities Expansion Project, located in Trois-Rivières, Quebec. Read more here 

    GROUND AND RAIL UPDATES

    Rail Service Interruptions Caused by Rock Slides and Washouts in B.C. Lower Mainland and Fraser Canyon
    source: CIFFA
    In a customer advisory sent on Thursday evening, CP noted that outages had occurred throughout the day in multiple locations along its routes due to rock slides and washouts in the lower mainland and through the Fraser Canyon. CP expected to resume normal operations on Thursday night.
     
    CP launches awareness campaign for inward-facing cameras
    source: CanadianShipper
    CALGARY, Alta.–Canadian Pacific has launched an awareness campaign that highlights what it calls the safety benefits of the proactive use of inward-facing cameras, and is urging the Minister of Transport to pass new legislation that would maximize these benefits. Read more here
     
    TSB wants strategies to reduce severity of dangerous goods derailments
    source: CanadianShipper
    SUDBURY, Ont.–The Transportation Safety Board of Canada (TSB) is issuing a recommendation (R17-01) calling for Transport Canada (TC) to develop strategies to reduce the severity of derailments involving dangerous goods. This recommendation was issued as part of its investigation (R15H0013) into the February 2015 derailment and fire involving a Canadian National Railway (CN) crude oil unit freight train near Gogama, Ontario. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES

    Canada’s U.K. Envoy Says Fast Post-Brexit Trade Deal Is Possible
    source: AJOT
    Canada and the U.K. should be able to strike a speedy trade deal after Britain leaves the European Union, Canadian envoy Janice Charette said. “My expectation is we’ll be able to arrive at something as quickly as the political leadership in both countries want it to happen,” Charette said on Thursday in a television interview with Channel 4 News. “Trade agreements will be easy to reach.” Read more here
     
    CBSA TCC17-030 -- Important Update on the CBSA eManifest Freight Forwarder Implementation
    source: CIFFA
    Over the past few months, the CBSA has worked closely with stakeholders to mitigate a number of the issues experienced through the submission of electronic house bills. On February 15, a CBSA system release occurred to address two such issues.
    1. Air and marine carriers were receiving false Risk Assessment (RA) Messages (Do Not Load) after the associated electronic house bill was accepted by the CBSA.  
    Solution -- The CBSA has modified systems to eliminate the triggering of false RA Notices.
    2. House Bill Close Messages (HBCM) were being rejected by the CBSA when an electronic house bill quoted the CCN (8000 CCN) as the HBCM's previous CCN and that electronic house bill was not on file with the CBSA at the time of the HBCM submission.
    Solution -- The CBSA had modified systems 

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Forwarders Fight Back Against Rising Protectionism
    source: CIFFA
    FIATA has responded to the recent rise in nationalist and anti-globalization rhetoric by highlighting the value of free trade, trade facilitation, and trade development. In a paper published on Thursday, the association said: "With free trade increasingly challenged on several fronts in recent times and in the light of recent trends observed in U.S. trade policies (as well as in other countries), freight forwarders and logistics service providers have decided to speak up to reconvene (reinforce) the benefits of the open, liberal and global trading system which has been built in the last few decades and has ensured better living conditions to the vast majority of humanity. Economic globalization has sadly become the scapegoat to justify many internal shortcomings, but local and global problems are not caused by it." Read more here
     
    China foreign trade still faces big challenges despite strong Jan results
    source: CIFFA
    CHINA's foreign trade still faces downward pressure despite improvements in January, said Wang Dongtang, deputy director-general of the foreign trade department under the Ministry of Commerce. China's trade started this year with a strong rebound, with exports and imports both up significantly. Exports rose 15.9 per cent year on year in January, up from 0.6 percent in December, while imports increased 25.2 per cent, up from 10.8 per cent, according to customs data. Exports to the European Union, China's biggest trade partner, climbed 13.6 per cent year on year in January. Exports to its second-biggest trade partner, the United States, rose 17.2 per cent, and those to emerging economies also jumped. [Excerpted from Shippingazette]

