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 trading again on the Taiwan stock exchange from Thursday. Read more here.ILWU offered contract extension at Los Angeles and Long Beachsource: theloadstar.co.ukCould there possibly a be a smooth contract negotiation at the west coast ports? Possibly, after the Pacific Maritime Association offered a three-year contract extension to the ILWU, which members will now vote on. Read more here.Singapore pumps money into ports to ward off Chinese competitionsource: shippingazette.comSINGAPORE is investing heavily in port and supporting infrastructure to maintain its ranking as a leading port and gateway in southeast Asia. Read more here.Experts foresee weak rates on major trades as overcapacity clings onsource: shippingazette.comTHERE is no end in sight to overcapacity brought on by the advent of mega ship, a leading shipping analyst warns.Top Alphaliner consultant Tan Hua-Joo, told delegates at the recent TOC Asia Container Supply Chain event in Singapore that there is more bad new to come.Despite 2016 being the "most balanced year in terms of supply and demand since 2009," with a global fleet growth of just 1.6 per cent, hopes for stability are some way off, he said. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
TPP Nations Meet in Canada to Discuss Fate of Pact Without U.S.source:ajot.comCanada is hosting a round of exploratory negotiations on the future of the Trans Pacific Partnership after the U.S. bowed out.Senior trade officials from every remaining signatory country will convene the so-called TPP-minus-one talks in Toronto on Tuesday and Wednesday. Read more here.Senior economists and leading trade experts to debate impact of Brexit and ‘Trump Times’source: ajot.comSenior economists will discuss the challenges and opportunities presented by changing times for the British aerospace, aviation, defence and security industries with the impact of Brexit and the new U.S. Administration at an international trade seminar at Farnborough, the home of UK aerospace, in May. Read more here.
1 May 2017OCEAN FREIGHT UPDATESContainer spot rates up out of Asia, but backhaul rates falling at lastsource:theloadstar.co.ukContainer spot rates between Asia and Europe and Asia and the US surged this week on the back of new rate increases and worsening congestion at Chinese ports. Read more here.Container segments for Japan’s ‘big three’ carriers sink deeper into the redsource: americanshipper.comIn segments described as liner or containership operations, NYK, MOL and “K” Line reported a combined loss of 77 billion yen (U.S. $691 million) for the fiscal year ending March 31, 2017, resulting from historically low freight rates. Read more here.Congestion in Chinasource:drewry.co.ukPort congestion at China’s major ports is a symptom of many factors. One of them is the fast growing inbound trade.Chinese ports are currently encountering a nasty bout of congestion brought on by a number of coalescing factors. Bad weather, the restructuring of alliance networks, ever bigger ships and shippers’ eagerness to move cargo ahead of planned rate increases have all been mentioned in dispatches as the reasons why ships are being kept waiting outside ports and for slower than usual turnarounds. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATESCP, the Vancouver Fraser and Montreal Port Authorities and terminal operators celebrate partnershipsource: ajot.comCALGARY - Canadian Pacific (CP), and senior officials from the Vancouver Fraser Port Authority, the Montreal Port Authority,Global Container Terminals Canada, Montreal Gateway Terminals Partnership, DP World Canada, Logistec Corp. and Fraser Surrey Docks yesterday met at CP’s head office in Calgary to discuss their commitment to working together in promoting Canada’s largest and two most important gateways to the international supply chain.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
EU Introduces New Garment Supply Chain Policysource: sourcingjournal.comFollowing the four-year anniversary of the Rana Plaza tragedy, the European Commission is taking additional steps to foster more sustainable supply chains in the global garment industry.On Wednesday, the EU presented a commission staff working document (SWD) that highlighted the industry’s economic, environmental and social challenges and its development cooperation solutions for supply chain issues, including unsafe working conditions and exploitation. Read more here (login required).
28 April 2017AIR FREIGHT UPDATESAir cargo all-in freight rates increase 7.9pc in Marchsource:shippingazette.comGLOBAL air freight rates increased in March year on year as aircraft cargo utilisation improved, reports London's Air Cargo News.The latest figures from Drewry's Sea and Air Shipper Insight report show that average "all-in" air freight rates across 21 major east-west trade lanes increased 7.9 per cent year on year in March to reach US$2.84 per kilogramme. Read more here.Forwarders hit out at airlines putting the squeeze on cool chain ground handlerssource: theloadstar.co.ukShort-sighted airlines that invest in cool chain products but squeeze ground handlers on price, are doing their customers a disservice, according to perishables forwarders.They are urging ground handlers to lift their game in the cold chain, warning that insufficient investment threatens to become an Achilles heel for perishables shipped by air – despite significant investment by airlines.Rampant growth in demand has drawn more operators into this segment.At the same time, incumbent players have tried to stay ahead of the curve through more sophisticated solutions, such as equipping seafood shipments with temperature tags originally deployed for pharmaceuticals traffic.However, handlers claim they are hamstrung by lack of funds.The President of Los Angeles-based perishables specialist, said airlines had been squeezing handlers relentlessly on price, driving margins down to levels that made it impossible to invest in cool chain technology, infrastructure and manpower.Another industry executive, has argued for some time that airlines are shooting themselves in the foot by viewing handlers as levers to slash costs, instead of as strategic partners. To offer services that can compete with the integrators they need handling agents with adequate incentive and margins to make the necessary investment,Meanwhile, the pressure on handlers will continue to rise with the growth in perishables volumes and the massive seasonal spikes. The appetite for fresh food of consumers in markets like China is expected to drive volumes up.[Excerpted from the Loadstar]
OCEAN FREIGHT UPDATESNew Priok container terminal will 'change the face of logistics in Indonesia'source: theloadstar.co.ukIndonesia is poised to finally take a premier position on global trade flows following the opening of the New Priok container terminal in Jakarta. Read more here.Alliance Revamp a 'Disaster' Bringing Chaos to Asia-Europe Tradelanessource: theloadstar.co.uk“Organised chaos” – that’s how one carrier describes the Asia-Europe schedules of the Ocean and THE alliances, believing there’s very little hope of vessels hitting itineraries before June. Read more here.
Port of Halifax vies to secure Nova Scotia mega box terminalsource: shippingazette.comTHE Port of Halifax has entered the fray to beat rivals in bidding for a mega container terminal in Nova Scotia with carrier consolidations and alliances heralding still-larger ships coming to the east coast of North America. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATES
Liaoning FTZ trades on its strategic locationsource:chinadaily.com.cnIndustrial base of Northeast China to be revitalized to unleash potential of huge marketThe central government announced the launch of the China (Liaoning) Pilot Free Trade Zone over the weekend to revitalize the traditional industrial base in Northeast China and promote international economic and trade cooperation in Northeast Asia. Read more here.
eCommerce Impact on International Trade Logisticssource: fiata.comFew have any doubt that eCommerce is changing the landscape of trade, particularly in business to consumer (B2C), as growth in this area continues unabated in a growing number of economies. Read more here.
China's North Korea traders suffer mounting customs delayssource: shipppingazette.comTRADERS in Dandong, China, report customs delays as cross-border business continues with North Korea in accordance with the 236-page UN sanctions list of goods imposed after the Kim Jong Un government conducted its fifth nuclear weapons test. Read more here.
27 April 2017OCEAN FREIGHT UPDATESTools to Manage the Impact of the Alliance Changessource:lloydsloadinglist.comHow can you prepare?Check the Alliance Reshuffle Dashboard- A great migration began in April as over a thousand vessels move from their previous services to their new services. Monitor the progress of the alliance vessel deployments to their new services. The interactive dashboard is on the homepage of www.routemaster.digital for a limited time.Compare the New Services - Is transit time critical? Is the vessel operator of an alliance service just as important as the carrier of a service? Do you have new carrier options for your ports? Compare your route options and run simulations to help you optimize route selections to mitigate risk.Track Vessels - The carriers may frequently update the schedules for the new services. Some carriers may update their schedules more frequently than others. It may be helpful to closely monitor your shipments through ports such as Bremerhaven and Le Havre that are expected to have more vessel services and larger vessels on average than before the new alliances went into effect.[Excerpted from Lloyd's Loading List]Pros and cons of container consolidationsource: splash247.comSingapore's port is seeing more calls thanks to the recent alliance merry-go-round. The island's top terminal operator remains cautious on prospects this year, however analysts have mead it clear the big container alliance reshuffle has favoured the world's biggest transshipment hub. Read more here.Drewry World Container Index for April 27thsource: ajot.comThe World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes to/from the US, Europe and Asia, is down by 1.6% to US$1426.7/40ft container [updated Thurs, 27 Apr 17].Two-year spot freight rate trend for the World Container Index...Read more here
GROUND AND RAIL UPDATESCN signals and communications employees in Canada ratify new contractsource: ajot.comMONTREAL - CN (TSX: CNR) (NYSE: CNI) announced the ratification of a new five-year collective labour agreement by the International Brotherhood of Electrical Workers (IBEW) System Council 11. The union represents approximately 700 CN signals and communications employees in Canada. Read more here.
CANADA BUSINESS AND GOVERNMENT UPDATES
Trump Rules Out Swift Nafta Exit in Favor of Renegotiationsource: bloomberg.comPresident Donald Trump won’t immediately terminate U.S. participation in the North American Free Trade Agreement, the White House said, after he spoke with the leaders of Mexico and Canada about ways to renegotiate the accord. Read more here.
26 April 2017AIR FREIGHT UPDATESAlitalia to Start Bankruptcy Process as Workers Spurn Bailoutsource: ajot.comAlitalia SpA said it exhausted all options after workers voted against job cuts aimed at salvaging the cash-strapped Italian airline, pushing it toward administration for the second time in a decade. Read more here.
OCEAN FREIGHT UPDATESChina Box Congestion Spreads to Other Portssource:lloydsloadinglist.comContainer port congestion in China is spreading up and down the coast as new liner alliance schedules added to poor weather cause disruption to container shipping operations.As reported in Lloyd’s Loading List yesterday, Shanghai’s Yangshan terminals are now experiencing lengthy delays and vessel queues at anchorage waiting to enter terminals building by the day. The most congested facilities at Shanghai are now suffering from berthing delays of at least two days and sources suggest this is now having a serious impact on feeder service schedules.A customer notice by Maersk Line released today said that as well as striking the world’s largest container port, public terminals in Qingdao and Ningbo were also now “facing congestion and high yard density”. Qingdao, 700km north of Shanghai, and Ningbo, 200 km to the south, were ranked the world’s eighth and fifth-largest container terminals in 2016, respectively, according to data compiled by Lloyd’s List.Maersk said the primary cause of port congestion in China was the “large phase-in/out exercises from the reshuffling of alliance networks starting in March”, but added that unstable weather in the northern hemisphere in spring had also caused delays and reduced terminal performance. [Excerpted from Lloyd's Loading List]Some restrictions lifted at Bayonne Bridgesource:americanshipper.comShips carrying up to 9,800 TEUs can now call terminals west of the Bayonne Bridge without worrying about tidal conditions now that U.S. Coast Guard Sector New York and pilot organizations lifted air draft restrictions. Read more here.CMA CGM signs landdmark box terminal deal in Indiasource:splash247.comFrench containerline CMA CGM and Adani Ports and Special Economic Zone (APSEZ) part of the Adani Group, have signed a joint venture agreement to operate a new container terminal, CT4 at Mundra Port, for the next 15 years with an option to extend it twice for 10 more years. Read more here.MSC Daniela Discharge Continuessource:splash247.comThe last boxes on the 13,800 teu MSC Daniela which suffered a sever fire three weeks ago on April 5 are now slowly being offloaded. Read more here.
GROUND AND RAIL UPDATESCN grows earnings on record Q1 volumes, revenuessource: americanshipper.comMontreal, Canada-based Class I railway Canadian National saw its net income jump 12 percent year-over-year to C$884 million (U.S. $650 million) in first quarter 2017 on revenues that rose 8 percent percent to C$3.2 billion. Read more here.
CANADA BUSINESS AND GOVERNMENT UPDATES
Canada to U.S.: Play Nice With One of Your Biggest Customerssource: ajot.comCanadian Foreign Minister Chrystia Freeland said she’s confident her country will prevail over the U.S. in a lumber dispute and urged President Donald Trump’s administration to uphold free trade. Read more here.
25 April 2017AIR FREIGHT UPDATESWestJet announces intent to launch ultra-low-cost carriersource: ajot.comCALGARY - WestJet today announced its intention to launch a new, ultra-low-cost carrier (ULCC) in Canada subject to agreement with its pilots and any required regulatory approvals. Service is expected to start in late 2017 with an initial fleet of 10 high-density Boeing 737-800s designed by the airline....Read more here.
OCEAN FREIGHT UPDATESShanghai congested ahead of May rate risessource:lloydsloadinglist.comThe world’s largest container port is continuing to struggle with congestion as shippers rush to load cargo ahead anticipated rate rises at the start of May.“Now roughly 60% of the ships are delayed for 48-52 hours,” Paul Tsui, managing director of forwarding and logistics operator Janel Group told Lloyd’s Loading List yesterday.Port manager Shanghai International Port Group (SIPG) last week said it had rescheduled some liner calls from its Guandong container terminal and Shengdong container terminal at Yangshan Port to its Hudong, Pudong and Waigaoqiao terminals.Tsui said another factor in the congestion was improved access to the port of Shanghai via the Yangtze River. “The completion of river improvements along the Yangtze means vessels from western parts of China such as Chongqing can reach Shanghai more easily, which has increased the number of ships,” he said.“Also, freight rates are expected to increase after 1 May and shippers are trying to push their production out to avoid increased freight costs.”He also said changes in liner alliances and schedules had affected ship operations.“It is also the normal practice of Shanghai port to accept overbooked cargo at 120-130% of capacity,” he added. “If alliances are changing terminals, then those containers which are not able to ship as scheduled will have great difficulty moving to a different terminal.” [Excerpted from Lloys Loading List]Port of NY & NJ welcomes inaugural sailing of Ocean Alliancesource:ajot.comThe COSCO Vietnam, the first vessel in the Ocean Alliance’s new partnership to call the Port of New York and New Jersey, arrived at Maher Terminals at the Elizabeth-Port Authority Marine Terminal on Monday, April 17. Members of the Ocean Alliance include China COSCO SHIPPING, CMA CGM, Evergreen Line, and OOCL. Read more here.
APL Enhances China-Indonesia trade lane with new China Southeast Asia Service 6source:ajot.comSINGAPORE - APL today announced the launch of the China Southeast Asia Service 6 (CS6) – a new weekly service connecting North and Central China with Indonesia. Read more here.Drewry: Global container freight rates double from a year agosource: americanshipper.comAggregate spot container freight pricing on eight major east-west trades between the United States, Europe and Asia are up 102 percent from the same time last year, according to maritime consultant Drewry’s latest World Container Index report. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESBracing for Lumber Wars, Housing Psychology: Canada Eco Watchsource: ajot.comBank of Canada Governor Stephen Poloz has been highlighting the dangers of protectionism, and the country will probably get a taste this week as the U.S. is expected to issue preliminary countervailing duties on softwood lumber. Read more here.
Canadian West Coast ports map major capacity expansionssource:ajot.comWith continued strong growth anticipated in maritime trade with Asia, Canadian ports in British Columbia on Canada’s West Coast are jockeying for position to increase market share. Various projects are underway or on the radar screen for capacity expansions in such key sectors as container and breakbulk facilities. Read more here.Cargo theft soars in Ontariosource: ajot.comThe east-central Canadian province recorded a 262 percent year-over-year increase in reported cargo thefts during the first quarter of 2017, mostly occurring in the Greater Toronto area. Read more here.
