Newsletter – June 30, 2020
AIR FREIGHT UPDATES
As rates fall and fuel costs rise, airlines without freighters are at a crossroadstheloadstar.comAir freight rates have plummeted again, according to the TAC Index, and as jet fuel prices rise and air cargo demand slackens, passenger-freighters are beginning to look less sustainable.The TAC Index shows rates in the week ending June 29 fell 7% from China to Europe, with prices down 11% on Shanghai to Europe, at $3.29. Read more here.
OCEAN FREIGHT UPDATES
Update on container operations at the Port of Montrealport-montreal.comWe would like to inform you that the Maritime Employer’s Association has received a strike notice starting on Thursday July 2 at 3 p.m. and ending on Saturday July 4 at 6:59 a.m. Thus, 2 of the 19 terminals at the Port of Montreal, 2 container terminals operated by MGTP, will be stopped during these two days.These pressure tactics, exercised by the Longshoremen’s Union, will last 40 hours. Consequently, the Port of Montreal and its partners expect to be able to resume activities as soon as Saturday, July 4 at 7 a.m. Efforts will be made to make up for the delays that will be caused by this exceptional situation.The Montreal Port Authority is closely monitoring the situation and we hope that the employer of the longshoremen, the Maritime Employer’s Association, and the Union will be able to come to an agreement quickly.In the meantime, be aware that you will be informed of any developments as they occur.
Grim economic outlook spurs further fall in long-term ocean freight rateslloydsloadinglist.comLong-term contracted ocean freight rates fell in June for the second consecutive month and are now 1.3% below their levels last year, as the ramifications of the coronavirus pandemic continue to shake the foundations of the global economy, rates specialist Xeneta reported today. Read more here.
PSA and DP World in line for major port projects as Chittagong expandstheloadstar.comTwo global port operators – PSA and Saudi Arabia’s Red Sea Gateway Terminal (RSGT) – have been shortlisted to construct Bay Terminal, a 12-metre draught facility near Chittagong port.At the same time, RSGT and DP World are on the priority list for operating the under-construction Patenga Container Terminal, which will raise Chittagong port’s container handling capacity significantly. Read more here.
China shipments stuck at India ports show casualties of standoffbnnbloomberg.ca(Bloomberg) — Imports from China have been piling up at Indian ports pending government clearances, causing concern that a recent border standoff between the two nations could have an economic fallout that will disrupt supply chains. Read more here.
Shippers being ‘held to ransom’ as blanked sailings and feeder problems bitetheloadstar.comChanges to Asia-North Europe service networks, a knock-on from carriers’ aggressive blanking programmes, are “playing havoc” with the container supply chain, according to industry stakeholders.With both 2M and THE alliance members having suspended loops to October, carriers are merging itineraries or adding extra calls on remaining loops to cover commitments. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Retail begins its long fight back, but the shift is away from bricks and mortartheloadstar.comCiting surging online sales and the migration of its product portfolio to digital offerings, Microsoft announced on Friday it would close its retail stores.On the same day, H&M revealed it would end 2020 with 40 fewer stores in its chain, and throttle back on new branch openings as it steps up its efforts in e-commerce. Read more here.