Newsletter – June 14, 2021
AIR FREIGHT UPDATES
Air cargo capacity to be cut back for slack season, despite China port delays
The chaos and congestion in southern China ports has yet to significantly impact air freight, which saw a dramatic lull in demand towards the end of May.
Carriers are expected to cut capacity slightly, as air cargo moves into its traditional low-demand months of the year. Read more here (login required).
Air Canada Cargo Announces First Dedicated 767 Cargo Routes
As Air Canada draws closer to receiving its first freighter aircraft, it has announced the first cargo routes it will fly. The incoming Boeing 767F will fly out of Toronto to Miami, Quito, and several other cities in South America. As more planes join the fleet, routes to Europe will be added. Let’s find out more about Air Canada’s new cargo destinations. Read more here.
Brandon Fried: In my opinion…
In the USA, e-Commerce is on the rise. How can stakeholders keep up?
Just when I think the e-Commerce boom is subsiding, another package ordered online shows up at my door! E-Commerce is expected to be a significant driver in air freight market growth of over $170 billion and a 4.26% increase this year, so there appear to be no signs of this momentum, making our industry more essential than ever. Read more here.
OCEAN FREIGHT UPDATES
Two Chinese carriers launch transpacific services
With rates in record territory the size of a ship on the main east-west trade lanes is no longer a limiting factor to entry.
Two up-and-coming Chinese carriers are set to enter the transpacific trades in the coming weeks. Read more here.
Home Depot charters in ship to battle supply chain pitfalls
The enormous strains felt by retailers in the US, struggling to get stock on their shelves, has taken an extraordinary turn with one of the biggest names on the American high street deciding to take matters into its own hands.
Home Depot, the largest home improvement retailer in the US, has chartered in a boxship to move its own goods. Read more here.
Latest ocean disruptions ‘highlight fragility of JIT model’
The latest ocean freight backlogs and challenges following many months of supply chain disruptions have highlighted the fragility of just-in-time (JIT) supply chain models and require cargo owners to rethink their approaches to supply management, according to several freight and logistics industry insiders and advisors. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Canada’s ELD mandate now in effect — kind of
Canada’s mandate for commercial vehicles to use electronic logging devices (ELDs) took effect on Saturday. But it’s missing two key pieces: meaningful enforcement and a list of approved ELDs certified for use in the country.
The result is a peculiar set of circumstances. Any commercial trucks regulated by the federal government, including those from the U.S., technically aren’t abiding by the mandate, but they can’t. But it’s a moot point since penalties for noncompliance won’t begin until June 2022. Read more here (login required).
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
US container imports from China at risk from new retail act
THE US Senate has voted to adopt an approximately $250bn bill to counter China’s growing economic and military prowess, with a stealth provision that could have adverse implications for container shipping from China.
Known as the Country of Origin Labeling Online Act, or COOL Online Act, the provision would require country-of-origin labelling for any product sold over the internet. Read more here.
Out-of-control shipping costs fire up prices from coffee to toys
The skyrocketing price of shipping goods across the globe may hit your pocketbook sooner than you think—from that cup of coffee you get each morning to the toys you may want to buy for your kids.
Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, a whopping 547% higher than the seasonal average over the last five years, according to Drewry Shipping. Read more here.