  • 16 February 2017

    AIR FREIGHT UPDATES
     
    Port of Hamburg resumes growth course
    source: AJOT
    Container throughput achieves 1.0 percent advance in 2016/ Setting a record result for seaport-hinterland rail transport with 2.4 million TEU. In 2016 Germany’s largest universal port achieved a turnaround in seaborne cargo throughput, reaching a total 138.2 million tons in the general and bulk cargo segments. Read more here

    OCEAN FREIGHT UPDATES

    Four Reasons for Concern Buried in Last Week's Booming Jobs Report
    source: AJOT
    With Canada putting in its best six-month jobs performance in 15 years and on track for its best 12-month period on record, there appears to be reason to be optimistic about in Canada's job market. The country's unemployment rate dipped to 6.8 percent last month, as the economy added 48,000 jobs, Statistics Canada reported on February 10. Read  more here
     
    ECSA: No Room for Shipping in EU Emission Trading Scheme
    source: WorldMaritimeNews
    Following the proposal to revise the European Emission Trading Scheme (ETS) Directive, the European Community Shipowners’Associations (ECSA) argued today that shipping does not belong in the EU Emission Trading Scheme. Namely, a majority of Members of the European Parliament (MEPs) voted today to include shipping in the scheme as of 2023, if there is no comparable system operating in the International Maritime Organisation (IMO) in 2021. Read more here
     
    Bullish HMM announces new transpacific services and strives to 'rebuild trust'
    source: TheLoadStar
    As the transpacific contract season begins, restructured South Korean carrier Hyundai Merchant Marine (HMM) has announced plans for its US west coast service after it exits the G6 alliance in April. According to Alphaliner data, HMM will offer three Asia-USWC links, deploying 19 vessels of 6,300-6,800 teu, with a weekly capacity of some 19,000 teu. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES

    CBSA Message TCC17-029 -- Delays in Processing Some EDI and Portal Messages
    source: CIFFA
    The CBSA issued a message at 6:30 am on Wednesday to notify users of delays in processing some EDI and portal messages. The message indicated that there was a backlog in processing data at that time. An update at 7:00 pm stated that the problem had not yet been resolved. The CBSA clarified that it was unable to receive incoming data or send outbound messages, such as acknowledgements, reject messages and notices. Users were advised to refer to contingency procedures or be prepared to resume transmission once the system was working. 

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    European Parliament approves Canada-EU trade agreement
    source: CanadianShipper
    STRASBOURG, Fra.–The European Parliament in Strasbourg on Wednesday approved the Canada-EU trade agreement. Roughly 58 per cent of the members of the European Parliament (MEPs) voted to ratify the Comprehensive Economic and Trade Agreement (CETA), setting the stage for provisional application of nearly 90 per cent of the agreement later this spring, the CBC reported. Read more here
     
    Resolving Data Problems Could Improve Management of the C-TPAT Program: U.S. Government Accountability Office
    source: CIFFA
    Staff from U.S. Customs and Border Protection's (CBP) Customs-Trade Partnership Against Terrorism (C-TPAT) program have faced challenges in meeting C-TPAT security validation responsibilities because of problems with the functionality of the program's data management system (Portal 2.0). In particular, since the system was updated in August 2015, C-TPAT staff have identified instances in which the Portal 2.0 system incorrectly altered C-TPAT members' certification or security profile dates, requiring manual verification of member data and impairing the ability of C-TPAT security specialists to identify and complete required security validations in a timely and efficient manner. Read more here

  • 15 February 2017

    AIR FREIGHT UPDATES
     
    Urge To Surge Cargo Bounce Back 2017
    source: AirCargoNews
    The end of year shipment surge saw volumes climb globally and, despite a pricing stumble over New Year, the outlook is positive for 2017.“It was a stunning last quarter and December was a surprise for us all in terms of demand and pricing,” one leading air freight forwarder in Asia told FlyingTypers. “I think we’ll see seasonal fluctuations in Q1, but most of the PMIs and new export order figures are good for 2017 and that’s what customers are also telling us about their own businesses. Demand seems quite firm. So far, so good.” Read more here