24 April 2017OCEAN FREIGHT UPDATESPort of Montreal's Termont Terminal Reports Normal Operations after High Winds Wednesdaysource: CIFFAA CIFFA member informed the association Wednesday that they were experiencing some delays at the Termont terminal at Port of Montreal, with long waits to access the terminal gates followed by several hours waiting inside the terminal. Tony Boemi, Vice President, Growth and Development with Montreal Port Authority, said that, aside from the disruptions that took place yesterday, Termont has operated well in the last two weeks. Wednesday there was a delay caused by a rail shunt, which is usually performed at night and which caused a temporary backlog. A second delay was caused by sudden high winds. For safety reasons, terminals will cease operations if it is deemed unsafe, Boemi said. Charlotte Fondin, Operations Manager at Termont, told CIFFA that high winds on the Maisonneuve terminal Wednesday caused a wind tunnel effect. Winds were too high, with gusts of 75 miles an hour, and the terminal could not operate for safety reasons. This understandably caused some frustration as the neighbouring terminal was still operational. "We have a high-wind procedure in the port that has to be followed. The wind only dropped down around 1:00 in the afternoon. We did an extended gate but people didn't come back," Fondin said. Thursday the winds were calm and the terminal was not reported to be busy. With most terminals, Boemi said, there are peak periods, or certain operational actions that will or may cause delays for short periods of time. In October, the Port of Montreal introduced a new Trucking PORTal Web-based application it hopes will be a key tool to reach the goal of reducing wait times at port container terminals. Port users can download, free of charge, an application that gives real-time waiting times at each individual terminal. It's available from the Apple App Store and Google Play Store under the name Trucking PORTal. Use of this app will prevent any misinformation and can assist forwarders to schedule their truckers to avoid peak periods.Indian Port Strike Postponedsource: CIFFAA planned indefinite major ports strike in India due to start on April 19 was called off to give time for further talks beginning today, according to local reports. Read more here.Troubled box line Yang Ming suspends share trading
After years of losses, Taiwanese container shipping line Yang Ming yesterday suspended trading in its stocks on the Taiwanese stock exchange until 4 May, to enable it to reduce its equity capital by more than 50%. The drastic step follows the January announcement that the Taiwanese line was pursuing a number of strategies including seeking government and private investment in a bid to recapitalise after losing more than $650 million in less than two years. NileshTiwary and Rahul Kapoor, Singapore-based analysts at Drewry, told Lloyd’s Loading List earlier today that Yang Ming’s stock trading suspension was unlikely to herald a repeat of last year’s Hanjin Shipping bankruptcy, which left global supply chains in disarray.“We do not think this will have any knock-on effects in terms of services,” they said. “Also, on the eve of the new alliances’ network kick-off on 1 April, members of The Alliance - Hapag-Lloyd, K Line, MOL, NYK and Yang Ming - announced that they will create an independent trust fund to safeguard cargo in the event of any member lines going the same way as Hanjin. Lars Jensen, chief executive and partner at SeaIntelligence Consulting, told Lloyd’s Loading List earlier today that Yang Ming’s stock trading suspension “appears to be a move to secure some room to manoeuvre while restructuring the finances”. [Excerpted from Lloyds Loading List]Only three out of 10 top ocean carriers posted a profit in 2016source: ShippingazetteTEN out of 13 big container carriers posted losses in the second half of 2016, reported the Paris-based Alphaliner consultancy. Despite freight rate improvements that followed the bankruptcy of Hanjin last summer, only three carriers declared an annual profit while the rest posted losses. Hyundai Merchant Marine (HMM) recorded the worst operating results among the main carriers in 2016, with its container business posting an annual operating loss of KRW692 billion (US$595 million). HMM was forced to undergo restructuring exercise involving a debt-equity swap of KRW1.1 trillion, extension of the bond maturities of KRW800 billion and charter rate adjustments of KRW43 billion. Taiwan carrier Yang Ming also had to rely on state support after posting operating losses of TWD15.1 billion (US$470 million). The Taiwan government's National Development Fund (NDF) took a 6.4 per centstake in Yang Ming under a recapitalisationprogramme in February 2017 that raised TWD1.69 billion from six investors headed by the NDF. The NDF is expected to continue to support Yang Ming's subsequent capital raising programmes.The Port of New York and New Jersey developing Port Master Plansource: CanadianShipperNew York, NY — The Port of New York and New Jersey is developing a Port Master Plan (PMP). The PMP will guide the port’s growth and development through a decision-making process aimed at continuing to enhance the port’s position as the premier North American East Coast gateway to 2045. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESCanadian Pacific profit off 17pc, revenue up 1pc to US$1.19 billionsource: ShippingazetteCANADA's No 2 rail operator, the Canadian Pacific Railway (CP), has announced that first quarter profit - earnings per share - fell 17 per cent year on year, drawn on revenues of C$1.6 billion (US$1.19 billion), which increased one per cent. "Thanks to our hard-working employees, industry-leading operating model and commitment to service, we produced solid results this quarter," said CP president and CEO Keith Creel. "We turned a corner in March and are now seeing positive volumes, which makes us cautiously optimistic that the demand environment is improving," he said. [Excerpted from Shippingazette]Trudeau Defends Dairy Subsidies After Trump Vows U.S. Farmer Aidsource: AJOTPrime Minister Justin Trudeau said Canada will stick with its system of protectionist dairy quotas, even as President Donald Trump doubled down on a vow to help American farmers. Trudeau spoke Thursday in Toronto during an interview with Bloomberg. It was his first public response to Trump’s Wisconsin pledge to press Canada for changes to its dairy system as part of North American Free Trade Agreement talks. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESDrewry: World Container Index for April 20thsource: AJOTThe World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes to/from the US, Europe and Asia, is down by 0.5% to US$1449.91/40ft container [updated Thurs, 20 Apr 17]. The average composite index of the World Container Index assessed by Drewry for the year to date is US$1,602/40ft container, $118 lower than the 5-year average of $1,721/40ft container. It is also double the price of a year ago. Read more here.Brexit Will Be So Painful No One Will Follow, Finland Sayssource: AJTOInstead of showing other EU members that it’s possible to exit the bloc, Brexit will make clear just how economically agonizing the process is, and frighten others away from ever considering a similar path, according to Finland’s Finance Minister Petteri Orpo. Read more here.
20 April 2017AIR FREIGHT UPDATESCustoms Requirements for Shipments to Shanghai Effective Immediatelysource: CIFFAAir Canada Cargo has announced that the PVG Customs Authority requires that all shipments transiting via Shanghai (PVG) must declare the Harmonized System Code (HS Code). The HS Code number must be indicated on the "Nature of Goods" section of the air waybill. Air Canada Cargo will not be able to move shipments without the required information.United Airlines and Lufthansa Cargo announce cargo joint venture agreementsource: AJOTUnited Airlines (UAL) and Lufthansa Cargo have signed a joint venture agreement for extensive cargo cooperation on routes between the U.S. and Europe. The cargo joint venture partners plan to provide a wide range of benefits to customers by cooperating on the availability of their capacity and aligning booking and handling processes. Read more here.
OCEAN FREIGHT UPDATESThe Alliance Calls Port of Philadelphiasource: AJOTPHILADELPHIA - THE Alliance made its first call to the Port of Philadelphia’s Packer Avenue Marine Terminal (PAMT) this morning as part of its Northern European, AL1 (Atlantic Loop) service. THE Alliance, short for Transport High-Efficiency Alliance, is one of three major shipping alliances. The shipping lines who make up THE Alliance include: Hapag-Lloyd, K-Line, Mitsui OSK, NYK and Yang Ming. “This is extremely significant”, said Philadelphia Regional Port Authority (PRPA) CEO Jeff Theobald. “This gives Pennsylvania and regional exporters more options to get to Europe. Most of these lines have never had direct container service into the Port of Philadelphia.” Read more here.Heavy swell, sand storms stop operations at Jeddah and Jubail portssource: ShippingazetteADVERSE weather, including heavy swells and sand storms, have curtailed port operations at the Red Sea ports of Jeddah and Jubail, Saudi Arabia, reports GAC Hot Port News. Due to a sand storm, Jeddah Port stopped operation from 0630 April 18. Similarly. strong winds and heavy swell, prompted the port authority at Jubail to stop all ports operations, except at Berths No 61 & 62 (OSTT berths) at 1620 hours April 17. Port operations at Jubail resumed at 1100 hour April 18 and the port is now working normally. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESUnited Steelworkers Ratify Five-Year Agreement with CPsource: CIFFACanadian Pacific and the United Steelworkers (USW) Local 1976 announced that a five-year labour agreement covering approximately 600 administrative support and intermodal employees in Canada has been ratified. The new agreement takes effect January 1, 2018. CP has negotiated long-term agreements with six of its seven Canadian unions. CP has reached out to its unions that have agreements expiring at the end of 2017 to negotiate and implement new contracts ahead of expiry.Toyota Opens a Portal to the Future of Zero Emission Truckingsource: AJOTLOS ANGELES - Picture the 710 Freeway heading south, bumper-to-bumper semis hauling cargo to and from the bustling Ports of Los Angeles and Long Beach. Now imagine those trucks are moving that cargo, quietly, quickly and without producing any emissions. Toyota is working to make this vision a reality. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESChina Urges Canada to Relax Curbs on High-Tech Exportssource: CIFFAChinese Premier Li Keqiang on Tuesday pressed Canadian Prime Minister Justin Trudeau to relax curbs on high-tech exports to China and suggested the two nations work together on clean energy, China's official Xinhua news agency said. Trudeau wants to boost trade with China as a way of lessening dependence on exports to the United States, especially given protectionist signs from the administration of President Donald Trump. Read more here.
19 April 2017OCEAN FREIGHT UPDATESIndia Makes Changes to Controversial Service Tax on Prepaid Ocean Freightsource: CIFFAIndia's finance ministry has amended its service tax on prepaid ocean freight following strong lobbying from agents, leaving Indian importers/consignees and foreign shipping lines responsible for remitting payments when overseas exporters charter non-Indian-flagged ships to supply goods to India. Such transactions were brought under the service tax net from January 22 this year and created an uproar among global shipping lines and shippers. Originally the move had put this liability on the foreign lines and the ship's agents in India, but the ministry issued an amendment on April 13, absolving the agent and instead making the importer/consignee, along with the lines, responsible.Alliance carriers raise rates while independent lines stand patsource: AmericanShipperOcean carriers belonging to one of the three major east-west vessel sharing alliances - THE Alliance, the OCEAN Alliance and the 2M - have been more successful in pushing through rate increases in the early part of April than their independent counterparts, according to the latest data from the Freightos International Freight Index. Read more here.CMA CGM’s unmatched offer to the German market within OCEAN Alliancesource: AJOTAs the main player of the new OCEAN Alliance, the largest operational alliance in shipping, CMA CGM Group now offers exceptional maritime and logistics solutions for the German market. CMA CGM Group offers its customers an unmatched portfolio of highly reliable and fast services and three German ports of call, perfectly connected to the European hinterland via efficient intermodal solutions. Read more here.Shanghai's Yangshan hit by massive congestion as dock chaos spreadssource: ShippinGazetteSHRINKING capacity, dense fog and bad weather has resulted in serious congestion at the Shanghai-Yangshang ports causing ships to divert when they cannot make berthing windows. "Our vessels have been impacted by the congestion at the Yangshan due to bad weather," Maersk told American Shipper, adding that many ships remain at sea waiting for conditions to improve before attempting to enter the harbour. Carrier overbooking is also being cited as a cause. The congestion is aggravated by a recent shortage in container capacity in the eastbound Europe-Asia trade, which prompted the European Shippers' Council (ESC) to issue a warning in March of trouble ahead. Europe-to-Asia shippers are faced with being unable to meet their contractual obligations or to offer boarding slots before May, the council said. Container booking prices have spiked as much as 45 per cent in the trade, and 2M alliance members have stopped accepting orders due to the capacity shortfall. [Excerpted from shippingazette.com]
CANADA BUSINESS - GOVERNMENT UPDATESOTA weighs in on Thunder Bay road infrastructuresource: CanadianShipperToronto, Ont. — In a letter to Thunder Bay Mayor Keith Hobbs and City Council, the Ontario Trucking Association (OTA) is once again weighing in a two-decade-old issue involving commercial traffic routes through Thunder Bay. Read more here.CN recognizes customers for sustainabilitysource: CanadianShipperMONTREAL, Que. — CN recognized 32 of its customers for their sustainability practices that are aligned with the objectives of the CN EcoConnexions program. The CN EcoConnexions Partnership Program selects companies that pledge to work to reduce their carbon emissions and increase energy efficiency – a central focus of CN’s sustainability objectives. Read more here.Canada to Amend Export and Import Permits Actsource: CIFFACanada's Minister of Foreign Affairs has introduced proposed legislative changes in Parliament to amend the Export and Import Permits Act (EIPA). On April 13, the HonourableChrystia Freeland, Minister of Foreign Affairs, delivered on the government's commitment to introduce legislation so Canada can accede to the Arms Trade Treaty (ATT). Bill C-47 is an Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments). The enactment amends the Export and Import Permits Act to define the term "broker" and to establish a framework to control brokering that takes place in Canada and that is undertaken by Canadians outside Canada and authorize the making of regulations that set out mandatory considerations that the Minister is required to take into account before issuing an export permit or a brokering permit. The Act sets May 31 as the date by which the Minister must table in both Houses of Parliament a report of the operations under the Act in the preceding year and a report on military exports in the preceding year and increases the maximum fine for a summary conviction offence to $250,000. During the period that the Bill is before Parliament, Canadian exporters should continue to follow existing procedures and instructions to apply for export permits. [Excerpted from CIFFA]
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESTop 10 Technologies That Will Disrupt Your Supply Chainsource: SupplyChainBriefAt ProMat 2017 Deloitte and MHI released the 2017 MHI Annual Industry Report, which among other things explores eight key technologies that supply chain managers need to better understand since these technologies will disrupt supply chains for the next decade. Read more here.How Will Trump's Curb on Trade Deficit Affect Warehousing?Source: SupplyChainBriefPresident Donald Trump’s focus on curbing the trade deficit by bolstering U.S. exports and reducing imports could drive policy changes that impact industrial real estate markets throughout the U.S., Cushman & Wakefield reported in a logistics and industrial research briefing released on April 17. Read more here.
18 April 2017AIR FREIGHT UPDATESUnited CEO Takes Apology to Investors After Dragging Fiascosource: AJOTUnited Airlines Chief Executive Officer Oscar Munoz, pivoting from a public apology to face investors, assured Wall Street that the carrier would rebound from the uproar that followed the dragging of a passenger off one of its planes. “This will prove to be a watershed moment for our company, and we are more determined than ever to put our customers at the center of everything we do,” Munoz said in a statement Monday. “We are dedicated to setting the standard for customer service among U.S. airlines, as we elevate the experience our customers have with us from booking to baggage claim.” Read more here.Hong Kong's 'significant growth' in March cargo volumessource: AirCargoNewsHong Kong International Airport (HKIA), the world's number one airfreight hub by throughput, recorded "significant growth" in cargo volumes during March 2017. Cargo traffic recorded a year-on-year increase of 17.8% to 433,000 tonnes in March. Passenger volume dropped 2% to 5.9m, compared with the same month last year. Read more here.Commentary: FAA reform brings potential policy shiftsource: AmericanShipperIn early March, the House Transportation and Infrastructure Committee convened its third hearing focusing on airports and airline concerns, gearing up for the Federal Aviation Administration reauthorization bill. The FAA is currently operating under a bill that expires in September, and considering how much hand-wringing it took to get the last authorization in place and the current governmental turnover, reauthorization talk will surely dominate the year to come. Read more here.
OCEAN FREIGHT UPDATESTianjin Port to ban trucking of coal later this monthsource: Splash24/7China's Tiajin Port will impose a ban on coal transportation by trucks earlier than expected in order to alleviate pollution caused by diesel-powered trucks and coal consumption. Read more here.
