23 June 2017
AIR FREIGHT UPDATES
Air Canada celebrates first Montreal-Tel Aviv flightsource: ajot.comMONTREAL - The departure of flight AC082 from Montreal-Trudeau airport tonight will mark the successful launch of Air Canada’s non-stop Montreal service to Tel Aviv. This new seasonal service will operate twice weekly from June 22 to October 16, 2017. Read more here.
OCEAN FREIGHT UPDATESHeavy storms in parts of eastern and central Europe are leading to delays to some freight movements, including in Europe’s largest freight market, Germany.source: lloydsloadinglist.co.ukWith storms reported in several parts of eastern Europe including Russia, Ukraine, Belarus and Poland, intermodal specialist Far East Land Bridge (FELB), which specialises in container transport between Asia and Europe via the Trans-Siberian railway, has warned customers about extreme weather in Germany had also created difficulties for some rail and freight operations. FELB, warned customers, “Please be prepared that all trains to and from Germany will face heavy delays this weekend and most likely next week.” [Excerpted from Lloyds Loading List]South Africa Rejects Japanese Container Line Merger Proposalsource: theloadstar.co.ukThe South African Competition Commission has rejected the merger of the container divisions of NYK, MOL and K Line to create Ocean Network Express. In South Africa, NYK operates its shipping business through the Mitchell Cotts Maritime agency; MOL through subsidiaries MOL South Africa and MOL ACE South Africa; and K Line though K Line Shipping South Africa. The SA commission judged that, on the evidence of past collusion between container shipping firms, the merger would have led to an increased likelihood of further anti-competitive behaviour. "The commission further found that there are no efficiencies that outweigh the anticompetitive effects of this transaction and that there are also no remedies sufficient to address these effects," it said. The proposed Ocean Network Express also continues to await a decision from the U.S. Last month, the Federal Maritime Commission (FMC), to which the lines had submitted their merger proposals, decided it could not rule on mergers, as they are de facto acquisitions. FMC chairman Michael Khouri said: "The Shipping Act expressly excludes acquisition agreements from the act's coverage. The cases that address the commission's authority to review these types of agreements have noted that Congress gave the commission the power to review cooperative agreements that produce efficiencies, in order to prevent consolidation.
GROUND AND RAIL UPDATES
Rail and Truck Updatessource: CIFFACN Advisory Regarding Empty Drops at B.C. PortsCN Intermodal has advised that, with overall inventories in its Brampton terminal at a level that is impacting productivity, it will not be issuing any additional reservations for empty drops to Robbank, Vanterm, Centerm and Prince Rupert until further notice. Export loads will continue to be accepted. These steps are taking place to improve fluidity and carter turn times at the terminal.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESBlockade Backlash: Qatar to Expedite Launch of New Routes as Doha Airfreight Surges
Source: Air Cargo WorldQatar Airways will expedite the launch of new routes in response to the ongoing blockade by Saudi Arabia and other Arabian Gulf and North African countries, the carrier's CEO, Akbar al Baker, said earlier this week. On the freight side, Qatar Airways and other carriers that service the country are seeing a yet-unquantified surge in volumes, in response to disruptions in overland freight from Saudi Arabia. According to the West Mediterranean Exporters Association, Turkish imports into Qatar between May 1 and June 15 were up 724 percent, year-over-year. With maritime freight between Turkey and Qatar taking about ten days, ocean trade between the two countries is surging as well. If Saudi Arabia's King Salman hoped to sever ties between Iran and Qatar with his diplomatic onslaught, that seems to be backfiring, as well. Iran Air said that they were ramping up airfreight deliveries of perishables to Qatar. Read more in an article from Air Cargo World.
22 June 2017
AIR FREIGHT UPDATES
Privatized Canadian airports a tough sell: Fitch
New York, NY — Privatization could present numerous pluses for the major airports in Canada, though widespread support for the idea is having a hard time getting off the ground, according to a new Fitch Ratings report. Read more here.
Hong Kong sees double-digit cargo growth in May
Hong Kong International Airport (HKIA) continued its strong 2017 cargo growth, seeing in May a sharp year-on-year increase of 12.9% to 409,000 tonnes handled. Read more here.
OCEAN FREIGHT UPDATESTeamsters continue pickets at LA/Long Beach
Truck drivers continued picketing container terminals at the Ports of LA /Long Beach Wednesday slowing truck traffic at some terminals. Read more here.
OOCL Denies Cosci Takeover Talks
OOCL, the Hong Kong containerline at the centre of renewed speculation over a takover by Cosco, has firmly dismissed the rumours surrounding its future. The Wall Street Journal and other titles have claimed in recent days that China's state-backed Cosco is close to sealing a $4bn-plus deal bto buy out the line controlled by the Tung family. Read more here.
Maersk delays Qatar sailing time a day later than first announced
MAERSK has advised customers seeking cargo passage to Qatar that its first sailing from Salalah in Oman to Doha is a day later than first announced. The first sailing is now scheduled on the 4,253-TEU Liberian-flagged Jack London departing Salalah Monday June 26 and arriving in Doha Friday June 30. Read more here.
Box ship designed for St Lawrence River has market potential
TRANSPORT Canada has announced that "postpanamax ships of 44 metres beam could sail the Lower St Lawrence River to the Port of Montreal". This comes after Canada's national transportation department recognised the precise navigation capability of computer directed bow and stern thrusters about one year ago. Read more here.
GROUND AND RAIL UPDATES
Rail freight from China going straight into the heart of Scandinavia
At Greencarrier Freight Services, we have been offering our customers FCL and LCL rail services between China and Europe for years – always on the lookout for new ways to improve our services. With the environment constantly in focus and vast experience of the Far East trade, we are happy to announce that the first container trains to directly link China and Scandinavia are now a reality. Increased demand for rail freight between China and Europe. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATES
CN announces support for host First Nation of the 2017 North American Indigenous Games
MONTREAL - As part of its celebration of National Aboriginal Day, CN (TSX: CNR) (NYSE: CNI) today announced a $40,000 contribution to the Mississaugas of the New Credit First Nation (MNCFN) to support their role as host First Nation of the 2017 North American Indigenous Games. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
Hyperloop a Reality in Only Four Years
South Korea has commissioned Hanyang University to make Elon Musk's super-speed vision of vacuum tube transportation -- Hyperloop -- a reality by 2021, according to Wired. Hyperloop Transportation Technologies CEO Dirk Ahlborn stated: "We are ready to build. The biggest showstopper is regulation, yet the South Korean government is highly eager to push forward with the project, meaning Hyperloop now has its first major opportunity to become a reality." Read more here.
21 June 2017
AIR FREIGHT UPDATES
It’s Too Hot for Some Planes to Fly in Phoenixsource: ajot.comSummer heat can make even the hardiest people wilt and collapse into a pool of sweat. The same is true for the Bombardier Inc. family of regional jets—it can become too hot to fly them when the weather turns extreme. Read more here.
OCEAN FREIGHT UPDATESOOCL and Cosco Quiet on Takeover Talksource: splash247.comOrent Overeseas Container Line (OOCL) and Cosco Shipping have both kept quiet today on the latest container consolidation news. Shares in OOCL's parent, OOIL, leapt yesterday on the back of another Wall Street Journal (WSJ) report claiming state-backed Cosco was close to buying out the Hong Kong liner for a deal thought to be worth more then $4bn. Read more here.Ports and rigs in US Gulf of Mexico take Precautiosn for Tropical Storm Cindysource: splash247.comShipping and offshore industry in the Gulf of Mexico has been disrupted by a tripical storm shaping up for a Thursday landfall in the TExas ansd Louisiana area, according to Bloomberg. Read more here.APM Terminals to Let Go of 160 Staff at Strike-Hit Gothenburgsource: splash247.comA long simmering dispute at the Port of Gothenburg is reaching boiling point with APM Terminals moving to axe 160 staff at its Swedish concession, according to local n ewspaper Goteborgs-Posten. Read more here.Environmental rules drive Cosco from Port of Los Angeles to Long Beachsource: shippingazette.comCHINA Cosco Shipping Corp is shifting its cargo away from the port of Los Angeles to Long Beach, where its terminal is subject easier environmental rules. Cosco said it "made a strategic decision to move cargo away from our Berth 100 port of Los Angeles to their terminal in Long Beach because they have less stringent mitigation measures at that facility," said LA port manager Gene Seroka, reported Long Beach Press Telegram. Read more here.Global maritime shipping industry needs better data sharingsource: ajot.comA new study, “Competitive Gain in the Ocean Supply Chain: Innovation That’s Driving Maritime Operational Transformation,” says that importers, exporters, container carriers, terminal operators, vessel owners and other stakeholders suffer from poor visibility and predictability around shipments and are losing money due to a lack of partner synchronization and insufficient data insight. Read more here.Europe-wide dockworker strike planned for June 29source: americanshipper.comSeaports across all of Europe could potentially suffer sizable losses in productivity for a couple of hours one day next week as members of the International Dockworkers’ Council will launch a two-hour labor strike as a show of solidarity with dockworkers in Spain who are currently involved in an ongoing dispute with the Spanish government. Read more here.
20 June 2017
OCEAN FREIGHT UPDATESTake Part This Week in CIFFA Survey about Truck Reservations System within Port of Vancouver Terminalssource: CIFFACIFFA would like to query users of the terminal reservations systems within the Port of Vancouver. The association has drafted a survey to find out more about the current reservations system, what issues users may be encountering, and what improvements they would like to see. We would appreciate hearing from you about your experiences and any suggestions you can bring to the table that would improve the reservations system. CIFFA will use this information to lobby the Port of Vancouver about changing or improving the current reservations system. Please follow this link to complete the survey. We will be accepting responses until June 23.
More container shipping M&A activity expected as smaller carriers try to keep upsource: theloadstar.co.ukThere is a “high likelihood” of a new wave of M&A activity involving medium-size ocean carriers, as the gap widens between them and the largest container lines, according to shipping consultant Drewry. Read more here.Dockworkers at all Europe's ports ready for action to support Spanish strikerssource: theloadstar.co.ukA two-hour, Europe-wide port stoppage has been called for next week as the International Dockworkers’ Council supports striking Spanish colleagues. Read more here.Unusually Active Early Hurricane Season Has Gulf in Sightssource: ajot.comThe Atlantic hurricane season is less than three weeks old yet it’s already threatening the energy-rich Gulf of Mexico coastline.Tropical systems in the Gulf of Mexico often grab the notice of energy traders because the Texas and Louisiana coastline is home to offshore rigs and platforms accounting for about 17 percent of U.S. crude oil output and 4.1 percent of natural gas production. Read more here.Report: COSCO diverts cargo from Port of L.A. to Long Beachsource: americanshipper.comChinese ocean carrier COSCO Shipping is choosing Long Beach over Los Angeles due to its "less stringent mitigation measures," according to Port of Los Angeles Executive Director Gene Seroka. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATENew India Tax Seen Tempering Trade Growth With Imports at Risksource: ajot.comEconomic reform has slowed the flow of cars, electronics and furniture into India and the roll out of a national sales tax may temper import growth for the rest of this year, according to Maersk Line, the South Asian unit of the world’s largest container shipping company. Read more here.
19 June 2017
AIR FREIGHT UPDATESBritish Airways Cabin Crew To Strike From July 1source: airwise.comBritish Airways cabin crew working under ‘mixed fleet’ employment terms will strike for sixteen days at the beginning of July in support of a pay dispute. The Unite union representing BA mixed fleet cabin crew said they will strike from 00:01 Saturday July 1 to 23:59 Sunday July 16. Read more here.
OCEAN FREIGHT UPDATESTruckers and warehouse workers to begin LA, Long Beach port strikessource: scpr.orgStarting Monday, a group of truck drivers and warehouse workers are going on strike at the ports of L.A. and Long Beach. The drivers and warehouse workers are protesting wages. In addition, the local Teamsters union claims port companies have misclassified drivers as independent contractors. Read more here.NYK LIne Boxship Slams Into Side of US Destroyer, Seven Sailors Missingsource: splash247.comSeven US sailors are missing after a US Navy destroyer collided with a 2,900 TEU boxship around 56m off Yokosuka, Japan. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATERetail's Reinvention Story is Just Getting Started: NRFsource: CIFFAWe've all heard that retail is in trouble -- even serious trouble, depending on who you listen to. It's true that some large, well-known brands are facing challenging times, just as in every industry. But the narrative that retail is struggling -- or even dying -- is significantly overblown.Read this interesting article from the National Retail Federation.
Amazon is disrupting the grocery business. Time for the grocers to disrupt Amazon back!source: supplycainbrief.comGrocery will never be the same again…The acquisition of Whole Foods by Amazon today is a landmark event for the grocery industry. Think about it … In one $13.7 Billion transaction, Amazon’s market valuation went up by $14.27 Billion, and the combined valuation of Walmart, Kroger, Target and Costco went down by $23.63 Billion (as of 2pm CDT today) … and that does not represent 100% of the impact on the grocery industry! In one day, the grocery industry will have lost in market valuation twice what Amazon gained – probably over $30 Billion! Read more here.
16 June 2017
AIR FREIGHT UPDATESTSA Demos CT Scanners At Airport Baggage Checkssource: AirWiseThe US Transportation Security Administration is testing a new 3D carry-on bag inspection scanner this month at airports in Phoenix and Boston. Read more here.
OCEAN FREIGHT UPDATESPort truck drivers and warehouse workers strike for 15th time in four yearssource: AJOTSan Pedro, CA – This morning before the Los Angeles Harbor Commission meeting, port truck drivers and warehouse workers announced their 15th strike in four years and called on Los Angeles and Long Beach to protest exploitation by greedy corporations using predatory subcontracting schemes, including misclassifying employees as independent workers in order to lower wages, deny them benefits such as health insurance, unemployment, and workers compensation. The strike, which begins Monday, will include drivers from several trucking companies, including XPO Logistics, as well as warehouse workers working on port property. Read more here.Damage to Lock in Seaway's Iroquois Canal Causes Delaysource: CIFFAOn Thursday morning, the St. Lawrence Seaway Management Corporation advised that a downbound vessel had struck a ship arrestor at the Iroquois lock and repairs were underway. The repairs were expected to cause a delay of 12 to 14 hours. This followed the release on Wednesday of Seaway Notice No. 15, advising mariners that a tug is available for assistance with the approach at the Iroquois Lock, while outflows from Lake Ontario are greater than 10,200 cubic metres per second. Further, notifications this morning indicate that a failure of the lower lock gates at Cote St Catherine Lock and a vessel grounding at vessel grounding at Call In Point 12, near Robertson Point/Morrisburg, are causing further delays.