    OCEAN FREIGHT UPDATES

    Four Reasons for Concern Buried in Last Week's Booming Jobs Report
    source: AJOT
    With Canada putting in its best six-month jobs performance in 15 years and on track for its best 12-month period on record, there appears to be reason to be optimistic about in Canada's job market. The country's unemployment rate dipped to 6.8 percent last month, as the economy added 48,000 jobs, Statistics Canada reported on February 10. Read  more here
     
    ECSA: No Room for Shipping in EU Emission Trading Scheme
    source: WorldMaritimeNews
    Following the proposal to revise the European Emission Trading Scheme (ETS) Directive, the European Community Shipowners’Associations (ECSA) argued today that shipping does not belong in the EU Emission Trading Scheme. Namely, a majority of Members of the European Parliament (MEPs) voted today to include shipping in the scheme as of 2023, if there is no comparable system operating in the International Maritime Organisation (IMO) in 2021. Read more here
     
    Bullish HMM announces new transpacific services and strives to 'rebuild trust'
    source: TheLoadStar
    As the transpacific contract season begins, restructured South Korean carrier Hyundai Merchant Marine (HMM) has announced plans for its US west coast service after it exits the G6 alliance in April. According to Alphaliner data, HMM will offer three Asia-USWC links, deploying 19 vessels of 6,300-6,800 teu, with a weekly capacity of some 19,000 teu. Read more here

    GROUND AND RAIL UPDATES

    Let the US Freight Rail Traffic Revival Begin
    source: MarketRealist
    Every week, the AAR (Association of American Railroads) publishes the North American freight rail data for the previous week. The latest is for the week ended February 4, 2017—the fifth week of the year. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Despite Trump Talk of "Tweaking" NAFTA, Canada Could Still Be Hurt
    source: CIFFA
    Although U.S. President Donald Trump says he wants only to tweak trade ties with Canada, his pledge to renegotiate NAFTA to focus on Mexico is almost impossible and Canada will not emerge unscathed, Canadian officials and trade experts said on Tuesday. Read more here
     
    EU Preparing Legal Challenge against Donald Trump's U.S. Border Tax Plan
    source: CIFFA
    EU lawyers are preparing to mount a legal challenge against President Trump's hugely controversial U.S. border tax proposals in what could be the biggest case in World Trade Organization history. Mr Trump's proposed "border adjustment system" would see U.S. imports subjected to tax, while export revenues would be exempted. Read more here.

  • 14 February 2017

    AIR FREIGHT UPDATES
     
    Drewry: Hanjin Pain is Airfreight Gain
    source: PortTechnology
    Drewry's Container Insight Weekly has focused on how the logistical chaos caused by Hanjin’s bankruptcy helped boost airfreight rates, but it has found that there is limited statistical evidence of cargo switching modes. According to some of Drewry’s sources, airfreight benefited from the Korean company’s demise as some shippers were said to have shifted cargoes to the air. Read more here

    OCEAN FREIGHT UPDATES

    Container market ‘will balance in two years’
    source: LloydsLoadingList
    Hapag-Lloyd’s chief of operations in Canada has become the latest industry figurehead to point to light at the end of the tunnel for container shipping, but says it will be at least another two years before the market fundamentals are rebalanced and carriers start to regain their feet. Speaking during the opening session of the Cargo Logistics Conference in Vancouver, managing director of Hapag-Lloyd Canada Wolfgang Schoch said that he expected the market to reach an equilibrium in 2019, when demand growth finally started to outstrip supply. While he admitted that volume growth was still expected to be moderate at best, capacity would grow only marginally and scrapping would continue to close the gap between supply and demand.  [Excerpted from Lloyd’s List]
     
    Terminal Fragmentation: The Golden Jigsaw
    source: PortTechnology
    Neil Davidson, Senior Analyst (Ports & Terminals) with Drewry Maritime Research has written a new technical paper for Port Technology in which he offers fresh, pioneering insight into how to achieve optimal terminal efficiency via the analysis of terminal fragmentation.Davidson believes that the era of mega ships with their huge capacities has changed the nature of demand for terminals, thereby leading to fewer, larger terminals. Read more here
     
