Newsletter – November 18, 2020
AIR FREIGHT UPDATES
Atlas Air refuses to repay US bailout fundsfreightwaves.comAtlas Air Worldwide Holdings (NASDQ: AAWW) last week reported an eightfold increase in adjusted net income and 25% more revenue in the third quarter compared to last year, but will not return $406 million in emergency coronavirus aid the U.S. government intended for financially battered airlines to retain workers. Read more here.
OCEAN FREIGHT UPDATES
Importer fury as UK port congestion means boxes may be stranded for weekstheloadstar.comUK container imports offloaded at Antwerp, Rotterdam and Zeebrugge could be stranded for weeks before they can be relayed back, potentially missing out on the Christmas market.Ships diverted from the heavily congested hub ports of Felixstowe, Southampton and London Gateway have mostly discharged their UK imports at the Benelux ports, but now carriers are struggling with their relay options. Read more here (login required).
Korean Government Gives Warning to Shipping Companies Violating Contractshellenicshippingnews.comSome shipping companies are violating their contracts with South Korean shippers to focus more on Chinese shippers with container freight charges soaring. The South Korean government gave a warning, saying that it would initiate an investigation once such a case is reported. Read more here.
Maersk Q3 profits surge — and Q4 looks even betterfreightwaves.comOn Feb. 20, in the early days of the COVID crisis, passengers were disembarking an infected Princess cruise ship in Japan. Residents of Wuhan, China, were in total lockdown. The very first case was diagnosed in Italy. Also on that day, container giant A.P. Moller-Maersk released its 2019 annual report and 2020 guidance. Read more here.
Hapag-Lloyd: Box boom, capacity crunch may last into 2021freightwaves.comIf you take a direct hit from a Category 3 hurricane, the fallout is far more severe if the storm stalls over your house than if it quickly passes by. The same goes for supply chains. When demand is super-hot, port and transport infrastructure can deal with short spikes, but eventually, they buckle.Backlogs in the U.S. are mounting in the face of surging imports. Container equipment in China is running out. When could the supply chain get some relief? Next month or next year? Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Asia Forms World’s Biggest Trade Bloc, a China-Backed Group Excluding U.S.usnews.comHANOI (Reuters) – Fifteen Asia-Pacific economies formed the world’s largest free trade bloc on Sunday, a China-backed deal that excludes the United States, which had left a rival Asia-Pacific grouping under President Donald Trump.The signing of the Regional Comprehensive Economic Partnership (RCEP) at a regional summit in Hanoi, is a further blow to the group pushed by former U.S. president Barack Obama, which his successor Trump exited in 2017. Read more here.