Newsletter: February 17, 2022

  • Newsletter: February 17, 2022


    How Many Aircraft Will The Asia-Pacific Region Need Over 20 Years?
    According to Airbus, the Asia-Pacific region will need over 17,600 new aircraft by 2040. Passenger traffic in the region is projected to grow at a rate of 5.3% per annum over the next 20 years, while the freight sector could double in size over the same period. This demand is attributed to high GDP growth rates, a tripling of the middle class and the retirement of inefficient older aircraft. Read more here. 

    Air cargo load optimisation leveraged by quantum computing
    Software company Quantum-South is looking for air cargo partners in a proofs of concept (PoC) for its solution to optimise cargo loading in aircraft.
    The quantum computing based application has already been tested on platforms of different quantum computing providers. Read more here.


    THE Alliance drops transpac pendulum loop ‘to improve schedule integrity’
    THE Alliance is dropping one of its two pendulum loops and replacing the string with separate Asia to North Europe and Asia to US west coast services.
    The severe delays for the vessels on the pendulum loops, waiting for berth and labour for discharge at US west coast ports have impacted THEA’s schedules. Read more here. 

    Labour negotiations ‘wild card’ in West Coast congestion easing, Hapag-Lloyd CEO says
    Rolf Habben Jansen, Chief Executive at the German carrier service, said the company aims to see the first signals of improving congestion from April onwards.
    Jansen argued that the wind down of the Omicron wave, new vessels entering the market, and continued shift in demand from products to services will lead to more breathing room for shippers. Read more here. 

    Global Logistics Shipping Crisis: Record Import Volumes, But Slight Softening of Economic Drivers
    There was no break in the global shipping crisis as January 2022 started with record year-over-year container import volumes versus 2021. This is remarkable considering how strong 2021 was for volumes. January was consistent with logistics community expectations about strong demand and bookings in 2022. In the coming months, there will have to be a steady increase in demand for goods; otherwise, there will be no reprieve from today’s frenetic pace in 2022. This is particularly concerning given that consumer durable goods purchases softened in January. The February update of the logistics and economic metrics Descartes is tracking point to a sustained impact on global supply chains. Read more here. 

    Supply chain signals: New-container prices and production finally peak
    For a telling window on the global supply chain crisis, watch the market for the containers themselves: the commoditized, corrugated steel boxes that move the world’s cargo.
    The extremely consolidated container manufacturing industry in China built more containers than ever before in 2021: 7.18 million twenty-foot equivalent units, according to consultancy Drewry, up 130% from 2020 and 62% from the previous record year in 2018. Read more here.


    Trucking Rates, Delays Increase Amid Canada Disruptions
    Companies involved in Canada-U. S. trade have largely absorbed shipping delays brought on by protests against Covid-19 vaccine mandates by rerouting trucks, freight industry firms said, even as costs to move shipments across the border have increased sharply during the disruptions.
    Prices to ship goods from Canada to the U.S. on the spot market for standard heavy-duty trucks jumped 44% to $4.07 a mile from Jan. 2 to Feb. 5, according to Inc., a platform matching loads to trucks. The rate for refrigerated trucks rose by a third over that period to $4.87, the company said. Read more here.
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    Warnings posted for far-reaching winter storm
    A strong cold front will move through the central and eastern U.S. over the next 24 to 30 hours, producing areas of ice, heavy snow and gusty winds from Oklahoma to Maine and eastern Canada. Read more here.


    Google searches for supply chain fix
    Will shippers soon be able to Google their way out of a supply chain crisis? New York-listed Dun & Bradstreet, a provider of business decisioning data and analytics, and Google Cloud have announced a 10-year strategic agreement to to co-develop software and services around supply chain visibility and other business issues. Read more here. 


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