Newsletter – January 19, 2021
AIR FREIGHT UPDATES
More misery for apparel houses as air freight rates ex-Bangladesh double
Air freight rates out of Bangladesh have doubled in recent months, spiked by a severe capacity crunch due to coronavirus-linked operational suspensions and growing demand.
Shippers are now paying twice pre-pandemic rates for expedited shipments, which they describe as a “big burden in this challenging period”. Read more here.
Lufthansa Cargo ‘pauses’ capacity guarantee as demand for space gets ‘tense’
As the air freight market reheats after a fortnight’s lull, Lufthansa Cargo has blamed a high volume of cargo for its decision to “pause” its capacity guarantee.
It told customers that, “due to tense capacity availability, we are forced to pause the capacity guarantee of all speed options for continental flights out of Frankfurt, Munich, Vienna and Brussels”. Read more here.
Ottawa OKs return of Boeing Max aircraft; Air Canada flights to resume Feb. 1
MONTREAL – The Boeing 737 MAX can return to Canadian airspace beginning Wednesday, Transport Canada says, concluding nearly two years of government review after the aircraft was involved in two deadly crashes that saw the planes grounded worldwide. Read more here.
OCEAN FREIGHT UPDATES
Carriers suspend some bookings as CNY holiday sparks barge disruption
Shipping lines in Hong Kong have warned of disruption and added costs following the reduction of Pearl River Delta barge connections until after Chinese New Year (CNY) next month.
“It’s disconcerting,” said Roberto Giannetta, chairman of the Hong Kong Liner Shipping Association. Read more here (login required).
GA declarations retreat as clients await boxes from Maersk Elba and ONE Apus
MSC has advised its customers it had taken an “exceptional decision”: to cover the costs of repairs, following a fire onboard the 13,492 teu Maersk Elba at the end of December, in order to avoid General Average.
The carrier said it wanted “to avoid additional costs or delays” for its customers. Read more here.
Major ports and carriers report large increases in container rollovers
More than one in three containers shipped globally in December were rolled-over at transhipment hubs, according to new research from data tracking firm Ocean Insights.
Its monthly analysis of container rollovers at the top 20 global ports revealed that the global average had increased to 37% last month, with some hubs seeing far higher numbers. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
The bull run is wreaking havoc with cargo delays in major ports
Ocean Insights’ cargo delay statistics show how the bull run is wreaking havoc on the market, with surging rollover rates across major ports during December and most major carriers seeing increases in delays. Read more here.
Trump Admin sending crystal-clear message: “Know your supply chains”
The western Chinese region of Xinjiang is a major source of coal, chemicals, sugar, tomatoes and polysilicon, but the area is most notably the country’s primary producer of cotton. In fact, 85% of China’s cotton can be traced to the region and China accounts for ~20% of the world’s cotton production. Read more here.
Freight forwarders ‘needed more than ever’ in current crisis
Freight forwarding representatives insist that their sector is continuing to demonstrate its value to its customers despite, and in many cases because of, the extraordinary supply chain management challenges that have faced cargo owners and their suppliers over the past difficult year. Read more here.