GROUND AND RAIL UPDATESPort of Everett starts construction on new rail linesource: AJOTEverett, Wash. – This month, Granite Construction started construction on a new, 3,300 lineal foot double rail siding near the South Terminal to support international cargo movement at the Port of Everett. In February, the Port Commission awarded a $3.4 million contract to the Everett-based contractor to complete the second phase of the Port’s terminal rail enhancements to improve regional rail freight mobility and increase capacity of rail freight at the Port of Everett Seaport. This project was made possible, in part, by a federal TIGER grant. The TIGER program is an extremely valuable grant program for reinvesting in our nation’s transportation infrastructure. Read more here.Port of Oakland expects to benefit from new alliancessource: AmericanShipperThe Port of Oakland expects to benefit from the new alliance groupings that launched this month, as well as a new transpacific service Taiwan-based Wan Hai Lines will be launching. Carriers "are sharing services to a degree we have never seen in the business" in an effort to cut costs, Port of Oakland Maritime Director John Driscoll said. "What's good for our customers is good for the Port of Oakland. Whenever our customer's customer - the shipping lines - can be more efficient and more healthy from an economic standpoint, then it is very good for us to be part of that. I think this is going to help them plan for the future, invest for the future and be successful for the future." Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESEU regulators approve sale of Hamburg Sud to Maersk Linesource: ShippingazetteThe European Commission (EC) has given the green light for Denmark's Maersk Line to acquire German container shipping line Hamburg Sud. Maersk Line agreed in December to pay about $US4 billion for Hamburg Sud. The EC approval was based on the condition, including withdrawal of Hamburg Sud from five consortia on trade routes connecting Northern Europe and Central America/Caribbean, according to Logistics Business Review. EC competition policy-in-charge commissioner Margrethe Vestager said: "Competitive shipping services are essential for European companies and for the EU's economy as a whole. "The commitments offered by Maersk Line and HSDG will maintain a healthy level of competition to the benefit of the very many EU companies that depend on these container shipping services." [Excerpted from Shippingazette]
17 April 2017AIR FREIGHT UPDATESAlitalia Staff To Vote On Union Dealsource: AirWiseAlitalia and its unions have reached agreement in mediated talks that, if approved, should allow the airline’s owners to invest more money in the struggling flag carrier. Read more here.Air Canada Cargo Introduces Service to Marseille and More Capacity to Francesource: CIFFAOn June 9, Air Canada Cargo launches service three times a week between Marseille and Montreal. In addition, Paris/Montreal double daily flights start in June, and service to Lyon increases in July. With flights to Nice resuming in June, Air Canada Cargo will offer 31 wide-body flights to and from France every week this summer.
OCEAN FREIGHT UPDATESPort of Vancouver, Wash, handles record 7.5m tonnes of cargo in 2016source: ShippingaztteThe US Pacific coast port of Vancouver in Washington State set a new tonnage record in 2016 handling for the first time in its 105-year history, a record 7.49 million metric tonnes of cargo, up 8 per cent from the 2015 record of 6.95 million metric tonnes. Exports in 2016 rose to 6.32 million metric tonnes, up from 5.54 million metric tonnes in 2015. Grain was the largest export by volume, which increased 17.8 per cent over 2015 volumes. Despite the overall tonnage increase, the port's operating revenues decreased from US$38.2 million to $35.9 million. However, by leveraging revenues, federal and state grant funds, and tax dollars, the port invested in critical infrastructure such as rail, buildings, dock improvement and skilled staff. [Excerpted from Shippingazette]Congestion at Yangshan Port Causes Delays for Linessource: CIFFAShanghai's Yangshan Port has been suffering from severe congestion, causing chaos for the port's operations. The congestion has caused delays in both ships calling at Yangshan Port's Shengdong and Guandong container terminals. Read more here.Special harbour arrangements for HK's Tin Hau Festivalsource: ShippingazetteThe Hong Kong Marine Department has announced embarkation and disembarkation of local vessels will only be made at the western side of the main pier of Tai Miu Wan and the eastern side of the main pier will be used by licensed ferries during the Tin Hau Festival at Tai Miu Wan on April 19. Masters of vessels navigating in the Tathong Channel on these dates are advised to proceed with caution as more local traffic than normal will be encountered between Lei Yue Mun and Tai Miu Wan. The Marine Department and the Hong Kong Police Force patrol launches will be stationed in the vicinity to direct and control vessels attending the festival. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESPort of Everett starts construction on new rail linesource: AJOTEverett, Wash. – This month, Granite Construction started construction on a new, 3,300 lineal foot double rail siding near the South Terminal to support international cargo movement at the Port of Everett. In February, the Port Commission awarded a $3.4 million contract to the Everett-based contractor to complete the second phase of the Port’s terminal rail enhancements to improve regional rail freight mobility and increase capacity of rail freight at the Port of Everett Seaport. This project was made possible, in part, by a federal TIGER grant. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESUK's BIFA and ASM speak out on Brexit concernssource: ShippingazetteDirector general of the British International Freight Association (BIFA), Robert Keen, says no-one really knows what the effect on trade will be of Britain's withdrawal from the EU and its economic community. He told delegates at the 'Brexit Briefing', part of the ongoing 3-day Multimodal 2017 event in Birmingham, UK, that: "We, like most people, have heard all sorts of facts and figures, but really we don't know any more than we did on June 23. We have tried not to speculate too much as we don't know very much." Agency Sector Management (ASM), which describes itself as "providing unbiased representation" to give forwarders a voice where it matters with the people who shape the international trade environment, is dealing with technical issues, the London's Air Cargo News reported. For instance, he would like the UK to retain the Single Transit Contract so that, by way of example, in the case of a consignment moving from London Heathrow to New York via Paris, the port of EU export would continue to be deemed to be Heathrow. He remains positive, however. All in all: "I think we are going to be OK. We are engaging fully with customs and they are listening to us. In the UK, we have a history of sorting it out," Mr MacSwiney opined. [Excerpted from Shippingazette]
13 April 2017OCEAN FREIGHT UPDATESIndia's Dockworkers Planning Nationwide Strikesource: CIFFAIndia's labour unions, representing dockworkers employed at major ports, have announced an indefinite nationwide industrial action starting on April 19. The ports that are likely to be affected by the strike are Kolkata, Paradip, Visakhapatnam, Chennai, Tuticorin, Cochin, New Mangalore, Mumbai, Jawaharlal Nehru Port Trust (JNPT), Kandla and Marmugao. Read more here.Charter Market Recovery Too Late to Save Rickmers Maritime Trustsource: CIFFAThe recent recovery in the containership charter market has come too late to save panamax shipowner Rickmers Maritime Trust (RMT). The company has announced that it will be wound up. Singapore-headquartered RMT owned a fleet of 14 containerships of 3,450-5,060 TEU, five of which are on long-term charter to Japanese carrier MOL, five are on the spot market and four in lay-up. Read more here.Special harbour arrangements for HK's Tin Hau Festivalsource: ShippingazetteThe Hong Kong Marine Department has announced embarkation and disembarkation of local vessels will only be made at the western side of the main pier of Tai Miu Wan and the eastern side of the main pier will be used by licensed ferries during the Tin Hau Festival at Tai Miu Wan on April 19. A ferry service between North Point Ferry Pier and the Tai Miu Wan pier will be operated on April 18 and April 19. The Marine Department and the Hong Kong Police Force patrol launches will be stationed in the vicinity to direct and control vessels attending the festival. Read more here.
GROUND AND RAIL UPDATESTrucking Associations Support Minority Leader’s Bill to Repeal RhodeWorks Tollsource: AJOTArlington, Va. – The Rhode Island Trucking Association joined the American Trucking Associations today in praising State Representative Patricia Morgan’s (R- District 26) bill to repeal the RhodeWorks toll law. Minority Leader Morgan introduced the legislation at the State House earlier this week. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESDrewry: Satisfaction Survey in Container Transportsource: CIFFAThe service provided by container shipping lines is rated as poor to average and has deteriorated in the past year, according to a survey of exporters, importers and freight forwarders conducted jointly by Drewry and the European Shippers' Council (ESC). The ESC and Drewry contacted several hundred shippers and forwarders from all over the world in March 2017 and asked them how satisfied they were with 16 price- and non-price-related attributes of the services provided by ocean carriers. The survey also looked into areas most in need of improvement and how quality varies by type of carrier. On a scale of 1 (very dissatisfied) to 5 (very satisfied), customers on average did not rate carriers higher than 3.3 for any of the 16 service attributes, the survey showed. Read more here.Great interest in digitalisation in port sector and logistics in Russiasource: AJOTIn early April, during the traditional German week in St. Petersburg, a workshop was run with the accent on ‘Digitalisation in the port sector and logistics’. It was co-organized by Port of Hamburg Marketing (HHM), the German-Russian chamber of commerce and the German business Eastern-Europe association. The event also provided a suitable backdrop signing a partnersship and cooperation agreement between Port of Hamburg Marketing and the Admiral Makarov State University for Sea and Inland Waterway Shipping. Read more here.
12 April 2017AIR FREIGHT UPDATESQatar Airways Cargo starts Phnom Penh freighter servicesource:shippingazette.comQATAR Airways Cargo has expanded its Asia network with new freight service to the Cambodian city of Phnom Penh that started on April 3, 2017, with the A330 freighter operating on the Doha-Phnom Penh-Doha route once a week offering over 60 tonnes of cargo capacity each way.The major uplift out of Cambodia is garments, which represent the largest portion of the country's manufacturing sector and account for 80 per cent of the nation's export, the STAT Trade Times of Singapore reported.The Doha-based airline currently carries more than 70 tonnes of belly-hold cargo on the daily wide-body passenger flights to Phnom Penh via Ho Chi Minh City, Vietnam, every week. The introduction of direct freighter services on this route offers exporters increased capacity and flexibility to transport their commodities to Qatar Airways' global network of more than 150 destinations via its state-of-the-art hub in Doha.
OCEAN FREIGHT UPDATESGCT Canada: Scheduled System Maintenance, Todaysource: CIFFANote that GCT Vanterm and GCT Deltaport web services will be unavailable from 4:30 pm to midnight today for ongoing system maintenance.The MOL Triumph, world’s largest containership makes a successful call in Shanghai, Chinasource: ajot.comTOKYO-Mitsui O.S.K. Lines, Ltd. (MOL) is pleased to announce that the MOL Triumph, the world’s largest containership with a carrying capacity of 20,170 TEU, successfully arrived at Yangshan Port in Shanghai on April 10, 2017. MOL took delivery of MOL Triumph, the first of six 20,000 TEU-class containerships from Samsung Heavy Industries Co., Ltd. on March 27, 2017. Read more here.Maersk Line Quietly Adds the World's Largest Boxship to its Fleetsource: splash247.comIn typical Maersk fashion, the Danish liner giant welcomed is latest boxship yesterday, which turns out to be the largest container vessel in the world. Read more here.Cooperation vital for LALB to handle import surges from new alliancesource: shippingazette.comThe ports of Los Angeles and Long Beach, with their excess terminal capacity, to efficiently handle the import surges coming their way from the new carrier alliances launched on April 1 will depend upon the ability of everyone from marine terminals to beneficial cargo owners (BCOs) to synchronise their operations, IHS Media reported."There is ample crane and berth capacity," Steven Rothberg, partner in Mercator International, told the annual Pulse of the Ports conference recently in Long Beach.However, when the alliances launch more than 20 weekly strings of vessels with an average capacity of about 9,000 TEU to Los Angeles-Long Beach, they will encounter a complex port environment that will spread the vessel calls out over 13 container terminals and several modes of transport, he said.When these vessel strings begin arriving in Southern California in mid-April, all sectors of the transportation supply chain, BCOs, shipping lines, terminal operators, intermodal equipment providers, truckers, and railroads, must be prepared to pre-plan and coordinate their supply-chain activities at a heightened level, he said.Mr Rothberg's comments came after the three alliances - 2M, Ocean, and THE Alliance - released details of the new vessel deployments.This development marks the first time that global vessel-sharing alliances will begin operations on the same day, so all ports are in for a shock. However, Mr Rothberg said Los Angeles-Long Beach, with 13 container terminals handling more than 15 million TEU per year, will face challenges unmatched at other gateways.The complexity of terminal operations in Southern California is compounded by the presence of four non-alliance lines. In addition to the three alliances, which account for more than 90 per cent of vessel capacity in the trans-Pacific, the independent carriers all have weekly services, some with smaller vessels, but in the case of the new entrant SM Line, which replaced the bankrupt Hanjin Shipping, former Hanjin vessels of 6,600-TEU capacity will be deployed to Long Beach.
CANADA BUSINESS - GOVERNMENT UPDATESPort of Montreal Celebrates 50th Anniversary of First Containers at the Portsource: CIFFAOn April 4, the Montreal Port Authority (MPA) and its clients celebrated the 50th anniversary of the arrival of the first containers at the Port of Montreal.
In 1967, the Port of Montreal handled its first container and in 1968, it inaugurated the first Canadian container terminal. In 1967, it handled more than 11,300 TEU containers for a single shipping line. In 2016, the Port handled almost 1.5 million TEUs for six shipping lines. In the past 50 years, nearly 35 million TEUs have transited through Montreal's port facilities.
Today, the Port has five container terminals, and nine regular services connect Montreal to more than 140 countries.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESNAFTA cross-border trade continues to grow in January to US$88bsource: shippingazette.comThe total value of cross-border trade between the US and its partners in the North American Free Trade Agreement (NAFTA), which include Canada and Mexico, in January grew 6.7 per cent to US$88 billion compared with the same period last year, according to the US Department of Transportation's Bureau of Transportation Statistics (BTS).BTS noted total NAFTA freight values have now grown in three consecutive months and four of the last six months when compared with the prior-year period. The January increase was also the largest year-over-year increase since September 2014, American Shipper reported.For the full year in 2016, however, NAFTA freight flows fell 3.4 per cent from 2015 to $1.069 trillion in current dollars, according to BTS figures.All five of the major transportation modes measured by BTS moved more freight by value in January, with pipeline trade jumping 42.7 per cent, marine vessel up 41.8 per cent, air up 13.7 per cent, rail up 5.5 per cent, and truck up 0.4 per cent from the previous year.BTS attributed the substantial increase in pipeline and vessel values to a 66 per cent year-over-year increase in the price of crude oil.Trucks continued to be the most heavily utilised mode for moving goods to and from both Canada and Mexico, accounting for 59.1 per cent ($28.2 billion) of the $47.8 billion in US imports from Canada and Mexico during the month and 66.6 per cent ($26.8 billion) of the $40.2 billion in exports, the bureau said.Rail remained the second largest mode by value, moving 15 per cent of all US-NAFTA freight, followed by vessel (7 per cent), pipeline (6.4 percent) and air (3.9 percent).Year over year, the value of US-Canada freight flows rose 7.1 per cent to $45 billion in January, while US-Mexico trade values increased 6.3 per cent to $43 billion.
11 April 2017AIR FREIGHT UPDATESHeathrow to invest US$693m in expansion of Terminal 2source: ShippingazetteAn extra GBP650 million (US$693.55 million) is to be invested in Heathrow during 2019 to signal a vote of confidence in post-Brexit Britain. Part of the funds will be used to expand Terminal 2 and planning works for a new southern access tunnel for the Central Terminal Area. The shareholders who approved the plan include pension fund the Universities Superannuation Scheme, Ferrovial, Caisse de depot et placement du Quebec, GIC, Alinda Capital Partners of the US, China Investment Corp and Qatar Investment Authority. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESShippers implement back-up measures to deal with new shipping alliancessource: ShippingazetteShippers and forwarders are bracing themselves for the possibility of severe supply chain disruption with the new mega container shipping alliances, the Ocean and The Alliance, launching services on April 1. There is a growing anxiety that shipping lines do not seem to be "on top of" managing the commencement of the new groupings, and consequently shippers and forwarders have been drawing up contingency plans. "There is an issue with the restitution of rail boxes back to the railway companies in Germany. The rail companies want those boxes back in Germany, so you have to consider what sort of backhaul cargo you could attract on the rail to go to Duisburg from the UK once you have finished devanning the box. "The other option is to decant the container in Germany and then truck it to the UK. Overall, you are looking at 22-23 days from China to the UK stores, so there is a good speed differential, while the freight cost is clearly closer to sea-air products, or even air, than it is to the ocean freight equivalent. "What we are trying to work out is whether the speed advantage is worth the extra cost, and so far we have been pleasantly surprised by the results. [Excerpted from Shippingazette]Shipping lanes in North Atlantic plagued by hundreds of icebergssource: ShippingazetteNorth Atlantic shipping lanes have been inundated with more than 400 icebergs over the past week, forcing ships to slow to a crawl and take detours, American Shipper reported citing Associated Press. "As of April 4 2017, 455 icebergs have drifted or been sighted south of 48 degrees North in the transatlantic shipping lanes. On average, 83 icebergs drift south of this latitude by the end of March, based on data collected between 1900 and 2016," according to the weekly iceberg outlook released by the US Coast Guard's International Ice Patrol (IIP). Close to the Newfoundland coast, cargo ships owned by short-sea vessel operator Oceanex are slowing down to just 3-4 knots as they sail back to their home port in St. Johns. [Excerpted from Shippingazette]Drewry: Satisfaction survey in container transportsource: AJOTLondon, UK, and Brussels, Belgium - The service provided by container shipping lines is rated as poor to average and has deteriorated in the past year, according to a survey of exporters, importers and freight forwarders conducted jointly by Drewry and the European Shippers’ Council (ESC). Read more here.
