Newsletter: February 28, 2022
AIR FREIGHT UPDATES
Canada Follows Europe With Airspace Ban On Russia
Russia is fast running out of international airspace as more and more countries ban its aircraft from flying over. The latest to join the list is Canada, closing its airspace to all Russian planes while announcing $25 million in aid to Ukraine at the same time. This comes as another blow to Russian carriers already suffering from an EU airspace ban. Read more here.
The ‘Dream’ is dead: Air cargo wonder destroyed in Ukraine
The largest commercial cargo plane has been destroyed by Russian soldiers during fighting at an airport outside Kyiv, according to the Ukrainian government’s official Twitter account.
The Antonov AN-225, nicknamed Mriya, or “Dream,” had six engines, could carry 225 tons of cargo and consumed about 20 tons of fuel per hour of flight. Read more here.
OCEAN FREIGHT UPDATES
Shippers prepare as Ukraine crisis prompts emergency fuel surcharges
Shippers are bracing for a raft of emergency bunker surcharges from ocean carriers, as oil prices hit eight-year highs.
Following Russia’s invasion of Ukraine, the price of crude oil has soared to its highest level since 2014, to more than $105 a barrel, with analysts predicting $130 within weeks. Read more here.
Suez Canal tolls to rise from next month
Egypt’s Suez Canal Authority said yesterday it will be increasing canal tolls by up to 10% for laden and ballast vessels from the start of next month.
Justifying the increase, the Suez Canal Authority said the decision was “in line with the significant growth in global trade, the improvement of ships’ economics, the Suez Canal waterway development and the enhancement of the transit service”.
The canal has kicked off a significant, multi-million dollar expansion plan for its southern waterway in the wake of last year’s grounding of the Ever Given containership. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Canada ratchets up sanctions against Russia, cancels export permits
Feb 24 (Reuters) – Canada announced more sanctions against Russia on Thursday, targeting 62 individuals and entities, including members of the elite and major banks, and cancelled all export permits following Russia’s attack on Ukraine.
“Today, in light of Russia’s reckless and dangerous military strike, we are imposing further, severe sanctions,” Prime Minister Justin Trudeau said at a news conference. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Supply chain and logistics uncertainty endure in Myanmar, a year post-coup
One year after the military coup in Myanmar, an exodus of foreign firms from the country has severely impacted the economy, leaving an uncertain future for the supply chain and logistics sector.
According to the World Bank, Myanmar’s economy is set to grow by just 1% this year, down from 6.8% in 2019, with the fallout of political unrest and the Covid-19 pandemic. Read more here (login required).