Newsletter – February 23, 2021
AIR FREIGHT UPDATES
Freighters Escape B777 Suspensions after United Airlines Engine Failure
Boeing 777 freighters will remain in the skies despite the recommendation to ground some B777 aircraft following a United Airlines engine failure on Saturday over Denver.
Yesterday, Boeing said it “recommended suspending operations of the 69 in-service and 59 in-storage 777s powered by Pratt & Whitney 4000-112 engines, until the FAA identifies the appropriate inspection protocol.”
Only 777-200s and 777-300s are affected, and not all of those have the P&W engine type under scrutiny. 777 freighters are powered by GE90 engines. Read more here.
Video Interview: Jason Berry of Air Canada Cargo Talks Freighters, Drones, E-Commerce and More
In an episode of the #CargoMasterMinds series, Jason Berry, Vice President, Cargo at Air Canada, talks about what lies ahead for Air Canada Cargo. Setting up a freighter fleet of seven B767 converted freighters by the end of 2022 – the first two going commercial by the last quarter of 2021 – new e-commerce product, and strengthening and expanding the cargo drone project with Drone Delivery Canada to offer full last-mile connectivity. Watch the video.
IATA Says Its Health Passport Will Be Ready In Weeks
The International Air Transport Association (IATA) has stated that its digital COVID travel pass should be ready within weeks. What the organization is hoping will be the key to giving governments the confidence to reopen borders is still on trial with a number of airlines globally. However, the plan is to have a fully functioning system go live sometime in March. Read more here.
The importance of air cargo to the global economy
As the world has become increasingly interconnected, expedited shipping has become crucial to growing the global economy and facilitating global trade. While only 2-3% of total cargo volume travels by air each year, that small amount accounts for approximately 35% of total cargo value. Annually, that equates to over $6 trillion worth of goods that rely on the air freight industry for its speed, security, and reliability. Read more here.
OCEAN FREIGHT UPDATES
Port of Los Angeles diverts ocean carriers to reduce cargo backlog
The port of Los Angeles will see some incoming containerships diverted to other US west coast ports in an effort to reduce the backlog of cargo on vessels currently at anchor and awaiting berths.
The decision to divert ships from America’s premier port comes as the Federal Maritime Commission steps up its enquiry into congestion there as well as at the ports of Long Beach and New York-New Jersey. Read more here.
US import spike set to run into summer as west coast ports struggle
Container freight and charter markets are continuing to boom post-Chinese New Year, and analysts expect favourable conditions for carriers and shipowners to last at least into the second half.
“Unseasonal strength in container volumes and port congestion have buoyed freight markets, while in the time-charter markets, demand for vessels has outstripped wider growth in container trade, conditions that are expected to endure at least into H2 21,” says the latest sector report from Maritime Strategies International (MSI). Read more here.
Liner operations disrupted in Myanmar
The continuous social upheaval in Myanmar has disrupted the liner operations at the country’s ports, causing service suspensions and delays.
German containerline Hapag Lloyd has announced a decision to temporarily suspend cargo bookings into Myanmar as the political situation in the Southeast Asian country intensifies. Read more here.
Vietnamese boxship loses power, slams into crane
A feeder boxship slammed into a crane on the Long Tau river near Ho Chi Minh City in Vietnam on Sunday, resulting in the collapse of the crane onto the vessel, and significant damage to the the ship and many boxes, with four containers also reported to have fallen overboard. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
New Montreal port strike would ‘really stick a knife in the Canadian economy’
Shippers are beginning to make alternative routing arrangements in the event of a renewed strike at the port of Montreal.
And industry groups are warning that a new round of industrial action would seriously hurt supply chains and the Canadian economy. Read more here.
INTERNATIONAL BUSINESS- GOVERNMENT UPDATES
Six cents per pair of sneakers: what consumers will pay for shipping to go green
What will be the cost to consumers of shipping going green? About six cents per pair of Vietnamese made running shoes, according to the boss of the world’s largest containerline.
Interviewed by the BBC on Friday, Soren Skou, the CEO of A.P. Moller-Maersk, discussed shipping’s decarbonisation path on the back of last Wednesday’s big announcement that Maersk would operate the world’s first carbon neutral, methanol fuelled boxship in 2023. Read more here.
Severe Winter Weather In Texas Will Impact Many Supply Chains Beyond Chips
The harsh winter weather and ensuing electrical power crisis in Texas will exacerbate supply chain woes in many industries. It is another hit to an auto industry that was already facing a shortage of semiconductors, but the disruptions go beyond that. Because of its geographic location, a lot of intermodal freight passes through Texas as well, and this will likely impact many other sectors. Read more here.