Newsletter – May 15, 2020
AIR FREIGHT UPDATES
PPE fuelling air freight congestion in China and Europelloydsloadinglist.comThe huge demand for PPE, face masks and other medical equipment that has been driving air freight demand from China, and looks set to persist for several more months, is contributing to congestion at Chinese and European airports, exacerbated by limited capacity and strict new Chinese export controls. Read more here.
Enhanced All-Cargo Screening Requirementsciffa.comIn today’s rapidly changing environment, many of the airline carriers are overhauling their businesses and their planes, retrofitting PAX aircraft to all-cargo flights. It is important to note that Transport Canada has confirmed that the uplift requirements, with respect to the Air Cargo Security regulations (known consignor), apply only to passenger flights, not all-cargo operations. The requirement for additional screening measures for all-cargo operations is not scheduled to come into force until February 1, 2021.
Cargo demand pushes Delta to reignite Europe passenger servicesaircargonews.netDelta Air Lines said that demand for its cargo services has driven it to bring back passenger services from the US to Germany and the UK.From May 21, three times per week, Delta will operate flights to Frankfurt and London from Atlanta and Detroit. The flights will transport cargo in the bellyhold and will also be available for customer travel – for the first time since the coronavirus outbreak. Read more here.
China lifts restrictions on all-cargo operations in Beijingaircargonews.netChina’s civil aviation regulator will now allow carriers to operate all-cargo flights at Beijing’s two airports, lifting restrictions that only allowed them to pick one of the two.On May 14, the Civil Aviation Administration of China (CAAC) stated that effective immediately, carriers could operate such flights at both Beijing Capital and Beijing Daxing airports. Read more here.
OCEAN FREIGHT UPDATES
IMF develops real-time intel on container, tanker, bulker movesfreightwaves.comThe modern history of global trade will be divided into B.C. and A.C. — before-corona and after-corona. What happened B.C. might as well have occurred in an alternate universe and the pace of change A.C. is so frenetic that even one-month-old data has lost much of its value. Read more here.
Yang Ming reports $27 million lossfreightwaves.com]Yang Ming Marine Transport Corp. reported a first-quarter net loss of more than $27 million on Thursday as it faced criticism for receiving government aid during the coronavirus crisis.The last sentence of the Taiwanese carrier’s press release states that “several [economic] stimulus or bailout [packages have] been revealed by the government to support the shipping industry as it weathers the pandemic impact.” Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Canada, U.S. Working on Extending Border Closure Agreement until June 21: Officialglobalnews.caCanada and the United States appear likely to extend a ban on non-essential travel until June 21 amid the coronavirus pandemic, a Canadian government source and a top U.S. official said on Wednesday.“It’s too early to lift the restrictions, so we’re working toward an extension,” said one Canadian government source, describing the talks with Washington as positive. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Mexico aims to restart critical factories and supply chains by Mondayfreightwaves.comMexican President Andrés Manuel López Obrador announced on Wednesday morning a plan for the “gradual” resumption of economic activities.The plan includes restarting factories in the automotive, mining and construction industries by as early as Monday. Other parts of Mexico’s economy and social systems — such as public schools — could reopen by June 1. Read more here.
Oil climbs with demand uptick and Saudi cuts hinting at recoveryajot.comOil advanced as the combination of an uptick in demand and Saudi Arabia’s pledged production cuts spurred optimism over a market recovery.Futures in New York gained as much as 6.8% on Tuesday and are set to close at the highest level in five weeks. Pockets of demand are starting to emerge in India and China and, while a huge glut remains, the increase in global stockpiles is slowing. Read more here.