Newsletter – May 13, 2021
AIR FREIGHT UPDATES
Israel’s Air Traffic Impacted By Rocket Attacks
Overnight, Israel came under a missile attack. More than 1,000 rockets were fired from Gaza, targeting major cities and the main airport of Ben Gurion. The airport closed for around an hour, and although flights have now resumed, some airlines are already canceling future services to the country. Read more here.
Covid Crisis Decimates Indian Airline Seat Capacities
As the second wave continues to spread, Indian airlines have sharply cut their seat capacities. The move comes as domestic flights see fewer passengers and India remains banned by countries globally. Let’s find out more about the impact of the second wave on airlines. Read more here.
IATA: Air cargo media briefing
On May 11, IATA held an air cargo media briefing. Like most things at the moment, it was on-line. Nick Careen, SVP airport passenger, cargo and security in he presented some industry issues. Read more here.
OCEAN FREIGHT UPDATES
Ocean freight ‘perfect storm’ worsens
The ocean freight market’s ‘perfect storm’ has worsened in the continuing aftermath of the Suez Canal blockage, driving up rates on the Asia-Europe trade lane to unsustainable levels and threatening the very survival of many shippers and importers while also impacting end-consumers who are set to pay far more for goods, according to one UK-based forwarder.
“At the end of last year, we highlighted a vicious cycle of port congestion, vessel cancellations, box shortages and escalating prices in the segment – which was damaging the supply chains and businesses of ‘UK plc and called for high-level interventions to address these issues,” Peter Wilson, group managing director of logistics and maritime service provider Cory Brothers, told Lloyd’s Loading List in an interview. Read more here.
Triple-whammy on the transatlantic drives rates even higher
The triple challenge of soaring demand, port congestion and container shortages have led to a sharp increase in container freight fates on the transatlantic trade over the past few weeks.
The smallest of the main east-west shipping trades has traditionally been home to stable volumes and flat freight rates – according to the Freight Baltic Index, rates on the westbound headhaul North Europe-US east coast have hovered at around $1,800 per 40ft. Read more here.
Port of Montreal Update – Arbitrator Named: Maersk
In a customer advisory on May 12, Maersk stated that the Government of Canada has appointed André G. Lavoie as arbitrator in the Port of Montreal labour talks, and that no date has yet been announced for a first meeting.
Port of Halifax Top-Ranked North American Port in World Bank’s 2020 Container Port Performance Index
In the Container Port Performance Index, issued last week by the World Bank and IHS Markit, the Port of Halifax was the only North American port in the top 50.
Using two approaches to rank the ports – the administrative approach, “a pragmatic methodology reflecting expert knowledge and judgment” and the statistical approach, which makes use of factor analysis – Halifax ranked 25th and 39th, respectively.
Asian ports dominated the top positions.
Rankings are based on the total time that vessels spend in port, with source data provided by ship lines.
Maersk expands its footprint in Vietnam to keep pace with trade boom
As import and export demand surges, Maersk has expanded its warehousing footprint in Vietnam.
The company has opened two new contract logistics facilities in Binh Duong, 25km from Ho Chi Minh City, and a third in Bac Ninh, close to Hanoi, creating an additional 38,000sq metres of warehousing space. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATES
CP chooses battery supplier for hydrogen locomotives
Swiss battery maker Leclanché SA will provide proprietary battery technology to Canadian Pacific for its Hydrogen Locomotive Program.
The CP hydrogen-powered locomotive pioneering project, first announced in December 2020, will retrofit a line-haul diesel freight locomotive with hydrogen fuel cells and Leclanché’s European manufactured lithium-ion batteries to power the locomotive’s electric traction motors. Leclanché will also provide its proprietary energy management software for optimum integration. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Performance-based pricing and innovation now key for ‘makers and movers’
Short-term pricing, dual-sourcing strategies and managing increased supply chain complexity are now “front and centre” for global ocean freight shippers.
Julia Myroshnychenko, global category team lead for international logistics at Henkel, a German chemical and consumer goods manufacturer, said the company had been “hit” on some annual rate agreements.
“We weren’t able to maintain those rates, which is a big issue for a manufacturer like us,” she said at yesterday’s Makers and Movers global summit. Read more here (login required).