GROUND AND RAIL UPDATESShippers Must Declare EU Road Freight Weights from 7 Maysource: LloydsLoadingList.Less than a month from now, a new law is set to come into force within the European Union that will force shippers to declare the weight of their cargo to hauliers transporting goods within Europe. In what amounts to a partial extension of the Verified Gross Mass (VGM) amendment of the Safety of Life at Sea (SOLAS) regulations that entered global maritime regulation last July, the EU 2015/719 directive will formally enter law on 7 May 2017. The new directive will mean that shippers with goods loaded in containers and swapbodies will have to provide hauliers with what was described by Freight Transport Association (FTA) director of global and European policy Chris Welsh as a “statement of compliance” − that the weight of the cargo and transport unit added to the weight of the truck and chassis will not exceed legal weight limits on roads. He was speaking on the second day of the Multimodal 2017 show at the Birmingham NEC last week. “The regulation will stop hauliers being put in a position that sees them break legal road limits, often without knowing it. This can be serious for hauliers – they can have their operating licences taken away, and although it is not a major problem in the UK, it does happen sometimes and there are some unscrupulous firms.” [Excerpted from Lloyds Loading List]
CANADA BUSINESS - GOVERNMENT UPDATESCanada's Marine Shipping Industry Commemorates 100 Years Since Battle of Vimy Ridge; Marks Canadian Vessel Role in WWIsource: CIFFASunday April 9 saw the commemoration of the Canadian National Vimy Memorial in France. Bruce R. Burrows, President of the Chamber of Marine Commerce and a board director of the Vimy Foundation, noted that the event marked an opportunity to remember the sacrifices made in the name of peace and to educate our youth on the many historical contributions from all corners of Canadian society, including Canada's marine shipping industry, which provided ships to transport supplies, equipment and soldiers during the war. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESEU Conditionally Approves Maersk Line and Hamburg Süd Mergersource: CIFFAMaersk Line has gained EU antitrust approval for its acquisition of Hamburg Süd after agreeing to pull the German company out from trade routes to address competition concerns. Hamburg Süd will now have to withdraw from the five consortia of Eurosal 1/SAWC, Eurosal 2/SAWC, EPIC 2, CCWM/MEDANDES and MESA if the ninth largest container shipping company is to join with the largest in the world. Read more here.China Offers Concessions to Avert Trade War with U.S.: FTsource: CIFFAChina will offer the Trump administration better market access for financial-sector investments and U.S. beef exports to help avert a trade war, the Financial Times reported on Sunday, citing officials familiar with the matter. Read more here.India Is Losing Faith in Free-Trade Agreementssource: CIFFATill fairly recently, it looked like two massive new agreements would compete to define the future of world trade. The Trans-Pacific Partnership, backed by the U.S., would try to move the global trade architecture toward new norms, with harmonized regulations at its centre. Meanwhile, the Regional Comprehensive Economic Partnership, backed by China, would drastically reduce remaining tariffs across a swathe of Asia and push the existing model of trade and manufacturing as far as it could go. Read more here.
10 April 2017AIR FREIGHT UPDATESAir Canada Cargo Introduces Service to Berlinsource: CIFFAOn June 3, Air Canada Cargo launches direct service to and from Berlin, Germany four times a week on a Boeing 767-300ER aircraft.Where Have All the Pilots Gone? How a Looming Shortage May Curtail e-Commercesource: CIFFARegional carriers in North America have started performing triage, reducing schedules and cutting routes, but there's no end in sight to the pilot shortage. In fact, it's about to get worse. A 2013 investigation, sponsored by the University of North Dakota (UND), projected that 45,000 pilots will retire by 2033, more than twice the 18,000 regional pilots in service at the time. Each year, fewer pilots are moving up the ladder, and all the while, demand for passenger and cargo services keeps rising. Read more here.
OCEAN FREIGHT UPDATESCargo growth pattern returns at Canada’s East Coast portssource: AJOTCanada’s imports and exports fell slightly last year to respectively C$547 billion and C$521 billion, when much uncertainty prevailed in shipping and global economic trends, but leading Canadian ports on the East Coast managed to either maintain or recover a growth pattern. In part, this could be attributed to improving world commodity prices (impacting especially on such bulk-dominant ports as Sept-Iles and Quebec). Otherwise, sustained demand from Asia and signs of more life from lackluster Europe stimulated port activity. Read more here.New ocean carrier mega-alliances viewed as benefiting cargo ownerssource: AJOTAs new ocean carrier mega-alliances launch this month, shippers may expect service improvements and other benefits, according to container line and beneficial cargo owner executives speaking at a conference hosted by the Jacksonville Port Authority. Read more here.Go slow Operation at Colombo – SAGTsource: NYK LineThe labour unions are protesting a new annual bonus scheme. The Gantry / RTG operators and truckers are working at a slow pace with current productivity levels averaging around 10-12 moves per hour. In normal conditions productivity averages 30-35 moves per hour. Expect delays in berthing and operations of approximately 12-15hrs which will only increaseif a swift resolution to the labour dispute is not found. Please note, there is no noticeable impact on ITT and receiving exports or releasing imports at this time. We will update you on developments as they occur.
GROUND AND RAIL UPDATESTen-Day Lorry Strike in Tamil Nadu Withdrawn After Negotiationssource: NewIndianExpressCHENNAI: The 10-day lorry strike in Tamil Nadu, involving nearly four lakh trucks, has been called off, after negotiations with the insurance regulatory body over the hike in third party insurance were successful. The truckers are likely to resume operations on Sunday. Read more here.Trilateral Rail Deal Announced: Azerbaijan, Iran and Russiasource: CIFFAPlans to connect northern Europe and the Middle East/India by rail have moved a stage closer following the signing in Moscow in March of an MoU between the national rail companies of Azerbaijan, Iran and Russia. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESRivalry heating up for Nova Scotia mega box terminalsource: AJOTWith carrier consolidations and alliances heralding still-larger containerships coming to the East Coast of North America, the Port of Halifax has entered the fray in a serious way amidst rival bids in recent years for a mega terminal in Nova Scotia. Read more here.
7 April 2017AIR FREIGHT UPDATESCanadian airport authorities meet with parliamentarianssource: AirCargoNewsSenior executives from Canada’s biggest airports came together earlier this week (on April 5) to meet with parliamentarians.Leaders from more than two dozen of its air gateways met in the capital, Ottawa, to highlight the important role they play in the Canadian economy. Read more here.Air Canada Cargo Receives Top Industry Awardsource: CIFFAAir Canada Cargo received the Air Cargo Excellence Gold Award in the "up to 999,999 tonnes" air carrier category. The awards are based on the results of the Air Cargo Excellence Survey, conducted annually by Air Cargo World and presented to the airlines and airports achieving the highest scores in the survey. Airlines are ranked based on several performance factors, including customer service, value and performance during the previous 12 months. Read more here.China's carriers poised for biggest profitsource: ShippingazetteCHINA'S "big three", Air China Ltd., China Eastern Airlines Corp. and China Southern Airlines Co., have spent hundreds of billions of dollars on new aircraft in the past decade that have helped the state-owned airlines expand in a market where some 488 million people - or the combined populations of the US, Germany and the UK - take to the skies every year. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESPort of Vancouver USA tonnage breaks the 7 million mark in 2016source: AJOTVancouver, Wash. – For the first time in its 105-year history, the Port of Vancouver USA has recorded more than 7 million metric tons of cargo across its docks. The port recorded 7.49 million metric tons in 2016, nearly eight percent more than the 2015 record of 6.95 million metric tons. Read more here.Labour Unrest Resurfaces at Port of Vancouversource: CIFFAA large contingent of terminal truckers at Port of Vancouver attended an April 2 event protesting the Joint Action Plan that was set in place to end a strike three years ago. The truckers represented Unifor and the United Truckers Association (UTA). Read more in articles from Business Vancouver: "Port truckers pin hopes on provincial Liberal defeat" and "Vancouver waterfront labour unrest resurfaces."Maersk Genoa continues voyage after collisionsource: LloydsLoadingListA Maersk Line containership that collided with a general cargo ship near the port of Antwerp on Tuesday has been allowed to continue its voyage after a delay of only 24 hours. Maersk said the vessel suffered some damage above the water line and was anchored in Vissingen in The Netherlands for further examination by port authorities and P&I representative and to establish further course of action. It stressed that no crew members had been injured and there has been no pollution to the marine environment.
Fire continues to rage on containership, MSC Daniela, near Colombosource: ShippingazetteFIREFIGHTERS are still tackling the blaze on board the 13,800-TEU Mediterranean Shipping Co. (MSC) containership, MSC Daniela, after containers on board burst into flames on Tuesday morning about 120 nautical miles off the coast of Sri Lanka. The vessel was brought to anchor on Wednesday morning near the Colombo Lighthouse where the authorities are still working to extinguish the blaze, according to American Shipper. The cause of the fire is unknown at this point, but media reports suggested it began in a container located in the aft of the vessel. According to ocean carrier schedule and capacity database BlueWater Reporting, the MSC Daniela serves on the 2M Alliance's Asia-Mediterranean AE20/Dragon loop, on which HMM, Hamburg Sud and subsidiary Alianca, and WEC Line all take slots. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCN recognizes 32 customers for sustainability leadership under CN EcoConnexions Partnership Programsource: AJOTMontreal - CN (TSX: CNR) (NYSE: CNI) today recognized 32 of its customers for their sustainability practices that are aligned with the objectives of the CN EcoConnexions program. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESPanama Canal Delegation Meets with Customers and Maritime Organizations in Asiasource: AJOTPanama City, Panama - A Panama Canal delegation, comprised of Administrator Jorge L. Quijano and a Planning and Commercial Development team, met with customers and maritime organizations in Japan, South Korea, China and Taiwan, during a customer tour of Asia—a primary driver of traffic through the Canal. Read more here.NAFTA trade growth continues in Januarysource: Americanshipper.comTotal cross-border trade between the United States, Mexico and Canada jumped 6.7 percent in January 2017, the third straight month of year-over-year increases, according to the Department of Transportation’s Bureau of Transportation Statistics. Read more here.
6 April 2017AIR FREIGHT UPDATESWorld Air Freight Demand Continues To Improvesource: AirWiseGlobal demand for air freight continued to improve in February with an 8.4 percent increase in cargo carried, IATA said in its monthly report. After adjusting for the effect of 2016 being a leap year, demand (in freight tonne km) was up 12 percent, against the five year average of just 3 percent. Read more here.Italy Strike To Affect Air Travelsource: AirWiseAlitalia has cancelled several flights for Wednesday April 5 as a 24 hour national strike was confirmed by unions. The strike by Filt-Cgil, Fit-Cisl, Uiltrasporti, Ugl-Ta, USB and CUB unions will run from midnight on the 4th until midnight on April 5. Two additional unions, ANPAC and ANPAV, have also called a four hour strike from noon to 18:00 on April 5. Read more here.China's newest all-cargo carrier takes to the skiessource: ShippingazetteGunagzhou-based all-cargo start-up, Longhao Airlines, put its first 737-300F into revenue service on a flight between Jiangsu Nantong Xindong Airport (NTG) and Guangzhou Baiyun Airport (CAN) on March 29. The carrier, which has already inked a deal to carry cargo on behalf of Shenzhen-based SF Express Airlines, has ambitious plans to put five freighters into service each year over the next decade, with a target fleet size of 50 aircraft by 2025, the New York's Air Cargo World reported. During a launch ceremony held in Guangzhou, Longhao Airlines president Pei Guo Xiao, said that shortly after Longhao takes redelivery of its second 737F sometime next month, it will launch flights between Quanzhou-Nantong-Tianjin. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESPort of Vancouver USA tonnage breaks the 7 million mark in 2016source: AJOTVancouver, Wash. – For the first time in its 105-year history, the Port of Vancouver USA has recorded more than 7 million metric tons of cargo across its docks. The port recorded 7.49 million metric tons in 2016, nearly eight percent more than the 2015 record of 6.95 million metric tons. Read more here.European Shippers Hold Emergency Meeting over Sea Freight Capacity Crisissource: CIFFAEuropean shippers held an emergency meeting last week over the current ocean freight capacity crisis in which delays of up to eight weeks for eastbound cargo from Europe to Asia are costing exporters existing and future sales. The European Shippers' Council (ESC) said it was asked by representatives of national shippers' councils, as well as by individual export companies, to organize an emergency meeting, adding: "This meeting took place last week and focused on the current situation in the maritime sector: goods to be exported have been waiting for up to eight weeks to be loaded on ships. The present capacity is insufficient to take all shipments." Read more here.Icebergs Disrupt North Atlantic Shippingsource: CIFFAAn unusually large number of icebergs have drifted into the shipping lanes of the North Atlantic in recent weeks, forcing vessels to detour well to the south to avoid danger. Icebergs have even been spotted outside of the Coast Guard's ice navigation warning area, prompting at least one notice to mariners urging additional caution. Read more here.
GROUND AND RAIL UPDATESIsrael Pushes Freight Rail Link To Jordan — And Beyondsource: FastForwardIsrael’s transport minister proposed on Wednesday linking its freight railway network with Jordan and Saudi Arabia and said he presented the idea to President Donald Trump’s Middle East envoy last month. Read more here.
5 April 2017AIR FREIGHT UPDATESHeathrow welcomes new China trade linksource: AirCargoNewsHeathrow Airport has welcomed the extra cargo capacity that a new Boeing 787 Dreamliner China Southern service will bring to the UK-China market. The west London airport said that China Southern's new twice daily service between Heathrow and Guangzhou would increase capacity to the Chinese city to up to 8,760 metric tonnes per year. The city is located 75 miles up the Pearl River bay from Hong Kong, has a strong business market and is home to one of the country's biggest ports. From Guangzhou China Southern offers connections to 120 destinations in China, Japan, Korea, Southeast Asia, Australia and New Zealand.ANTONOV’s new aircraft takes maiden flightsource: AmericanShipperThe new multi-purpose, turboprop aircraft, the AN-132D, took off on its maiden flight March 3. Read more here.Qatar Airways Cargo launches new service to Phnom Penhsource: AmericanShipperThe airline’s new service to Phnom Penh, Cambodia took off Monday with an A330 freighter. Read more here.Alitalia Cancels Flights Ahead of Today's Labour Strikesource: CIFFAItalian national carrier Alitalia has pre-emptively canceled 60 percent of its scheduled flights for April 5 in preparation for a 24-hour strike action called by trade unions. The strike action comes following a March 31 meeting that included Alitalia's incoming and outgoing presidents and several Italian government ministers. Beginning April 6, the parties will begin "nonstop talks" to hammer out a rescue plan for the loss-making airline amenable to the protesting laboor unions. A deadline for the deal is set for April 13, according to Italy's news agency ANSA. Read more in an article from Air Transport World.
OCEAN FREIGHT UPDATESExtra Capacity On Main East-West Trades Set to Calm Shipper Nervessource: Splash247Leading container analyst Alphaliner is claiming that Saturday's start to the new box alliances has gone smoothly, but shippers are not convinced. Read more here.Hamburg Süd is one of the most reliable shipping companies in the worldsource: AJOTFirst place for three months in succession in the SeaIntel Global Liner Performance Report – second place on average for 2016. Read more here.US dock workers fear losing jobs with the advent of automationsource: ShippingazetteUS longshoremen are up in arms over the drive over the last decade by international maritime ports to fully automate operations since their high paying jobs and way of life are at stake. California is on the frontlines in the battle over automation as the ports of Long Beach, Los Angeles and Oakland handle 40 per cent of US container traffic and that number is anticipated to rise now the expanded Panama Canal is in operation. Read more here.Answering Your Questions on Switch Bills of Ladingsource: TheLoadStar“Switching” bills of lading is a very common procedure in international trade, where an issued bill of lading is substituted by a new set called switch bill of lading.During my years within the logistics industry, I have been frequently asked questions along the lines of “can I change the shipper and consignee’s names within a bill of lading?” or “what is a switch bill of lading for?”. Read more here.Shippers hold emergency meeting over sea freight capacity crisissource: LloydsLoadingListEuropean shippers held an emergency meeting last week over the current ocean freight capacity crisis in which delays of up to eight weeks for eastbound cargo from Europe to Asia are costing exporters existing and future sales. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESTrump Executive Orders target unpaid duties, trade deficitssource: AJOTPresident Donald Trump on March 31 issued an executive order aimed at “establishing enhanced collection and enforcement of antidumping and countervailing duties.” Noting that, as of two years ago, $2.3 billion in antidumping and countervailing duties remained uncollected, the order states that the United States will “impose appropriate bonding requirements, based on risk assessments, on entries of articles subject to antidumping and countervailing duties.” Read more here.