GROUND AND RAIL UPDATETake Part in CIFFA Survey about Truck Reservations System within Port of Vancouver Terminalssource: CIFFACIFFA would like to query users of the terminal reservations systems within the Port of Vancouver. The association has drafted a survey to find out more about the current reservations system, what issues users may be encountering, and what improvements they would like to see. We would appreciate hearing from you about your experiences and any suggestions you can bring to the table that would improve the reservations system. CIFFA will use this information to lobby the Port of Vancouver about changing or improving the current reservations system. Please follow this link to complete the survey. We will be accepting responses until June 23.CN Proposes Trial Program to Improve Carter Turn Times at Brampton Intermodal Terminalsource: CIFFACN said it has taken significant steps to improve carter turn times at Brampton Intermodal Terminal, and has offered a possible solution to the forwarder community after CIFFA brought forth member concerns about service issues at BIT. As carrier turn times are not at optimal levels yet, CN said it is proposing a trial program starting on June 26th to extend the detention clock cut-off for international traffic at Brampton from 07:00 to 09:00 daily in an effort to smooth traffic during the early hours of the morning. CN will try this strategy and see if it helps reduce congestion and carrier waiting time in Brampton, said Dan Bresolin, Assistant Vice President, International Sales & Marketing, Intermodal. Some CIFFA members had contacted the association to say they were experiencing wait times of 3 to 5 hours at BIT, along with inaccurate deramp schedules, complicating delivery appointments, some of which were being bumped by several hours. CN thanked CIFFA for providing the forwarder feedback and, in a statement to the association, CN said that conditions at Brampton Intermodal Terminal have greatly improved in the month of June when compared with May 2017. According to Bresolin, for the international carter community at Brampton, carter turn time from May 1 to 31 was high, at an average of 74 minutes. Since then, he said, CN has taken significant steps at the facility to improve carter turn times. These steps included reorganization within the Brampton facility, movement of inbound traffic away from the active pads for both domestic and international, and diversion of DRP equipment to common areas at the south end of Brampton. This helped increase crane productivity over the last four weeks. These changes have seen month-to-date improvement of carter turn time by 15%, Bresolin told CIFFA. Furthermore, a construction project by the Region of Peel on Intermodal Drive is near completion. This project has been causing some delays for trucks accessing the terminal in a timely manner. The wrap-up of this project is imminent and, once completed, will no longer delay trucks from accessing CN. Further investments in the Brampton terminal are under way and will continue through the fall of 2017, all of which CN said are expected to have a positive impact on the drayage experience. New mobile crane equipment, additional chassis, and new employees hired as recently as May will bolster efforts at the facility. Combining these improvements and the trial program with strategic operational changes within Brampton, CN said it expects carter turn times for overseas container business to gradually improve through June and return to normal in July.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEUS probes possible pricing collusion by major vessel sharing alliancessource: ShippingazetteTHE US government is still pursuing a broader inquiry into possible collusion among shipping lines in the world's three major vessel sharing alliances, or VSAs - the 2M, Ocean, and THE alliances - which together handle 90 per cent of the Asia-North America container trade. Legislators say the Federal Maritime Commission (FMC) Authorisation Act of 2017, although it has bipartisan support, is not a final solution, says IHS Media. Although the carriers and alliances say there is no evidence collusion is occurring, a broad cross-section of US port service providers - including tugboat operators, marine terminals, and stevedores - have argued that it does not mean it is not possible. An additional amendment to the legislation, offered by Hunter at a May 24 mark-up by the House Subcommittee on Coast Guard and Maritime Transportation, would forbid carriers to negotiate with a provider of towing vessel services on any matter relating to rates or services provided within the United States by towing vessels. Mr Hunter's legislation has received broad bipartisan support. "I am pleased that this legislation would reauthorise and increase the funding for the Federal Maritime Commission to enable the commission to monitor the ongoing turbulence in the marketplace," said California Democrat Congressman John Garamendi. [Excerpted from shippingazette]
15 June 2017
AIR FREIGHT UPDATESQatar Airways calls on ICAO to lift "illegal" airspace bansource: AirCargoNewsQatar Airways Group chief executive Akbar Al Baker has called on the International Civil Aviation Organization (ICAO) to lift what it describes as the illegal airspace ban it faces in Saudi Arabia, the United Arab Emirates, Bahrain and Egypt. In a statement issued earlier today, the airline said 90% of its flights had managed to depart within 15 minutes of schedule despite the airspace ban, implemented after Qatar (the country) was accused of destabilising the Middle East region – allegations it denies.
OCEAN FREIGHT UPDATESLA/Long Beach strike and press conference scheduled for this morningsource: AJOTOn Monday, June 12, 2017, Los Angeles Mayor Eric Garcetti and Long Beach Mayor Robert Garcia, who oversee America’s largest port complex, announced a pact setting sweeping environmental goals for the ports, including requiring zero emission trucks by 2035. The mayors’ announcement of a second “Clean Truck Program” was silent on who would pay for the new technology. Read more here.Qatar carrier taps Mumbai cargo access to sidestep Arab boycottsource: ShippingazetteQATAR's Milaha Maritime and Logistics has been shifting focus from Dubai to India and the Middle East to reap transshipment cargoes resulting from the diplomatic row that has cut off supply chains to and from the oil-rich Persian Gulf nation. The short-sea ship operator this week announced a new feeder link between Mumbai's Jawaharlal Nehru Port Trust (JNPT) and Doha, and upgraded an service on the route by adding a call at Sohar, Oman. The new service, named the India-Doha Express (IDX), will connect the ports of JNPT and Kandla, both on India's west coast, to Hamad Port in Doha. [Excerpted from Shippingazette]Charleston Terminal Evacuated as Suspected Dirty Bomb Reported on Maersk Shipsource: Splash247At approximately 20.00 hrs on Wednesday authorities were made aware of a potential threat – cited as a possible dirty bomb- in a container aboard a Maersk Memphis in the Port of Charleston. Read more here.
GROUND AND RAIL UPDATEWeekend closure for Eastbound Gerald Desmond Bridgesource: AJOTThe eastbound direction of the Gerald Desmond Bridge will close for a full weekend, Friday night, June 16, to Monday morning, June 19, to make way for construction of the replacement span in the Port of Long Beach. On the following weekend, June 23-26, the bridge will be closed in the westbound direction. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATETransport Canada Responds to CIFFA Request for Update on Canine Screening, Air Cargo Security Programsource: CIFFAIn a communication sent to CIFFA at the end of May, Transport Canada announced it has been given the go-ahead to establish a new explosives detection dog and handling team (EDDHT) certification program, with external consultations likely starting this fall.CIFFA has been pushing for an update on canine screening, pointing out that, without it, Canada is at a disadvantage compared with other countries like the U.S., where it is in effect as a screening method. Although project timelines are still being determined, ideally Transport Canada would like to have updated regulatory requirements and a certification program in place sometime in 2019, it told CIFFA. Most industries appear to be represented, but Transport Canada said it would like to see more representation from a few hard-to-screen, special-interest commodities producers or manufacturers, such as shippers of dangerous goods, human remains and high-value goods (including financial institutions and banks), and some seasonal commodity producers. At this time, Transport Canada said it doesn't have specific statistics for industry on compliance trends but, where compliance issues have arisen, they have "mirrored many of the issues that Transport Canada found with CIFFA members when they first became regulated under the program, including such things as personnel records and the overall understanding of chain of custody forms and processes." Further, Transport Canada said the number of inspectors working on air cargo security oversight is at an "all-time high" and is expanding to address the significant number of applicants still in the system. [Excerpted from CIFFA]
14 June 2017
AIR FREIGHT UPDATESBangladesh airfreight costs soar following new EU security rulessource: AirCargoNewsThe cost of airfreight supply chains from Bangladesh has been pushed up by new stricter security requirements from the European Union (EU), while lead times are also being extended by up to three days. On June 1, the EU imposed enhanced security requirements for cargo originating from Bangladesh that stipulates all exports from the country must be screened by x-ray machines and also using explosive detection systems – either an explosive detection dog unit (EDD) or an explosive detection system (EDS). Read more here.E-AWB usage finally breaches 50% marksource: AirCargoNewsElectronic Air Waybill (e-AWB) penetration finally breached the 50% mark in April as more than 730,000 of the digital documents were processed. The latest IATA figures show that April’s e-AWB penetration level on feasible trade lanes edged up by 1.3 percentage points compared with March to reach 50.7%, exceeding the 50% mark for the first time. In total, 730,762 e-AWBs were processed during the month. Read more here.
OCEAN FREIGHT UPDATESGCT Canada: Scheduled System Maintenance Todaysource: CIFFAGCT Vanterm and GCT Deltaport web services will be unavailable today from 4:30 pm to midnight for ongoing system maintenance. In addition, because of the regularly scheduled ILWU union meeting today, truck gates at both terminals will close at 3:30 pm.CMA CGM to acquire Brazilian cabotage line Mercosul from Maersksource: TheLoadStarCMA CGM is to acquire Maersk’s Brazilian shipping line subsidiary, Mercosul, as it looks to expand its South American business. The deal is also crucial for Maersk, which needs to dispose of Mercosul before it can go ahead with its acquisition of Germany’s Latin America specialist carrier, Hamburg Sud. Read more here.
GROUND AND RAIL UPDATEELD Rule Likely to Come into Effect in U.S. in Decembersource: CIFFAThe Owner-Operator Independent Drivers Association (OOIDA) continues to wage war against the upcoming American electronic logging device (ELD) mandate, but the driver group just lost another big battle. So, unless something unforeseen happens, the ELD rule will come into effect on December 18, 2017. On Monday, the U.S. Supreme Court ruled against an OOIDA request to overturn a lower court ruling. The lower court had rejected the driver group's argument that the new mandate violated the right of truckers against warrantless search and seizure. In response to the announcement, OOIDA President Jim Johnston said the association has not given up. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEAirlines and shipping step up to maintain supply lines as Qatar battles blockadesource: TheLoadStarAs Qatar battles major boycotts, Oman’s ports of Sohar and Salalah are set to handle its regional sea trade, while airlines, including Iran Air, are carrying large quantities of food imports. Since last week, when seven countries cut ties to Qatar, carriers have been working out new routings to avoid a direct link between the UAE’s ports and Qatar’s. Read more here.Don’t let Brexit uncertainties delay key logistics infrastructure decisions, says freight associationsource: AJOTCommenting ahead of news about whether there will be a Queen’s Speech and start of Brexit negotiations next Monday, British International Freight Association (BIFA) director general, Robert Keen says: “The goalposts may well have moved since the results of the general election, but the playing field remains the same. “There is uncertainty about when we will get a Queen’s Speech and when the Brexit negotiations will start, but there is no uncertainty about the date when the UK will leave the EU. Read more here.Sign of a thaw, China and Singapore cooperate on 'Belt and Road'source: ShippingazetteSIGNS of a diplomatic thaw between China and Singapore have appeared after bilateral talks in which the city-state's showed a willingness to support Beijing its much-touted "Belt and Road" global transport initiative. China and Singapore agreed in Beijing to cooperate on trade and regional infrastructure projects, a sign the two countries have started to repair strained ties. Relations between the two countries have soured over Singapore's military ties with Taiwan, its support for the US naval presence in the South China Sea and its previous suspected lack of support for the Belt and Road programme. Chinese Foreign Minister Wang Yi and Singaporean counterpart Vivian Balakrishnan said in a Beijing briefing that they reached agreement to work more closely on China's "Belt and Road" trade and infrastructure initiative. MrBalakrishnan described ties as "strong" and said China's relationship with Southeast Asia was "stable, calm and positive." Said Mr Wang: "We had in-depth talks and reached a lot of consensus on bilateral, regional issues and shared interests." Mr Wang said Singapore was an important clearance centre for the yuan. "To advance the Belt and Road Initiative we need financing. "We hope to draw upon Singapore's strengths as a financial centre," he said. [Excerpted from Shippingazette]
13 June 2017
AIR FREIGHT UPDATESCostly air cargo squeezing juice out of mango exports
thenews.com.pkKARACHI: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Friday said the mango exporters are frustrated because big-ticket airfreight is not letting them tap the ripe international market at competitive rates. Read more here.
OCEAN FREIGHT UPDATESMSC prepares contingency plan for cargo aboard Rickmers charterstheloadstar.co.ukMSC is preparing contingency plans for customers’ cargo,should the three containerships it has on charter from Rickmers be claimed by the bankrupt group’s creditors. Read more here.
Panama Ditches Taiwan and Forms Diplomatic Ties with Chinasource: splash247.comIn diplomatic news that could have far bigger ramificationsfor shipping th an the current Qatar spat, Panama has established diplomatic ties with China and broken with Taiwan. Read more here.
K Line Top Brass Fight for Survival Ahead of Crunch Shareholder Votesplash247.comSenior management at Kawasaki Kisen Kaisha (K Line), Japan's third largest line, have hit out at detractors planning a shareholder coup later this month.June 23 see K L ine shareholders meet in Tokyo where they will decide, among o ther things, wheterh or not to re-elect the current chairman....Read more here.Chinese to Expand Dar es Salaam Porthttp://splash247.comTanzania's government has signed a $154m contract on Saturday with state-run China Harbour Engineering Company (CHEC) to expand the main port in the commercial capital, Dar es Salaam. Read more here.Major Announcement to Impact Projected Costs on Ocean Shipping Laneajot.comGreen Bay, Wis. – The Transpacific Stabilization Agreement (TSA), a collaborative forum for ocean container shipping lines serving the trade lane between Asia and North America, will discontinue publishing its guideline formula for calculating fuel costs. Beginning July 1, 2017, the TSA will offer only a single weekly average fuel price for the six million 40-foot containers that travel the lane annually. Read more here.PortMiami welcomes the return of Hapag-Lloydajot.comHapag-Lloyd, ranked among the world’s largest container shipping lines, recently announced adding PortMiami to its Mediterranean Gulf Service (MGX) starting June 11th with the arrival of the Venetiko 03W22 vessel.The new weekly service will expand trade opportunities connecting major Mediterranean markets such as Livorno and Valencia to the U.S. via PortMiami. Read more here.Seattle-Tacoma to receive US$55 million for cranes, terminal improvementsshippingazette.comTHE entity that runs the marine cargo operations at the ports of Seattle and Tacoma, the Northwest Seaport Alliance (NWSA), has approved the purchase of four new container cranes that will cost US$52 million, plus an additional $2.9 million that will be spent on marine terminal improvements.The newly approved cranes would supplement four others already on order for Husky Terminal in the south harbour.The new cranes are capable of serving mega ships with an outreach of 24 containers and a lift height of 165 feet above the pier deck, said the NWSA. [Excerpted from shippingazette.com]
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEU.S., Canada Trade Spat Set to Sharpen as Lumber Decision Nearsajot.comThe U.S. is setting the stage to heighten one of its most-contested trade battles with Canada this month as a decision over lumber duties nears. Read more here.