    2M beefs up east-west tradelane offerings ahead of new alliance launch
    source: TheLoadStar
    Seven weeks before two rival mega east-west alliances are set to launch, 2M alliance partners Maersk Line and MSC have launched an aggressive capacity hike on the two biggest tradelanes. On 1 April, the date for the launch of the new Ocean and THE alliance networks, 2M will introduce a new loop between Asia and North Europe [dubbed AE7 by Maersk] calling at Ningbo and Shanghai in China, TanjungPelepas, in Malaysia, and Rotterdam, Hamburg, Bremerhaven, Wilhelmshaven and Felixstowe in North Europe. And, on the same date, the 2M will launch a new transpacific service, which Maersk calls TP16, between Asia and the US east coast [via the Panama Canal], calling Hong Kong, Yantian, Shanghai and Busan in Asia, and Savannah, Norfolk, Charleston and Miami on the US east and Gulf coasts. After the announcement of a “strategic cooperation agreement” between the 2M and HMM in December, Maersk and MSC shippers expressed their concern that their cargo could be loaded onto HMM vessels, obliging the main carriers to give certain assurances. [Excerpted from the Loadstar]

    GROUND AND RAIL UPDATES

    Impact on Freight Forwarders of CN's Compliance with WACM Arrival Regulations
    source: CIFFA
    CIFFA received the following message from CN Rail yesterday, after several conversations last week in which the railway explained that employees are buried in paper and can no longer sort "arrived" from "un-arrived" paper. The enforcement by the CBSA of the "arrived" policy has created this unworkable situation, and the CBSA must find a policy solution. While forwarders are bearing the brunt of this decision in terms of work, Canadian importers -- who are paying hundreds of thousands of dollars for increased storage charges and freight forwarder overtime / administration charges -- are being harmed. Canadian consumers will pay the price with every purchase of an imported good. CIFFA is meeting today with CN and the CBSA, and again on Thursday with the CBSA, to attempt to remedy this intolerable and untenable situation. [Excerpted from CIFFA]

    CANADA BUSINESS - GOVERNMENT UPDATES

    Joint Statement from President Donald J. Trump and Prime Minister Justin Trudeau
    source: CIFFA
    President Trump and Prime Minister Trudeau held their first official meeting yesterday in Washington, D.C. and affirmed a commitment to close cooperation in addressing the challenges facing the two countries and problems around the world. The statement emphasized the shared economic interests of the two countries and the importance of building on the existing strong foundation for trade and investment to further deepen the relationship, with the common goal of strengthening the middle class. Read more here
     
    Columbus Statement on Canada-U.S. Relations Issued by Business Associations, Companies in Canada and the U.S.
    source: CIFFA
    A group of close to 40 leading Canada-U.S. business associations, companies and policy experts has issued a joint statement -- the Columbus Statement on U.S.-Canadian Relations -- that calls for Prime Minister Trudeau and President Trump to address innovation, expanded labour mobility, regulatory alignment, border security, trade and travel facilitation and cooperation, enhancing the role of states, provinces and municipalities, and the Canada-U.S. relationship in the global context. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Trudeau-Trump jointly affirm confidence in Gordie Howe bridge project
    source: CanadianShipper
    WASHINGTON, D.C.–Prime Minister Justin Trudeau and U.S. President Donald Trump have created new confidence in the completion of the Gordie Howe International Bridge project. Read more here
     
    Brexit Bulletin: Can Britain Split the Difference?
    source: AJOT
    Back in October, the U.K. prime minister said she hoped her commitment to start the Brexit process by the end of March would prove enough for the European Union to engage in some “preparatory work” beforehand. “This is important,” she told the BBC. “It’s not just important for the U.K.; it’s important for Europe as a whole.” Read more here

  • 13 February 2017

    AIR FREIGHT UPDATES
     
    Trump Pledges Help to U.S. Airlines in Feud over Foreign Rivals' Alleged Aid
    source: CIFFA
    President Donald Trump told U.S. airlines he would help them compete with foreign carriers that are aided by their governments. 
    "A lot of that competition is subsidized by governments, big league," Trump said at a White House meeting last week with America's largest airlines, air freight companies and airports. "I've heard that complaint from different people in this room." Read more here

