Newsletter – December 12, 2019
AIR FREIGHT UPDATES
Industry Steps Up Efforts Against Rogue Lithium Battery Shipmentsiata.orgGeneva – The International Air Transport Association (IATA), in partnership with the Global Shippers Forum (GSF), the International Federation of Freight Forwarders Associations (FIATA) and the International Air Cargo Association (TIACA), are amplifying their efforts to ensure the safe air transport of lithium batteries. The organizations are also renewing calls for governments to crack down on manufacturers of counterfeit batteries and of mis-labeled and non-compliant shipments introduced into the supply chain, by issuing and enforcing criminal sanctions on those responsible. Read more here.
HK forwarders warn of further hurdles despite cuts to terminal chargesaircargonews.netHong Kong forwarders have welcomed Cathay Pacific’s plan to cut terminal charges but warn that these need to be maintained and called on other airlines to follow suit. Read more here.
Today’s Pickup: Canadian airline successfully tests e-plane in historic flightfreightwaves.comAn aircraft billed as the world’s first commercial e-plane and powered by a propulsion system that uses lithium-ion batteries successfully completed a nearly 10-mile test flight in Canada.British Columbia-based seaplane airline Harbour Air completed the test on the Fraser River in Vancouver using a retrofitted DHC-2 de Havilland Beaver on Dec. 10. The prop plane, more than 60 years old, flew with a 750-horsepower magni500 propulsion system designed by Seattle-based magniX. Read more here.
OCEAN FREIGHT UPDATES
Carriers slow to remove capacity ahead of Chinese New Yearlloydlsloadinglist.comWith this year’s early Chinese New Year just six weeks away, container lines have begun reducing capacity to account for the slowdown in demand in the weeks surrounding the holiday period. Read more here.
IMO 2020 fuel surcharges push container rates higherfreightwaves.comThis is a crucial time for container lines. Their future financial health relies upon whether or not they can pass along new fuel costs to cargo shippers.Only three weeks remain until the IMO 2020 regulation takes effect. On Jan. 1, all vessels without exhaust-gas scrubbers will have to switch from cheaper 3.5% sulfur fuel to more expensive 0.1-0.5% sulfur fuel. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Chinese export contraction continues as US tariffs bitefreightwaves.comU.S. President Donald Trump is expected to meet with his lead trade advisers later today, Dec. 12. Top of the agenda will be planned Dec. 15 tariffs on a further $160 billion of Chinese goods. Much is at stake.The trade war between the world’s two largest economies has been the source of global investment uncertainty throughout 2019. Tariffs have damaged economic growth and transport demand, while also causing pricing inflation in the U.S. as the cost of Chinese imports has risen. Read more here.