Newsletter – October 15, 2021
AIR FREIGHT UPDATES
Airfreight capacity predicted to tighten in the coming weeks
Airfreight capacity looks set to tighten further in the coming weeks as demand continues its upward trend for the looming peak season.
Niall van de Wouw, managing director at air cargo industry analysts, CLIVE Data Services, said: “It might get pretty messy soon if this climbing load factor continues for the next few weeks. At the moment we see no reason why it would not, and things tend to get a bit stronger towards the end of the year. We still see very little relief from a capacity point of view.” Read more here.
Superhot airfreight market leaves shippers in the cold
Importers and exporters should brace for the pandemonium roiling the ocean freight sector — where container shipping delays and prices are at all-time highs — to wash over the air cargo market this month.
Full planes and skyrocketing freight rates are signs the market has tightened to the point that shippers will be hard-pressed to find air transport for their goods as holiday-season shipping enters the stretch run, according to market analysts and logistics specialists. Read more here.
OCEAN FREIGHT UPDATES
Shipowners brace for big hike in insurance costs
Shipping, facing the rare prospect of solid returns for 2022, will see its bottom line take a hit as insurers come in demanding far higher rates.
The shipping industry has been spooked by twin announcements this week from two British P&I Clubs, giving a strong hint that insurance costs are set to go through the roof. Read more here.
Rates rising and space still tight for shippers frustrated by skipped port calls
Container spot rates from Asia to the US have re-gained traction after China’s Golden Week holiday, while rates to Europe appear to have plateaued and could ease over the coming weeks.
Both tradelanes are still experiencing acute capacity issues, with a high percentage of tonnage idled, awaiting berths at chronically congested US and North Europe hub ports. Read more here (login required).
Ports at full capacity across northern Europe
Containerships at anchor are becoming a regular sight in the English Channel as ports across northern Europe remain heavily congested.
The numbers are nowhere near as high as in southern California, where overnight data shows that 56 containerships were either anchored or in holding areas while waiting to enter Los Angeles or Long Beach. Nevertheless, at least 20 boxships heading towards Antwerp, Rotterdam, Hamburg, Felixstowe, or other major ports in the region have had to anchor in recent days until a berth has become available. Read more here.
GROUND FREIGHT UPDATES
Cross-border truck drivers to face vaccine mandate
Cross-border truck drivers will need to prove they’re fully vaccinated against Covid-19 beginning in early January, under a series of measures that will also see more non-essential travelers return to land and ferry crossings.
“This approach will provide ample time for essential travelers such as truckers, students, and healthcare workers to get vaccinated,” U.S. Secretary of Homeland Security Alejandro Mayorkas said in a related statement. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Biden aims for 24/7 supply chains, but trucking groups dubious
President Joe Biden said the U.S. aims to make its supply chain one that can operate 24 hours a day, seven days a week, starting with the California ports of Los Angeles and Long Beach.
“We have some good news: We’re going to help speed up the delivery of goods, all across America,” Biden said in remarks at the White House on Wednesday. Read more here.
No more room at the logistics warehouse inn, Prologis says
The world’s largest logistics warehouse operator said publicly on Friday what everyone has sensed and experienced for many months: There is no more space to be had, at least right now.
Prologis Inc. (NYSE:PLD) Chairman and CEO Hamid R. Moghadam said in the San Francisco-based third-quarter earnings report that “space in our markets is effectively sold out.” Given that Prologis operates 995 million square feet of logistics warehouse space in 19 countries, that represents a lot of markets. Read more here.