Newsletter – July 27, 2021
AIR FREIGHT UPDATES
United and Air Canada renew cargo focus, but AA and Delta eyes are on passengers
The truth about the cargo ambitions of four major North American passenger airlines can be seen in first-half results that place two carriers well ahead, in terms of focus.
There are several ways of looking at it: in second-quarter earnings calls, Air Canada had 21 mentions of cargo; United made 17; Delta, three; and American Airlines did not mention it once – despite decent half-year cargo revenue of $641m, more than twice that of a year earlier, when AA was very … Read more here (login required).
OCEAN FREIGHT UPDATES
Typhoon brings more supply chain chaos in China, closing air, sea and rail hubs
More freight delays are expected in China this week, after typhoon In-Fa forced the closure of Shanghai’s container port and airport over the weekend.
And last week, the typhoon brought devastating rainfall and flooding in China’s central Henan province, disrupting operations at Zhengzhou (CGO), a major airfreight hub for cargo carriers such as Cargolux.
A spokesperson for the airline said on Friday: “Flight delays have been experienced, but things are returning to normal. Although cargo flights are not restricted, customs processing of imports … Read more here (login required).
Force majeure declared at South African ports
South African logistics group Transnet declared force majeure at the country’s key container terminals following a cyber attack. The measure covers Durban, Ngqura, Port Elizabeth and Cape Town ports.
Transnet added on Tuesday that the force majeure is expected to be lifted soon as it made headway in restoring its IT systems. The state-owned firm noted that the terminals are berthing vessels as planned and are facilitating loading and discharge operations with the shipping lines.
“Some applications may continue to run slowly over the next few days, while monitoring continues. All operating systems will be brought back in a staggered manner, to minimise further risks and interruptions,” Transnet said in a statement. Read more here.
Box volume growth outpacing terminal development
Terminal operators will need to increase throughput at existing facilities to meet demand
Global container port capacity is likely to grow too slowly to meet increased volume demand, putting further pressure on supply chains, analysts at Drewry say.
In its latest annual review and forecast for the sector, Drewry said capacity was set to increase by 2.5% a year to reach 1.3bn teu in 2025.
Container volumes, meanwhile, were likely to expand by 5% over the same period.
This would see average utilisation at ports rise from its current 67% to more than 75%. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Ottawa helps four trucking companies with GHG goals
The federal government has made $220,000 available to help four Ontario transport companies lower their fuel costs, improve the energy efficiency and reduce GHG emissions from their heavy-duty vehicle fleets. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Vancouver Begins Separating Vaccinated & Unvaccinated Arrivals
As an optimistic Canada is getting ready to reopen its borders to vaccinated non-essential visitors for the first time in 16 months, its airports are getting on board with the new categories. First out to implement a lineup divided into ‘unvaccinated’ and ‘fully-vaccinated’ travelers is Vancouver International. However, more are likely to follow suit. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
United States Not Ready To Relax COVID-19 Travel Restrictions
The industry has been holding its breath, waiting for transatlantic travel to open back up in earnest. It seems it will have to wait a little while longer to exhale. The United States is not yet ready to lift its international travel restrictions due to concerns over the contagious Delta variant, officials said Monday.
The highly contagious Delta strain of coronavirus has become the dominant type in much of Europe, the World Health Organization declared late last week. It has also wreaked havoc in India, spread across at least 100 countries of the world, and poses a significant threat to places with low vaccination rates. Furthermore, it is now the dominant strain in the US, accounting for more than 80% of infections and a surge of deaths among people who had not yet received their jabs. Read more here.