Newsletter – February 22, 2018
AIR FREIGHT UPDATESAir cargo infrastructure in crisis as it faces a perfect stormsource: theloadstar.co.ukThe air cargo industry is facing serious challenges as it struggles to keep surging volumes flowing through its airports. Not only are many airports operating close to capacity, but many of the existing facilities are ill-suited to the requirements of modern cargo traffic. Read more here (login required).
January high for Hong Kong’s cargo volumessource: aircargonews.netHong Kong International Airport (HKIA) recorded strong growth in cargo traffic in January, with freight throughput of 410,000 tonnes representing a 9.9% year-on-year increase over the same month of 2017.Transhipment traffic was up by 14% year-on-year, while imports rose by 10%. Read more here.
OCEAN FREIGHT UPDATESIs HMM ready to go it alone between Asia and North Europe?source: theloadstar.co.ukA spokesperson for Hyundai Merchant Marine (HMM) has told The Loadstar that the carrier is “still reviewing” the launch of its new Asia – North Europe (AEX) express service slated to start in early April. Read more here (login required).
Analysis – declining cash levels could lead Maersk on a $5bn new equity questsource: thelodstar.co.ukI have been thinking a lot about the cash and liquidity profile of Denmark’s AP Møller-Maersk Group (APMM) since its annual results were released earlier this month. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATESTrucking Companies Plan Wait-Time Charges to Counter Congestion Woes in Montrealsource: CIFFASeveral Montreal-based CIFFA members have brought concerns to the association about container cartage issues at the Port of Montreal.Wait time, congestion and terminal dwell have been an ongoing issue this winter at the port.For the last few months, but most severely in the last few weeks, CIFFA has been hearing from members and from trucking companies about “above-average delays at all terminals on the Island of Montreal.”Weather has been a contributing factor, along with road repairs across the city, according to some members. But the situation appears to have gotten worse.One member has reported that container cartage carriers are now working together in order to increase their charges to compensate for the waiting time in the terminals and the daily traffic congestion.Some trucking companies have advised their forwarders that, as of March 1st, they will start charging for waiting time in the terminal after one hour. Some are putting in place a congestion surcharge per container for each pickup or delivery.In some cases, there has been a doubling of delivery charges or extra charges for container drops for local delivery, not seen before.Pre-pull surcharges are also being applied in some cases.If truckers start applying additional surcharges, many forwarders have indicated they have little choice but to recover costs by adding on to drayage charges.CIFFA has requested an update and statement from the Port of Montreal and will keep members apprised of any new information.The Port Authority plans to start construction on a new container terminal in the South Shore town of Contrecœur in 2020. The initial phase is scheduled to be completed by 2023.The new terminal will increase the container capacity of the port by a third, in anticipation of future needs. The port’s current growth rate is pegged at 3.9%, but traffic has grown faster than that over the past two years, the port’s vice-president of operations, Daniel Dagenais, told the Montreal Gazette recently.The Port of Montreal can currently handle the equivalent of 2.1 million containers a year; the new terminal will add 1.15 million containers to that capacity.