Newsletter – May 25, 2018
Once written off as dead, 747s come back as freighters
BOOMING trade is stoking the need for big, long-range jets to haul time-sensitive goods, from Apple iPhones made in China to fresh flowers grown in Latin America, reports Bloomberg.
Delta and United held tearful farewells mark the end of the famous 747s, just when cargo carriers were snapping them up if they could find any. Read more here.
OCEAN FREIGHT UPDATES
Container shipping faces $10bn hit from higher oil prices
Container shipping executives have called for the supply chain to share the burden of rising fuel costs, which they describe as an economic hit of the value of $10 billion, with carriers saying there is little scope for further deceleration of vessel speeds – seen as the ‘last resort’ for carriers. Read more here.
Maersk slates exclusive new service between Montreal and Mediterranean
Already a major player on container services between Montreal and Northern Europe, Maersk has announced an exclusive weekly service with the Mediterranean to cater to rising demands of importers and exporters on both sides of the Atlantic. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Trucking companies raise driver pay to mitigate turnover
Trucking companies already struggling in such a tight capacity market can’t afford high driver turnover rates, which are above 90%. Earlier this week, Truckonomics CEO Myron Manuirirangi told FreightWaves that the only way to retain drivers in the current market is to pay them more. Read more here.
Brazil close to paralysis as truckers press on with strike
Brasilia, May 25 The Brazilian government and transport unions struck a deal late yesterday to halt for 15 days a nationwide truckers’ strike that has caused severe shortages of fuel and food in some areas. Read more here.
Egypt to build railway line as alternative to Suez Canal
Egypt has announced plans to build a railway line offering an alternative to the Suez Canal. The line will connect the Port of Alexandria and Damietta on the Mediterranean coast to the Port of Nuweiba on the Red Sea. It will be the first land bridge between the Meditarranian and Red Sea, as well as a new railway connection between North Africa and the Arab Peninsula. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Morgan Stanley says NAFTA risks still lie in Mexican peso
MEXICO’s peso and Canada’s dollar are vulnerable to short-term weakness as talks drag on to salvage the North American Free Trade Agreement (NAFTA), with big swings only likely if a deal is reached quickly or the accord is scrapped altogether, according to Morgan Stanley.
Mexico’s currency could drop 10 per cent if the deal is terminated, strategists including Michael Zezas wrote in a note, reported the American Journal of Transportation. Read more here.
CBP exploring ‘known shipper’ e-commerce concept
U.S. Customs and Border Protection (CBP) is exploring a sort of “known shipper” approach for according trade-processing benefits to e-commerce “partners in compliance” as well as for holding transacting parties accountable for low-value shipment violations, CBP Commissioner Kevin McAleenan said Tuesday during the U.S. Chamber of Commerce’s Sixth Annual Global Supply Chain Summit. Read more here.