Newsletter: March 29, 2022
AIR FREIGHT UPDATES
Airlines divert cargo from Shanghai, putting more pressure on rates
Airlines are cancelling cargo flights from Shanghai Pudong (PVG) following the city’s Covid lockdown, with diverted cargo likely to push up airfreight rates at alternative gateways.
Yesterday, Cargolux announced it would suspend PVG flights until at least 2 April and, according to Crane Worldwide Logistics, other airlines are watching and will likely “adjust their schedule at the last minute, without prior notice”. Read more here.
WestJet marks new era with move to cargo jets
Canadian shippers with express delivery needs will have more air cargo capacity to choose from this summer when WestJet, the country’s second-largest passenger airline, launches its stand-alone freighter division.
WestJet plans to take delivery in Calgary, Alberta, of its first used Boeing 737-800 aircraft converted for cabin cargo within a week and have two aircraft in revenue service by July 1, or sooner, Charles Duncan, executive vice president of cargo, told FreightWaves. Read more here.
OCEAN FREIGHT UPDATES
Port of Vancouver Now Offers Enhanced Container Vessel Line-up Report
The Port of Vancouver is now posting a container vessel line-up report on its Supply Chain Performance webpage.
The report has been enhanced to provide further information regarding container vessels at anchor. It will be posted daily Monday through Friday. It wil also be made available on the port’s eHub app in the coming weeks. See the report.
Indian shippers face more sailing omissions at Nhava Sheva
Mediterranean Shipping Co. (MSC) is increasingly curtailing Indian ports of call as it struggles to maintain a weekly sailing frequency on major trade routes.
As a result, MSC’s key services from India to the US and Europe are now often sailing straight into Mundra Port by omitting the first JNPT/Nhava Sheva port call. Mundra is located approximately 300 nautical miles from Nhava Sheva. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Minister of Transport announces co-chairs of the National Supply Chain Task Force
OTTAWA, ON, March 25, 2022 /CNW/ – Global supply chains continue to be disrupted by the COVID-19 pandemic, growing impacts of climate change, and recent sanctions against Russia. Ensuring that Canadian supply chains are resilient and fluid is a priority.
During the National Supply Chain Summit in January 2022, the Minister of Transport, the Honourable Omar Alghabra, announced that a Supply Chain Task Force would be created. Today, Minister Alghabra is announcing that Jean Gattuso and Louise Yako have agreed to co-chair the National Supply Chain Task Force. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Shanghai’s 2-stage COVID lockdown may make getting containers ‘almost impossible’
Logistics managers are warning clients the two-stage lockdown in Shanghai could be worse than the initial COVID lockdowns.
“These lockdowns are possibly more severe than the initial quarantines in 2020 when COVID was first discovered,” Jon Monroe of Monroe Consulting told American Shipper. “Many people will tell you the ports are open. And this is true. But the port workers, factory workers and truck drivers are locked in their homes. Read more here.
Sky-high box freight rates could increase global inflation by 1.5% this year: IMF
The International Monetary Fund (IMF) has looked at container freight rates and crunched the numbers to work out what today’s sky-high shipping costs are doing to global inflation.
In the latest blog post on the IMF site entitled How Soaring Shipping Costs Raise Prices Around the World, IMF economists note the cost of shipping a container on the world’s transoceanic trade routes has increased seven-fold in the 18 months following March 2020. The analysis predates the war in Ukraine but isn’t isolated from it with IMF officials suggesting the conflict will likely exacerbate global inflation. Read more here.