Newsletter – July 3, 2020
AIR FREIGHT UPDATES
Air cargo takes its first steps to a structural recovery in Juneajot.comAs PPE volumes faded, global air cargo volumes in June provided the first real indicators of structural recovery. The industry seems to be ‘slowly getting back up on its feet’ as volumes in the first four weeks climbed 6% versus the full four weeks of May. Read more here.
India Extends Blanket International Flight Ban Until Augustsimpleflying.comIndia’s Directorate General of Civil Aviation (DGCA) has announced today that the blanket ban on international flying will continue through to August this year. While it did say additional services would be considered on a case by case basis, as yet no airline has been granted rights. However, separately talks are ongoing to form travel bubbles with other nations, including the Gulf states, the US, Canada, and Europe. Read more here.
OCEAN FREIGHT UPDATES
Cosco sets up corporate university in Qingdaosplash247.comChinese state-run shipping conglomerate Cosco Shipping Group has inaugurated a corporate university in Qingdao for shipping talent development.The Cosco Shipping University will have a 125,000 square meter education and training centre for the development of talent in various shipping sectors, and another 36,000 square meter leadership training centre. Read more here.
Customers accuse box lines of unfair fuel charge policieslloydsloadinglist.comSome container shipping lines are failing to discount fuel surcharges in line with their own bunker adjustment indexes to reflect the decline in oil and bunker prices during 2020, according to leading forwarders and shippers. Read more here.
Container freight rates still on the up – a peak season after all?theloadstar.comThe Shanghai Containerized Freight Index (SCFI) comprehensive index continued its positive run this week, rising 5.4% to 1,055.13 as the major tradelanes all registered gains.The Asia-US west coast component of the SCFI recorded another 8.5% jump in container spot rates, to $2,920 per 40ft, while rates to the US east coast increased by 4.7% to $3,459 per 40ft. Read more here.
Ripples from global pandemic helped reefer sector make a comebacktheloadstar.comThis year’s supply chain upheaval has proved a “silver lining” for the conventional reefer sector.In January, Netherlands-based analyst Dynamar predicted a “stormy” year for conventional reefer shipping, with the expected surge in fuel costs from IMO 2020 likely to accelerate scrapping and the switch to refrigerated containers. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
USMCA Trade Deal Is Now In Force–And Mandating Higher Wages, More Paperworkforbes.comNAFTA is no more. As of today, the North American Free Trade Agreement that took effect Jan. 1, 1994 has been replaced by the U.S. Mexico Canada Agreement (USMCA) . For automakers and suppliers the new law sparks strict new regulations on the amount of North American content in each vehicle and for workers, especially in Mexico, it means a higher minimum hourly wage. It also means a mountain of paperwork and documentation. Read more here.
Hurricane season heats up – responding to a big onefreightwaves.comBelieve it or not, hurricane season is well underway, which means it’s time to keep a close eye on the weather. The Atlantic hurricane season started in June and continues through the end of November; this roughly six-month timeframe presents many opportunities for a storm to wreak havoc on economies and entire infrastructures of coastal communities large and small. Read more here.