4 April 2017AIR FREIGHT UPDATESFreight to be revitalised as LHR unveils £160m blueprint for cargosource: TheLoadStarHeathrow Airport is this week to publish its latest cargo blueprint, outlining its plans for freight, which could see it spend up to £160m, if approved by airlines. The plans include air-to-air transhipments, which should help reduce the time it takes to process the cargo, and an on-airport facility to eliminate the need for transhipments to go through the cargo area or pass through control posts twice. Read more here.
OCEAN FREIGHT UPDATESMOL CEO predicts ‘return to profitability’source: AmericanShipperScheduled to commence operations in April 2018, the integration of Japan’s “Big 3” container lines - MOL, NYK and “K” Line - is a project of “monumental significance,” MOL President and CEO Junichiro Ikeda said in his annual message to employees. Read more here.More shipping lines cut terminal handling charges in Chinasource: AmericanShipperSeven more container shipping lines, including OOCL and ZIM, have offered to cut terminal handling charges in China, the Xinhua News Agency reported. Read more here.FMC provides date for new rule amending service contracts, NSAssource: AmericanShipperThe U.S. maritime regulator said its final rule amending requirements for service contracts and NVOCC service arrangements, announced earlier this month, will become effective May 5, 2017. Read more here.Coalition of shipper, transport groups oppose container taxsource: AmericanShipperThe South Coast Air Quality Management District proposed a tax on container shipments to fund incentives for further reducing ozone levels. Read more here.NAVIS President Urges Terminals and Carriers to Increase Digitizationsource: AJOTBenoit de la Tour, president of maritime software provider Navis, urged port and terminal operation participants at the Navis World 2017 conference in San Francisco to prepare for a major investment in digitization by ocean carriers and global terminal operators. Read more here.Port Saint John Adds Manufacturing Facilitiessource: CIFFAPort Saint John has built a new pier-side modular fabrication facility as a one-stop-shop solution for manufacturing and maintaining large-scale project cargoes. The new-build facility adds to the port's existing offerings to shippers and receivers and was completed on the eve of the Port's $205 million terminal modernization project. Read more here.Singapore's APL sets sail in CMA CGM service with the Ocean Alliancesource: ShippingazetteSINGAPORE's APL, now a unit of French shipping giant CMA CGM, has set sail with the Ocean Alliance, detailing a wide range of services worldwide. First there is the Pacific Gulf Loop 6 (PG6) service bound for Houston from Singapore and the Far East Express 1 (FX1) service to Southampton from Xingang. "It marks a game-changer for APL to navigate as part of the world's largest container shipping alliance," said APL chief executive Nicolas Sartini. The only service that offers a direct connection to the port of Venice from Asia, APL's Adriatic Express (ADX) service promises a 30-day transit from Busan to Venice, starting with the Shanghai-Yangshan on April 6. Transatlantic, APL's Atlantic Gulf (AGX) Service is the only direct connection from Le Havre to Miami with a 17-day transit starting with the first sailing from Le Havre on April 3. APL is one of the world's leading ocean carriers, providing 80 weekly services calling at 160 ports worldwide. Read more here.
GROUND AND RAIL UPDATESThe Domino Effect of the Atlanta Highway Collapsesource: CIFFACan the collapse of one hundred feet of interstate impact an entire country? Yes. This is how it happens. Every region of the United States has its heart of activity. For example, New York City is the heart of a tri-state area with well over 20 million people in it and one interstate, Interstate 95, provides a healthy bulk of the goods and services New Yorkers and their surrounding residents need to function. Read more here.UK rail network revamp guarantees capacity for future freight growthsource: TheLoadStarUK rail freight operators have given up some 50% of their weekly path allocations – an astonishing 4,072 a week – following a two-year review into the industry by freight rail operators and infrastructure manager Network Rail. Read more here.
3 April 2017AIR FREIGHT UPDATESAir cargo growth outpacing trade growth - upward trend continuessource: AJOTRegular followers of market trends know that year-over-year (YoY) comparisons for the early months of the year should be treated with caution, such is the influence of the timing of Chinese New Year on the world’s air cargo flows. Read more here.Shippers Demand Change Within Outdated Air Freight Sectorsource: CIFFACargo owners have lost control of the supply chain and need better visibility and monitoring from an outdated air freight sector. That is among the key messages from a new position paper from TIACA's Shippers' Advisory Committee (SAC), supported by international and European shipper representative groupings the Global Shippers' Forum (GSF) and the European Shippers' Council and published on March 31 in Lloyd's Loading List. Read more here.
Air Canada Cargo Introduces Year-Round Service to Mumbaisource: CIFFAAir Canada Cargo's new year-round direct service to and from Mumbai will start on July 1.Find schedule information here.
OCEAN FREIGHT UPDATESFalling orders, new China paint rules to lead to container shortage: CIMCsource: ShippingazetteCHINA International Marine Containers (CIMC), the world's top container manufacturer, suffered a 50 per cent decline in orders in 2016, producing 587,300 TEU, down from 1.12 million in 2015, raising warnings that container supply may be tight in the second half. Worsening the situation is the introduction of new China regulations, requiring container makers to use water-based paint on their containers from April 1. SeaCube Container Leasing chief operating officer, Bob Sappio, believes this could lead to factories shutting down for up to three months, reported IHS Media. "The waterborne paint regulations in China are causing factories to shut down and reconfigure their production lines in such a way that the drying time is a little longer when applying waterborne paint. When they do reopen, there is a notion that production capacity will be reduced because of the changes in drying time," said MrSappio. He highlighted that shrinking ground inventory, changes in production, and the new paint rules would impact the availability of containers. [Excerpted from the Shippingazette]
GROUND AND RAIL UPDATESCN and TFI strike deal to strengthen Canadian intermodal servicesource: ShippingazetteThe Canadian National Railway and TFI International Inc (formerly TransForce Inc) have renewed their long-term partnership in a bid to expand their domestic intermodal business across Canada and provide more reliable services to their shared customer base. The renewed collaboration aligns Canada's biggest railway, with its transcontinental rail network that reaches the Pacific, Atlantic and Gulf coasts, and Canada's largest trucking company and logistics leader, with a range of services, including truckload, less-than-truckload and package and courier. "Over the last five years, TFI International has grown its operating divisions' presence in the domestic intermodal market and its companies have a combined 100 years of collaboration with CN," said CN vice-president JJ Ruest. [Excerpted from Shippingazette]Truckers strike across southern states set to intensifysource: TheHinduThe strike by truckers across the southern states is set to intensify on Monday if a meeting with the Insurance Regulatory Development Authority of India (IRDAI), scheduled for today afternoon does not result in a compromise. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESProvinces Poised to Sign Historic Canadian Free Trade Agreement in Aprilsource: CIFFACanadian territories and provinces are expected to sign a free trade deal this month that will change the way goods and services are exchanged across the country. "It's the biggest step forward in removing barriers to internal trade in our country in the history of Canada," Manitoba Premier Brian Pallister said Thursday. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESTrudeau Ramps Up Courtship of Xi Amid China Free-Trade Talksource: AJOTPrime Minister Justin Trudeau is doubling down on a push to deepen ties with China, with Canada’s new envoy signaling he can move ahead on a free-trade deal without quickly advancing extradition treaty talks. Former immigration minister John McCallum arrived in mid-March to take his post as Trudeau’s ambassador, and met with Chinese President Xi Jinping within a day of arrival. His message was clear: Trudeau wants even deeper ties than he and Xi had previously committed to. Read more here.
30 March 2017AIR FREIGHT UPDATESAmerican Airlines To Buy China Southern Stakesource: AirWiseAmerican Airlines has agreed to buy a small stake in China Southern Airlines for USD$200 million in a move to improve connections between two of the world’s largest aviation markets. Read more here.
OCEAN FREIGHT UPDATESFMC Commissioner Gives Backing to HMM Alliance 2Msource: Splash247The commissioner of the US Federal Maritime Commission (FMC) has issued a statement of support for the strategic alliance announced between container shipping giants Maersk Line of Denmark, Mediterranean Shipping company (MSC) of Switzerland and Hyundai Merchant Marine (HMM) of South Korea. Read more here.Yang Ming’s Massive Loss Prompts Recapitalisation Concernssource: Splash247With troubled Taiwanese container line Yang Ming Marine Transport reporting a doubling of its net loss for 2016 yesterday, speculation is once again mounting on what the future holds for the world’s eighth largest liner company. Read more here.Cargo Container Trade Expected to Grow in 2017source: AJOTPanelists take questions from the audience at the 13th annual “Pulse of the Ports Peak Season Forecast.“International trade is expected to grow for the U.S. in 2017, as domestic economic conditions improve and the world economy accelerates, an economic forecaster said Wednesday at the Port of Long Beach’s 13th annual “Pulse of the Ports Peak Season Forecast.” Read more here.Republican bill to ban docker union slow-downs debuts in the US Senatesource: ShippingazetteThe Prevent Labour Union Slowdowns (PLUS) bill has been launched on the floor of the US Senate, reports American Shipper. The PLUS Act (S702) is sponsored by Senators Jim Risch, R-Idaho; Mike Crapo, R-Idaho; and David Perdue, R-Ga, and aims to prevent union slowdowns at US ports. Work slowed at US west coast ports in 2014 and 2015 when the International Longshore and Warehouse Union (ILWU) and employers were negotiating a new labour contract. The Pacific Maritime Association, which negotiated the contract with the ILWU, said the ILWU's actions "needlessly brought west coast ports to the brink of gridlock," and temporarily suspended weekend vessel operations in February 2015. The bill would change the National Labour Relations Act, defining a labour slowdown by maritime workers as an unfair practice, and would prevent massive financial damage to the food and other industries. [Excerpted from Shippingazette]
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESA "Hard Brexit" Creates Uncertainty for Canada on What's Next for Tradesource: CIFFAAs the United Kingdom triggers divorce negotiations with the European Union, Canadians are watching closely to see if this split can be amicable. If it's adversarial, and the Brexit terms are harsh, businesses may need to bail quickly or risk getting burned. "This is a question all of our trading partners are asking themselves. And it's an unfortunate effect of them choosing to leave us," said the EU's trade commissioner, Cecilia Malmstrom, in an interview with CBC News last week. Read more here.Too Many "Unknowns" to Identify Brexit Impact on Freight, Says BIFAsource: CIFFAThe trade body that represents the UK's freight forwarding companies said, with "so many unknowns," it was "still too soon to make speculative statements" about Brexit's likely impact on freight and logistics. Read more here.Australian, Chinese premiers talk free trade benefits, protectionist pitfallssource: ShippingazetteAustralian prime minister Malcolm Turnbull and Chinese Premier Li Keqiang, who is in Australia for bilateral talks, have used a series of forums for state and territory leaders and business figures in Sydney to talk up the benefits of free trade and warn against the pitfalls of protectionism. Mr Turnbull praised the wide trading relationship between the two nations while acknowledging the "reliable, valuable and trusted" partnership could be further improved, reported the Australian Associated Press. The Chinese leader said the pursuit of free trade needed to include appropriate oversight. "At the end of the day, the products must satisfy the consumers," he said. "It is my hope that the outcomes of this roundtable meeting will be turned into consensus among the business communities of both countries." [Excerpted from Shippingazette]
29 March 2017AIR FREIGHT UPDATESUPDATE 1-Lufthansa expands Asia network with Cathay Pacific tie-upsource: ReutersLufthansa and Cathay Pacific will sell tickets on some of each other's routes, boosting the German group's Asia-Pacific network and deepening a partnership in which the airlines already cooperate on freight flights. Read more here.
OCEAN FREIGHT UPDATESWorld’s largest containership delivered to MOLsource: LloydsLoadingListMitsui O.S.K. Lines (MOL) has taken delivery of the world’s largest containership, the 20,170 TEU MOL Triumph, which will operate on The Alliance’s Asia-Europe trade from next month and offer 25-30% fuel and emissions savings compared with 14,000 TEU-class containerships. It is the first of a fleet of six 20,000 TEU-class containerships ordered by the Japanese container line from Samsung Heavy Industries, and will be the first 20,000 TEU-class containership deployed in container line consortium The Alliance’s Asia to Europe trade, via its FE2 service. At 400 metres in length and 58.8 metres in width, MOL Triumph will set off on her maiden voyage from Xingang in April 2017 and will sail to Dalian, Qingdao, Shanghai, Ningbo, Hong Kong, Yantian and Singapore. She will then transit through the Suez Canal and continue on to Tangier, Southampton, Hamburg, Rotterdam and Le Havre. She will then call at Tangier and Jebel Ali on the way back to Asia. [Excerpted from Lloyds Loading List]Extra capacity will weaken transpacific carrier hands in contract talkssource: TheLoadstarThe new alliance set up and the launch of three independent services, combined with a weak start to the year for demand on the headhaul, does not augur well for Asia-US west coast annual contract negotiations, according to consultant Drewry. Read more here.EU Port Services Regulation Comes into Forcesource: CIFFAThe European Union (EU) Port Services Regulation (PSR) came into force on March 24, after it was adopted by the European Council earlier this year. EU member states will be required to implement the legislation within two years. Read more here.Port of Antwerp gets biggest malt plant in the worldsource: AJOTThe Boortmalt malting works in Antwerp is being expanded to make it the largest in the world. Its parent company, the French grain cooperative Axéréal, is investing several million euros in its maltery in the Antwerp port area where it also plans to set up an R&D centre for its malt masters. Read more here.
GROUND AND RAIL UPDATESCP Weekly Network Overview -- Week of March 27source: CIFFACanada West Corridor:Rock slides caused a minor derailment on Monday night two miles south of Boston Bar, B.C. CP expected minimal delays to traffic.There are no issues to report in the Canada East Corridor and the South Corridor.
CANADA BUSINESS - GOVERNMENT UPDATESQuebec Cuts Personal, Business Taxes After Balancing Budgetsource: AJOTQuebec will balance its budget for the third straight year, giving Finance Minister Carlos Leitao more room to lower taxes for workers and businesses while increasing spending on transit and health care. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESUK apparel importers 'forgotten' by THE Alliance network plannerssource: LoadstarTHE Alliance appears to have forgotten UK apparel shippers in the reorganisation of its Asia-Europe strings, according to one leading high street retailer. Read more here.
28 March 2017AIR FREIGHT UPDATESCanada Still Studying U.S., U.K. Bans on In-Flight Electronicsource: CBCCanadian security experts are puzzled about why the federal government has yet to announce whether it will follow the United States and United Kingdom in banning most electronic devices from the cabin on certain international flights. Read more here.
OCEAN FREIGHT UPDATESShippers Cry Foul Over April 1 Reshuffle of the Global Container Alliancessource: Splash247April 1 could turn out to be a proper fool’s day for the world’s leading container lines.
