Newsletter – November 15, 2021
AIR FREIGHT UPDATES
Why is air cargo suddenly affordable relative to ocean shipping?
The cost to ship goods around the world by air is about 2.5 times more expensive than before the pandemic. On major trade lanes, where demand is especially high, such as China and Southeast Asia to the United States, rates are five or six times higher than normal for the peak shipping season. Read more here.
Frankfurt congestion ‘disaster’ driving cargo and delays to other airports
Severe bottlenecks and disruptions that have been affecting freight traffic at Europe’s biggest air cargo hub Frankfurt Airport since the start of October are continuing and have driven flights, cargo and further disruption and delays to other European airports, with no obvious signs of the situation easing, according to freight industry sources. Read more here.
OCEAN FREIGHT UPDATES
China’s Northern Port of Dalian Begins New COVID-Related Lockdowns
The northeastern port city of Dalian in China is being a third round of lockdowns and quarantine as the city has been linked to a new wave of the Delta variant of COVID-19. Health officials have begun closing non-essential businesses including at least parts of the port operation. Residents have been ordered to remain at home except for essential travel as mass testing and sanitation regimes are again introduced in the city. Read more here.
82 containerships wait off Southern California on day LA and Long Beach start penalising late box pick-ups
Monday sees the start of a new $100 penalty for any container that has spent more than days waiting for pick-up at America’s twin top maritime gateway ports of Los Angeles and Long Beach.
The new state-created fee is one of many measures the White House and American ports have taken in recent months to try and alleviate the extreme container crunch that has put shipping firmly in the mainstream American media this year. Read more here.
Here’s an update for the Los Angeles / Long Beach Port Authority Policy – FAQ
As a follow-up to our CustomerNEWS dated October 29, 2021, this update will provide you with frequently asked questions concerning the Los Angeles / Long Beach Port Authority Policy update.
For your reference, the official announcements from the Ports of Long Beach and Los Angeles can be found at the following links… Read more here.
Florida ports can rescue Christmas, they claim – but will the ships come?
Politicians from Florida are talking-up the state’s ports as the solution to the worsening congestion threatening to snarl-up imports of seasonal merchandise beyond the selling window.
They are even flashing money to entice container carriers to change course for the Sunshine state. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Port of Montreal sets late 2026 as new target date for planned Contrecoeur container terminal
At a technical briefing this week, the Port of Montreal updated the procurement process that national or international consortiums need to follow in seeking to partner with Canada’s second largest maritime gateway in its biggest project in decades: establishing a sixth container terminal. If all goes according to plan, a revised tentative timeline marks the scheduled operational date for late 2026 versus 2025 for the container terminal at Contrecoeur, 25 miles downstream on the St. Lawrence River, where there is already bulk shipping activity. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
U.S. Warns of Risks to Businesses in Cambodia
U.S. companies currently or potentially doing business in Cambodia are being urged to “apply appropriate due diligence to mitigate the reputational, economic, and possible legal risks” associated with problems in that country such as corruption and forced labor. Read more here.
Postal Service wishes e-commerce shippers happy holidays — until Jan. 9
Once e-commerce shippers using the U.S. Postal Service plow through the frenzied holiday delivery season, they will face a slew of 2022 rate increases that for some parts of the agency’s shipping portfolio will be significantly higher than current prices. Read more here.