Newsletter – May 25, 2022
AIR FREIGHT UPDATES
Cathay Pacific Cargo introduces Priority options for time-sensitive cargo
Cathay Pacific Cargo is introducing a suite of Priority options, offering dedicated booking tiers tailored to cargo shipments. Priority provides greater choice and better-defined service options to customers: speed, capacity and assurance for every shipment. This service will also be available in the UAE besides the airlines’ other ports. Read more here.
OCEAN FREIGHT UPDATES
More focus on inland terminals could ease barge congestion in Europe
DP World’s renewed focus on its inland water terminals could be key to solving the systemic barge congestion that has blighted Northern Europe for the better part of a decade.
The terminal operator has been pushing intermodal services at its ports across Europe as part of its efforts to meet sustainability goals, but sources said attention on the terminals would also “likely improve” the “appalling services” offered by barge operators. Read more here (login required).
Containership orderbook equivalent to the extent fleets of Cosco, Hapag-Lloyd and Evergreen
More statistics relating to today’s record containership orderbook are pouring in.
According to Alphaliner, there are now just under 900 ships totalling 6.8m teu due to be built at yards around the world.
According to Alphaliner, the pipeline of container newbuildings is bigger than the combined existing fleets of Cosco, Hapag-Lloyd and Evergreen, the world’s fourth, fifth and sixth largest liners, respectively. Read more here.
Carriers’ golden summer may be turning into autumn as profits plateau
There was another new record for ocean carrier earnings in Q1, but with operating costs spiralling and spot rates starting to head south, liner profitability may have plateaued.
With results from CMA CGM still to come, consultancy Blue Alpha Capital has estimated Q1 net earnings of the major ocean carriers at a staggering $59.3bn – compared with $19.1bn the year before. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATES
Shippers ready to fight truck driver overtime pay bill in Congress
Legislation aimed at ensuring overtime pay for truckers is getting close scrutiny from a major shipper group that plans to fight hard against it if the bill starts to gain steam.
The Guaranteeing Overtime for Truckers Act, introduced in April by Rep. Andy Levin, D-Mich., would repeal the motor carrier exemption in the Fair Labor Standards Act (FLSA), an exemption that excludes many drivers from overtime pay protections. Read more here.