Newsletter – August 11, 2020
AIR FREIGHT UPDATES
Role reversal: Passenger airlines make more from cargo sales in Q2freightwaves.comAdd Air Canada (TO: AC) and IAG Group (LSE: IAG), parent of British Airways, to the list of passenger airlines that significantly increased cargo revenues in the second quarter even as the coronavirus crisis otherwise destroyed the industry’s finances.
Air France-KLM (CXE: AF) and Aeromexico also came out ahead on cargo in last week’s earnings results, something many competitors, such as Cathay Pacific (OTCUS: CPCAY) and Delta Air Lines (NYSE: DAL), were unable to do. Read more here.
OCEAN FREIGHT UPDATES
Union ‘ups the ante’ at Montreal: latest strike pushes more ships to rival portstheloadstar.comThe stand-off between port employers and labour at the port of Montreal went from bad to worse yesterday morning as longshoremen launched an indefinite strike that has shut down most of Canada’s second-largest port. Read more here.
India positions Nicobar as a rival port to Colombosplash247.comIndia is planning to develop a transhipment port at Great Nicobar Island in the Bay of Bengal with an investment of Rs10,000 crore ($1.33bn).The Indian prime minister Narendra Modi announced the plan as he inaugurated the first undersea optical fiber project to provide high speed internet to the Andaman and Nicobar Islands. Read more here.
Ports around the world review ammonia nitrate storage plans in wake of Beirut blastsplash247.comPorts around the world are actively reviewing their ammonia nitrate storage guidelines in the wake of last Tuesday’s terrible explosions that decimated much of the Lebanese capital, Beirut. Read more here.
HMM to finally turn a profit after five years of losses?theloadstar.comThere is much talk in Seoul that South Korea’s flagship ocean carrier, HMM, will shortly announce it has ended its run of 21 consecutive quarters of losses, and finally moved into the black.
After the demise of its larger compatriot, Hanjin Shipping, in 2016, the Korean government has taken a “whatever it takes” strategy to support HMM, pumping billions of dollars into the carrier and enabling the ordering of 12 24,000 teu ULCVs – the largest containerships in the world by capacity. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
COVID outbreak threatens to delay ocean, air shipments in Australiafreightwaves.comNew measures to contain a surge of COVID-19 cases in Victoria, Australia, have resulted in the continued closure of Qantas Airways’ two freight terminals at Melbourne airport and concerns of logistics bottlenecks for the port and delivery businesses. Read more here.