Newsletter – October 1, 2021
AIR FREIGHT UPDATES
A Technical Fault Grounded All Paris Airport Departures Today
This morning, all flights departing from Paris-Orly and Paris Roissy-Charles de Gaulle airports were suspended for around 30 minutes. Officials confirmed a technical issue with the flight plan systems. Arrivals were not affected, but departure delays are ongoing. Read more here.
Air Canada Cargo to expand cold chain capabilities in Toronto
Air Canada is investing $16m in expanding and enhancing its cold chain handling facility at Toronto Pearson International Airport.
The expanded facility will feature over 30,000 sq ft of temperature-controlled areas and an expanded cooler to fully meet the requirements of cold chain shipments such as pharmaceuticals, fresh food and other perishables. Read more here.
OCEAN FREIGHT UPDATES
Agreements ‘being ripped up’ by lines as shippers are left in the dark on rates
Customer service has effectively been shelved by the shipping lines, as shippers grumble that it is getting increasingly difficult to book cargo with them, let alone know what rate they will be charged.
Many complain that carriers are refusing to answer booking desk phones, and are “ignoring” e-mails. Read more here.
‘It’s a crazy market out there’ – shipping contract rates jump by 90%
With container spot rates from Asia appearing to have reached a plateau as China begins its Golden Week holiday, the attention has turned to contract rate inflation which, according to Xeneta’s XSI index, is showing a 91% year-on-year gain.
The September edition of the Oslo-headquartered freight rate benchmarking’s Xeneta Shipping Index (XSI) for the long-term contract container market recorded a 3.2% increase in global container rates. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Soldiers Will Haul Fuel to Ease UK Crisis
LONDON — The British government’s reserve tanker fleet was being deployed Sept. 29 to help deliver gasoline to empty pumps across the U.K., and military drivers will begin operating tankers in the coming days to ease the country’s fuel supply crisis, a top official said.
Business Secretary Kwasi Kwarteng said the first of dozens of troops trained to operate gasoline tanker trucks will start appearing on the roads within days. Read more here.
The workers who keep global supply chains moving are warning of a ‘system collapse’
London (CNN Business)Seafarers, truck drivers and airline workers have endured quarantines, travel restrictions and complex Covid-19 vaccination and testing requirements to keep stretched supply chains moving during the pandemic.
But many are now reaching their breaking point, posing yet another threat to the badly tangled network of ports, container vessels and trucking companies that moves goods around the world. Read more here.
Shortages, shipping, shutdowns hit Asian factory output
Shortages of power, computer chips and other parts, soaring shipping costs and shutdowns of factories to battle the pandemic are taking a toll on Asian economies.
Data released Thursday showed Japan’s factory output slowed while China’s manufacturing outlook weakened.
Japan’s Suzuki Motor Corp. became the latest automaker to idle production lines for a few extra days due to shortfalls in components. Read more here.
Nike warns of shortages as ocean congestion, Vietnam shutdowns hurt inventory
Nike’s inventory increased 12% YoY as already lengthy transit times worsened and prevented the company from satisfying high consumer demand, CFO Matt Friend said on the company’s Q1 earnings call. It now takes Nike 80 days to move product from Asia to North America, compared to 40 days pre-pandemic, he said. Read more here.