Newsletter – May 8, 2019
AIR FREIGHT UPDATES
Adidas turns to airfreight to mitigate supply chain shortages
Sportswear giant Adidas is turning to airfreight as it looks to mitigate supply chain shortages caused by an unexpected increase in demand for certain products.
In its first-quarter results, the Germany-headquartered multinational said that revenue growth during the first three months of the year was affected by product shortages. Read more here.
OCEAN FREIGHT UPDATES
BCMEA Update: ILWU – Canada Strike Vote Today and Tomorrow
The B.C. Maritime Employers Association yesterday provided notification that, over the course of two days, today and Thursday, the International Longshore and Warehouse Union – Canada is planning a strike vote and all Locals have been directed to take a “yes vote.”
BCMEA presumes that ILWU – Canada will receive a majority “yes vote” for its strike mandate; however, such an outcome does not mean that the Union will exercise its right to strike.
A strike could occur only if the Union:
•receives a mandate to strike;
•chooses to exercise that mandate within 60 days of obtaining it; and
•provides 72-hour strike notice.
BCMEA remains cautiously optimistic that the two sides will come to an agreement, as the Federal Mediation and Conciliation Service (FMCS) is in the process of scheduling further dates.
Carriers meeting resistance to fuel surcharges
Beneficial cargo owners are pushing back against the introduction of bunker adjustment factors designed to alleviate the increased cost of fuel after the January 2020 emission rule change takes effect, according to analysts at Platts. Read more here.
MSC charters more box ships to stand in for those being fitted with scrubbers
Containership owner Global Ship Lease (GSL) has announced the five-year charters of two sister 8,667 teu post-panamax vessels to MSC. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Mixed signals on US-China tariff war
The threat in the last few days of new US tariffs on goods imported from China has raised new concerns among US importeres and their logistics representatives and caused many shipping and other stock market values to fall. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Capacity challenges facing supply chains are disruptive
Ottawa, ON — Becoming a shipper of choice is no longer a choice, particularly during what the executive of one of Canada’s largest shippers calls “some of the most disruptive times I’ve ever seen.” Read more here.