12 June 2017
OCEAN FREIGHT UPDATESMaersk resumes bookings and services to and from Qatarsource: LloydsLoadingListMaersk Line has reopened bookings for cargo to and from Qatar after setting up a transhipment service via the port of Salalah in Oman. The first sailing ex-Salalah is due on 19 June and is set to arrive in Doha on 25 June. The frequency of this service is every 10 days. Maersk said booking acceptance for cargo to and from Qatar was open for all countries except the United Arab Emirates (UAE), Saudi Arabia, Bahrain, Egypt and Yemen – “in compliance with government guidelines”. However, the new solution for cargo to and from Qatar was expected to come with increased costs to customers. Maersk said it would update customers this week on rate levels effective 1 July “to continue to provide reliable service in this market”. [Excerpted from Lloyd’s Loading List]Confusion Rules Waves as Shippers Seek Qatar-Ban Claritysource: CIFFAShippers hauling oil, food and consumer goods across the Middle East are grappling with the fallout from a diplomatic standoff between Qatar and its Persian Gulf neighbours that risks leaving vessels locked out of regional ports. Abu Dhabi's oil ports authority banned all vessels coming from or going to Qatar from using its facilities, a move in line with most other terminals in the United Arab Emirates. The port operator, which runs oil and refined product shipment terminals for government-owned Abu Dhabi National Oil Co., imposed the ban on June 7, according to a notice, reversing a decision made earlier that day to ease limits on non-Qatari vessels. Read more here.The Port of Philadelphia grows to over 1,000 acres of land ownedsource: AJOTPhilaPort announced today the acquisition of a 29-acre parcel of land, locally known as the former Philadelphia Produce and Seafood Terminal, located at Third Street and Pattison Avenue. With this purchase PhilaPort now owns 1,016 acres of land. This purchase from Philadelphia’s public-private economic development corporation, PIDC, will allow PhilaPort to develop warehousing to support the growth in container operations at Packer Avenue Marine Terminal (PAMT). Read more here.
GROUND AND RAIL UPDATESHudson Bay Railway Closed Indefinitelysource: CanadianShipperOmniTRAX announced that, due to severe flooding and washout conditions, service on the Hudson Bay Railway (HBR) from Amery (28.9 rail miles north east of Gillam, Man.) to Churchill has been suspended indefinitely and is not expected to resume operations before the winter season. A preliminary assessment by an independent engineering firm indicates that the track bed has been washed away in 19 locations. Five bridges are visibly damaged and an additional 30 bridges and 600 culverts, structures that allow water to pass under the track, will need to be further assessed for structural integrity. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEItaly jumps on the Chinese freight link bandwagonsource: EuractivNorthern Italy and China will be linked by another cargo rail service from September. Faster than maritime shipping and cheaper than air freight, the service is set to be a boon for the fashion, food, automobile and hi-tech industries. EURACTIV’s partner Milano Finanza reports. The new rail link is designed to provide an alternative to maritime and air services. Operated by Chinese company Changjiu Logistics, it will connect the northern Italian town of Mortara with the capital of Sichuan province, Chengdu. Read more here.(Merbok) Center of cyclone may pass over HK, signal No 8 raisedsource: TheStandardCyclone Merbok may even pass over Hong Kong, bringing gales and heavy rain to parts of the city, the Hong Kong Observatory warned at 5:20pm today when it issued the cyclone warning signal Number 8. Merbok is forecast to make landfall within 50 kilometers of Hong Kong before midnight. Winds averaging 63 km per hour or more are expected from the northeast quarter, the forecasters warned. At 6:00 p.m, Merbok was centered about 60 km south-southeast of the Hong Kong Observatory and is forecast to move north-northwest at about 20 k/ph in the general direction of Hong Kong.
9 June 2017
AIR FREIGHT UPDATESIATA urges air cargo industry to undergo digital transformationsource: ShippingazetteA RESOLUTION has been adopted to "accelerate the modernisation and transformation of the air cargo industry" through a customer-centric approach at the 73rd IATA General Meeting and World Air Transport Summit held in Cancun, Mexico. Measures covered by the resolution include digitalisation of the supply chain for instant information sharing to improve efficiency; harmonisation of standards to facilitate safety, security and efficiency; the provision of responsive services through intelligent systems that can "self-monitor, send real-time alerts and respond to deviation;" and the use of data to drive quality improvements in the industry, reported London's Air Cargo News. IATA was keen to urge governments to work with industry to achieve its goals. It called for rapid implementation of the TFA, whose benefits include harmonised customs rules and an emphasis on electronic documentation. Governments should also develop "smart regulations" to improve safety, security and efficiency in the supply chain, IATA said. E-commerce and pharmaceuticals are among the factors driving air cargo demand today, which is now forecast to rise by 7.5 per cent this year - up from the 3.6 per cent growth in 2016 - to 58.2 million tonnes. The chief driver of air freight demand is urgent inventory restocking at the beginning of an economic upturn - an encouraging sign, according to IATA. Asia Pacific carriers, in particular, are benefitting from this restocking activity. They account for 40 per cent of air cargo shipments, IATA said, noting China's switch towards domestic demand and the continuing strength of Asia's manufactured components and finished goods sectors. Overall, IATA expects airlines to report revenues of $743 billion in 2017, up from the previously forecast of $736 billion, but profitability will be impacted by higher fuel, labour and maintenance costs. [Excerpted from Shippingazette]Air Canada Inaugurates Montreal to Marseille Servicesource: AJOTMONTREAL - The departure of flight AC1962 from Montreal-Trudeau airport tonight will mark the successful launch of Air Canada Rouge’s newest route. The seasonal, non-stop service between Montreal and Marseille will operate three times a week during the summer and give Air Canada customers even more choices when travelling to France. Read more here.
OCEAN FREIGHT UPDATESHapag-Lloyd lays out UASC integration timelinesource: AmericanShipperGermany’s largest ocean carrier, Hapag-Lloyd, issued a transition timeline Thursday for its merger with Kuwait-based ocean carrier United Arab Shipping Co. (UASC). The two companies officially merged May 24 after signing a business combination agreement in July 2016, which resulted in roughly a dozen competition authorities across the world having to grant their approval. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATEA quick fix to NAFTA: Canada’s premiers leave Washington hoping it’s doablesource: CanadianShipperWashington, DC — Canada’s premiers have left a series of meetings in Washington expressing hope that the upcoming renegotiation of NAFTA will be quick and relatively pain-free, rather than a drawn-out bargaining slugfest. Read more here.Canada Cartage expands in Ottawa regionsource: CanadianShipperOTTAWA, ON — Canada Cartage has announced its expansion in the Ottawa area, through the acquisition of the Fred Guy specialty flatdeck division and the opening of a new cross-dock terminal. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEUpdate on Qatar: TT Clubsource: CIFFARead a roundup of what's happening in UAE, Bahrain, Egypt and Saudi Arabia related to the cutting of diplomatic ties by those countries with Qatar earlier this week. Click here for the update.
8 June 2017
AIR FREIGHT UPDATESDelta's new Korea flight at full cargo capacitysource: AirCargoNewsDelta Air Lines' new flight between the US and Korea is proving popular with its cargo customers as the airline reports that the first run was at "full cargo capacity".The Atlanta-headquartered carrier said the new flight from Hartsfield-Jackson Atlanta International Airport to Seoul Incheon International Airport, which departed on June 3, was carrying consolidated freight, including electronics, leather goods and hair care products. Read more here.Airlines commit to air cargo modernizationsource: CanadianShipperCancun, Mexico — The International Air Transport Association (IATA) 73rd Annual General Meeting (AGM) adopted a resolution to accelerate the modernization and transformation of the air cargo industry. Read more here.Air China Cargo lands at Liege Airportsource: Liege AirportLiege Airport is further developing its relations with China: on June 7, Air Cargo China started a weekly flight between Liege Airport and Shanghai with a Boeing 777- 200. This first weekly flight is a wonderful beginning, and we are targeting more weekly connections after a successful start up. Ground and cargo handling operations will be provided by LACHS. Read more here.EU and TSA agree on mutual recognition of airfreight security regimessource: ShippingazetteTHE European Commission (EU), together with US Transportation Security Administration (TSA) and Switzerland, have agreed on an "unprecedented" air cargo security partnership which enables the three parties to recognise each other's air cargo security procedures as being of an equivalent standard. The agreement, which took effect on June 1, is the first time the TSA has recognised a group of nations together rather than on an individual basis, the London's Air Cargo News reported. TSA administrator John Pistole, said: "This agreement with the EU and Switzerland will ease the burden on industry and allow for the free movement of goods and commerce between our nations. It will also strengthen security by ensuring that we share information and work together towards our common interests." [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESContainer lines suspend Qatar servicessource: LloydsLoadingListFreight forwarders and shippers needing to ship cargo to and from Qatar are faced with increasingly limited options as a result of the Saudi Arabia-led moves to block transport, trading and diplomatic links with Doha.Several shipping lines have cancelled their services to and from Qatar and begun seeking new solutions for customers after the United Arab Emirates (UAE) on Monday extended a ban on vessels entering its ports under the Qatari flag to include vessels destined for or arriving from Qatar. Maersk Line confirmed to Lloyd’s Loading List that DP World Jebel Ali and Abu Dhabi Terminals would no longer accept cargo to and from Qatar ports, including transhipment cargo. In an update note to customers on 5 June, Maersk Line said: “In compliance with the above guidelines, we are ceasing cargo acceptance between Qatar and the above countries with immediate effect.” And on 6 June Maersk Line said it had also temporarily closed bookings for cargo from the rest of the world that tranship over Jebel Ali to or from Qatar. It said it was working on alternative solutions to ensure the movement of customers’ cargo in compliance with the new guidelines. OOCL said bookings to and from Qatar were suspended until further notice, while forwarders have reported similar notices from several other shipping lines. Saudi Arabia and Bahrain have announced similar bans, although Egypt’s Suez Canal transits have not been affected and all Qatar-flagged vessels are free to transit, Lloyd’s List reports. A local representative of a ship management company in Fujairah said: “Container lines that run a regular service calling at Gulf ports including Doha are likely to be most severely impacted by any bans relating to Qatar. Containers that originated from or are destined for Doha will likely be disrupted until a logistics solution can be found.” Industry sources suggested that the ports of Salalah and Sohar in Oman could for the time being replace Jebel Ali as the main hub for container traffic to and from Qatar while the diplomatic dispute continues between Qatar and the Saudi-led coalition.
GROUND AND RAIL UPDATEIndustry slow to adopt Uber-for-freight modelsource: TheLoadStarTaxi-seeking passengers have clearly proved receptive to the Uber model, but it has not yet exploded for trucking. In this piece by FleetOwner, the suggestion is the slower-than-expected growth rate may be down to the trucking industry as a whole remaining resistant to the model. With Uber, however, chucking its own name in the ring – through the launch of Uber Freight – industry principal at Frost & Sullivan Wallace Lau says the slow uptake has not deterred increasing market competition for mobile-based freight apps. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEAir Travel, Sugar and Port Access: Sanctions Levied on Qatarsource: AJOTA coalition led by Saudi Arabia is tightening the noose on neighboring Qatar, accusing the emirate of financing extremist groups and of meddling in the internal affairs of its neighbors, charges that Qatar deny. Below is a list of the sanctions imposed so far on the gas-rich nation. Read more here.
7 June 2017
AIR FREIGHT UPDATESDiplomatic crisis in Arab Gulf region threatens regional air freight operationssource: shippingazette.comETIHAD Airways and Emirates have suspended flights into Qatar as a diplomatic row has broken out over accusations that the country is destabilising the Middle East region.Along with Etihad and Emirates, FlyDubai and Air Arabia have also cut flights to Doha while Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have closed their airspace to Qatar Airways, reports suggest according to London's Air Cargo News.Saudi Arabia has said it will also close its land border with Qatar, which is the only way of reaching the nation by land. Although the moves will not cut off the country from the outside world, Qatar Airways could be forced to alter some routes to Doha and therefore bump up the price of using its services because of the elongated journey.Meanwhile, the lack of a land crossing, which the BBC said is how 40 per cent of Qatar's food reaches the country, could create a demand surge for air and sea operations, forcing up prices of using these services.The country is also in the midst of several construction projects as it is building eight new stadiums for the 2022 football World Cup, a new port, a medical zone and a metro project.The diplomatic row centres on accusations that Qatar has been supporting militant groups like Islamic State and al-Qaeda, something Qatar denies.Qatar Airways recently launched a new A330 freighter route connecting London Heathrow with Doha. It currently operates freighters to London's Stansted Airport and also transports cargo on passenger flights to and from Birmingham, Edinburgh, London Heathrow and Manchester.With the new freighter service, the carrier's total cargo capacity out of the United Kingdom increases to more than 1,500 tonnes each week. [Excerpted from The Shipping Gazette]Goh Choon Phong new IATA chairmansource: aircargonews.netSingapore Airlines chief executive Goh Choon Phong has become the 76th chairman of the IATA board of governors, effective June 6, succeeding International Airlines Group chief executive Willie Walsh in the role. Read more here.
OCEAN FREIGHT UPDATESWorld’s Biggest Container Line Working on Qatar Alternativessource: ajot.comA.P. Moller-Maersk A/S, which owns the world’s biggest container line, is working on bypassing a transport ban imposed on Qatar by neighboring Gulf states by using alternative routes as it tries to get stranded cargo to the emirate. Read more here.