Saturday kicks off the new structure of alliances, whereby four groups become three. However, indications are that preparations are not going smoothly. Read more here.Cyclone Closes Ports in Northern Australiasource: CIFFAPorts between Townsville and Abbot Point in Queensland, Australia, have been closed due to fears of flooding and strong tides anticipated from Cyclone Debbie. Abbot Point is a large deepwater coal export terminal and has been closed as a precaution ahead of the cyclone making landfall near Bowen at around 8:00 am on April 28.The Port of Mackay is closed, and the Port of Townsville, Northern Australia's largest general cargo and container port, has declared Condition Red and evacuated all ships. Read more in an article from Port Technology.LA, Long Beach, Oakland ports mull US$35-$100/TEU air pollution taxsource: ShippingazetteA $35 - $100 per TEU tax is being considered at this week's Long Beach's annual "Pulse of the Ports: Peak Season Forecast", reports Modern Materials Handling, of Framingham, Massachusetts. News came in a Pacific Maritime Shipping Association's (PMSA) monthly "West Coast Trade Report," as an alert to shippers that California's South Coast Air Quality Management District (SCAQMD) had proposed two different container taxes through Long Beach, Los Angeles, and Oakland. The state tax is expected to raise $385 million to $1.1 billion under a higher rate of $100 per TEU. Which course the SCAQMD is likely to pursue is uncertain, said the PMSA report. According to PMSA president, John McLaurin, the air district first pitched the $35 per TEU proposal with state legislators in late February. As part of that effort, the SCAQMD noted that the $385 million would be collected every year. [Excerpted from Shippingazette]New costs loom as shipowners brace for EU carbon taxessource: ShippingazetteThe shipping industry is now bracing for rising demands that it cut carbon and sulphur emissions, after the powerless European Parliament voted to include shipping in the European emissions trading scheme (ETS) if the UN's International Maritime Organisation (IMO) fails to have an emission tax in place by 2023. Lowering carbon dioxide emissions from marine fuels will be a more difficult proposition than cutting pollution from sulphur and other unwanted chemicals. Methods like using vessels more efficiently will need to be considered as well as finding cleaner fuels, she said. Said GoodFuels' MsSonneveld: "We believe inclusion in the EU ETS to be an important first step towards low carbon shipping. It will not help to bring the market for marine biofuel to a next level, but in our opinion any kind of progress sends a clear signal - it can be done - to the IMO." [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCN, Duluth Cargo Connect to establish first intermodal container terminal in Twin Portssource: AJOTDULUTH, MN - CN (TSX: CNR) (NYSE: CNI) and Duluth Cargo Connect today announced a new alliance establishing the first rail-served intermodal container ramp in the Twin Ports of Duluth, Minn. and Superior, Wis. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESCargojet applauds federal budget initiativessource: CanadianShipperMISSISSAUGA, Ont.–CargojetInc said it is very pleased with several initiatives announced in the Federal Budget including:
- $152M in new funding to improve security screening at airports that will improve safety for all Canadians.
- The establishment of Innovation Canada, a new platform that will coordinate and simplify the support available to Canada’s innovators and attract further investment and encourage growth in Canada.
- Investments to resolve critical transportation needs in Canada’s north and other support to further benefit Canada’s Indigenous Peoples.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESCanada-Europe Trade Deal Set to Kick In, Mostly, by July 1source: CIFFAProponents of Canada's trade deal with the European Union will soon find out if eight years of negotiations and lobbying were worth it. Canada is preparing to provisionally apply the Comprehensive Economic and Trade Agreement (CETA) by July 1. "We are ready on the European side," the EU's trade commissioner Cecilia Malmstrom said on a visit to Ottawa last Tuesday to promote the deal. Now it's the EU's turn to wait for Canada. Read more here.
27 March 2017Marc Bibeau Reports on Trans-Pacific Maritime Conferencesource: CIFFAMarc Bibeau, President of OEC Overseas Express Consolidators (Canada) Inc., and Past President of CIFFA, recently represented the association at the Trans-Pacific Maritime Conference, from February 26 to March 1, in Long Beach, Calif. Marc compiled a comprehensive report from the event, which is summarized below. His full report is available here (login required).The conference agenda was dynamic, the conference well-attended, and topics presented "truly delved into industry challenges, trends and forecast for the future."There was unprecedented consolidation and contraction in 2016. Industry should expect interruptions and delays going forward, especially as the new alliances set their schedules in early Q2 2017. There are some positive aspects to the consolidation that should result in cost savings for the carriers, in turn providing industry with realistic freight rates.Carriers and industry face a new normal in 2017, as they focus on technology, globalization, market change, consolidation, lowering cost structure, predominantly through automation and digitization, value creation and creating a win-win outcome for shippers and carriers. NYK, MOL and Kline said they will honour contracts as the three merge operations until the new entity begins to operate in April/May 2018. The joint container fleet will have 256 vessels with a capacity of 1.4 million TEUs, plus an order for 360,000 TEUs. It will be the sixth largest liner in the world, with 7% global market share. The alliance will have nine terminals in North America, which will be an integral part of the service and value offering for fully integrated service.The emphasis on cost and the race to the bottom seems to have ended, and the focus moving forward is on integrated services with end-to-end visibility and a truly collaborative approach involving all stakeholders.Carriers say they want sustainable and stable revenue streams with a reasonable ROI. "Living in denial and working below cost levels is not a sustainable model, which manifested itself in the sad demise of Hanjin. If this logic continues to prevail, there will be more casualties added to the list, in the near future. Importers and exporters will suffer lower service levels, higher costs and fewer carrier options," said Bibeau.The message from industry stakeholders is that technology will be a mandatory component in order to stay in the game. Visibility is the key service requirement of all importers and exporters, necessary to operate a fluid supply chain.
AIR FREIGHT UPDATESHawaiian Air Pilots Ratify Contractsource: AirWiseHawaiian Airlines pilots have ratified a new contract due to take effect from April 1, the ALPA union said. The Air Line Pilots Association said 76 percent of the vote approved the contract on a 97 percent turnout. The agreement will run for five years and three months from April 2017 to July 1, 2022. Read more here.
OCEAN FREIGHT UPDATESHapag-Lloyd suffers US$100 million net loss as revenues fall 12pcsource: ShippingazetteGerman shipping giant Hapag-Lloyd suffered a net loss of EUR93.1 million (US$100.5 million) in 2016, drawn from revenues of EUR7.7 billion, which fell 12 per cent.Hapag-Lloyd, the world's fifth biggest container shipping line, also posted a pre-tax (EBITDA) profit of EUR607.4 million in 2016, down 26.9 per cent year on year. [Excerpted from Shippingazette]The containership bounce back: what could possibly go wrong?source: AJOTThe mood buoyant in the containership sector but is the market ignoring the sleeping giant, asks James Frew, senior analyst at Maritime Strategies International.Sentiment in the containership markets is palpably shifting and on the back of the Q1 2017 optimism, a roadmap to headier rates and earnings might take the following course. Read more here.Maersk retreats as Brazil’s Imports Drift Away, Leaving No Containers for Exportssource: TheLoadStarWeak import volumes have left Brazil without the necessary empty containers to fulfil export potential, trapping it in a Catch-22 situation that will hinder long-term economic growth. This is the view of Antonio Dominguez, MD of Maersk Line’s east coast South America cluster, who said carriers could no longer be expected to carry the burden of such inefficiencies. Since 2007, Maersk has invested over $8.5bn in Brazil – on new ships, terminals, in the oil and gas market, and on training – more than three times its investment across the rest of South America. But the carrier appears to have grown increasingly concerned at the country’s slow pace of growth, a trend it expects to continue, forecasting 2017 import growth of less than 1% and flat export volumes.As a result, Mr Dominguez said, carriers would continue to carry the burden of increasing bunker costs and the “extremely” high cost of moving empty equipment into the country. “Imports need to increase significantly before shipping lines can start to think about justifying the cost of bringing new ships to Brazil, and we do not see that happening in 2017,” he continued. Furthermore, Maersk is concerned that if the Brazilian real dips below BRL3-US$1 exchange rate, export competitiveness will be exposed, as will its supply chain inefficiencies and lack of infrastructure.[Excerpted from The Loadstar]Advances in temperature control logistics technologysource: AJOThe Pharma Logistics IQ’s Pharma Sea Freight Working Group final report, issued in December 2016, noted that the main requirement for transporting pharmaceuticals by sea is the availability of reefer boxes where they are needed, not a foregone conclusion. Read more here.
GROUND AND RAIL UPDATESATA Leaders, Professional Drivers Deliver Policy Message to President Trumpsource: AJOTWASHINGTON - Today, members of the American Trucking Associations, along with a contingent of America’s Road Team Captains – ATA’s group of elite professional drivers – visited the White House for a conversation about issues affecting the trucking industry, including health care. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESCN makes the top ten most valuable brandssource: CanadianShipperCN is the only Canadian company to make the top 10 in the world’s 25 most valuable brands analysis for 2017. It is valued at US$3.8 billion, up from 2016’s US$3.4 billion.UPS is the world’s most valuable logistics brand, valued at US$22 billion. Read more here.
24 March 2017AIR FREIGHT UPDATESFrankfurt Ground Staff Agree Wage Dealsource: AirWiseSpanish ground handling company Acciona and the Verdi union that represents 800 ground service workers at Frankfurt Airport have agreed a new tariff deal. Read more here.IATA produces manual to improve air cargo handling, cut logistics costssource: ShippingazetteA CARGO Handling Manual (ICHM) designed to help airlines and cargo handlers work more effectively together, as well as boost the safety and efficiency of air freight operations has been published by the International Air Transport Association (IATA). Global head of cargo at IATA, Glyn Hughes, was quoted as saying: "Cargo operations are performed at thousands of airports, by hundreds of handlers. With that number of parties involved, ensuring that global standards and best practices are being observed at all times is a constant challenge. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESTrump sparks storm over proposed ‘gutting’ of Great Lakes restoration fundingsource: AJOTIn another of his controversial initiatives, President Trump has stirred angry disbelief among US and Canadian municipal and government officials in the Great Lakes/St. Lawrence region inhabited by over 17 million people. The total ‘gutting’ of funding by the Trump Administration for the Great Lakes Restoration Initiative (GLRI) in the proposed 2018 federal budget unveiled late last week has sparked widespread shock in a region surrounded by one of the largest freshwater resources in the world. Read more here.
GROUND AND RAIL UPDATESU.S. Rule Changing Carrier Safety Rating System Yankedsource: CIFFAA proposal to change how the Federal Motor Carrier Safety Administration rates carriers and determines their fitness to operate is being withdrawn. The American Trucking Associations said the decision was a positive step for the agency to improving its Compliance, Safety, Accountability (CSA) system. Read more here.CN strikes a labour deal with signals, communications staff in Canadasource: ShippingazetteCANADIAN National Railway CN has negotiated a tentative agreement with the International Brotherhood of Electrical Workers (IBEW) System Council 11 to renew the labour contract for 700 CN signals and communications employees in Canada. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESFrance's Top Court Questions Constitutionality of CETAsource: CIFFAFollowing a request in February by 153 elected politicians, including 53 MPs, the French Constitutional Court announced that it would delay its decision on the legality of the EU's free trade agreement with Canada. This report threatens the implementation of the deal, which was highly contested throughout the negotiation process. Read more here.Hapag-Lloyd: Flooding in Perusource: AJOTOver the past few weeks the north and central regions of Peru have been severely affected by an abnormal amount of precipitation caused by an unusual warm-water mass sitting off the coast of Peru. Read more here.Mexico’s Top Diplomat Says Nation Can Survive End of Naftasource: AJOTMexico is prepared for the end of the North American Free Trade Agreement if it can’t reach a deal with the U.S. and Canada that benefits all three nations, the country’s top diplomat said. President Enrique Pena Nieto’s administration is committed to keeping North America tariff-free and has set clear limits for what it can accept in negotiations with the U.S., Foreign Relations Minister Luis Videgaray said Thursday in an interview with Bloomberg TV. He added that his strong relationship with Jared Kushner, President Donald Trump’s son-in-law and adviser, is an asset for Mexico going forward. Read more here.TransCanada Granted U.S. Permit for Keystone XL Pipelinesource: AJOTAfter more than 8 years of political haggling over its future and its benefits, the Keystone XL oil pipeline running from Canada to America’s heartland has been approved by President Donald Trump, according to TransCanada Corp. Read more here.
23 March 2017AIR FREIGHT UPDATESEmirates introduces laptop and tablet handling service for US flightssource: AJOTDubai, UAE - Emirates will introduce a new service to enable customers to use their laptops and tablet devices until just before they board their flights to the US. Emirates customers travelling to the US via Dubai will be able to utilise their laptops and tablet devices on the first part of their journeys, and also during transit in Dubai. Read more here.
OCEAN FREIGHT UPDATESFirst of four new cranes starts work at Port of Savannahsource: AJOTThe Port of Savannah has commissioned the first of four new ship-to-shore cranes at Garden City Terminal. Each new crane can lift 65 long tons to a height 152 feet above the dock. Savannah, Ga. - March 22, 2017 -The Georgia Ports Authority has commissioned the first of four new Neo-Panamax ship-to-shore cranes at the Garden City Terminal, bringing its fleet to 23—more cranes than any other U.S. terminal—with three machines yet to come online. “Expanding our capabilities means we are able to grow along with our customers, and adjust to changes in the logistics marketplace, such as increasing vessel sizes,” said GPA Chief Operating Officer Ed McCarthy. Read more here.CMA CGM reshuffles its services from Asia to Indian Sub-Continent West Coastsource: CMA-CGMCMA CGM is glad to announce revamping of dedicated services to Indian Sub-Continent including India West Coast, Pakistan, and Sri Lanka (CIMEX 2N, CIMEX 2CS, and CIMEX 2K) as from mid April 2017 ex Asia. Read more here.
GROUND AND RAIL UPDATESCP okays United Steelworkers tentative contract terms on intermodal staffsource: ShippingazetteCANADIAN Pacific Railway (CP) and the United Steelworkers union Local 1976 have agreed to a tentative five-year contract covering 600 administrative support and intermodal employees in Canada. "This agreement reflects a shared vision for the future success of this company and is an acknowledgement of the important work of our support staff personnel and intermodal employees in writing the next chapter of the CP story," said CP president and CEO Keith Creel. [Excerpted from Shippingazette]
CANADA BUSINESS - GOVERNMENT UPDATESFeedback Requested on Vancouver Fraser Port Authority Infrastructure Projects and Possible GIF Increasesource: CIFFAAs a Vancouver Fraser Port Authority stakeholder, CIFFA has been given the opportunity to provide feedback on 13 priority infrastructure projects identified by the port. CIFFA is requesting feedback from its members on these projects by March 29, so that we can draft an official response to the port. A full description of the projects is available in the information package.Lack of Transport Strategy Threatens Great Lakes-St Lawrence Economysource: CIFFAFuture economic prosperity in the Great Lakes-St. Lawrence Region will require binational integration of freight and passenger transportation systems in the face of unknown impacts from climate change, technology and trade patterns, says a new report released by the Council of the Great Lakes Region (CGLR). Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESUS declares it is not bound by World Trade Organisation rulingssource: ShippingazetteUS PRESIDENT Donald Trump's administration claims that the US isn't bound by decisions made at the World Trade Organisation, Bloomberg News reports. The comments came as Mr Trump's officials outlined a new trade agenda that aims to block unfair practices by foreign countries, said the report. The US plans to defend its "national sovereignty over trade policy", the Office of the US Trade Representative said in an annual document laying out the president's trade agenda. Under the terms of its entry into the WTO, the US didn't abandon its trade rights, according to the document, obtained by Bloomberg News and titled "2017 Trade Policy Agenda". The overarching purpose of the US administration's trade policy will be to "expand trade in a way that is freer and fairer for all Americans," according to the report. [Excerpted from Shippingazette]
21 March 2017AIR FREIGHT UPDATESFinland Airport Dispute Settledsource: AirWiseFinnish aviation services company Airpro and the union representing ground service workers have agreed a deal to settle their pay dispute. Read more here.
OCEAN FREIGHT UPDATESVolume Shippers Set to Benefit from New Alliance Launchessource: CIFFAVolume shippers seeking ocean freight capacity on the Asia to North Europe trade's main corridors are set to benefit from the best transit times, most competition and cheapest rates because that is where the new container shipping alliance structure is focused. Read more here.Cautious optimism at opening of St. Lawrence Seawaysource: AJOTIn balmy weather on the first day of spring, the St. Lawrence Seaway opened its 59th navigation season at its Montreal entrance with a mood of cautious optimism prevailing among US and Canadian Seaway officials, government representatives and marine industry representatives. Read more here.
