NEWSLETTER NOVEMBER 18, 2022
AIR FREIGHT UPDATES
Air Canada Invests in Canadian Technology that Captures Carbon Directly from the Air to Fight Climate Change
MONTREAL, Nov. 17, 2022 /CNW Telbec/ – Air Canada today announced an equity investment/loan of $6.75 million into Canadian climate solutions company Carbon Engineering (CE). The investment supports the advancement of CE’s Direct Air Capture (DAC) technology that pulls carbon dioxide (CO2) directly out of the air at large, industrial scale. Read more here.
350 London Heathrow Airport Ground Handlers Start 3 Day Strike
Football fans heading to Doha this weekend may face potential disruption as 350 Menzies employees based at London Heathrow Airport (LHR) walk out in a dispute over pay.
350 Unite-affiliated employees are expected to join the picket line after discussions with the ground handling contractor stalled. The union has criticized Menzies for failing to offer a pay increase in line with the current real inflation rate of 14.2%, describing it as a “substantial real terms pay cut.” Read more here.
Covid restrictions continue to impact Cathay Pacific’s cargo volumes
Pandemic containment measures in China have continued to impact Cathay Pacific’s cargo volumes while European network expansion has softened the blow.
Although travel restrictions and quarantine requirements have now eased in Hong Kong, it is still impacted by China’s Covid policy. Read more here.
OCEAN FREIGHT UPDATES
Improved shipping reliability adds to retailer woes as more stock pours in
Less congestion on the high seas has put additional pressure on some retailers, already struggling with too much stock.
Wary of missing deadlines for their Q4 sales, they increased lead times, but now some are having to pay extra to hold back new stock as their warehouses are already full. Read more here.
Zim flew higher in shipping boom, falls faster as market sinks
Ocean carrier Zim outperformed its much larger rivals at the peak of the container shipping boom. It’s still raking in over a billion dollars a quarter, but as the market corrects, it’s falling back to Earth faster than others.
On Wednesday, Zim (NYSE: ZIM) announced a drop in quarterly earnings and cut its full-year guidance. Not only is its spot-rate revenue falling, but it is agreeing to lower contract rates in mid-contract and is handling less volume due to weaker demand and ongoing congestion at East Coast ports. Read more here.
Carriers ‘in panic mode’ as recession bites, offering ‘crazy’ ocean rates
Ocean carriers are said to be in “panic mode” as bookings from China to North Europe and the US west coast tank, causing FAK rates to plunge to new depths.
Despite aggressive blanking that has reduced weekly capacity on the tradelanes by more than a third, the lines have failed to slow the precipitous fall in short-term rates and, are arguably fuelling the fire by offering sub-economic spot rates via their digital platforms. Read more here (login required).
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Think big to address skills shortage
You wouldn’t know that staff shortages are one of the biggest challenges facing the air cargo industry by listening to Westjet executive vice-president, cargo, Kirsten de Bruijn.
The executive vice-president, cargo for Westjet said that the company hasn’t experienced any recruiting or hiring issues in its cargo business. Read more here.