Eight days of strikes and go-slows to cripple Spain’s portssource: lloydsloadinglist.com
Spain’s embattled ports sector is facing a tough next three weeks, with trade unions announcing additional strike days while engaging in go-slows, after negotiations with stevedore employers over reforms to hiring practices faltered again.
Dockworkers went on strike on Monday and will strike again every other hour on June 7, 9, 19, 21 and 23. Unions will also hold a 48-hour work stoppage beginning on the morning of June 14.
While unions announced three days of strikes last week, the latest escalation follows a breakdown in negotiations between unions and Anesco, the stevedores’ employer association, over the fate of the current stevedores.
Sources in Spain confirmed that stevedores have recommenced go-slows, a form of protest that has repeatedly been deployed by workers over the past few months as the struggle over the reforms unfolded. [Excerpted from Lloyd’s Loading List}
One Belt, One Road: Changes to Shipping in Southeast Asia?Source: splash247.comThere has been much commentary surrounding the development, conception and now the roll out of the New Silf Road (One Belt, One Road) by China. The initial emphasis on whether it will happen and the commercial viability of such an audacious plan, has been replaced by a more pragmatic discussion as witnessed by the recent summit hosted by Chinese president Xi Jinping in Beijing. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEITC reviews duty-free effects of Mexico, Canada importssource: americanshiper.comThe U.S. International Trade Commission has started an investigation into the probable effects of providing duty-free treatment to currently dutiable U.S. imported goods from Canada and Mexico.
The ITC will consider these imports as applied to the U.S. Harmonized Tariff Schedule, including U.S. commitments in the World Trade Organization. Read more here.
6 June 2017
5 June 2017
AIR FREIGHT UPDATESEmirates, Etihad flights axed to Doha as diplomatic row breaks outsource: AirCargoNewsEtihad Airways and Emirates have suspended flights into Qatar as a diplomatic row has broken out over accusations that the country is destabilising the Middle East region.Along with Etihad and Emirates, FlyDubai and Air Arabia have also cut flights to Doha while Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have closed their airspace to Qatar Airways, reports suggest. Read more here.April freight growth tails off but IATA remains upbeatsource: AirCargoNewsGlobal air freight tonnekilometres (FTKs) rose 8.5% in April 2017 compared to last year, said IATA in its latest figures. While this was down from March’s 13.4% year-on-year growth, it is well above the average annual growth rate of 3.5% over the past five years. Read more here.
OCEAN FREIGHT UPDATESGCT Deltaport: Lynx CSP System Maintenance Todaysource: CIFFAGCT Deltaport is performing system maintenance on Lynx CSP today from 1:00 to 7:00 am PT. During this time, Lynx CSP will be unavailable.Port Workers in Spain to Strike This Weeksource: CIFFASpanish port workers said on Thursday they would go on strike for three days this week to protest against the reform of operations aimed at liberalizing hiring practices in a heavily unionized sector. The strike action is set for next Monday, Wednesday and Friday. Read more here.Panama Canal Authority Proposing to Modify Toll Structuresource: Splash247The Panama Canal Authority (ACP) has taken a big step towards modifying its tolls structure by publishing its proposed changes. Publication marks the start of a 30-day formal consultation period in which industry stakeholders can give feedback. Read more here.
GROUND AND RAIL UPDATEMetropolitan Rail Freight Council releases action plan to increase rail freight capacity in NYCsource: AJOTThe Metropolitan Rail Freight Council (MRFC) today released its first-ever Action Plan, a guiding document dedicated to growing rail freight capacity and volumes, investing in and preserving rail freight infrastructure, creating quality jobs, promoting environmental sustainability, creating an infrastructure bank, and ensuring a more resilient freight supply chain for the New York City metropolitan area. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATECanada’s trade surplus with U.S. hits highest level in three yearssource: CanadianShipperOTTAWA — Canada’s trade deficit fell in April and its surplus with the United States ballooned to its largest in three years, boosted by shipments of cars, natural gas and softwood lumber, Statistics Canada said Friday. Read more here.Canada Post reports continued growth in parcelssource: Canadianshipper.comOttawa, ON — Canada Post’s focus on innovative, convenient delivery and returns experiences is helping Canadian businesses grow through e-commerce—and maintaining Canada Post’s position as the country’s No. 1 parcel company. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEConsultations on the Renegotiation and Modernization of the North American Free Trade Agreementsource: CIFFAThe Government of Canada is seeking the views of Canadians on the scope of the renegotiation and modernization of the existing North American Free Trade Agreement (NAFTA) with the United States and Mexico. Read more here.Denmark Signs the EU Free Trade Deal with Canadasource: CIFFAA considerable majority in the Danish Parliament has approved the ratification of the EU's free trade agreement with Canada (CETA). As a result, Denmark is among the first EU nations to sign on. Read more here.
2 June 2017
AIR FREIGHT UPDATESPassenger Demand Increases But Laptop Ban A Dragsource: airwise.comGlobal passenger traffic demand rose in April at its fastest rate in six years, but the ban on some electronic devices is having an effect, IATA reported in its monthly update.The International Air Transport Association report said passenger traffic rose by 10.7 percent compared to April 2016, as global economic activity picked up and air fares dropped. Read more here.April freight growth tails off but IATA remains upbeatsource: AirCargoNewsGlobal air freight tonnekilometres (FTKs) rose 8.5% in April 2017 compared to last year, said IATA in its latest figures.While this was down from March’s 13.4% year-on-year growth, it is well above the average annual growth rate of 3.5% over the past five years. Read more here.
OCEAN FREIGHT UPDATESCosco Plans Major Restructuringsource: Splash247China Cosco Shipping Holdings has further extended its stock trading suspension today, following a trading suspension by the company in May 2017. The Chinese s hipping conglomerate has confirmed that it is planning a major asset restructuring and there are still lots of uncertainties in the potential restructuring deal. Read more here.DP World Canada Inc. Responds to CIFFA Query on Centerm Opssource: CIFFADP World Canada Inc. has responded to a CIFFA query about DP World's terminal operations at Centerm, and issues around opening extra weekend gates, last-minute changes and free time. On behalf of membership, CIFFA had asked for a clearer policy statement and better general understanding of the rules around additional weekend gates. On the weekend of May 20, Centerm had a Saturday gate and opened an additional Sunday gate. Because Monday was a holiday, the last free day for containers arriving on Friday was Sunday, with storage starting on Tuesday at 08:00. Because of the extra gate on Sunday and storage starting on Tuesday, forwarders made arrangements to pre-pull containers on Saturday -- with all of the added expense that entails, such as driver premiums, off-dock secure container storage and other overtime. However, on Tuesday it seems that Centerm announced an extension of free time to Tuesday -- and so the expenses of those Saturday pre-pulls were not necessary. CIFFA expressed concern about the lack of clarity and last-minute changes (such as announcing extending free time only on Tuesday), which make it challenging for forwarders to make sound business decisions. While adding extra gates to address congestion issues is admirable, if the community is to make use of these extra gates, they must pay premium trucking for weekend work in addition to any gate fees.In response to CIFFA's request, DP World Canada Inc. released the following statement:"We are experiencing unusually high volume through all our terminals and in order to ensure fluidity we are incurring additional cost on our side too by working weekends. Unfortunately not all of our customers realized that we were open over the weekend and they were not able to secure trucking power on time. So we had an option to charge demurrage or to extend one more day to accommodate customers' requests. We still believe that working weekends provided better fluidity for the terminal and our customers, and we are looking at how we can communicate these events better in the future. Thank you for your understanding."US ports to receive a total of US$170m for port deepening workssource: ShippingazetteTHE US Army Corps of Engineers' Fiscal Year 2017 Work Plan has set aside US$170 million in funding for several port deepening and infrastructure projects nationwide, including $17.5 million for deepening the port of Charleston's main channel from 45 to 52 feet to handle vessels of up to 14,000 TEU. The harbour deepening work at the US east coast port is scheduled to begin this autumn, after the South Carolina legislature appropriated $300 million for the entire project in 2012, reported American Shipper. According to the manager of corporate communications and community affairs at SCPA, Erin Dhand, the project is expected to be completed in 2020. The fiscal 2018 budget allocates $58 million towards the project, which will deepen Boston's outer harbour to 51 feet and the reserved channel to 47 feet, to better handle the 8,500-TEU ships that already call Conley Container Terminal, and even larger ships in future. On the US west coast, the port of Oakland was granted $1.1 million to complete its 50-foot harbour deepening project. [Excerpted from Shippingazette]State of Ocean Cargo: Carriers cope with regulatory restrictionssource: LogisticsManagementThe ocean carrier industry was handed another setback by a major regulatory agency last month as the U.S. Federal Maritime Commission (FMC) rejected the proposed merger of three Japanese liners. Read more here.Feds announce review of Pilotage Actsource: CanadianShipperToronto, ON — Catherine McKenna, Minister of Environment and Climate Change Canada, announced a review of the Pilotage Act, one of five initiatives as part of the Liberal government’s Oceans Protection Plan. Read more here.
GROUND AND RAIL UPDATENew York releases rail freight action plansource: MM&DThe Metropolitan Rail Freight Council (MRFC), a coalition of public and private organizations dedicated to promoting greater rail freight use in the New York-New Jersey metropolitan region, has released its first Action Plan. Read more here.
1 June 2017
AIR FREIGHT UPDATES'No BSA, no way' say carriers, as forwarders report tight space and strong air freight ratessource: TheLoadStarThe air freight market is experiencing such a strong period that unless customers have blocked space agreements (BSA) – in what is traditionally a low point in the year – there is no guarantee that cargo will be moved. Airlines say they are having the best May/June for five or six years, while forwarders are reporting that there are no more “soft” BSAs. Customers are already concerned about air freight rates and space in the fourth quarter peak. Several airlines attempted to raise their rates in March, only to be refused by customers. But such is the demand that, according to one source, some of the largest forwarders are now only able to book ad hoc, subject to availability, with preferred carriers, after refusing to agree earlier to BSAs. “Everyone needs BSAs,” noted one Asian source. “Some airlines used to offer free cargo space if the customer also had contracted space – now they are only guaranteeing blocked space. “We won’t see low air freight rates any more this year.” Forwarders cited Cargolux’s China services as being in particular high demand, despite there being fewer hi-tech product launches at this time of year. E-commerce in Asia has in part fuelled the growth in demand. Master loaders in Hong Kong have allocated space for e-commerce, with the tonnage expected to increase in the second half. One forwarder said he was already “worried about the air freight rate in the fourth quarter”. Asia to the Americas is also “full”, in part because of growth in the Brazilian and Mexican markets, with much of the South American traffic going via North America. One forwarding source in Asia noted that Transpacific rates had already reached peak season levels. However, several forwarders told The Loadstar that air freight rates were simply at the level they should be, after years of languishing at unsustainable levels. The market situation – which forwarders have variously described as “weird”, the “best year ever”, and “positive” – is supported by air cargo data published yesterday. WorldACD reported that the first four months saw volume up 9% compared with last year, while the same period in 2016 was flat compared with 2015.Asian airlines continue to cut costs despite 9pc traffic growthsource: ShippingazetteAIR carriers based in the Asia Pacific region enjoyed cargo traffic growth of 9 per cent in April as export orders from the region continued to surge, but carriers continue to cut costs to meet rising outlays. The latest figures from the Association of Asia Pacific Airlines (AAPA) showed that traffic in freight tonne km terms continued to improve in April as strong international demand caused business conditions to continue to improve across economies in the region. The level of cost cutting amongst Asian airlines was evident when the region's biggest carrier Cathay Pacific announced plans to axe 600 headquarter jobs. It has also cut the cargo director role. Meanwhile, Singapore Airlines announced last week that SIA Cargo would be rolled back into the parent company to improve efficiency through greater synergy with the wider group. And rumours continue to circulate that some of China's major airlines could be merged, with their cargo units spun-off as separate entities. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESHapag-Lloyd prioritizes ‘customer focus and business continuity’ during UASC mergersource: Hapag-LloydHapag-Lloyd says its “top priority” is “customers focus and business continuity” in the transition period leading up to its merger with the United Arab Shipping Company (UASC) which was announced last week. Read the full letter here.Argentina Hit by Double Port Strikes at Height of Grain Harvestsource: CIFFAPrivate port grains inspectors in Argentina started a 48-hour wage strike on Wednesday, after government health inspectors called a three-day work stoppage a day earlier, also over pay. Wednesday's strike by the URGARA inspectors' union will halt movement of soymeal and other grains by-products, while the work stoppage announced on Tuesday by government sanitary inspection unit Senasa halted movement of soybeans and other raw crops. Read more here.Fire Breaks Out At Tianjin Portsource: Splash247A major fire broke out at a storage yard at Tianjin Port last night, with firefighting operations still ongoing today. The fire started in a storage yard of a local paper company inside Tianjin Port at Binhai New Area. Read more here.China Port Congestion Continues to Roil Global Supply Chainssource: Splash247With congestion at Chinese ports continuing a leading shipper body has urged lines to speed their ships up to help minimize the supply chain fallout. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATEProgram for Canada Logistics Conference 2017 releasedsource: CanadianShipperToronto, ON — Canada Logistics Conference, the annual thought leadership event for all supply chain logistics professionals presented by CITT, has opened early bird registration and announced its full program. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATEKersten to be new FIATA headsource: aircargonews.comThe International Federation of Freight Forwarders Associations (FIATA) has appointed Hans Kersten as deputy director and director general designate in the retirement of Marco Sorgetti when he retires in September. Read more here.IMO committee due to adopt routing system amendments for tankerssource: ShippingazetteTHE International Maritime Organisation's Maritime Safety Committee (MSC) is expected at its 98th session on June 7-6 to adopt a series of proposed amendments, including changes that will alter ship routing systems. The proposed amendments include the establishment of a new area to be avoided (ABTA) as an associated protective measure for the 'Tubbataha Reefs Natural Park Particularly Sensitive Sea Area (PSSA) in the Sulu Sea' (the Philippines). This ABTA is linked to the proposed PSSA, which was approved in principle in 2016 and is expected to be formally designated by IMO's MEPC 71 meeting in July. The MSC is expected to also consider revisions to the Guidelines for Verification of Conformity with Goal-Based Ship Construction Standards, based on the experience gained during initial verification audits. The meeting will also consider the GBS non-conformities verification audit report, which relates to rectification of non-conformities stemming from the initial verification audit. In addition, MSC will likely approve draft guidelines on safety during abandon ship drills using lifeboats and draft amendments to update the guidelines for developing operation and maintenance manuals for lifeboat systems (MSC.1/Circ.1205). [Excerpted from Shippingazette]
31 May 2017
AIR FREIGHT UPDATESOnline retail boom for Asian air cargo triggers imbalance in ULD suppliessource: TheLoadStarE-commerce and growth in the Asian air cargo market is pushing air freight suppliers to shift business models. A growing charter market and strong Europe and US tradelanes have led to changes in the way equipment is supplied, according to unit load device (ULD) leasing specialist ACL Airshop. Read more here.