    OCEAN FREIGHT UPDATES

    Long Beach box volumes surge 8.7pc with renewed activity at Hanjin terminal
    source: Shippingazette
    CONTAINER throughput at the Port of Long Beach increased by 8.7 per cent in January to 582,689 TEU compared to the same month last year on the back of renewed activity at its largest terminal, combined with extra ships calling the port ahead of the Lunar New Year. Exports in January reached 118,234 TEU, while imports totalled 298,990 TEU, year-over-year increases of 10.8 per cent and 7.4 per cent, respectively. Meanwhile, empties being sent back to the Far East rose 9.6 per cent from January 2016 to 165,465 TEU, according to American Shipper. Port of Long Beach Interim chief executive Duane Kenagy said with new alliances beginning this spring, 2017 is expected to be a transition year for the industry. "Long Beach stands ready to provide a dependable harbour as carriers adjust to new services, while we continue upgrading our berths and rail network to speed their cargo inland," Mr Kenagy said. [Excerpted from Shippingazette]
     
    Maersk alarmed by US President Trump's talk of trade war with China
    source: Shippingazette
    "When the talks come to a potential trade war with China, we sit up and listen," CEO Soren Skou said in an interview, reported Bloomberg. "That would have a very negative effect on our business." Maersk expects the global shipping market to grow about two to four per cent this year, helping it raise its profit from freighting goods by at least US$1 billion. But a full-fledged trade war between the US and China could ultimately make a mockery of such forecasts. The problem with such strategies is that they often provoke retaliation. The Goldman analysts predict a Chinese response could shave as much as a quarter of a percentage point off US gross domestic product. In other words, the world's two largest economies would suffer significant trade-related losses that would undoubtedly have a knock-on effect across the globe. "The new administration in the US wants lower taxes and it's also planning huge investments in infrastructure," Mr Skou said. "And that will, without a doubt, mean more imports for the US, which is good for our business." [Excerpted from Shippingazette]

    GROUND AND RAIL UPDATES

    Snow Slides Affecting Rail Service in B.C.
    source: CIFFA
    In a customer advisory issued on February 10, CP Rail notified customers that snow slides in B.C. would cause delays of 48 to 72 hours for traffic moving through the area as well as to its interchange locations. 
     
    OTA, Indo-Canada Chamber of Commerce (ICCC) sign MoU
    source: CanadianShipper
    TORONTO, Ont.– The Indo-Canada Chamber of Commerce (ICCC) and the Ontario Trucking Association signed a memorandum of understanding (MoU) enabling both groups “to forge a mutually beneficial relationship for their respective members.” Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES

    Canadian customs’ modernization efforts:  Three programs traders should know about
    source: AJOT
    The Canada Border Services Agency (CBSA) has introduced three major initiatives that could re-shape how trade is handled between the United States and Canada. The Canada Border Services Agency (CBSA) has introduced three major and ongoing initiatives in recent years. All of these are designed to make the agency’s operations more efficient and to promote security in trade between Canada and its partners. Read more here
     
    BCTA hires new Director of Policy
    source: CanadianShipper
    LANGLEY, B.C.–The BC Trucking Association (BCTA) announced that Cory Paterson will be joining its team as Director of Policy on Wednesday, February 22, 2017. Paterson will be responsible for, among other duties, advancing BCTA’s policy positions and the interests of its members with governments, the business community and key stakeholders. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES

    Post-TPP Talks Next Month in Chile: Canada Confirms Participation
    source: CIFFA
    Canada will join other signatories to the Trans-Pacific Partnership trade agreement when they meet next month in Chile to figure out how to proceed without the United States. Read more here
     
     

  • 10 February 2017

    OCEAN FREIGHT UPDATES

    Yang Ming raises US$54m in private share sale: report
    source: Shippingazette
    TAIWAN's Yang Ming Marine Transport Corp. has secured more than US$54 million via a private stock offering, according to multiple media reports. The reports cite a stock exchange release in which the Taiwanese ocean carrier said it has sold 161 million new shares to the state-run National Development Fund, Taiwan Navigation and a handful of unnamed institutional investors for a total of NTD 1.69 billion (US $54.4 million). Read more here.
     
