Newsletter – July 7, 2020
AIR FREIGHT UPDATES
Air freight showing signs of ‘structural recovery’
Higher air freight volumes in June compared with May are a sign of the air freight sector taking “its first steps to a structural recovery”, according to air cargo market analysis by CLIVE Data Services, highlighting that the 6% month-on-month improvement came despite falling demand for emergency medical equipment – which had distorted the market and inflated demand and pricing in some previous months. Read more here.
OCEAN FREIGHT UPDATES
Blanked sailings and Covid-19 bounce-back bring new congestion at portstheloadstar.comAs social lockdowns in Europe and North America continue to be eased, ports in the regions face increased congestion as activity picks up.According to the International Association of Ports and Harbours’ latest Covid-19 Port Barometer report, published today, major container ports in Europe and North America are having to contend with a higher number of moves per ship than ever before, as a result of the wave of blank sailings. Read more here.
Wild Swings in Freight Rates the New Normal Amid Uneven Recoverygcaptain.comBy Ann Koh (Bloomberg) –Sharp swings in container freight rates are likely to continue this quarter as shipping companies struggle to gauge demand amid an uneven global recovery from the coronavirus. Read more here.
Floating storage play is unwinding but effects are far from oversplash247.comFloating storage, driven by low oil prices and contango futures, has dominated the supply-side story so far in 2020 and will continue to do so across the remainder of the year and into 2021.Since March, at least 71 VLCCs have been booked with an option to store crude and in May, we estimated around 23 Mn Dwt of VLCC tonnage is being used for commercial floating storage, this equates to roughly 9% of the current VLCC fleet. Read more here.
Cocaine, two men found in container on Maersk vesselfreightwaves.comA.P. Møller – Mærsk said it is cooperating with Mexican authorities after two men and 102.5 kilos of cocaine were found in a container on board the Svendborg Maersk at the Port of Manzanillo on Thursday.“We can confirm that authorities at Manzanillo Terminal are conducting an investigation after allegedly two stevedores were found hidden alongside narcotics in one container,” said Christian Kjærgaard-Winther, Maersk’s senior press officer. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Canada suspends its extradition treaty with Hong Kong and export of ‘sensitive goods’nationalpost.comPolice detain a motorcyclist who crashed into police officers in Wan Chai near Gloucester Road in Hong Kong on July 1, 2020, in this still image taken from video. Read more here.
India-China standoff could impact global supply chainslloydsloadinglist.comAmid heightened tensions with China following a border clash in the Himalayan Galwan Valley last month, the Indian government is planning to impose tariffs and stricter quality control rules targeting at least 370 products that can be locally produced and implement a severe lag in customs clearance for shipments originating from China, Hong Kong, and Macau. Read more here.