OCEAN FREIGHT UPDATESJapanese liner shipping trio becomes ONE, ready for launch next springsource: TheLoadStarThe container businesses of K Line, MOL and NYK will operate under the tradename Ocean Network Express (ONE) from 1 April next year. In a joint statement today the Japanese trio said: “The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, consolidation and enhancement of the three companies’ global network and service structures.”CMA CGM introduces booking cancellation feesource: LloydLoadingListGlobal container line CMA CGM is introducing a ‘booking cancellation fee’ on its Europe to Indian Subcontinent, Gulf and Red Sea trades to deter customers from making late cancellations. A booking cancellation fee of US$150 per TEU will apply from 1 June to any bookings, excluding reefers, that are cancelled or transferred within seven calendar days of the vessel cut-off date, invoiced to the booking party. It applies to services from North Europe (North Continent/ UK/Scandinavia) to Red Sea, Middle East, India, Pakistan, and Sri Lanka. CMA CGM explained that it “has been facing a large amount of shortfalls for the last weeks due to late bookings cancellations preventing us from accepting bookings on behalf of other valued customers”, adding: “Booking reliability will assist CMA CGM to efficiently allocate space and equipment in order to guarantee our customers’ needs and requirements.” [Excerpted from Lloyds Loading List]A windshield on a containership saves fuel and cuts emissionssource: CanadianShipperTokyo, Japan — Japanese ocean carrier MOL has successfully completed testing a windshield on the bow of one of its containerships, which it claims has saved fuel and reduced CO2 emissions by around 2%. Read more here.High Water has Seaway Considering Suspending Shippingsource: CIFFAHeavy rainfall has kept the St. Lawrence River at record highs, leading to the possibility that water-level authorities might shut down shipping on the Seaway to allow the dam at Cornwall to release more water. Rob Caldwell, Canadian regulation representative of the International Lake Ontario-St. Lawrence River Board, said the board has opened the taps at the Moses-Saunders power dam at Cornwall to record levels. The outflow volume at Cornwall is 10,200 cubic metres per second, equalling the highest outflow since recording began there 117 years ago. Read more here.
30 May 2017
AIR FREIGHT UPDATESAirports Council International reports 8.3 percent y/y increase in freight volume in Q1 2017source: StatTimesMay 30, 2017: The trade association of the world's airports, Airports Council International, has reported freight volumes registered in the first quarter of 2017 and in the month of March. Read more here.
OCEAN FREIGHT UPDATESHyundai takes over of three Hanjin berths at Kaohsiung portsource: ShippingazetteKOREA's Hyundai Merchant Marine (HMM) has taken charge of three container berths, once operated by the bankrupt Hanjin Shipping from Taiwan's Port of Kaohsiung, increasing the number of HMM-run berths to five. The three berths have an annual handling capacity of 640,000 TEU, representing about six per cent of Kaohsiung's 10.6 million TEU achieved in 2016. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCN and Union Reach Tentative Agreement on New Labour Contract for Conductors in Canadasource: CIFFACN announced last night that it has reached a tentative agreement with the Teamsters Canada Rail Conference -- Conductors, Trainpersons and Yardpersons (TCRC-CTY) to renew the labour contract for approximately 3,000 CN conductors and yard operations employees in Canada. Details of the agreement are being withheld pending ratification by TCRC members, a process expected to take approximately 60 days.
CANADA BUSINESS - GOVERNMENT UPDATESWinter Construction Season on the Inuvik Tuktoyaktuk Highway Completedsource: CIFFAThe last winter construction season of the Inuvik Tuktoyaktuk Highway (ITH) concluded last month, and consisted of completing the final two bridges, as well as crushing and stockpiling surface gravel. Construction this summer season will focus on grading, packing, and shaping the base of the highway in preparation for gravel surfacing. Signage and guardrails will be installed this fall. Read more here.NAFTA trade exceeds $100 billion in Marchsource: CanadianShipperWashington, DC — Total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA), which include Canada and Mexico, stood at $100.3 billion in March 2017, a 10.9 percent increase from 12 months prior, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESNew Business Models such as Uber for Trucks to Transform Freight Industry from Product-based to a Service-basedsource: PRNewsWireLONDON, May 30, 2017 /PRNewswire/ -- The digitalisation of the logistics industry impacts each element of the value chain – from the shipper, over the broker and the carrier to the warehouse. Rising digitalization throughout the freight brokerage value chain is improving the efficiency and flow of freight from pick-up to drop-off. Many large brokers increasingly leverage digital solutions to augment their offering. Digital brokers provide value-added services to attract carriers and shippers. Algorithms, which streamline the process and pass on the savings to the shipper, allow automated freight brokers to take significantly lower commissions (5%–10%) than traditional brokers (15%–20%). Read more here.China submits proposals to Trump on improving bilateral tradesource: ShippingazetteCHINA's white paper entitled "Research Report on China-US Economic and Trade Relations" has been presented with the express purpose of improving trade relations between the two countries. "The WTO rules provide a stable and strong institutional protection for the development of China-US economic and trade relations, which are bilateral ties within the framework of WTO rules," the paper said. "Economic globalisation is a basis for the further development of China-US economic and trade relations." The paper asks the US to stop using the "alternative state" approach when calculating dumping margins in WTO trade disputes, reports Bloomberg. If China were considered a "market economy" it would be assumed that its local market was competitive and not under a regime of price controls as would be assumed in a "centrally planned economy" or an "alternative state", as it is termed in WTO-speak. And if that stick were removed, China said, then carrots were on offer: "China will increase imports of advanced manufactured goods such as aircraft, integrated circuits and machine tools. "China would like to further increase imports of agricultural products such as soybeans and cotton from the US and speed up negotiations with the US on terms regarding traceability and inspection and quarantine for US beef to enter China, which will benefit six million American farmers," China said. Of the paper, Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, said: "We have never seen such moves before. The report is very thorough, and I think the main purpose is to enhance communication and reduce confrontation." [Excerpted from Shippingazette]
29 May 2017
AIR FREIGHT UPDATESGlobal air freight demand rises: IATAsource: CanadianShipperGeneva, Switzerland — The International Air Transport Association (IATA) released March 2017 demand growth results for global air freight markets showing a 14% expansion measured in freight tonne kilometers (FTKs) compared to the same period last year. Read more here.British Airways Flights, Italy Strike Updatesource: AirWiseBritish Airways said it will operate the majority of its flights on Sunday, as the airline recovers from Saturday’s major IT system failure. The IAG subsidiary cancelled all flights from London Heathrow and Gatwick airports on Saturday and said it was working hard to restore its global IT systems. Read more here.
OCEAN FREIGHT UPDATESPort of Montreal Receives $40 Million to Increase Productivitysource: CIFFAThe Government of Quebec has granted $40 million in financial assistance to the Montreal Port Authority in order to upgrade its infrastructure, which will help increase productivity and maintain the competitiveness of the Port, the second largest in Canada.This financial assistance will enable Quebec and Canadian shippers to benefit from gains in terms of terminal capacity and fluidity.Hyundai takes over of three Hanjin berths at Kaohsiung portsource: ShippingazetteKOREA's Hyundai Merchant Marine (HMM) has taken charge of three container berths, once operated by the bankrupt Hanjin Shipping from Taiwan's Port of Kaohsiung, increasing the number of HMM-run berths to five. The three berths have an annual handling capacity of 640,000 TEU, representing about six per cent of Kaohsiung's 10.6 million TEU achieved in 2016. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCN Receives Strike Notice from Union Representing Train Conductors in Canadasource: CIFFACN announced on Saturday that the Teamsters Canadian Rail Conference - Conductors, Trainpersons and Yardpersons (TCRC-CTY), which represents approximately 3,000 CN conductors and yard operations employees in Canada, has given the company a 72-hour notice of its intention to strike as of 4:00 am ET on May 30. Mike Cory, executive vice-president and chief operating officer of CN, said: "We continue to negotiate in good faith with the assistance of a federally appointed mediator in order to reach a fair agreement before the strike deadline. We are also offering to resolve our differences through binding arbitration with a neutral arbitrator. We remain optimistic that we can reach an agreement without a labour disruption."
CANADA BUSINESS - GOVERNMENT UPDATES12 Business Associations Reach Out to Government of Canada Ministers to Rectify CBSA System Issuessource: CIFFAIn a letter to five federal ministers and the President of the Treasury Board, 12 business associations stated that their "members have experienced serious issues with the processing and release of cross-border goods as a result of technical issues and frequent outages related to the Canada Border Services Agency's IT system." Read more here.
25 May 2017
AIR FREIGHT UPDATESContinuing Customs Strike in Brazilsource: CIFFAAir Canada Cargo has advised that work stoppages continue to affect shipments destined to, and transiting through, Sao Paolo, Brazil. After an initial strike last week, a new strike commenced on Monday, May 22, with no scheduled end date. Shipments are subject to delay until further notice. Storage fees, which are levied by the government of Brazil, will apply. Live animals, human remains and emergency medical supplies should not be impacted.Italy ATC, Some Alitalia Workers Call Sunday Strikessource: AirWiseStrikes by Italian air traffic controllers and some Alitalia staff on Sunday May 28 are expected to cause delays and some flight cancellations. Read more here.
OCEAN FREIGHT UPDATESNew record set for largest-capacity vessel to transit expanded Panama Canalsource: AJOTPanama City, Panama - Less than a month after the previous record was set, the Panama Canal welcomed the Neopanamax container vessel OOCL France, making it the largest capacity vessel to transit the Expanded Canal since it was inaugurated in June 2016. The OOCL France containership—which measures 366.47 meters in length and 48.23 meters in beam with 13,926 total TEU allowance (TTA)—transited northbound from the Pacific to the Atlantic Ocean. Read more here.Trump wants $108M for deeper portssource: CanadianShipperSavannah, GA — President Donald Trump wants $108 million to deepen harbours for two U.S. seaports, while other ports scrambling to make room for larger cargo ships will benefit from a boost of more than $56 million already approved by Congress. Read more here.
GROUND AND RAIL UPDATESCN makes Forbes list of top transportation companiessource: CanadianShipperMontreal, QC – Canadian National Railway earned a place as one of the world’s 25 biggest transportation companies, according to Forbes magazine’s Global 2000, an annual ranking of the world’s largest, most powerful public companies, based on equally-weighted measures of revenue, profits, assets and market value. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESCBSA Vancouver Longroom Operations Experiencing Delayssource: CIFFACIFFA members have advised of delays of over a week in validating paper housebills / re-manifests at the Vancouver Longroom. In part one member wrote, "The turnaround time has increased and we have some not approved even a week later. With multiple consolidation containers arriving daily to our Vancouver gateway, this is not sustainable and is leading to extra charges in port storage, demurrage and detention besides the delays and inconvenience to the customers."In response to our enquiry, the CBSA at Vancouver Longroom has advised that:Unfortunately, the Vancouver Longroom is currently experiencing an extreme shortage of staff that has resulted in increased delays. Our management is aware of this and are taking measures to rectify this situation. Please be advised that submitting to our office in person will not expedite the processing, as our office is on a first-come, first-served basis. There are no published service standards according to the CBSA website, however, we understand the importance of timeliness and staff are working hard and trying their best to minimize turnaround times. We appreciate everyone's patience during this time.Sadly, the lack of resources for stamping paper documents at the CBSA has been a problem at various Customs ports year after year. And there should be service standards. Certainly, eHBL was meant to reduce the need for CBSA validation of forwarder re-manifests, but with CN17-15 and the push-back of over a year on eHBL, the CBSA may have to rethink its staffing priorities. The costs in money, management time and administration of these delays is simply not acceptable.
24 May 2017
OCEAN FREIGHT UPDATESThe Philadelphia Regional Port Authority rebrands as PhilaPortsource: AJOTOn the threshold of an unprecedented era of expansion, The Port of Philadelphia is establishing a new brand identity that will bolster its national and international marketing efforts and position the Port as one of the most important trade gateways on the Atlantic seaboard. Read more here.Jones Act under fire, battle lines drawnsource: AJOTThe current regulation makes a distinction between merchandise and vessel equipment exempting equipment from U.S carriage. Heretofore the act has allowed a liberal interpretation of equipment to include the resupply of offshore drilling rigs. In this respect the Jones Act has allowed foreign vessels to carry supplies and personnel to and from rigs off the Continental United States. Proposed changes withdrawn by Customs would have removed these exemptions tightening the use of American flag carriers in all coastwise trade. Read more here.Finnish container terminals to go live with Navis N4 in the cloudsource: CanadianShipperOakland, CA — Two Finland-based container terminals—Steveco Vuosaari (Helsinki) and Steveco Mussalo (Kotka)—have become the world’s first ports to successfully go live with Navis N4 in a hosted private cloud environment following their March 25th go-lives. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESCanada Prepared for Talks to Rework Nafta, Trade Minister Sayssource: AJOTCanada is prepared for the start of talks to renegotiate the North American Free Trade Agreement and is confident it will get a successful outcome, according to Trade Minister Francois-Philippe Champagne. “When you start a discussion you start with saying, ‘well we’re the first client’,” Champagne said in an interview Sunday on the sidelines of a meeting of Asia-Pacific trade ministers in Hanoi, Vietnam. The agreement, negotiated more than two decades ago, “has been amended about 11 times so we said we’re happy to sit at the table.” Read more here.Inland Kenworth celebrates grand opening for new BC locationsource: CanadianShipperPrince George, BC — Inland Kenworth recently celebrated the grand opening of its new, 100,000-square-foot, full-service dealership in Prince George. The grand opening, which was open to the public, featured food and refreshments, vendor booths, and the appearance of company officials and local dignitaries during a brief ribbon-cutting ceremony at the new facility. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESGothenburg docker dispute now threatens wider Swedish economysource: ShippingazetteAS a docker dispute escalates in Gothenburg, Sweden's biggest port, exporters - including world-famous Ikea - warn of having to find alternative harbours to safeguard shipments. Labour productivity at Maersk's APM Terminals in Gothenburg has fallen to 80 per cent in the last six months due to a conflict with the Swedish Dockworkers' Union. It could drop to 40 per cent in the coming days as APM Terminals plans a partial lockout in response to the dockers' go-slow. Having to relocate shipments from the busiest and largest port in Scandinavia could pose a major challenge for an economy such as Sweden's, where exports represent 44 per cent of economic output. Exporters would probably have to truck goods German ports such as Hamburg and Bremerhaven, Rotterdam in the Netherlands or Antwerp in Belgium. That would add time and drive up costs. The union has rejected several proposals over the past year and its continued action is now having "severe national consequences," APM Terminals Gothenburg CEO Henrik Kristensen told Bloomberg. [Excerpted from Shippingazette]
19 May 2017
AIR FREIGHT UPDATESPoor Visibility A Cause Of Air Canada Crash Landingsource: AirWiseThe crash landing of an Air Canada flight at Halifax Airport in 2015 was caused by approach procedures, poor visibility and airfield lighting, Canada’s Transportation Safety Board said in its accident report. Read more here.Forwarders Hit Out at Carriers Revisiting Fuel Surchargessource: CIFFAForwarders are registering their dismay that some airlines are returning to fuel surcharges. They say the move is widely perceived as an effort to push up rates.Emirates, which had led the charge to all-in pricing two years ago, turned trailblazer again with its decision to bring back a surcharge to account for fluctuations in fuel costs. The Middle Eastern carrier implemented its new pricing structure late last month, declaring that the all-in price set-up had not been dynamic or flexible enough to adapt to changing conditions in a volatile market, and that it needed to reflect the impact of fuel price fluctuation on its operation. Read more here.
