Newsletter – October 4, 2019
AIR FREIGHT UPDATES
US to Impose Tariffs After Airbus Subsidy Rulingnews.airwise.comThe United States will impose tariffs on USD$7.5 billion of EU goods after the WTO said the US could take countermeasures over illegal subsidies to Airbus. Read more here.
Hong Kong Airlines Invites Foreign Pilots To Leave Amid Slowdownsimpleflying.comHong Kong Airlines has taken the drastic step of offering surplus foreign pilots voluntary leave without obligation to repay salary advances and training costs. The carrier has experienced a slowdown following a wave of protests in the region, and now feels the need to trim its operating costs. Read more here.
FAA To Conduct Tests To See If Passenger Seats Can Become Smallersimpleflying.comThe FAA is about to begin tests in November to see if passengers can stomach smaller seats, potentially pushing minimum cabin pitches below 29 inches. The safety tests, designed to see if aircraft can be evacuated safety even with tight configurations, might either help or hinder airlines looking to densify their aircraft. Read more here.
OCEAN FREIGHT UPDATES
Stressed carriers hold their breath during Golden Week as contract talks loomtheloadstar.comChina’s Golden Week traditionally marks the start of the slack season on the major tradelanes of Asia-Europe and the transpacific. Read more here.
Container booking platforms could ease ‘pain points’ for shipping linestheloadastar.comOnline container freight buying platforms could help shipping lines respond more dynamically to dramatic changes in demand. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Canadian National truckers ratify new contractfreightwaves.comDrivers for Canadian National’s (NYSE:CNI) trucking subsidiary, CNTL, ratified a four-year contract that increases rates for wait time and mileage and extends a fuel subsidy. Read more here.
Shippers Hammer Railroads With Lawsuits Over Fuel Surchargesfinance.yahoo.comU.S. Class I railroads BNSF (NYSE: BRK), Union Pacific (NYSE: UNP), CSX (NYSE: CSX) and Norfolk Southern (NYSE: NSC) got slammed with lawsuits this week from shippers of various industries. The lawsuits allege that between 2003 and 2008, the railroads engaged in price fixing by assessing fuel surcharges and saying they were part of a fuel cost recovery program, thus violating the Sherman Act. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
FIATA issues guide to help forwarders combat corruptionaircargonews.netFreight forwarder organisation FIATA has published a guide to help freight forwarders combat corruption.The group pointed out that The Corruption Perceptions Index 2018 of Transparency International reported more than two-thirds of 180 countries and territories scored below 50 on a scale of between 0, highly corrupt, and 100, very clean, revealing that the world economy is still heavily burdened by corruption. Read more here.