Newsletter – March 22, 2023
AIR FREIGHT UPDATES
Spring Break Set To Be A Stress Test For US Airlines & Airports
Spring break 2023 looks set to be the busiest travel period in US history. According to Airlines for America, airports across the country will see a staggering 2.6 million passengers per day on average throughout the months of March and April, which represents a 1% increase on the levels seen in 2019. Airports with particularly high expected growth rates include Austin-Bergstrom International Airport (AUS) and Charleston International Airport (CHS). Read more here.
Boost for Hong Kong air cargo volumes as ban on vape traffic is lifted
Air exports from Hong Kong will see a boost, following a decision by the government to reverse a ban on the transhipment of e-cigarettes and vapes.
Forwarders claim the banned cargo amounts to about 330,000 tons a year – the equivalent of some 10% of Hong Kong’s annual export volumes by air, according to the Hong Kong Association of Freight Forwarding and Logistics (HAFFA). Read more here (login required).
OCEAN FREIGHT UPDATES
The ‘mother of all BAFs’ looms for shippers as green targets advance
Shippers are concerned that maritime discussions on decarbonisation are shaping up to result in “the mother of all BAFs” for shippers, as carriers will seek to pass on the costs of using sustainable fuels.
The International Maritime Organization (IMO) is set to meet in July and is widely expected to increase its ambition of a 50% reduction in carbon emissions by 2050 to 100%, and will also discuss market-based measures, such as a carbon levy. Read more here (login required).
Measuring the carbon footprint of vessels at the Port of Montreal
The Montreal Port Authority (MPA) and Global Spatial Technology Solutions (GSTS), a company that specializes in applying artificial intelligence (AI) to shipping, announced the launch of a new project to measure and reduce the carbon footprint of vessels using the Port of Montreal that makes the most of artificial intelligence. Read more here.
West Coast dockworker labor talks strained over lunch-break spat
Negotiations over a new labor contract for West Coast dockworkers are under increasing strain as their employers say a failure to spread out lunch breaks has disrupted operations at the twin ports of Los Angeles and Long Beach since Wednesday.
Employers are allowed to stagger shifts around lunch times so there’s enough dockworkers available to deliver and receive containers, said the Pacific Maritime Association, which speaks for terminal operators and ocean carriers, in an emailed statement to Bloomberg on Monday. But “beginning last week, ILWU Local 13 has stopped complying with that contract provision,” the PMA said, referring to the local chapter of the International Longshore and Warehouse Union. Read more here.
Maersk idles more ships while NOOs see a rebound in demand
Maersk is leading the way in laying-up surplus tonnage while demand remains weak across the main east-west tradelanes, but the carrier could leave itself exposed to aggressive market share grabs by rivals.
According to an Alphaliner survey, Maersk tops the ocean carrier idle tonnage rankings, with 29 ships with a capacity of 281,400 teu, in lay-up, including 17 of more than 7,500 teu. Read more here (login required).