OCEAN FREIGHT UPDATESEscalating Dockworkers’ Conflict Now Threatens Swedish Economysource: AJOTAs a drawn-out labor conflict at the Nordic region’s largest port escalates, some of Sweden’s largest exporters are warning they may be forced to find alternative harbors abroad to safeguard shipments. Container capacity at A.P. Moller-Maersk A/S’ APM Terminals facility in Gothenburg has in the past six months dropped to 80 percent of the normal weekly level of 10,000 containers due to a conflict with the Swedish Dockworkers’ Union. It could drop to 40 percent in the coming days as APM plans a partial lockout in response to the industrial action. Read more here.
GROUND AND RAIL UPDATESRailway union vows to fight move giving railways access to video recorders datasource: CanadianShipperMONTREAL — Railways operating in Canada would be required to install locomotive voice and video recorders as a safety measure under legislation introduced Tuesday, but the union representing workers is vowing to fight the change over privacy concerns. Read more here.Uber's new app for truckers could disrupt one of America's core industriessource: CNBCUber launched a new app on Thursday called Uber Freight, which matches trucking companies with loads to haul.The formal launch of the app marks Uber's long-anticipated move into the trucking industry — potentially disrupting one of the most popular professions in the U.S. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESLiberals Provide Details of Plan for National Carbon Taxsource: CIFFAThe federal government has released details of how it plans to put a "price on pollution" that would ensure a carbon price of at least 11 cents a litre on gasoline in all provinces by 2022 but will include flexibility for provinces working towards their own plans.The plan is intended to ensure all provinces put a price on carbon starting next year, and details how the federal government would impose that price in provinces that don't do it themselves. Read more here.Contacting TCCU on Victoria Daysource: CIFFA
The Technical Commercial Client Unit (TCCU) of the CBSA will be closed on Victoria Day, Monday, May 22. For urgent client service outside business hours and on statutory holidays, contact the TCCU hotline, at 1-888-957-7224, and your enquiry will be answered by a TCCU officer. Alternatively, you can use the TCCU's after-hours/weekend/holiday pager service; find out how here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESU.S. Strikes Gentler Tone on Nafta as Countdown to Talks Beginssource: AJOTU.S. President Donald Trump’s top trade negotiator came out of the gate sounding like he wants to fine-tune the North American Free Trade Agreement, not blow it up as some feared. During the election campaign, Trump called the trade deal with Mexico and Canada a “disaster” that cost millions of U.S. jobs and hollowed out the manufacturing sector. A few weeks ago, he was weighing whether to pull out of the deal entirely. Read more here.E-commerce transforms technology that powers global supply chainssource: ShippingaztteE-COMMERCE is bringing a boon to the logistics industry and simultaneously making supply chain technology more complex than ever in today's rapidly evolving digital era. According to the findings of the Geodis 2017 Supply Chain Worldwide Survey (SCWS), global supply chains are transforming from the simple delivery of products to "crucial levers for business performance". The survey revealed that 74 per cent of companies use four or five different transportation modes. "At the crossroads of strategy, marketing, sourcing, manufacturing, business development and customer services, supply chain has become the key strategic 'hub' of companies' activities."
18 May 2017
OCEAN FREIGHT UPDATESCarriers May Be Getting Containership Overcapacity under Controlsource: CIFFAContainer shipping lines may be getting the vessel overcapacity crisis under control. It was revealed today that the newbuild orderbook-to-fleet ratio is at the lowest level ever recorded. And liner analyst Alphaliner suggested it could drop further over coming months. Read more here.U.S. ports welcome giant shipsource: CanadianShipperSavannah, GA — The largest cargo ship ever to visit ports on the U.S. East Coast is so long the Statue of Liberty and Washington Monument could fit end-to-end along its deck and still leave room for Big Ben. Read more here.Spanish ports to strike, dockers blast reforms to end closed shop hiringsource: ShippingazetteSPANISH unions are organising port strikes from May 24 - June 9, during odd hours on Mondays, Wednesdays and Fridays, reports Lloyd's List. Unions are protesting Madrid's planned reforms of the existing closed shop hiring system in compliance with European Union directives. Waterfront sources say docker go-slows are already in effect. Maersk noted how slow-down actions on terminal operations have been initiated at the ports of Algeciras, Valencia and Barcelona. The government's first attempt to legislate the reform failed with parliament's rejection in mid-March, but Spanish media outlets are reporting that the Catalan Demographic Party is ready to support the reforms in parliament, giving the government the majority it needs, reports Lloyd's List. [Excerpted from Shippingazette]New shipping alliances causing delays at USWC portssource: ShippingazetteTACOMA has become the first US west coast port in the country to grapple with the changes wrought by new container shipping alliances. The vessel rotations introduced last month by new shipping alliances have generated terminal congestion, longer truck turn times, delays in spotting and releasing intermodal trains at on-dock rail facilities as well as chassis dislocations. However, beneficial cargo owners (BCOs) say they have so far not experienced disruptions in vessel schedules or in taking delivery of their shipments at west coast ports, according to IHS Media. But, due to events unfolding in Asia, they are preparing for possible delays in the coming weeks. Indeed, several carriers reportedly notified their customers that in addition to congestion problems at Shanghai's Yangshan Port, congestion is spreading to Qingdao and Ningbo. Poor weather, including dense fog in Shanghai in mid-April, problems Asian ports are experiencing in adjusting to new vessel rotations from the restructured alliances, and a move by exporters to get ahead of previously-announced rate increases May 1 in the Asia-Europe trades have reportedly overwhelmed some ports. Port of Oakland spokesman Michael Zampa said the Everport terminal also experienced an increase in cargo volume due to alliance changes, but generally truck turn times in the harbour are normal. The same is true in Southern California, where truck turn times in April were faster than they were earlier in the year, according to the Harbour Trucking Association, which tracks turn times at all of the port's 13 container terminals. The biggest impact of the new alliances is unfolding in Los Angeles-Long Beach. In addition to terminal-hopping and vessel upgrades, the port complex is adjusting to repercussions of the alliances changes on rail operations and chassis availability. Also, a massive bridge replacement project is disrupting truck traffic on Terminal Island. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCP Rail Announces Upcoming Changes to Intermodal In-Gate Proceduresource: CIFFAIn preparation for the implementation of its automated gate kiosks in fall 2017, CP Rail is working to ensure that all intermodal loads, both in Canada and the U.S., have completed the bill of lading information and submission prior to entering the origin CP terminals. This change will be strategically rolled out to each terminal throughout the summer months. Effective June 15, for the Winnipeg and Vaughan CP terminals, all customers are responsible to ensure the bill of lading is submitted prior to the driver arriving at the CP Origin Terminal. Effective dates for additional terminals will be communicated as we go forward.This new process will assist with improving:- the speed of processing inbound trucks, and- the performance of connecting shipments to the right trains.Failure to provide completed billing prior to arrival will result in the driver being directed with the shipment to the problem area, where they will need to wait for the billing to be completed before access is granted to proceed into the CP terminal. In addition, supplemental charges may be applied as per Tariff 3.For assistance in completing the bill of lading, contact the CP eBusiness Team, at 1-888-333-8111 or eB_Support@cpr.ca.Canada Hikes Ownership Limit for Bill Gates-Backed CN Railsource: AJOTThe Canadian government is lifting ownership restrictions for Canadian National Railway Co. and major airlines like Air Canada, among a series of steps to open up competition in the country’s transport sector. The changes, unveiled in a law proposed Tuesday, would lift individual share ownership limit for Canadian National, Canada’s largest railroad, to 25 percent from the current 15 percent. Changes to airline rules also opened the door to joint ventures and codified a previously announced hike in the foreign ownership limit of foreign carriers, to 49 percent from 25 percent. Read more here.
17 May 2017
AIR FREIGHT UPDATESSingapore Changi Terminal Reopens After Small Firesource: AirWiseSingapore Changi Airport’s Terminal 2 was closed briefly on Tuesday evening after a fire was discovered in an equipment room. The terminal, home to Singapore Airlines and others, was closed at around 17.40 local time after a fire alarm went off and the building was evacuated. The fire was confined to an air conditioning equipment room and was extinguished by the fire service, Changi Airport said. Read more here.
OCEAN FREIGHT UPDATESEight-day Strike to Hit Spanish Portssource: CIFFASpanish trade unions called eight days of strikes for late May in protest of the government's proposed stevedore labour reforms, while sources in Spain claim worker productivity has already intentionally decreased. Unions proclaimed that they would hold strikes from May 24 until June 9, during odd hours on each Monday, Wednesday and Friday, in response to the Council of Ministers' decision to adopt the reforms on May 12. The Spanish parliament needs to ratify the proposal within the next month. Read more here.APMT to Lock Out Striking Dockworkers in Swedensource: CIFFAA message from APMT to the Swedish dockworkers union informed them workers would be locked out during evening and night hours from May 19 to June 30, 2017. Night shifts have been "changed to daytime work every other week," which means that night shift workers will be locked out without pay the rest of the time. Read more here.Hapag-Lloyd marks 125 years in Canadasource: CanadianShipperMontreal, QC — The Montreal Port Authority (MPA) is recently marked German shipping line Hapag-Lloyd’s 125-year presence in Canada. The company’s first ship to serve the Canadian market called at the Port of Montreal in March 1892. It was a steamboat just over 90 metres long, the S/S Cremon. Read more here.Congestion at Karachi sea port due to containers strikesource: pakobserver.netAs the goods transporters’ strike entered its ninth day on Tuesday, there was no more space left at the port here to hold more containers. Since goods transporters have refused to carry goods from the ports to the markets, the containers stand full at Karachi International Container Terminal and Pakistan International Container Terminal. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESFeds amend legislation to make freight rail system fair and safesource: CanadianShipperOttawa, ON — The Government of Canada introduced legislation to provide a transparent, fair, efficient and safer freight rail system to facilitate trade and economic growth. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATES2017 Hurricane Season Outlooksource: AJOTFor the second year in a row a tropical storm formed well in advance of the official June 1st start of the hurricane season, with Tropical Storm Arlene forming on April 19th. Does this mean we should expect a higher-than-usual level of tropical storm activity? Read more here.UN consultative group backs zero-emission global warming aimssource: ShippingazetteTHE Tokyo-based International Association of Ports and Harbours (IAPH), a United Nations consultative NGO, has passed a resolution at its Bali conference to back UN global warming zero-emissions policy of greenhouse gases in shipping. Using its consultative status within the UN's International Maritime Organisation, the IAPH co-sponsored a German scheme, calling for a quantified global emissions control on shipping in line with the Paris global warming goals."Ports worldwide are at the crossroads of land based and maritime industries and are vulnerable to the effects of climate change, such as the rise of sea level and extreme weather conditions. This is why we are keen to see an ambitious strategy in place want shipping and member states achieve this objective." The IAPH also decided to integrate the World Ports Climate Initiative in a wider World Ports Sustainability Programme, that will extend the scope from climate action to the "full range of sustainable port development challenges the industry is facing". Read more here.
16 May 2017
AIR FREIGHT UPDATESBrazilian Customs Strike -- May 16 to 18: Air Canada Cargosource: CIFFAAir Canada Cargo has advised that Brazilian Customs has a strike planned from May 16 through 18, and that there may be a delay in clearing freight destined to, or transiting through, Sao Paolo.Frankfurt airport sets new tighter carbon reduction targetssource: ShippingazetteFRANKFURT airport operator Fraport has reached its climate protection targets four years ahead of schedule, and subsequently set itself new targets under a 2030 plan modelled on the German government's Climate Action Plan. By then, airport authorities aim to have cut CO2 emissions produced through operational activities to 80,000 tonnes, representing a reduction of 65 per cent over 1990 levels. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESGov. Deal welcomes COSCO Developmentsource: AJOTSavannah, Ga. - May 12, 2017 - At an event on the docks of the Port of Savannah today, Governor Nathan Deal, port officials and the maritime community were on hand to welcome the COSCO Development, the largest containership to ever call on the U.S. East Coast as it handled 5,500 containers, a record for Georgia’s ports. Read more here.
