Newsletter – May 24, 2023
AIR FREIGHT UPDATES
CMA CGM Air Cargo discontinues US service
CMA CGM Air Cargo, the fledgling freighter venture of the French shipping line by the same name, has pulled out of the U.S. market again and redeployed aircraft to Asia and the Middle East, the company confirmed.
FreightWaves reported last week that CMA CGM’s website no longer showed Chicago and Miami as destinations for its freighter fleet. The last time a CMA CGM aircraft departed Chicago was on April 29, according to flight tracking site Flightradar24. The freighter deployed on the Chicago route is now being used on a new route to Mumbai, India. Read more here.
France Begins Short Haul Flight Ban Where Trains Are Suitable
From today, you can no longer take a French domestic flight lasting less than 150 minutes where a suitable alternative rail service exists. The ban comes into force as the country drives forward on its pledge to offer more sustainable domestic travel solutions and reduce carbon emissions. Read more here.
US Flight Cancelations Were Down In The First Three Months Of 2023
Data from the US Department of Transportation (DOT) reveals domestic cancelations in the first three months of 2023 were considerably lower than in the same period last year. Its latest consumer report also sheds light on on-time performance (OTP) and mishandled baggage rates in the country. Read more here.
OCEAN FREIGHT UPDATES
Major financing and operator decisions coming on Montreal’s big Contrecoeur container project
As the clock ticks away, so do construction costs escalate in a high inflationary environment. Delays on the Contrecoeur project could mean the Port of Montreal will not have the container capacity it wants in place by 2027 to meet expected demand and thereby continue to compete effectively against key U.S. East Ports in a strong expansion mode – buttressed by the Biden Administration’s multi-billion-dollar infrastructure program. But latest developments point to important announcements this spring and summer on finalizing a financing package, followed by the selection of the terminal operator and a detailed construction schedule. Read more here.
Carriers look for trade mix to stay in the black
Ocean carriers with the greatest exposure to the embattled east – west trades recorded the steepest fall in their average freight rates in the first quarter and are struggling to breakeven in the soft market environment.
According to an Alphaliner analysis, Hapag-Lloyd tops the table so far, of carriers that publish their results in detail, with an average rate for the 2.84m teu that it transported in Q1 of $1,999 per teu. Read more here (login required).
CANADA BUSINESS – GOVERNMENT UPDATES
Canada has highest household debt level in G7: CMHC deputy chief economist
anada has the highest level of household debt in the G7, making its economy vulnerable to a global economic crisis, according to the country’s housing agency.
In an analysis published Tuesday, Canada Mortgage and Housing Corp. deputy chief economist Aled ab Iorwerth said that the country’s household debt has been rising “inexorably” due to rising home prices. Read more here.