    Maersk says sanity returning to shipping as freight rates gain
    source: BusinessTimes
    [BEIJING] The bankruptcy of South Korea's Hanjin Shipping Co and a consolidation in container shipping industry will pave the way for a better 2017 for the industry, according to Robbert van Trooijen, the Asia-Pacific chief of Maersk Line. Read more here

    GROUND AND RAIL UPDATES
     
    Trump Renews Call to Mend ‘Obsolete’ Airports, Trains and Roads
    source: AJOT
    President Donald Trump renewed his focus on infrastructure improvement, using a meeting with airline bosses and airport managers to bemoan the country’s “obsolete” transportation system. Read more here

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Justin Trudeau Travels to Europe Next Week to Mark EU's (Expected) Ratification of CETA Deal
    source: CIFFA
    Prime Minister Justin Trudeau will travel to Europe next week to mark an important milestone for the Comprehensive Economic and Trade Agreement between Canada (CETA) and the European Union. Trudeau begins his trip by addressing the European Parliament in France, on February 16, a day after the legislature is expected to hold a vote ratifying CETA. Read more here
     
    Canada Defends Bombardier Aid as Brazil Pushes WTO Challenge
    source: CIFFA
    Innovation Minister NavdeepBains said Canada's financial aid package for Bombardier Inc. is consistent with trade rules, as Brazil pushed for a hearing in front of the World Trade Organization on what it considers unfair subsidies. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    International air freight from Canberra primed for take-off
    source: SMH
    Canberra Airport's take-off as a major international freight hub would ease congestion in Sydney and deliver broad economic benefits, new modelling reveals. A report by Cadence Economics shows a maximum potential boost to the combined gross regional product of ACT and NSW of nearly $1200 million over 15 years and the creation of more than 540 jobs. Read more here

  • 9 February 2017

    AIR FREIGHT UPDATES
     
    UK and India to ease flight restrictions
    source: AirCargoNews
    The UK and India have today (February 9) agreed a deal to ease restrictions on the number of scheduled flights between the two countries. The move came on the back of what are described as “successful talks” in India this week, where UK aviation minister Lord Ahmad has been visiting. India’s cabinet minister of civil aviation, Pusapati Ashok Gajapathi Raju, also signed the agreement. Read more here
     
    Multimodal Champions Air Cargo Quality Initiatives and Welcomes Cargo IQ 
    source: E-MeanTimeComms
    London, UK, Thursday, 2nd February, 2017 - The Multimodal 2017 seminars will include a series of debates focused on air cargo challenges and opportunities, and the event will play host to a meeting of Cargo iQ’s Working Group. Read more here

    OCEAN FREIGHT UPDATES

    Heavy Snowfall Expected Today; NY/NJ Port Terminals Closed
    source: CIFFA
    Due to an impending snow storm, the Port Authority of NY & NJ announced on Wednesday that all container terminals, empty and chassis depots will be closed today. Free time will be extended for containers not already in demurrage. Per diems on containers and chassis will be handled in accordance with the Winter Weather Plan. Information about Friday's opening will be distributed this afternoon. Monday, February 13 is a state holiday in NY. 
     
    Spain Braces for Series of Port Strikes
    source: Splash247
    With Madrid pushing dramatic port reforms, dockworkers across the country have lined up strikes on February 20, 22 and 24.  Read more here
     
    Drewry: Improving demand to ease oversupply in dry bulk shipping
    source: AJOT 
    London, UK - With contraction in vessel supply and healthy demand growth, the dry bulk shipping market is expected to recover from 2017 onwards, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry. Read more here
     
    Draw for lucrative part-time jobs at LA/LB ports is on again
    source: Shippingazette
    A LOTTERY for coveted part-time dockers' jobs at the Los Angeles and Long Beach ports has restarted after it was abruptly suspended on Monday when union officials pulled out of the process. Officials from the ILWU representing local port workers were not available for comment, the Long Beach Press Telegram reported. Tens of thousands of hopefuls submitted their names for the drawing, which will guarantee winners a freelance job as a "casual" longshore worker and the possibility of becoming a full-time union member raking in more than US$100,000 a year. Although he declined to specify what those issues were, he said they were serious and "presented by the union and summarily rejected by the PMA". [Excerpted from Shippingazette]

