Newsletter – November 23, 2017
AIR FREIGHT UPDATES
E-commerce drives up air cargo demand, leading to tight space, higher rates
DEMAND for air cargo is being propelled by cross-border e-commerce and high levels of emergency shipments, leaving shippers scrambling for space on aircraft and paying higher freight rates as strong volume in Asia-Europe and Asia-North America trades quickly fills up available capacity. Read more here.
OCEAN FREIGHT UPDATES
Ocean carriers fared better financially in Q3 over 2016-Q3, except HMM
THE third quarter of 2017 has seen marked improvements in the financial results of shipping liners compared to the same period last year.
SeaIntel Maritime Analysis said ten of the eleven carriers that published their Q3 results recorded a positive EBIT/operating profit, with only Hyundai Merchant Marine (HMM) in the red. Read more here.
MSC Meg Boxship Collides with Engineering Ship Off China
Mega container ship MSC Luciana collided with Chinese engineering ship Su Lian Hai Ji 0118 near Caofeidian Port in Hebei on Tuesday. Read more here.
Brazil’s Santos Port Badly Hit by Four-Week-Old Customs Strike
South America’s largest port, Santos of Brazil, has been hard hit by strike action by the nation’s customs officials, which has intensified as it enters its fourth week. Read more here.
Digitalisation will expose poor box line performance
Reliability is still not a sufficiently high priority for container lines, but emerging technologies will expose poor box line performance and force carriers to up their game, according to online freight forwarder iContainers. Read more here.
Lines return to profit, but rates remain low
Container lines only saw a “marginal” increase in third-quarter (Q3) peak season freight rates compared to a year earlier, but financial returns for carriers were much improved, according to SeaIntel. Read more here.
Chinese Ports Clump Together
China’s central government has accelerated the c onsolidation process of local ports this year as part of overarching plans to reform state-owned enterprises.
By consolidation port operations according to administrative regions, Beijing hopes to reduce competition, improve efficiency and promote economies of scale. Read more here.
CANADIAN BUSINESS – GOVERNMENT UPDATES
Prince Rupert welcomes largest container ship to dock in Canada
Prince Rupert, B.C. — The largest container ship to ever dock in Canada was welcomed in at DP World Prince Rupert’s Fairview Container Terminal recently, marking another milestone for the terminal that was opened just over a decade ago. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Ethiopia bets on clothes to fashion industrial future
KOMBOLCHA, Ethiopia (Reuters) – Checkered shirts for American chain Gap. Slate leggings for Swedish store H&M. Twill shorts for Germany’s Tchibo. They are among a growing list of clothes being stitched together for big brands in Ethiopia. Read more here.