Newsletter – June 11, 2021
AIR FREIGHT UPDATES
US forwarders call for concise guidance on 100% screening requirement
US Airforwarders Association has called on the US Transportation Security Administration (TSA) to provide detailed guidance on incoming cargo screening requirements to avoid supply chain bottlenecks.
New International Civil Aviation Organization (ICAO) rules mean that from June 30, member United Nation states will be required to screen 100% of cargo before it is loaded on freighter aircraft, as they are currently required to do with belly freight. Read more here.
IATA Set To Roll Out Travel Pass App In The Coming Weeks
IATA is planning to roll out its Travel Pass to the general public in the next couple of weeks. The announcement comes from the organization’s Director-General, Willie Walsh. IATA has been testing the Travel Pass app since earlier this year, which allows travelers to verify their vaccination and testing status beforehand. Read more here.
Canada’s Flair Airlines Operates Inaugural Boeing 737 MAX Flight
Canada’s Flair Airlines has launched services for the first time with its new Boeing 737 MAX 8 aircraft. The ultra-low-cost carrier recently placed an order for 13 units of the narrowbody, and the first of these is flying between Edmonton and Toronto today. Simple Flying caught up with the company’s president and CEO, Stephen Jones, ahead of the big launch. Read more here.
OCEAN FREIGHT UPDATES
Yantian blockage causes record spike in Asia-US rates
Already sky-high ocean freight spot rates were pushed even higher this week, spiking to new highs on transpacific services with a 25% rise from Asia to the US East Coast taking prices to more than $9,000/FEU, and a 15% increase to the US West Coast – which crossed the $6,000/FEU mark, according to the latest figures from Freightos. Read more here.
More than 300 liners waiting for berth space, container congestion mapped globally
From Shekou to Seattle, Amsterdam to Auckland, containerships are backing up like never before in the 65-year history of the industry as the liner industry grapples with the enormous strain brought by Covid-19 and exceptional consumer behaviour.
Data provided to Splash today from Seaexplorer, a container shipping platform created by logistics giant Kuehne+Nagel, shows the global carrier snarl-up with supply chains under enormous stress. Read more here.
Shipping has a new association, the M7
Leaders of many of the world’s largest economies have descended upon Cornwall in southwest England this week for the annual G7 summit. Inspired by the gathering, shipping has created a brand new association, the M7. Read more here.
LA becomes first port in the Western Hemisphere to handle 10m teu in a 12-month period
Los Angeles has become the first port in the Western Hemisphere to process 10m ten in a 12-month period. A pandemic-induced consumer buying surge that began last summer, along with restocking of retailer shelves and e-commerce warehouses across the country have fuelled the dramatic rise in imports.
Further American port handling records are likely to be broken all year. The National Retail Federation earlier this week boosted its outlook for the year, saying it anticipates “the fastest growth that we’ve seen in this country since 1984.”
Retail sales are expected to grow between 10.5% and 13.5% to an estimated total of $4.44trn to $4.56trn in 2021. That compares with $4.02trn in total retail sales in 2020 and $3.76trn in 2019.
Fast services from Asia bypassing congested southern Californian ports
Two more container lines have suspended expedited services through the US port of Oakland.
They are following in the footsteps of Zim, which was forced to divert the inaugural sailing of its Central China E-Commerce Express to Los Angeles and will continue in this vein for the time being. Read more here (login required).
Russia makes plans to make Northern Sea Route a cheaper option than the Suez
Russia is determined to get far more traffic transiting its chilly northern shores. It has been a long held, strategic goal of president Vladimir Putin to take the Northern Sea Route mainstream. Financial incentives may soon be on hand to make this a reality. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Border workers holding strike votes amid border reopening plans
Some 9,000 Canadian Border Service Agency workers are preparing for strike votes starting next week, even as Canada-U.S. border reopening talks get underway.
The Public Service Alliance of Canada union said Thursday that its 5,500 border services officers, 2,000 headquarters staff and other workers at Canada Post facilities and in inland enforcement jobs will begin strike votes on Wednesday, which will then continue throughout the month. Read more here.
As Travel Picks Up Air Canada Will Bring Employees Back
As the Canadian government prepares to ease travel restrictions and quarantine requirements, Air Canada is preparing to ramp up its operations. This includes the recalling of over 2,600 employees previously laid off due to the global health crisis. Read more here.