GROUND AND RAIL UPDATESSt. Louis Regional Freightway sets top transportation infrastructure project funding prioritiessource: AJOTThe St. Louis Regional Freightway updated the region on the remarkable progress it has made over the past year toward establishing the bi-state area as a premier freight center and multimodal hub for the nation. The efforts will help ensure the region is prepared to handle projected large increases in freight volume opportunities over the next two decades. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESHalifax airport reports record cargo numbers for 2016source: CanadianShipperHalifax, NS — The Halifax International Airport Authority (HIAA reported its operating and financial results for 2016, which included a rise in air cargo. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESXi Jinping Says the Rejection of Protectionism Is Part of What 'One Belt, One Road' Is Aboutsource: CIFFAChinese President Xi Jinping on Monday urged major multilateral institutions to join his new Belt and Road Initiative, stressing the importance of rejecting protectionism in seeking global economic growth. Addressing other world leaders at a summit on the initiative in Beijing, Xi said it was necessary to coordinate policies with the development goals of institutions including the Asia-Pacific Economic Cooperation (APEC), ASEAN, African Union and the European Union. Read more here.
15 May 2017
OCEAN FREIGHT UPDATESHacked Shipssource: Splash247As Kongsberg and Yara announced the first autonomous containership will be in full remotely-controlled operation by 2020, news last week that hospitals, multinational corporations and government offices across more than 100 countries were hit by the worlds' biggest ransomeware cyber attack, underlines the devastating impact such an attack could have on an unmaned shipping fleet. Read more here.Port of Prince Rupert Gets Three New Gantry Cranessource: CIFFAOn Saturday, May 13, three gantry cranes entered Prince Rupert Harbour aboard the heavy load carrier ship Zhen Hua 25. This marks an important milestone in the ongoing expansion of Prince Rupert's Fairview Container Terminal, a project that is due for completion in the third quarter of this year. When the project is complete, the capacity of Fairview Terminal will increase by half a million TEUs, boosting its total capacity from 850,000 to 1.35 million TEUs.See photos and updates at www.facebook.com/rupertport.
GROUND AND RAIL UPDATESCP, Teamsters reach tentative, five-year agreementsource: CanadianShipperCalgary, AB — Canadian Pacific and the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) announced they have reached a tentative five-year agreement. Read more here.Traffic Advisory: Height and Width Restrictions on Sault Ste. Marie International Bridgesource: CIFFADue to a painting project on the Sault Ste. Marie International Bridge, height and width restrictions will be imposed from May 15 to October 31. The maximum height allowed for vehicles crossing the bridge will be restricted to 13 feet, 6 inches; the maximum width will also be restricted to 13 feet, 6 inches. Restrictions on both U.S.- and Canadian-bound traffic will be in place at all times during the work period.CN's J J Ruest inducted into Maritime Hall of Famesource: ShippingazetteCANADIAN National Railway's (CN) executive vice-president and chief marketing officer, J.J. Ruest, has been inducted into the International Maritime Hall of Fame. "Transportation and logistics is a team sport and this honour recognises CN's collaboration with our outstanding maritime supply chain partners," said Mr Ruest. "CN has the best port connections in North America and our commitment to our customers is second to none. Working together and constantly innovating, we are able to move goods to market efficiently across the world." Mr Ruest, who oversees CN's efforts to grow the company's business and strengthen its relationships with supply chain partners, was inducted during a recent gala night in New York City, the railway said.The International Maritime Hall of Fame was founded in 1993 by the Maritime Association Port of New York and New Jersey to recognise maritime visionaries, who through excellence in their company, organisation, or services, best exemplify the qualities of futuristic thinking that will guide the maritime industry in the 21st century. [Excerpted from Shippingazette]
CANADA BUSINESS - GOVERNMENT UPDATESCanada to Ban Oil TAnkers from Northern BC Portssource: Splash247Canada's federal government is introducing a bill that will make law what has been an informal partial ban oncrude oil tankers calling at ports on British Columbia's north coastline, according to Bloomberg and Reuters. Read more here.
12 May 2017
AIR FREIGHT UPDATESNoise fines trigger Brussels freighter exodussource: AirCargoNewsNoise fines imposed on carriers by the Brussels Capital Region are beginning to drive all-cargo airlines away, complains Brussels Airport.After the departure of Yangtze River Express in February this year, full-freighter operator Air Cargo Global has sent written confirming that it is stopping all its activities at Brussels Airport because of the fines. Read more here.
OCEAN FREIGHT UPDATESMega ships under new alliances call at Virginia and Vancouversource: ShippingazetteThe Port of Virginia has welcomed the 13,100-TEU "Cosco Development," calling at the Virginia International Gateway (VIG) terminal in Portsmouth, its second mega ship in as many days, after Global Container Terminals' GCT Deltaport in Vancouver received Hapag-Lloyd's 13,200 TEU "Antwerpen Express," the largest containership to visit a Canadian port. Executive director of the Virginia Port Authority John Reinhart said last month that with the new ocean-carrier alliances becoming operational in April "we will be seeing more big ships, like the Cosco Development, moving considerable amounts of cargo." Last week, the Port of New York and New Jersey said that after June 30 larger ships would be able to begin calling terminals in New Jersey and on Staten Island because sufficient demolition of the lower roadway of the Bayonne Bridge had been completed to allow ships carrying up to 18,000 TEU to pass beneath the span. [Excerpted from Shippingazette]Containers Choke Karachi Port during Strike by Transporterssource: CIFFAThe Karachi Port's terminals are teeming with containers as a goods transporters' strike has led to non-availability of heavy vehicles to move imports and exports. The port is almost at its full capacity, with import shipments obstructing the movement of export containers. Outbound ships are thus leaving without export loads. Transporters in Karachi entered their strike earlier this week to protest heavy vehicles getting barred from moving inside the city. Read more here.Norwegian firm to build world’s first autonomous and zero emissions shipsource: CanadianShipperOslo, Norway — Norwegian fertilizer manufacturer Yara International is planning to build a small, battery-powered containership with capacity for between 100 TEUs and 120 TEUs to move containers from fertilizer its factory to the nearby ocean ports of Brevik and Larvik. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESCN’s JJ Ruest inducted into Maritime Hall of Famesource: AJOTMONTREAL - JJ Ruest, executive vice-president and chief marketing officer of CN (TSX: CNR) (NYSE: CNI), has been inducted into the International Maritime Hall of Fame. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESUS import volumes to grow through the summer and into fall: NRFsource: ShippingazetteThe latest monthly Global Port Tracker report by the National Retail Federation (NRF) and Hackett Associates shows that import volumes US container ports are expected to see steady increases through the summer and into the fall. The positive outlook comes as major container ports in the US reported handling 1.53 million TEU in March, the latest month for which after-the-fact numbers are available. That was up 6.8 per cent from February, when many Asian factories closed for Lunar New Year, and up 15.8 per cent from unusually low numbers the same month a year ago, when Lunar New Year came a week later than this year. NRF previously forecast that 2017 retail sales - excluding automobiles, gasoline and restaurants - will increase between 3.7 and 4.2 per cent over 2016, driven by job and income growth coupled with low debt. Cargo volume does not correlate directly with sales because only the number of containers is counted, not the value of the cargo inside, but nonetheless provides a barometer of retailers' expectations. [Excerpted from Shippingazette]
11 May 2017
OCEAN FREIGHT UPDATESShipping industry submits proposal to IMO for greenhouse gas strategysource: AJOTThe World Shipping Council (WSC) on behalf of its member companies and other industry partners has filed a proposal for the International Maritime Organization (IMO) to consider as the IMO develops a comprehensive Greenhouse Gas (GHG) Strategy for maritime shipping. Read more here.DP World unveils app to track containers through 'black hole' box terminalssource:TheLoadStarNew light has begun to be cast on one of the most maddening aspects of global container supply chains – the so-called ‘black hole’ of container terminals – after DP World this week launched a new container tracking solution at its facilities. Read more here.Yang Ming expected to remain in the red as industry confidence remains weaksource: TheLoadStarTaiwanese ocean carrier Yang Ming is expected to post another quarterly net loss when it publishes its results on 16 May, according to Alphaliner.This follows a net loss of TWD14.9bn ($492m) in 2016 and a deficit of $258m recorded in the year before. Read more here.Rising bunker price in first quarter keeps Maersk Line sailing in the redsource: TheLoadStarMaersk Line remained in the red in the first quarter of the year, recording a net loss of $66m. However its executives are confident that the carrier is on track to turn a full-year profit in excess of $600m. Read more here.
GROUND AND RAIL UPDATESFreight Rail Key to U.S. Economy, Infrastructuresource: InsideSourcesWith spending levels set through September, the Senate digging in on health care and the U.S. House of Representatives now turning to tax reform, some may believe infrastructure will take a backseat to these priorities. Yet observers of the legislative process know that policymaking is always occurring, even if it is not always in plain sight. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESChina's exports rise 8pc in April, while imports are up 12pcsource: ShippingazetteCHINA's exports grew by 8 per cent in April, year on year, while imports increased by 11.9 per cent, leaving the country with a trade surplus of US$38.05 billion for the month, data from the General Administration of Customs showed. Read more here. [Excerpted from Shippingazette]Launch of ICC Statement: Business Recommendations on Rules of Origin in Preferential Trade Agreementssource: CIFFAThe International Chamber of Commerce (ICC) has released recommendations on rules of origin in preferential trade agreements (PTAs), highlighting the challenges traders and suppliers face due to the lack of coherence among preferential rules of origin requirements across the globe. Countries are increasingly looking to bilateral and regional PTAs; now more than 400 such deals are in existence, including "mega-regional" PTA negotiations such as the Trans-Pacific Partnership (TPP) or the Transatlantic Trade and Investment Partnership (TTIP). Read more here.
10 May 2017
OCEAN FREIGHT UPDATESBiggest Vessel in Port’s History Calls the Port of Virginiasource: AJOTNORFOLK, VA - At 1,200 feet long and 158 feet wide, the containership COSCO Development is a behemoth. It is 100-plus feet longer that the U.S. Navy’s newest aircraft carrier, the Gerald R. Ford, and is bigger than any containership to call The Port of Virginia® and the U.S. East Coast. The vessel can carry 13,092 twenty-foot equivalent units, or TEUs. The previous record was held by the MOL Benefactor when it sailed to Norfolk International Terminals (NIT) last summer. By comparison, Monday’s arrival of the COSCO Development breaks the previous record by 3,000 TEUs. Read more here.GCT Deltaport welcomes largest vessel to call Canadasource: CanadianShipperDELTA, BC — On May 5, GCT Canada welcomed the largest container vessel to call the country at GCT Deltaport, located in the Port of Vancouver. Read more here.
GROUND AND RAIL UPDATESJust What Exactly Is Uber Freight?source: CIFFAFollowing its buyout of self-driving truck startup Otto, Uber has been relatively silent on the whole autonomous freight shipping front. But over the weekend, Uber CEO Travis Kalanick shared a picture on Twitter of a truck that had "UBER FREIGHT" plastered on the side. The image, uploaded Sunday, was geotagged from Pittsburgh, Pennsylvania, the city where Uber's self-driving car testing first initiated. Though the picture doesn't tell us much, it is a fresh reminder that Uber is actually continuing its pursuit to reshape how truck transport operates on American roads. Read more here.US rail traffic continues to grow for the sixth month in a row in Aprilsource: ShippingazetteUS-BASED freight railroads saw shipment volumes increase for the sixth consecutive month in April 2017 after several months of year-over-year declines, according to data from the Association of American Railroads (AAR). Carload traffic in April grew 8.4 per cent to 1.02 million carloads, while intermodal increased 2.3 per cent to 1.05 million containers and trailers, compared with the same 2016 period. Through the first four months of 2017, total US rail traffic has grown 3.9 per cent to 8.79 million carloads and intermodal units compared with the prior-year period. "US grain car loadings during April 2017 were the highest since 2011, with rail grain deliveries to ports since the first of the year running 19 per cent ahead of 2016," AAR senior vice president of Policy and Economics, John T Gray, said in a statement. "These agricultural exports improve our balance of trade and strengthen the farm economy." [Excerpted from Shippingazette]
CANADA BUSINESS - GOVERNMENT UPDATESNew Inland Port coming to Manitoba, Canadasource: AJOTLETELLIER, MB - Mid Canada Transload Services Ltd is building a new inland port and rail siding in southern Manitoba on the United States / Canadian border. The new company will be one of the largest privately owned inland ports in Manitoba. It will be built on a 250 acre green field site, 1 mile south of Letellier, Manitoba and 7 miles from the United States border. It will be located alongside Manitoba’s major export highway 75 and have access to two Class 1 railways, the CN and BNSF railways. The site will have daily rail service to and from the United States and Mexico. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESA Map Like This Persuaded Trump to Save Nafta, For Nowsource: AJOTLocation is everything in the real-estate biz, so it’s not entirely surprising that a map changed former developer Donald Trump’s mind. President Trump was close to withdrawing from the North American Free Trade Agreement last month, before he saw a U.S. map highlighting areas that rely on business with partners Mexico and Canada. It just so happened many of those states supported Trump in the 2016 election, giving him a strong motivation to renegotiate rather than abandon the pact, he told the Washington Post. The White House declined to provide a copy of the exact map presented to Trump, so we came up with our own version. Read more here.
9 May 2017AIR FREIGHT UPDATESReal-time tracking can now be booked on many routessource: AJOTLufthansa Cargo is now offering an optional tracking service, liveSensor. It allows cargo airline customers to keep an eye on their shipments over the course of the entire transport route, in real time. liveSensor can be used to not only determine where a shipment is, but also whether the transport conditions agreed are complied with. Read more here.
