Newsletter – June 21, 2018
AIR FREIGHT UPDATESAir cargo braces for the impact of trade tariffssource: aircargonews.netThe introduction of trade tariffs is set to hit the air cargo industry, despite the possibility of an initial boost.Reports have suggested that the various trade tariffs that have been introduced over the last few months could result in a rush to transport goods before they come into force, with airfreight the main benefactor. Read more here.
OCEAN FREIGHT UPDATESMSC to axe prestigious Eagle service as pressure grows on transpacific ratessource:theloadstar.co.ukThe world’s two biggest container lines, Maersk Line and MSC, are closing a number of services on their networks in an attempt to plug losses and regain profitability in the final half of the year. Read more here.
Cosco offers US authorities Long Beachsource: splash247.com
The Wall Street Journal is reporting China’s state-run shipping giant Cosco has offered a solution to American authorities to ease concerns aabout it’s takeover of Hong Kong containerline, OOCL. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATESView from the Top Panel Identifies Lack of Transparency as Key Issue in Supply Chainsource: CIFFAJOC held its Canada Trade Conference June 18 to 20 in downtown Toronto. CIFFA attended and several CIFFA members were key participants in panel discussions.On June 20, a morning panel, “View from the Top: A Conversation with Industry Leaders,” featured CIFFA Director Marc Bibeau among the panelists.Moderated by Journal of Commerce Executive Editor Mark Szakonyi, visibility, or lack thereof, emerged as a key theme for the panel. CN’s Interim President and CEO, Jean-Jacques Ruest, said that the railway would like to have more visibility into “the workload coming at us, i.e. from the last port in Asia, so we can start to prepare.”Peter Xotta, Vice-President of Planning and Operations at the Port of Vancouver, said that the port has invested in technology to capture data from container trucks, with an aim to share the data and to see what identifies as a need on the infrastructure side. The Port of Vancouver is also involved in a supply chain visibility project that will capture cycle times for all commodities.“What’s emerging is that some of the most vocal critics (of a lack of transparency) are the most reluctant to be transparent,” Xotta said.Marc Bibeau, President and CEO, OEC Group, said that the transportation and logistics industry today is about end-to-end delivery with complete visibility, not just about one piece of the chain. Stakeholders need to “collaborate with action. Pointing fingers doesn’t help. Why don’t we start making change?” he said.All the panelists agreed that disruption would always be a given, but communicating in advance around how to handle and prepare for disruption is key to the industry’s fluidity.“Disruption is very costly. How will we handle recovery? The key is to have that discussion early, not in the middle of it,” said Eric Waltz, President, GCT Canada.The promise of technology in aiding transparency was also a key theme. Jack Mahoney, President, Maersk Line Canada, noted that “Maersk is really excited about blockchain; we expect it to remove some of the waste that exists in shipping. Waste is a cost that everybody is paying for,” he said.