GROUND AND RAIL UPDATESCN Reaches Tentative Labour Agreement with IBEW Unionsource: CIFFACN announced on Monday afternoon that it has negotiated a tentative agreement with the International Brotherhood of Electrical Workers (IBEW) System Council 11 to renew the labour contract for approximately 700 CN signals and communications employees in Canada. Details of the tentative agreement are being withheld pending ratification by the union's membership. CN expects to hear the results of the IBEW's ratification vote in May.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESEU Makes U.K. Wait for Brexit Talks as Summit Set for April 29source: AJOTThe European Union signaled its intention to keep Theresa May waiting before engaging in negotiations over the U.K.’s exit from the bloc, in an early indication of how the British prime minister will see leverage slipping away as soon as she files for divorce. Read more here.
20 March 2017AIR FREIGHT UPDATESU.S. Cargo Airlines Feel the Pinch of Pilot Shortagessource: CIFFAU.S. regional air cargo carriers say they are concerned that there is no pipeline of trainee pilots to handle future demand. All U.S. airlines, passenger and air cargo, have been affected by a 2013 qualifications rule that requires pilots to have 1,500 flight hours, instead of the previous 250 hours. Read more here.IATA head calls on air freight industry to modernisesource: ShippingazetteThe air freight industry is being urged to adopt modern processes and deliver high quality service, particularly for the e-commerce and pharmaceutical sectors. Speaking at the World Cargo Symposium in Abu Dhabi, the International Air Transport Association's (IATA) director general Alexandre de Juniac told delegates: "Complicated and convoluted paper-based processes that are basically unchanged from the 16th century are still being used in air cargo today. Partnerships are also critical in driving industry transformation, he continued. "Driving change - whether it is to modernise processes or unlock value through innovation - is challenging for a business where global standards are so vital. Air cargo is highly regulated, so governments must be on board with change. We are a complex value chain, so building industry consensus is critical," he said. The IATA head also noted the need to address safety concerns over the shipment of lithium batteries. While industry and government have worked together to put in place regulations so that they can be shipped safely: "The problem is that the regulations are not being enforced. We still see too many examples of abuse including mislabelling of batteries. [Excerpted from Shippingazette]
OCEAN FREIGHT UPDATESFears of another Asia-Europe rates war with launch of mega alliancessource: ShippingazetteThere are concerns that the launch of three new mega shipping alliances on April 1 could trigger another rates war on the Asia-Europe westbound trade, as rivals may compete over expanding their market share. According to data from Alphaliner, the 2M+HMM (including Hamburg Sud), the Ocean Alliance and THE Alliance will offer 17 weekly strings between Asia and North Europe - one more than currently provided by the existing four alliances. Of this extra capacity, Alphaliner reports that HMM will take 6,000 TEU and Hamburg Sud 4,000 TEU, leaving - in theory - 10,000 TEU of available slots to be shared between Maersk and MSC on the new service. Anecdotal reports and contract indices suggest that the container shipping lines have been successful in hiking mid- and long-term rates on the route, and Alphaliner points out that spot rates remain at over US$800 per TEU, compared with the $200 sub-economic levels of a year ago. [Excerpted from Shippingazette]Expanded Panama Canal Welcomes 1000th Neopanamax Vesselsource: AJOTMSC Anzu as it transits the Cocoli Locks (Pacific side), becoming the 1,000th Neopanamax ship to transit the Expanded Canal. Panama City, Panama - Less than nine months after the historic inauguration of the Expanded Canal, the Panama Canal announced today that it has welcomed its 1,000th Neopanamax vessel through the waterway, highlighting the importance of the route and customers’ continued faith in the safe, reliable and efficient service the Canal provides. Read more here.
GROUND AND RAIL UPDATESCN Labour Negotiations Updatesource: CIFFACN has provided an update on the status of its current labour negotiations with the International Brotherhood of Electrical Workers System Council No. 11 (IBEW). The company is continuing to pursue a negotiated settlement with the IBEW, which represents approximately 700 CN signals and communications employees in Canada. The IBEW issued a 72-hour strike notice on Friday night, but the parties remained in negotiations. As of Saturday evening, CN said that it believed a fair agreement could be reached before the strike deadline of 12:01 am Tuesday, March 21. CN has made contingency plans to continue rail operations in the event of a strike and will maintain service to its customers.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESTransport systems face disruption by extreme weather – better risk management is neededsource: AJOTExtreme weather conditions due to climate change pose a new threat to ageing infrastructure. We need to be better prepared, according to a publication by the OECD’s International Transport Forum. The findings of a number of research projects can now be applied worldwide. Read more here.
17 March 2017AIR FREIGHT UPDATESShuster Commends Inclusion of Air Traffic Control Reform in President Trump’s Budget Blueprintsource: AJOTWashington, DC - U.S. Rep. Bill Shuster (R-PA), Chairman of the Transportation and Infrastructure Committee, released the following statement on the release of President Trump’s budget blueprint, which supports shifting the air traffic control (ATC) function of the Federal Aviation Administration (FAA) to an independent, non-governmental organization: “I commend President Trump for his leadership in calling for restructuring the role of the FAA. This budget takes the next step in what our committee produced last year – separating the air traffic control function from the federal government and establishing an independent, not-for-profit organization to provide this service. Read more here.Finnair to Be Hit by Strike at Helsinki Airport Todaysource: CIFFAFinnair has confirmed that it will have to cancel more than 90 of its flights through its home hub of Helsinki Airport today because of a strike at Finland's biggest air gateway. The strike, to be held between 3:00 and 7:00 pm Eastern European Time, does not involve Finnair staff, but is the result of a dispute between the Finnish Aviation Union and Palta, a service sector employer union. Read more here.
OCEAN FREIGHT UPDATESOcean Alliance Says No to Setting Up Alliance Emergency Fund: OOILsource: CIFFAHong Kong's Orient Overseas Container Line (OOCL) has announced that the Ocean Alliance will not follow in the footsteps of rival THE Alliance by setting up an emergency fund in the event a member collapses like Hanjin Shipping. "In the Ocean Alliance, customers look at the four players and are generally aware of their financial sustainability. We don't have an emergency fund, largely because we don't think we need to have one," said chief financial officer Alan Tung of OOCL parent company Orient Overseas (International) Ltd., reported IHS Media. OOCL will launch the Ocean Alliance in three weeks with alliance partners Cosco Shipping Lines, CMA CGM, and Evergreen Line. All but one Ocean Alliance shipping line suffered a loss in 2016, apart from the carrier that hasn't posted its financial results yet. [Excerpted from Shippingazette]Spanish Parliament Defeats Government Plan to Deregulate Hiring of Dock Workerssource: CIFFASpanish lawmakers on Thursday defeated a decree that would deregulate the hiring of dock workers at the county's ports. The proposed reform was fiercely opposed by dockers. Read more here.Port call selections of some shipping alliances are 'illogical': Drewrysource: ShippingazetteThe London-based shipping research and consulting firm, Drewry, has concluded from examining the correlation between carrier terminal ownership and the choice of port calls by shipping alliances that the choice of port call is often not in line with carrier terminal ownership interests. Drewry said it looked at both gateway markets in the Benelux countries, the Southwest Pacific, Southwest and South China/Hong Kong, as well as at transshipment hubs in Southeast Asia, the Mediterranean, the Middle East and Central America/Caribbean, reported American Shipper. As an example, Drewry pointed to ports in Benelux, where it said in its Ports and Terminals Insight report, "The port choices made by the Ocean and THE Alliances correlate very closely to the member lines' terminal interests, but for the 2M, the opposite is true." "What this analysis shows is that individual lines are not entirely in control of their own destinies when it comes to port choices, as partner lines in their alliances may have conflicting port choice preferences and particular idiosyncrasies," Mr Davidson said. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCP and United Steelworkers Local 1976 Reach Tentative Agreementsource: CIFFACanadian Pacific and the United Steelworkers (USW) Local 1976 announced on Thursday that they have reached a tentative five-year labour agreement covering approximately 600 administrative support and intermodal employees in Canada. The current contract expires on December 31, 2017. Details of the tentative agreement are being withheld pending ratification by the USW Local 1976 membership.
16 March 2017AIR FREIGHT UPDATESAir Canada’s Chief Says U.S. Becoming More Competitivesource: AJOTU.S. President Donald Trump’s plans to cut taxes and regulations look more favorable to business than Canadian policies, according to Air Canada’s chief executive officer. Read more here.Lufthansa, Pilot Union Agree Pay Dealsource: AirWiseLufthansa and the VC union have agreed non-binding terms on payments, pensions and employment conditions for pilots at Lufthansa, Lufthansa Cargo and Germanwings. Read more here.Finnair Cancels Flights As Helsinki Workers Strikesource: AirWiseFinnair has cancelled over 90 flights on Friday as ground service workers at Helsinki’s Vantaa Airport strike in support of a pay dispute with a service company. Read more here.Incorrectly Loaded ULDs in the Frame for Damage to Aircraftsource: CIFFAMishandled unit load devices (ULDs) are the second-highest cause of damage to aircraft, and incorrect loading of cargo on an aircraft is reported on average 16 times per day, said a presenter at the IATA World Cargo Symposium this week. Read more here.
OCEAN FREIGHT UPDATESDrewry: New alliance networks - Ocean Alliance has most servicessource: ShippingazetteA COMPARISON of new carrier alliances by shipping consultancy Drewry shows Ocean Alliance has the most services at its disposal with a total of 40 loops spread across seven East-West trades followed by THE Alliance with 32 services and 2M with 25. The alliances compared are the 2M alliance, comprised of Danish Maersk and Swiss Mediterranean Shipping Company (MSC), Ocean Alliance, made up of French CMA CGM, China's COSCO, Taiwanese Evergreen and Hong Kong's Orient Overseas Container Line (OOCL), and THE Alliance, comprised of German Hapag-Lloyd, Taiwanese Yang Ming and three Japanese companies Mitsui O.S.K. Lines (MOL), Nippon Yusen Kaisha (NYK Line) and K Line. With ship deployment details currently unknown, it does not necessarily follow that having the most services will equal the biggest market share on the trade. 2M's lack of numerical advantage in services will in many cases be compensated by operating larger ships, the consultancy further said. 2M also lags behind the other two alliances in the Pacific Southwest and Pacific Northwest. Its 5 PSW calls at Los Angeles-Long Beach and Oakland are well down on the 15 inbound PSW calls from Ocean and 17 from THE Alliance. Similarly, 2M's four weekly PNW port calls are dwarfed by eight from THE Alliance and 11 from Ocean, Drewry said. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESRail Service Outage South of Canadian Border Near Spokane, Wash.source: CIFFAA section of track approximately 20 miles south of the Canadian border has been washed out, causing a suspension of rail operations between Spokane, Washington and Eastport, Idaho. CP advises that it is reviewing options, including detours, but customers will experience some delays for traffic currently moving over this corridor.
CANADA BUSINESS - GOVERNMENT UPDATESUkraine Ratifies Canada-Ukraine Free Trade Dealsource: CIFFAOn March 14, the Ukrainian parliament voted to ratify the free trade agreement between Ukraine and Canada. On the Canadian side, Bill C-31 "An Act to implement the Free Trade Agreement between Canada and Ukraine" has passed second reading in the Senate, and is now being reviewed by the Senate Standing Committee on Foreign Affairs and International Trade. That committee will prepare a report, after which the bill will return to the Senate for a third reading and potential ratification. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESFIATA welcomes 31 new members in Februarysource: AJOTAt least in European parts it feels like spring is starting, but before we are getting in gear for Easter Egg hunting, we are looking forward to the annual FIATA Headquarters’ session in Zurich starting on 31st of March. In addition to meeting old friends and making new ones, our yearly HQ session is a special occasion for members and delegates to exchange information and deliberate on the most important policy issues in our sector. Read more here.BIFA focuses on multiple issues facing freight forwarders at Multimodal 2017source: AJOTOnce again, BIFA – the British International Freight Association – will be exhibiting at the forthcoming Multimodal 2017 exhibition and conference and will use the event to outline some of the work it is doing on behalf of its members that are facing significant challenges to the provision of freight and logistics services for international trade. Read more here.
15 March 2017AIR FREIGHT UPDATESIndia signs new air agreement with the UKsource: ShippingazetteINDIA and the UK recently concluded a new aviation pact which includes the easing of restrictions on the number of scheduled flights between the two countries. "This is great news for both the UK and India and is yet another sign that we are open for business and ready to build new as well as strengthen our existing trade links." He also pointed out that with around two and half million passengers flying direct between the UK and India each year, and 88 scheduled services per week in each direction between the two countries, the agreement opens up even more routes and opportunities. India's Minister for Civil Aviation P Ashok Gajapathi Raju hailed the agreement as good news for "our businesses and tourists." (Excerpted from Shippingazette)Trudeau Airport cancels, delays dozens of flight due to stormy weathersource: CBCAéroports de Montreal is warning all passengers with travel plans on Thursday evening to contact their airline before heading to the airport.Dozens and dozens of flights were cancelled or delayed on Thursday afternoon, after intense, isolated thunderstorms and hail hit the Montreal region. Read more here.
GROUND AND RAIL UPDATESUS Freight Rail Traffic: Carloads Surged while Intermodal Slumpedsource: MarketRealistEvery week, the AAR (Association of American Railroads) publishes North American freight rail data for the previous week. The latest figures are for the week ended March 4, 2017, or the eighth week of the year. Read more here.
Truckers laud legislation to strengthen Canadian vehicle recall processsource: CanadianShipperTORONTO, Ont—The Canadian Trucking Alliance (CTA) is pleased the federal government is adopting the Alliance’s recommendation that Ottawa strengthens how it manages vehicle recalls. Read more here.
ATA Announces First Annual Economic SummitSource: AJOTJuly 20 Event will Gather Experts from Many Industries to Discuss Trends and EconomyArlington, Va. - American Trucking Associations announced it will be hosting the first annual ATA Economic Summit July 20 in Arlington, Va., for its motor carrier and private fleet members. Read more here.
CANADA BUSINESS - GOVERNMENT UPDATESChaos on Quebec roads as winter storm blows insource: MontrealGazetteOne after the other, more than 40 cars crashed into each other on Highway 10 East in the Eastern Townships near Orford, forcing the complete closure of part of the highway Tuesday afternoon as zero visibility and icy roads combined to make the rush hour a nightmare for commuters. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESBrexit Talks Start Might Slip to June in Timing Blow to Maysource: AJOTThe European Union is poised to exert pressure on Britain by stalling the start of formal Brexit talks until June, eroding the time Prime Minister Theresa May has to land a deal. Read more here.
14 March 2017AIR FREIGHT UPDATESThousands Of Flights Cancelled In Northeast USsource: AirWiseAirlines have cancelled thousands of flights as a winter storm bore down on the northeast of the United States, with over a foot (30 cm) of snow forecast. More than 2,000 flights were cancelled Monday, with well over 4,000 to be hit on Tuesday as the northeast braced for a late winter storm. Read more here.Berlin Airports Ground Staff Strike Extendedsource: AirWiseGround services staff at Berlin’s Tegel and Schönefeld airports have extended their strike until Wednesday in an ongoing dispute over pay. Workers walked off the job at 04:00 on Monday and are now due to return on Wednesday at 05:00 local time. Berlin airports warned of severe disruption and that flight restrictions may continue for a time after the strike ends. Read more here.
