Newsletter – May 20, 2020
AIR FREIGHT UPDATES
Airport congestion slowing the growth of China outbound cargo capacitylloydsloadinglist.comAirport congestion is slowing the growth of China’s outbound air capacity, with demand ex-China remaining very strong even after the end of China’s early May holiday period.According to the latest air freight market update today from forwarding and logistics group Agility, based on data from Seabury Consulting, the airports most affected by congestion are Shanghai Pudong International Airport (PVG) and Chongqing Jiangbei International Airport (CKG), with other Asian airports not as severely affected. Read more here.
Top 20 cargo airports: Hong Kong tops the list but demand down overallaircargonews.netHong Kong International Airport (HKIA) maintained its position as the world’s busiest cargo airport last year, but challenging market conditions led to an overall decline in demand at the top 20 hubs (full list below).Statistics from Airports Council International (ACI) show that the top 20 cargo airports saw their cargo volumes decline by 3.9% year on year in 2019 as they handled a combined 48m metric tonnes of cargo. Read more here.
US airlines add June capacity as passenger bookings inch backfreightwaves.comAirlines are beginning to show small signs that they’ve escaped the market’s rock bottom and are attracting more customers as states begin easing coronavirus stay-home orders.The flickers of returning passenger demand are leading them to add back some capacity into their networks. The additional flights also will help shippers that need air transport for their goods. Read more here.
OCEAN FREIGHT UPDATES
Liners start to reinsert servicessplash247.comLiners appear to have reached peak blank sailing for the time being. THE Alliance, which features Hapag-Lloyd, HMM, ONE and Yang Ming, is now reinserting two sailings on the transpacific which had previously been cancelled. This follows last week where THE Alliance also reinserted four previously cancelled sailings on the Asia-Mediterranean tradelane. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
U.S. mulls paying companies, tax breaks to pull supply chains from Chinareuters.comWASHINGTON (Reuters) – U.S. lawmakers and officials are crafting proposals to push American companies to move operations or key suppliers out of China that include tax breaks, new rules, and carefully structured subsidies.Interviews with a dozen current and former government officials, industry executives and members of Congress show widespread discussions underway – including the idea of a “reshoring fund” originally stocked with $25 billion – to encourage U.S. companies to drastically revamp their relationship with China. Read more here.
Deloitte Economic Recovery Dashboardciffa.comDeloitte’s new COVID-19: Economic recovery dashboard monitors the health, social, financial and economic activity that will signal when a recovery is coming. It’s available to anyone seeking a real-time, full-picture view of the country’s situation as businesses, governments and others continue to respond to the current global health crisis. Read more here.
Inventory repositioning, consumer behavior to spur US warehouse demand, CBRE saysfreightwaves.comA surge in domestic inventory could spur demand for U.S. logistics warehousing space as businesses reshore their overseas manufacturing and ongoing social distancing behavior by U.S. consumers continues to drive e-commerce demand, a report by real estate services giant CBRE (NYSE:CBRE) said Tuesday. Read more here.