Newsletter – February 21, 2020
AIR FREIGHT UPDATES
Hong Kong Airlines Fires Workers As Financial Worries Growsimpleflying.comHong Kong Airlines has started to let workers go after a brutal few months of poor performance. Thanks to prolonged unrest in Hong Kong followed by the restriction of flights due to the coronavirus, the startup airline has been unable to recover from its financial peril. Read more here.
Hong Kong airport unveils HK$1.6 billion package to support industry buckling under coronavirus outbreak, anti-government protestsscmp.comHong Kong International Airport (HKIA) has said it will offer HK$1.6 billion (US$205 million) worth of concessions to help the aviation industry ride out the coronavirus crisis, with airlines set to directly benefit from lower fees and rental charges for the first time. Read more here.
OCEAN FREIGHT UPDATES
Commentary: Coronavirus will significantly impact US container imports in Marchfreightwaves.comContainer imports into the 10 largest U.S. ports dropped 4.1% in January, a reprieve from December’s 12.5% decline and November’s 6.5% decline. These recent downturns are driven by China tariffs. Read more here.
Spot rates hold fairly steady as carriers get ready to surcharge
Container spot rates from China fell slightly this week, as carriers decided it was futile to discount cargo that is currently unavailable.
Moreover, container lines are receiving numerous booking enquiries for the end of March onwards and are understood to be considering a peak season surcharge (PSS) from 1 April. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Canadian rail blockade holds steady and prompts first vessel diversiontheloadstar.comThe ongoing blockade of tracks of Canadian National Rail (CN) has caused the first diversion of a container service south of the Canadian border, and a second one may follow.Atlantic Container Line (ACL) is avoiding the port of Halifax, discharging containers headed for the Canadian gateway at US ports instead. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
2020 Supply Chain Trendsfreightwaves.comFreighWaves partnered with TriumphPay to produce an infographic exploring 5 supply chain trends to watch in 2020. See the infographic here.