Newsletter- January 12, 2022
AIR FREIGHT UPDATES
Air Canada Cargo makes four senior appointments
Air Canada Cargo has announced the appointment of four industry veterans to key leadership positions as it positions itself for continued growth.
Peter Laub has been appointed to senior director, cargo – US & Latin America, while three long-standing members of the Air Canada Cargo team have received promotions. Read more here.
OCEAN FREIGHT UPDATES
Operational constraints in key regions
2021 proved a challenging year for global supply chains, seeing significant disruption and bottlenecks around the world. We saw pockets of improvements, only to get setbacks when terminals or vessels encountered a COVID-19 outbreak. Unfortunately, 2022 has not started off as we had hoped. The pandemic is still going strong and unfortunately, we are seeing new outbreaks impacting our ability to move your cargo. General sickness remains high as key ports in key regions are seeing new COVID-19 peaks. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Truck Driver Job Vacancies Soar to Record Highs Before Vaccine Mandates Kick-in
The latest data from Trucking HR Canada and Statistics Canada shows that trucking’s jobs vacancy rate has already hit new record highs as the industry braces for the impact of proposed domestic and border vaccine mandates.
The vacancy rate in truck transportation hit 8 percent in the third quarter of 2021, which was the second highest vacancy rate in the entire economy behind accommodations and food services. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
US importers using box ships to store cargo – cheaper than warehouses
The combination of congestion at US west coast ports and low interest rates is allowing US importers to use containerships as ’offshore warehouses’, mitigating logistics costs.
According to freight visibility company project44, transit times from China to Los Angeles have nearly tripled, with freight taking up to 60 days to be cleared through LA and Long Beach ports – its data suggests an average of 540,255 teu per month was waiting to berth at LA. Read more here (login required).
Omicron Pushes Hong Kong’s Import Supply Chain to Brink of Collapse
Hong Kong’s omicron outbreak is dealing a double whammy to businesses.
Not only will new social distancing curbs crimp revenue for retailers and restaurants, a slashing of flights they rely on to bring everything from Australian cherries to Wagyu beef into the financial hub is set to raise costs and boost inflation.
Cathay Pacific Airways Ltd., the city’s most connected airline, has canceled hundreds of flights. Cargo capacity could drop below one-fifth of pre-pandemic levels. Logistics costs may surge by 40% within three weeks. Importers expect the price of fruit to rise by 10%. Read more here.
Pilot Sickness Prompts FedEx To Redirect Packages Via Trucks
Bad weather and employees calling in sick is putting pressure on the US operations of global freight business FedEx. A shortage of ground workers and aircraft crews is forcing FedEx to implement contingency plans, including transporting air freight by road. Read more here.
Why transportation M&A could step higher in 2022
Acquisitions throughout the supply chain complex were plentiful in 2021. Record freight rates and margins drove earnings to new highs for transportation providers, creating a potential high point for sellers to exit and an abundance of free cash flow for buyers to deploy. Read more here.