OCEAN FREIGHT UPDATESPort of Vancouver: Red Lion hotel demolition set for mid-Marchsource: AJOTVancouver, Wash. - Portions of the former Red Lion hotel at the Port of Vancouver USA’s Terminal 1 will come down this month, with work starting as early as March 16. Working daylight hours, Monday through Friday, crews will demolish and remove 113 rooms in the north and west wings. The port expects work to take approximately four weeks. Read more here.Great Lakes/Seaway stakeholders eye infrastructure opportunitiessource: AJOTGreat Lakes/Seaway stakeholders eye infrastructure opportunitiesIf the restoration of the US infrastructure moves forward, the Great Lakes and Saint Lawrence Seaway system stakeholders could be a major beneficiary. While iron ore and grain remain core cargoes of the Great Lakes/St. Lawrence Seaway System, stakeholders in the region’s maritime industry are optimistic that the current political and economic conditions favor continued growth in the breakbulk and project sectors. Read more here.FMC head urges better protection from shipping alliancessource: ShippingazetteUS Federal Maritime Commission Commissioner William Doyle suggests that the collapse of Hanjin Shipping would have been less chaotic if the other members of the shipping alliance had insured against "such a catastrophe to protect all alliance members" given Hanjin was carrying cargo belonging to other alliance members. Speaking on a panel at the 2017 TPM Conference in Long Beach, California, Mr Doyle was cited as saying in a report by the American Journal of Transportation: "Shippers and carriers need to work in the direction of providing safeguards. It is so important that this does not happen again. Companies may fail, but the responsibility lies with everyone, at least to the extent that we do not have the damage that occurred post-Hanjin." "There may be a problem with funding mechanisms associated with catastrophic failure as funds could be subject to creditors' rights in a bankruptcy. That needs to be worked out worldwide however, and by you the private sector. You don't want governments coming in and dictating this fail safe through regulatory means," Mr Doyle said. [Excerpted from Shippingazette]
GROUND AND RAIL UPDATESCP Weekly Network Overview -- Week of March 13source: CIFFACanada East CorridorEnvironment Canada is predicting 15 to 20 cm of snow for the Toronto region today, with up to 35 cm for Oakville and Niagara; 20 to 30 cm is predicted for Montreal through Wednesday.Customers may experience delays of 24 to 48 hours in these regions.Vaughan and Lachine Intermodal Terminal customers may experience delays at the gates and there may be delays to inbound placements and outbound departures.Canada West CorridorNo issuesSouth CorridorExpect heavy snow (10 to 20 cm) in the Northeast U.S. region in the next 24 hours.CN on the road again vowing quick US access for Asianssource: ShippingazetteLED by Canadian National Railway vice president JJ Ruest, a CN team is calling on major Asian shippers and shipping lines to sell cheaper and quicker access to consumer-rich US markets. CN's old boast still stands that landing cargo at Prince Rupert on Canada's northwest coast - versus landing it at LA-Long Beach - will still shave three days off transit to Chicago. Prince Rupert, 750 kilometres north of Vancouver as the crow flies, will have three new quay cranes arrive next month and be fully operational to span 25 boxes by August. This is in addition to six new RTGs, seven new reach stackers, 27 new tractors and trailers. One chronic headache is supplying agri shippers with enough smaller 20-foot TEUs that can take the heavier loads needed to carry farm and forest products rather than the far more abundant 40-foot FEUs that can only carry high volume but light-weight balloon cargo. But the major action is on the Pacific side, where it now dominates the rail sector, surpassing the once-dominant Canadian Pacific in Vancouver in recent years, representing the totality of rail service at Prince Rupert, where Dubai's DP World now runs the marine terminal. These days, more than 30 per cent of Vancouver boxes are US-bound. To handle rising volumes Deltaport will be equipped with eight-wide span cantilever rail-mounted gantry (CRMG) cranes to increase train loading speed as well as two "mega-max" ship-to-shore quay cranes, providing a total of six for the port, as well as six new rubber-tyred gantries (RTG). Now Canada's biggest railway, CN, which started as a collection of bankrupt railways in 1919, whose assets had fallen to the government, thereafter to be a loss maker for most of its life until 1995 when it was privatised. After that, CN expanded into the United States, purchasing Illinois Central Railroad and Wisconsin Central among others and enjoyed continuing growth since. [Excerpted from Shippingazette]
CANADA BUSINESS - GOVERNMENT UPDATESCanadian-made pedestals exported by water route for New York Wheelsource: AJOTAs an example of key pieces being exported by water for a high visibility project in North America, it certainly qualifies. In this particular case, the pieces were Canadian-manufactured. The main transportation service provider was McKeil Marine, a leading tug-and-barge operator based in Hamilton, on Lake Ontario. And the project is the giant New York Wheel under construction on Staten Island. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESBrexit Bulletin: The Battles of Britainsource: AJOTOn Monday, the prime minister won the authority to formally engage with the European Union over Brexit, only for her day to be spoiled by Scottish First Minister Nicola Sturgeon pledging to call a referendum on independence. Read more here.
13 March 2017OCEAN FREIGHT UPDATESLaunch of mega alliances will result in the removal of many port-pairssource: ShippingazetteAHEAD of the April 1 launch of the new Ocean Alliance and THE Alliance, the newly unveiled network coverage shows that on both Asia-Europe and trans-Pacific trade lanes, a significant number of direct port-to-port combinations will be scrapped, SeaIntel data shows. The maritime analyst identified 78 port-pairs that have been removed, with Northeast Asia-Mediterranean is suffering the largest loss of connectivity owing to the launch of the new alliances. In addition to this, the port-pairs that remain in both the current and new alliance networks will see a massive loss in service frequency, with 135 out of 354 remaining port-pairs seeing a decrease in service frequency, according to the analyst. Carrier preparations for the new alliances are creating problems in Europe, where repositioning or withdrawing of vessels has contributed to chronic space shortages on vessels leaving for Asia. This has affected most carriers on the Europe trade, including Japanese liner NYK Line. [Excerpted from Shippingazette]'Economies of scale' may not be answer to box shipping's woessource: ShippingazetteTHE term "economies of scale" is so ubiquitous in container shipping today that its perceived merits are virtually axiomatic. Vessels are getting larger to support greater economies of scale. Ocean carriers are consolidating and collaborating in unprecedented ways in pursuit of greater economies of scale. Increasingly, activity at large US ports is characterized by higher volumes of inbound non-local cargo whose final destination may be hundreds of miles away, sometimes even in another port city. This trend is predicted to intensify in coming years in conjunction not only with the continued deployment of larger container ships in both east-west and north-south trades, but with the perceived inevitability of service consolidation that is expected to follow the current round of ocean carrier merger and acquisition activity and alliance reshuffling. Big ships are here to stay. So too are the nation's large intermodal gateway ports that are so critical to the international flow of goods. But for large ports to continue to be successful, they must resolve the many challenges that have resulted from the very scale that created those challenges and stop trying to be everything to everyone. Ports of all sizes are acutely aware of the near-term challenges that larger vessels represent and, large or small, all ports must continue to make the necessary capital investments, including both dredging and landside improvements, to meet those challenges. Sacrificing service in pursuit of scale is a false choice and a race to the bottom, not a blueprint for future success. Cargo, like water, will always follow the path of least resistance. By focusing on service over scale, productivity over price and overall customer experience over bragging rights, niche ports eliminate many of the unintended negative consequences that economies of scale have forced upon larger ports. [Excerpted from Shippingazette]
CANADA BUSINESS - GOVERNMENT UPDATESCanada Steps Up Campaign Against Possible U.S. Border Taxsource: CIFFACanada stepped up its campaign on Thursday against a possible move by Washington to impose border tariffs, telling the new U.S. commerce chief that such a move would hurt both countries. Canadian Foreign Minister Chrystia Freeland made the comments in a call with U.S. Commerce Secretary Wilbur Ross, her office said in a statement. It was the first time the two had spoken since Ross was confirmed by the U.S. Senate last week. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESManufacturing Jobs May Indeed Be Coming "Home," but Who Will Do Them?source: CIFFAA host of societal and economic trends -- growing trade barriers, volatile exchange rates, and the erosion of labour-cost benefits in places like China -- are pushing more companies to move their overseas manufacturing plants and production closer to large end-user markets. But obstacles to this general movement, known as "nearshoring," remain. Among the most significant: a lack of skilled labour. Read more here.UK and China move closer to creating a free trade dealsource: ShippingazetteCHINA and Britain have pledged to promote free trade and cooperate on building an open world economy amid moves by the two nations to sign a bilateral free trade agreement once the UK leaves the European Union. British Prime Minister Theresa May has been invited by China to attend a major summit on the "One Belt, One Road" initiative to build a new Silk Road, diplomatic sources have told Reuters. [Excerpted from Shippingazette]NAFTA Talks to Start Late This Year, See Big Changes, U.S. Commerce Secretary Sayssource: CIFFANAFTA negotiations will probably start late this year, might take about a year, and will include serious changes that could see the addition of several entire new chapters to reflect the modern digital economy and other developments in the landmark agreement. That's according to U.S. Commerce Secretary Wilbur Ross, tasked by President Donald Trump to assist negotiations. And while the president suggests he simply wants minor tweaks in the arrangement with Canada, his point man foresees substantive changes. Read more here.3D Printing Offers Opportunities for Logistics Providers, but Threatens Spare-Parts Supply Chainsource: CIFFAThe race is on to use 3D printing to produce small-series parts, on demand and on location, for industries from aerospace to automotive. At stake is the shape of a $400 billion market for spare parts manufacturing and logistics. And those changes are not 20, or even 10, years out -- they are happening now. Read more here.
10 March 2017AIR FREIGHT UPDATES24-Hour Ground Staff Strike to Hit Berlin Airports Todaysource: CIFFAGerman trade union Verdi has called for ground staff at Berlin airports Tegel and Schönefeld to strike today. The 24-hour strike, which is scheduled to begin at 4:00 am local time, is expected to have a considerable impact on air traffic to and from Berlin. Airberlin said in a statement that flights may be canceled or delayed on short notice. Exceptions to the cancellations are likely to be long-haul flights. Read more here.
OCEAN FREIGHT UPDATESThe Alliance Unveils Safety Net in Case of Bankruptcy and Final Port Rotationssource: CIFFAThe five member lines of THE Alliance said that they will establish an independent trustee to manage funds to be used if one of the carriers suffers a bankruptcy. Through the contingency plan, the fund will be used to continue alliance operations in the event of insolvency of one or more members of THE Alliance, which comprises Hapag-Lloyd, K Line, Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK Line) and Yang Ming. Read more here.
Scandinavia leading the way in maritime innovationsource: Splash247Having lived in China for many years news that a giant hole was to be blasted in a mountain to allow shits through, avoiding some rough seas, I instinctively imagined that such a project could only be convinced in the People's Republic - a country that has spawned many incredible, jaw dropping engineering feats this century. However, this world-first ship tunnel - the most read story on Splash this week - is not something concocted in Chinae - it is a Norwegian creation. On reflection, I should not have been so surprised. Read more here.
INTERNATIONAL BUSINESS - GOVERNMENT UPDATESUS trade deficit hits 5-yr high while trade gap with China widenssource: ShippingazetteTHE US trade deficit jumped in January to the higest level in nearly five years as a flood of mobile phones and other consumer products widened America's trade gap with China, according to media reports. The deficit in trade of goods and services in the first month of the year widened 9.6 per cent from December to US$48.5 billion for the first expansion in two months. It was the largest monthly gap since a deficit of $50.2 billion in March 2012. Read more here.
9 March 2017AIR FREIGHT UPDATESFrench, Finnish Strikes Trigger Severe Disruptionsource: CIFFAA five-day French air traffic control strike triggered more than 830 flight cancellations in its first two days and, separately, Finnair has warned of considerable disruption on March 10. The walkout by French air traffic controllers, which started March 6, will run until March 10. Read more here.
OCEAN FREIGHT UPDATESInnovative New Shipping Contract Would Limit Cargo No-Shows and Rolloverssource: CIFFAA new contract arrangement for carriers and shippers to arrange ocean freight bookings has been launched. It would, it is claimed, dramatically limit no-shows by shippers and rollovers by carriers, and could eliminate some of the $23 billion extra costs incurred annually by the industry. Read more here.FMC Relaxes Rules on NVOCC Service Agreementssource: CIFFAThe U.S. Federal Maritime Commission has decided to revise rules pertaining to service contracts and non-vessel operating common carrier service agreements, as it seeks to streamline regulatory costs for ocean shipping businesses. "The commission examined regulatory requirements for service contracts and NVOCC service arrangements in light of current commercial practice and has eliminated a number of burdensome regulatory requirements that served as obstacles to efficient ocean transportation arrangements, added unnecessary transactional costs, and served no regulatory purpose," said FMC acting chairman Michael Khouri. Read more here.
The Alliance announces completed product and unveils unique contingency plansource: AJOTTHE Alliance announced its final network after all needed preparations have been finalized. The product starting from April 2017 features fast transit times, a comprehensive port coverage and deployment of modern and most efficient ships. This is thanks to the “best ship for the loop principle” and a dedicated shuttle service design. More than 240 ships will be deployed in 32 services connecting over 75 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Sub Continent and the Middle East with a wide range of direct port-port-connections. Read more here.Port of Long Beach cargo declines during Lunar New Yearsource: AJOTDockworkers move containers at the Port of Long Beach’s Pier J in February 2017.Reduced economic activity in Asia associated with the Lunar New Year contributed to lower February container volumes at the Port of Long Beach. Overall, traffic totaled 498,311 twenty-foot equivalent units (TEUs), a decline of 11.2 percent compared to the same month last year, the highest-volume February in Port history. Cargo in February 2015 ballooned 35.9 percent year-over-year. Read more here.Major carriers cut terminal handling charges in Chinasource: ShippingazetteELEVEN major international shipping lines serving the trade to and from China are to modify their Terminal Handling Charges (THC) in the wake of a report titled ''THC Investigation Conclusion'' released by the Chinese Ministry of Communications, according to a statement from Japan International Freight Forwarders Association Inc. (JIFFA). "The report concluded that the terminal handling charge is in nature a component of international container transport freight and hence should be folded into freight rates or collected from the party that pays freight," the JIFFA statement said. [Excerpted from Shippingazette]Panama Canal's new locks too small for safe passage: reportsource: ShippingazetteSEVEN months since the opening of the expanded Panama Canal, the narrow width of the canal continues to pose a serious problem for ships of up to 13,000 TEU, as well for the tugs that guide them through the expanded third lane. London-based risk management consultancy PGI Intelligence in July 2016 published a report warning of "considerable safety concerns" with the canal expansion that could lead to accidents and delays for shippers and higher claims for insurers. According to the report, at 427 metres long and 55 metres wide, the new locks are still too small for neo-Panamax ships. Since the expansion's opening in late June 2016, two per cent of vessel transits (15 of a total 700) have resulted in incidents that damaged the ship or the canal locks themselves, according to data from the Panama Canal Authority (ACP). [Excerpted from Shippingazette]Check the terminal choices before you pick your carrier, shippers advisedsource: TheLoadStarAs the new alliance route networks finally begin to take shape – less than a month before they launch – a major US shipper urged his peers to check carriers’ terminal selection as an important criteria when choosing liner services for the next year.At last week’s TPM event in Long Beach, Chris Corrado, vice president of supply chain at medical supplies manufacturer Ansell, told delegates the firm had just completed its annual tender process and had been scoring carriers on their terminal selection. Read more here.Good Morning Vietnamsource: LloydsLoadingListVietnam took a large step forwards in its container shipping development last month, when Maersk Line trialled a call by one of its flagship 18,000 teu Triple-E class units sailing back from North Europe. The call at CaiMep International Terminal (CMIT), partly owned by Maersk’s sister company APM Terminals, by the Margrethe Maersk on 20-21 February made it the largest containership to ever stop in Vietnam, and the Danish company has suggested that it is seriously considering making CMIT a regular haunt of the Triple-Es.The Maersk ship was less than full as it was travelling on the weaker backhaul voyage, but Vietnam is no stranger to handling big ships, which have been arriving with greater frequency over the past two years. At present, the largest containership serving Vietnam on a consistent basis is the 15,000 teuSalahuddin from UASC on the Ocean Three alliance’s Asia-Europe FAL23 service, which started calling CMIT in October 2015. Since then more Asia-Europe and Transpacific connections (along with numerous Intra-Asia services) have been added as carriers have sought to take advantage of one of the world’s fastest-growing container markets.[ Excerpted from Lloyds Loading List]
8 March 2017AIR FREIGHT UPDATESPassenger Traffic Growth Strongest For Five Yearssource: AirWiseGlobal passenger traffic for January showed the strongest growth in demand for five years, IATA said in its monthly report. Read more here.IATA urges President Trump to help US aviation industrysource: ShippingazetteTHE director general and chief executive of the International Aviation Transport Association (IATA), Alexandre de Juniac, has called on the Trump administration to reduce the tax burden on aviation and air travellers, and to adopt a new approach to the provision of air traffic services. "Our world has grown much wealthier through trade and travel. Air travel liberates people to live better lives and makes our world a better place," Mr de Juniac told the US Chamber of Commerce 2017 Aviation Summit this week. "The US is falling behind in the introduction of new and more efficient technology. Now is the time to move forward with innovation in the provision of air traffic services. IATA supports the creation of an independent, corporatised non-profit entity to manage US skies. IATA hopes that this will be one of the achievements of the Trump Administration and the 115th Congress." [Excerpted from Shippingazette]