Newsletter – December 17, 2018
AIR FREIGHT UPDATES
Cargolux adds TransPac freighter between Hong Kong and Mexico
European freighter airline Cargolux has launched a Boeing 747F transpacific service between Hong Kong (HKG) and Mexico City (MEX).
The twice weekly connection has flights leaving Hong Kong on Saturdays and Mondays to arrive in the Mexican capital on Sundays and Tuesdays. The Monday flight will also include a stopover in Guadalajara (GDL), the country’s second most populous municipality. Read more here.
Air freight growth of 3.7% forecast for 2019
Global air freight is expected to grow by around 3.7% next year, broadly in line with its growth levels this year, bolstered by growing cross-border e-commerce traffic but facing headwinds from slowing world trade growth and geopolitical issues including national protectionism and Brexit, according to the latest analysis by the International Air Transport Association (IATA). Read more here.
Delta Cargo gets its wires crossed as it tries to update its IT
Delta Cargo has apologised to customers after a failed attempt to update its IT system.
It has now resumed freight operations, after a system failure forced it it suspend operations between Tuesday and Wednesday. Read more here.
WOW Air To Reduce Fleet, Sack Staff
Iceland’s WOW Air said it will return to its roots as an ultra-low cost airline, reduce its fleet size and lay off over a hundred staff. Read more here.
OCEAN FREIGHT UPDATES
Ports lag other industries when it comes to automation
Ports are failing in the race to automate, with other sectors leaving them behind the curve. This was the result of an in-depth study by consultant McKinsey, according to Splash 24/7. The report suggests port operators are “moving more slowly” when it comes to automation, suggesting this is in part because the promised economic benefits have not matched the realities. In the meantime, some industries have seen as much as a 40% cost reduction as a result of automation. Read more here.
The future of box shipping: less vessel cascading and fewer liner alliances?
Vessel cascading has been an ever-present feature of container shipping since liner executives first understood the benefits of economies of scale and began the box ship capacity arms race. Read more here.
GROUND AND RAIL FREIGHT UPDATES
CN seeks stake in Halterm terminal to offer fast transit times to US
The Canadian National Railway (CN) has made an offer to acquire a stake in Halterm, the biggest container terminal in eastern Canada and located at the port of Halifax.
The rationale for the CN acquisition is based on repeating the railway’s success in Prince Rupert, British Columbia. As is the case there, Halifax’s location, together
with the railway operator’s extensive network, would enable it to offer faster transit times to destinations in the United States versus direct shipping through more
congested American ports, reported the Halifax Chronicle Herald. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Apple suppliers to consider moving China iPhone output if tariffs hit 25 per cent
Apple Inc.’s suppliers will keep making iPhones in China if the US imposes tariffs on the devices – unless those levies skyrocket.
Suppliers figure they can keep production in China at a 10 per cent tariff level but will consider shifting out of the country if the US moves to 25 per cent, according to people familiar with the matter. Apple and its partners are assessing their supply chains as the US and China fight over trade terms between the world’s two largest economies. Read more here.