Newsletter-January 20, 2022
AIR FREIGHT UPDATES
B767F popularity shows demand for legacy freighters remains strong
Last month, UPS Airlines ordered another 19 767-300F aircraft, giving a further boost to the impressive 767-production line which started with a passenger version in 1981.
And, for cargo carrier UPS Airlines, it has proved to be the most versatile aircraft it operates. Read more here (login required).
AT&T, Verizon delay launching 5G near some airports after airlines ask Biden to intervene
Washington (CNN Business)AT&T and Verizon announced Tuesday that they would delay activating 5G on some towers around certain airports. The wireless technology’s rollout near major airports had been scheduled for Wednesday, but airlines warned of dire consequences for transportation and the economy. Read more here.
Jet Fuel Price Rises Creates Further Pressure For Airlines
Fuel accounts for a sizeable portion of an airlines’ day-to-day expenses, and a significant spike in jet fuel prices this year means that portion is growing larger. As the airline industry struggles to recover from the global travel downturn, rising jet fuel prices are becoming another major hurdle for airlines to deal with. Read more here.
OCEAN FREIGHT UPDATES
MSC dismisses ‘baseless’ lawsuit filed in the US
Mediterranean Shipping Co (MSC), the world’s largest containerline, has hit out at the “baseless complaint” made by an American decor manufacturer in a long running spat.
Splash reported last August Pennsylvania-based MCS, a furniture shipper, had filed a $600,000 lawsuit with the Federal Maritime Commission (FMC) against MSC and China’s Cosco, claiming the pair had repeatedly contravened terms of the US Shipping Act. Read more here.
Safety warning as old containers are pressed back into service
TT Club, an insurance company, has warned on the risks of more and more old containers being pressed back into circulation during the ongoing supply chain crisis.
“One of the immediate repercussions of equipment imbalances, shortages and increase in new equipment costs has been a tendency for owners and operators to retain equipment that would ordinarily have been retired from service,” the TT Club stated in an update to clients. Read more here.
GROUND AND RAIL FREIGHT UPDATES
More pain for shippers as the price of US trucking stays in a high gear
Hopes of US trucking rates going into reverse are fading fast.
The industry roared through December, followed by rising tender volumes in the second week of the new year, which kept pricing at elevated levels.
A recent report from Adobe Analytics suggests online shopping in the US is losing momentum, showing an 8.6% year-on-year rise in e-commerce spend between 1 November and 31 December – the slowest growth rate since 2014. Read more here (login required).
Roaring reefer freight rates freezing out perishables from the shelves
The rise and rise of reefer freight rates means fewer choices on supermarket shelves as some perishable products are priced out of the market.
Furthermore, a lack of available containers is creating “tough times” for many reefer shippers and their import partners, according to a reefer market update by DHL Global Forwarding. Read more here (login required).
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
At-Home Covid Test Deliveries Delayed By L.A. Train Robberies
A surge in Wild West-style train robberies outside the busy ports of Los Angeles and Long Beach has delayed retail shipments of everything from at-home Covid-19 tests, fishing lures and parcels from Amazon, REI and UPS. Read more here.
Prologis: Logistics real estate vacancies will see all-time low in 2022
Management from logistics real estate investment trust Prologis Inc. said during a call with analysts on Wednesday that the outlook for available warehouse space continues to tighten. The catalysts: increased consumption, demographic growth, growing e-commerce fulfillment demand that requires faster service and many supply chains looking to rebuild inventories. Read more here.