Newsletter – July 6, 2018
AIR FREIGHT UPDATES
Few clear signs of tariff-related freight surge
Air freight volumes and rates ex-Asia were given little support ahead of new US import tariffs, which will be enforced by the Trump administration on Chinese exports to the US from today onwards. Read more here.
Acute pilot shortage and fewer available freighters likely to drive faster drone adoption
Drones may be hauling cargo in the air much sooner than widely expected.
The worsening shortage of pilots and concerns about available freighter capacity down the road are adding a sense of urgency to the deployment of drones to fill the gaps. Read more here
OCEAN FREIGHT UPDATES
Higher ocean freight rates expected from H2
Assuming an escalating trade war does not further slow container demand growth, investment analyst Jefferies still anticipates an ‘inflection point’ from the second half (H2) of 2018 in which capacity growth slows to 4% later this year, 3% next year, and 2% in 2020 – “likely leading to higher freight rates”. Read more here (login required).
Yang Ming opts for greener containerships as it renews its charter fleet
Taiwanese ocean carrier Yang Ming has signed long-term charter agreements for five 11,000teu and five 12,000teu newbuild ships for delivery between 2020 and 2021. Read more here (login required).
Cosco to sell OOIL shares to strategic investors
China Cosco Shipping Holdings has entered into sale and purchase agreements with three strategic investors for the proposed sale of up to 15.% equity shares of OOIL, the parent company of Hong Kong containerline OOIL within Hong Kong Stock Exchange guidelines whereby no single entity can control more than 75% of a listed company. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
US tariffs unlikely to mean big changes in supply chains: experts
THREATENED US tariffs on the China trade are unlikely to mean big changes in American supply chains, say experts attending the recent Connections 2018 shipping conference in White Sulphur Springs, West Virginia.
‘It may have a little impact, but I don’t think it will have a big impact,’ Jon Slangerup, chairman and CEO of American Global Logistics, told delegates, reports IHS Media. Read more here.