Newsletter – February 20, 2020
AIR FREIGHT UPDATES
Boeing Wants Tax Breaks Suspended Amid US-EU Trade Disputesimpleflying.comThe long-running trade dispute between the EU and the US has taken another turn this week as Boeing has reportedly asked for its tax breaks to be removed. The tax breaks, worth an estimated $1bn to Boeing since 2004, could be suspended in a bid to prevent the EU from slapping retaliatory tariffs on imported US goods. Read more here.
OCEAN FREIGHT UPDATES
Hapag-Lloyd full-year earnings leap $384 millionfreightwaves.comHapag-Lloyd said Wednesday it had improved its year-over-year operating results by a whopping 80%.Hapag-Lloyd’s earnings before interest and taxes (EBIT) for 2019 “significantly increased” to 811 million euros (US$908 million) from 444 million euros ($524 million) in 2018, according to preliminary figures released Wednesday. Read more here.
Carriers have pulled 1.67m teu of capacity out of China, costing $1.5bntheloadstar.comOcean carriers have withdrawn more than 1.67m teu of export capacity from China since the lunar new year holiday, according to an Alphaliner survey.Based on an average freight rate of $1,000 per teu, the cumulative revenue lost to the carriers will have exceeded $1.5bn, putting some of the less-financially secure container lines at risk. Read more here.
DP World returns to private ownershipcanadianshipper.comDubai – DP World, the Nasdaq Dubai-listed company that operates several major Canadian port facilities is planning to return to private ownership as part of its refocused global business strategy. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
China starts getting its logistics back on the move – but in a low geartheloadstar.comSupply chain disruption in China is easing alongside an apparent slowdown in the spread of the coronavirus.However, more congestion and capacity shortages are still expected. Read more here.
Police investigate after truck drives through protester blockade in Canadafreightwaves.comThe Royal Canadian Mounted Police is investigating after a semi-truck drove through a temporary roadblock in Manitoba and possibly struck a demonstrator as tensions and supply chain disruptions intensified in Canada from protests over a proposed gas pipeline. Read more here.
Metric of the Month: Mitigating Expedited Costs in Logisticssdcexec.comIn this article, we break down what organizations spend on expediting orders and focus on strategies that can help keep expedited logistics costs under control. Read more here.
Amazon drops more logistics providers, citing safety, performance issuesfreightwaves.comThousands of delivery drivers across the country who work for small and medium-size logistics companies that contract with Amazon.com found out in mid-February they may lose their jobs in April, though Amazon said they will have opportunities for other positions with its partners. Read more here.