OCEAN FREIGHT UPDATESOne CMA CGM vessel leaves China every 3 hours within OCEAN Alliancesource: ShippingazetteCMA CGM is offering through its participation in the OCEAN Alliance, services between North and Central China and northern Europe with six loops per week, including two with CMA CGM fleets calling five times at ports in Hamburg and once in Wilhelmshaven. [Excerpted from Shippingazette]Pilot in the spotlight as investigations continue into Dubai’s spectacular crane accidentsource: Splash247Investigations are ongoing into Thursday’s miraculous crane collapse at DP Wo9rld’s flagship Jebel Ali terminal. Read more here.FMC clears up confusion about its rejection of Japanese containerline mergersource: Splash247The US Federal Maritime Commission has issued an update in its decision of last Tuesday to reject the so-called Tripartite Agreement, which proposed the merging of three prominent Japanese shipping lines. Read more here.Panama Canal planned lane outage postponedsource: AJOTThe Panama Canal has advised that Gatun East Lane outage originally programmed for 9-18 May has been postponed until further notice. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESThe Montreal Port Authority continues to grow and to carry out major projectssource: AJOTMontreal - As part of the annual meeting of the Montreal Port Authority (MPA), Sylvie Vachon, President and CEO of the MPA, presented its 2016 year-end results. Under the theme “Broadening our Horizons,” the 2016 annual report shows how the MPA was able to stand out on several fronts, from its results and the successful completion of major projects to greater visibility on the international scene and many substantial actions in the field of sustainable development. Read more here.Government of Canada`s Single Window Initiative Now Fully Operationalsource: CIFFAThe Government of Canada's Single Window Initiative (SWI) is now fully operational. It enables the streamlined electronic exchange of commercial data between the importing community and federal departments and agencies. The Canada Border Services Agency has advised that two legacy release service options for goods regulated by three federal departments will be decommissioned as of April 1, 2018, namely: EDI OGD PARS SO 463 and EDI OGD RMD SO 471. As an incentive for clients to use the SWI, starting June 1, 2017, the CBSA will prioritize the processing of transactions submitted through the SWI over these other release options. Read more here.New Tariff Tool Helps Businesses Navigate FTA Opportunitiessource: CIFFAThe new Canada Tariff Finder enables Canadian companies to quickly find information about tariffs that may be added to the goods they export to foreign markets under the various free trade agreements (FTAs) Canada has made with other countries.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESHK mobile smuggling racket busted in India, 11 officers transferredsource: ShippingazetteELEVEN customs officers in Mumbai have been transferred after a surprise inspection at the Sahar air cargo complex found that a group of importers has been smuggling mobile phones and accessories. [Excerpted from Shippingazette]NAFTA Notification Awaiting U.S. Trade Representative Confirmation: Sandler, Travis & Rosenbergsource: CIFFAA delay in confirming Robert Lighthizer as the next U.S. trade representative appears to be holding up the Trump administration's efforts to launch talks on renegotiating NAFTA. Lighthizer was approved by the Senate Finance Committee on April 24, but it is unclear when the full Senate might act. One press source said a vote could come this week, but another said it may not happen until next week. Read more here.
8 May 2017AIR FREIGHT UPDATESEuropean airfreight puts up a strong show in Marchsource: AirCargoNewsFreight traffic at European airports improved markedly during the first quarter of 2017, up 8%, said ACI Europe. March posted the best monthly performance since April 2011 (up 13.7%), according to the trade body’s Airport Traffic Report for March and Q1. Passenger traffic also grew by about the same amount, increasing by 7.2% during the first quarter, with 11 EU national markets recording double-digit growth - mostly in the east, along with Cyprus, Luxembourg, Malta and Portugal. Read more here.
OCEAN FREIGHT UPDATESPort efficiency to attract more shipping lines, port users to Subicsource: AJOTInternational Container Terminal Services, Inc. (ICTSI) continues to make a strong case for the Subic Bay Freeport as a key international trading gateway of the Philippines after achieving productivity levels at par with that of the Manila International Container Terminal (MICT). Read more here.GCT Deltaport welcomes largest vessel to call Canadasource: AJOTDELTA BC - On Friday, GCT Canada welcomed the largest container vessel to call the country at GCT Deltaport, located in the Port of Vancouver. The Hapag-Lloyd 13,200 TEU “Antwerpen Express” has been deployed as part of THE Alliance’s Transpacific mainline West Coast PN3 service. The Hamburg class vessel is the first of a progressive ship upsizing for the service. Not only will this new fleet of vessels offer more slots for importers and exporters to grow in the market, but it will do so with an improved environmental footprint. Read more here.Prince Rupert eyes breakbulk capabilitysource: AJOTThe conversion of the port’s original breakbulk facility, Fairview Terminal, into a major container terminal in 2007 resulted in the loss of some of Prince Rupert’s breakbulk and general cargo. The deepwater port in northern British Columbia has subsequently emerged as arguably the fast-growing container port in North America, capturing mounting Asian trade with the West Coast. Read more here.
GROUND AND RAIL UPDATESSliding seats could enable passenger trains to carry freightsource: RialwayGazetteUK: A working demonstration module containing seats which can be automatically stowed to enable passenger train interiors to be reconfigured to carry low density, high value freight at off-peak times will be unveiled by 42 Technology at Railtex 2017. According to the developer, 20 rows of seats in a typical coach could be compressed to provide a cargo space equivalent to the capacity of an articulated lorry. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESPortsToronto marks ninth consecutive year of profitability in 2016source: CanadianShipperTORONTO, Ont. –– PortsToronto released its 2016 Audited Financial Statements, marking the organization’s ninth consecutive year of profitability and demonstrating PortsToronto’s continued role as an investor in the infrastructure, community and economic performance of Toronto. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESTrump’s Reciprocal Tax Faces Rough Ride Under World Trade Rulessource: AJOTThere’s something attractively simple about President Donald Trump’s idea for a reciprocal tax: charge high tariffs on our products, and we’ll ding you right back. Putting that concept in place without violating America’s international trade obligations—or pushing up the prices consumers pay for everything from televisions to toothbrushes—would be another story. Yet Trump’s enthusiasm for the idea of punishing countries that impose high tariffs on U.S. imports with matching tariffs on their exports was evident in an interview with Bloomberg News this week. Read more here.Port of Veracruz to be dredged and expanded
source: ShippingazetteLUXEMBOURG-HEADQUARTERED dredging company, Jan De Nul Group, has acquired a contract worth EUR60 million (US $65.5 million), for deepening the Port of Veracruz. The Gulf of Mexico port's access channel and turning basin will be dredged, resulting in 13 million cubic metres being removed and reclaimed, on which five new terminals will be built with a capacity to handle up to 100 million metric tonnes per year. Situated along the Gulf of Mexico, the Port of Veracruz is currently called by 30 liner services, according to BlueWater Reporting's Port Dashboard tool. These services include 14 fully cellular container services, 13 pure car/truck carrier or roll-on/roll off services, one multi-purpose service, one open hatch service and one con-ro service, according to American Shipper. [Excerpted from Shippingazette]
5 May 2017AIR FREIGHT UPDATESChina's first big passenger plane completes maiden flight
China has taken to the skies or, rather, its first domestically manufactured large-scale passenger aircraft has. The Comac C919 completed its maiden flight today (Friday), carrying a skeleton crew and several mechanics. According to the BBC, the flight lasted 90 minutes, taking off in front of a crowd of thousands, including dignitaries, aviation workers and enthusiasts before landing back at Shanghai’s Pudong Airport. Read more HERE.
IATA: Airfreight volumes shoot up 14% in March
Asia Pacific airlines saw volumes surge 13.6 percent in March, while shipments carried by European airlines jumped 18.2 percent, and North American airfreight volumes grew 9.5 percent, according to figures from the International Air Transport Association. Read more HERE.
OCEAN FREIGHT UPDATESEurope-Asia box capacity shortages ease
Ocean freight capacity shortages on the Europe to Asia trade suffered by forwarders and shippers in March and April have finally begun to ease after two months of supply chain disruption. Read more HERE.
CMA CGM launches updated schedule and tracking app
CMA CGM has launched an updated version of its mobile app designed to enable customers to more easily access schedules and plan their shipments.
Available on the Apple Store and Google Play for smartphones and tablets, the container line said the new app enables shipments to be tracked from the port of loading to the port of unloading, and gives shippers access to schedules of specific ships or trips. Read more HERE.
DP World to invest $1bn more in India's maritime infrastructure
When it comes to India, DP World is not messing around. The terminal operator is spending big, pledging a further $1bn, thereby doubling the investment it has already made in the country. Chief executive Sultan Ahmed Bin Sulayem said the company was excited by the opportunities India presented, reports The Hindu Business Line. Read more HERE.
Low freight rates drag Japanese carriers deeper into the red
IN segments described as liner or containership operations, Japan's three major shipping companies - Nippon Yusen Kabushiki Kaisha (NYK Line), Mitsui O S K Lines, Ltd (MOL), and Kawasaki Kisen Kaisha, Ltd ("K" Line) - have reported a combined loss of JPY77 billion (US$691 million) for the fiscal year ending March 31, 2017, due to historically low freight rates. Read more HERE.
Dockworkers on USWC given option to renew contract for 3 years
RANK and file members of the International Longshore and Warehouse Union (ILWU) have been given the option to vote on an offer proposed by the Pacific Maritime Association (PMA) to extend their existing contract for three years after it expires on July 1, 2019.
Management is also offering the unionised workers a 3.1 per cent yearly wage increase over the base wage rate of US$42.18 per hour, reported American Shipper. Read more HERE.
4 May 2017AIR FREIGHT UPDATESAir China to start Beijing-Astana and Beijing-Zurich services in Junesource: shippingazette.comCHINA's flag carrier Air China has announced the launch of two new routes between Beijing and Astana, the capital of Kazakhstan, and between Beijing and Zurich.The airline said in a statement that the Beijing-Astana route will be launched on June 1. Astana is one of the world's youngest capitals and enjoys a reputation as one of the happiest and most modern cities in Central Asia. The launch of Air China's Beijing-Astana route coincides with the 2017 World Expo, which will be held in Astana in June and is expected to attract visitors from all over the world.The Beijing-Zurich route will be launched on June 7. [Excerpted from shippingazette.com]
OCEAN FREIGHT UPDATESMaersk turns Hamburg Süd blue at the top, but business model will sail onsource:theloadstar.co.ukMaersk Line is wasting no time in putting its blue stamp on the executive board of soon-to-be acquired Hamburg Süd, but says it “intends to maintain the business model” of the north-south niche carrier. Read more HERE.
Massive ships threaten Portland’s container export prospectssource: capitalpress.comContainer traffic at the port came to a halt in 2016 after several ocean carriers stopped calling at the facility, claiming that slow loading and unloading rendered the market unprofitable. Read more HERE.Yang Ming Resumes Stock Trading, Restructuring Plan Under Waysource: splash247.comUnder pressure Taiwanese line Yang Ming resumed stock trading today following its decision to suspend trading on April 20 to roll out a capital restructuring plan. Read more HERE.Nobu Su: ' I have the patent for the Google Car of shipping'source: splash247.comNobu Su, the failed Taiwanese shipowner turned maritime inventor, makes a bold claim in today's Maritime CEO i nterview,saying he's patented what he reckons could become the "Google Car of shipping". Read more HERE.NYK declares yearly loss of US$2.39 millionsource: shippingazette.comJAPAN's NYK (Nippon Yusen Kaisha) Line, the world's eighth largest, and the biggest of the Big Three Japanese container carriers, posted a net loss of JPY265.7 billion (US$2.39 million) in the financial year ended March 31, 2017. The Japanese carrier made a profit of JPY18.2 billion in the previous year. Read more HERE.YM halts service to Iransource: americanshipper.comTroubled Taiwanese ocean carrier Yang Ming Marine Transport is halting its container service to Iran, according to multiple media reports.Read more HERE.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
US trade with Mexico, Canada rises 2.9pc in Feb to US$86.5bsource: shippingazette.comFOR the fourth month in a row, total cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA), which includes Canada and Mexico, rose by 2.9 per cent in February 2017 to $86.5 billion, according to the Department of Transportation's Bureau of Transportation Statistics (BTS). Read more HERE.
3 May 2017AIR FREIGHT UPDATES
Asian Cargo Monthly: Freight traffic continues to grow
Asian carriers continued to record cargo demand improvements in March, with airlines boosted by new product launches.
The latest airline data shows that six out of seven airlines included in Air Cargo News’ monthly Asia wrap-up saw demand increase during March. Read more here.
OCEAN FREIGHT UPDATES
Bayonne Bridge's lower roadway will be gone by June 30, Christie says
The $1.6 billion raising of the Bayonne Bridge will reach a new milestone this summer: The world's largest cargo ships will be able to pass underneath and reach Port Newark-Elizabeth. Read more here.
FMC ruling leaves Japanese box lines in limbo
Plans by Japan’s three major container lines to combine certain assets and functions this year ahead of a merger next year have been left in disarray after US competition regulators rejected the pre-merger arrangement.
Yesterday, the Federal Maritime Commission (FMC) rejected “on jurisdictional grounds” the so-called “tripartite agreement” proposed by Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL), and Nippon Yusen Kaisha (NYK). The carriers, which have agreed to merge their container operations by next April, were seeking permission to share information and conduct joint negotiations with third-party businesses in the US in advance of their merger. But the FMC held that these provisions would violate “gun-jumping” laws that forbid the sharing of competitively sensitive information or the premature combining of the parties, Lloyd’s List reports.
According to K Line’s latest financial results released last week, the schedule for establishing the new joint venture company to be owned 38% by NYK and 31% each by K Line and MOL was to establish the new business entity on 1 July this year. Business was then due to commence on 1 April 2018 with a fleet of some 1.5m TEU of container ship capacity.
However, that timetable is now likely to require revision after the FMC ruled the the "Tripartite Agreement" filed by the lines with the Commission on March 24 this year was in effect a merger because the parties were seeking authority to share information with each (other) in advance of the new business entity being formed next year. [Excerpted from Lloyd's Loading List]
2 May 2017AIR FREIGHT UPDATESAlitalia to start bankruptcy process as workers reject bailout termssource: shippingazette.comTROUBLED Alitalia said it had exhausted all options after workers voted against job cuts aimed at salvaging the cash-strapped Italian airline, pushing it toward bankruptcy for the second time in a decade, reports Bloomberg. Read more here.Yields up for carriers as air freight blossoms in Marchsource: theloadstar.co.ukMarch was a good month for the air freight business. Crucially, yields turned a corner and went up 1.7% in US dollars – or 5.6% when measured in euros – according to WorldACD’s latest figures, published this morning. Read more here.
OCEAN FREIGHT UPDATESOOCL first quarter liftings revenue rises 6.4pc to US$1.85 billionsource: shippingazette.comHONG KONG's Orient Overseas (International) Ltd (OOIL), parent of its box unit, Orient Overseas Container Line (OOCL), posted a 6.4 per cent first quarter year-on-year revenue gain to US$1.18 billion, according to a stock exchange filing. Read more here.Yang Ming shares will trade again on Thursdaysource: theloadstar.co.ukIn its first update since the carrier’s “don’t panic” message to customers and service providers on 24 April, Yang Ming has advised that its shares will resume tradin