    CANADA BUSINESS - GOVERNMENT UPDATES
     
    Reimagining Canada's Approach to International Trade -- Senate Committee on Foreign Affairs and International Trade
    source: CIFFA
    In a report released this week, Free Trade Agreements: A Tool for Economic Prosperity, the Senate Committee on Foreign Affairs and International Trade makes nine recommendations to increase public involvement and parliamentary oversight of Canada's free trade agreements and to establish standards by which the success of an agreement would be measured. Read more here
     
    Canada Posts Second Consecutive Trade Surplus, First Time Since September 2014
    source: CIFFA
    Canada posted back-to-back monthly trade surpluses for the first time since September 2014, boosted by higher prices for exports of oil and natural gas in December, Statistics Canada said on Tuesday. But the gain in energy prices hid some troubling weakness in non-energy exports, economists said. Read more here

    INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
     
    PRESS RELEASE 1702 -  India - New Service Tax Rules
    source: FIATA
     The Indian Government Ministry of Finance has recently notified further amendments to its Service Tax Rules 1994 – referring to amendments initially announced with notification No. 30/2012 – Service Tax. These amendments are referred to as the “Service Tax (Amendment) Rules, 2017” and came into force on 22 January 2017 – only 10 days after publication and with too little time for the trade to react and deal with any changes.  Read more here

  • 8 February 2017

    AIR FREIGHT UPDATES
     
    Seven reasons why air cargo needs this new global trade deal
    source: AirCargoEye
    Political uncertainty and poorly performing global trade are a toxic combination for the airfreight industry. The two interconnected trends are a migraine for airfreight decision-makers tasked with arresting declining profit margins, writes Thelma Etim. Since air cargo managers have no crystal ball window into the political and economic future of global economies, they are guided instead by a sea of analysis proffered by so-called expert forecasters and consultants, a source which has not always proven to be dependable. Read more here

    OCEAN FREIGHT UPDATES

    Maersk first line to settle Russian anti-competition case sparked by 'illegal' GRIs
    source: The Loadstar
    Maersk Line has agreed to pay $230,000 to settle a four-year competition case with Russia’s Federal Antimonopoly Service (FAS), which had accused the carrier of anti-competitive behaviour. The carrier will also cease public price announcements in Russia. The FAS accused Maersk, along with CMA CGM, Hyundai Merchant Marine, OOCL and Evergreen, of using general rate increase announcements (GRIs) to coordinate surcharges on tradelanes between Russia and the Far East and South-east Asia. Under the settlement, Maersk Line will now supply customers with price information for Russia-specific corridors via email or a password-protected webpage. The $12m fine is cancelled. In July, 14 container lines were found by the European Commission not to have breached EU competition law by communicating GRIs. However, the carriers agreed to “stop publishing and communicating GRIs” to mitigate further concerns of “price signalling”. Instead, the carriers agreed to publish all-inclusive maximum freight rates – but not more than 31 days before the implementation date – and are bound by these freight all kinds (FAK) rates as maximum prices during the validity period, but are still able to quote lower rates. [Excerpted from The Loadstar]
     
    Seaway Fees to Increase in 2017
    source: CIFFA
    The St. Lawrence Seaway Management Corporation (SLSMC) announced a rate increase of two percent for the 2017 navigation season. The new fees apply to both tolls and wharfage and storage charges. Read more here
     
    KDB: Ten Hanjin Ships Up for Grabs
    source: WorldMaritimeNews
    The state-run Korea Development Bank (KDB), the main creditor of the former South Korean shipping giant Hanjin Shipping, has launched sales proceedings for ten Hanjin ships, Yonhap News Agency cited industry sources. Read more here
     
    Spanish Dockworkers to Face Massive Layoffs?
    source: WorldMaritimeNews
    At least 6,500 Spanish dockworkers could be laid off according to the recently announced plan by the country’s Minister of Public Works to reform the port system. Read more here