Newsletter – October 18, 2021

  • Newsletter – October 18, 2021


    Air Canada Gets Two Week Ban On Vancouver Hong Kong Route
    Air Canada is banned from flying passengers into Hong Kong for two weeks. The sudden move is due to the fact that Hong Kong authorities had detected a case coming in from an October 13th flight from Vancouver. The airline has canceled a number of flights from Vancouver to Hong Kong as a result. Read more here.

    Could Amazon soon add widebody freighters to its fleet?
    Ever since Amazon launched its US domestic freighter operation in late 2015 there has been speculation that the company could one day expand into intercontinental operations.
    If a recent report from Bloomberg is correct, that speculation could soon turn into reality. A report from the news wire last week suggested that the e-commerce giant has been in talks to acquire or lease 10 second-hand A330-300Fs and an unknown number of B777Fs. Read more here.


    Ports of Seattle and Tacoma extend hours to address ship congestion
    After President Biden’s meeting last week with the heads of the Ports of Los Angeles and Long Beach, the CEO of the Northwest Seaport Alliance addressed the congestion situation further north on the US Pacific coast.
    In a video news conference, John Wolfe said there were then about 15 cargo vessels waiting to berth at the Ports of Seattle and Tacoma, ports where cargo vessels can ordinarily “go directly to dock at the container terminals,” according to an article in The Seattle Times. Read more here.

    Containership Traffic Jam in Southeast Asia Worst Since April
    Typhoon Kompasu has resulted in the worst container shipping traffic jam in months, one that now stretches throughout Southeast Asia and may take weeks to unravel.
    Although port operations are largely back to normal in Shenzhen and Hong Kong after the tropical storm’s passing, the total containership count off the two vital hubs had ballooned to 271 as of early Oct. 15, the highest count recorded since Bloomberg News started tracking the data in April. Read more here.

    Box rate difference between smaller and large shippers approaching $20,000 per feu
    The crippling container shipping costs hitting smaller shippers has been analysed by Danish consultancy Sea-Intelligence, clearly illustrating why so many exporters are skirting with bankruptcy thanks to this year’s record freight rates.
    The price differential between smaller shippers using spot cargo and larger shippers on contract continues to escalate. The gap was $10,000 per feu four months ago but is now approaching $20,000. Read more here.

    The Log Book: Maersk drops container fees to $1 for COVID supplies
    On Wednesday, international container shipping company Maersk announced it is partnering with the Princeton Foundation for Peace & Learning to assist in delivering COVID-related supplies to India.
    Using the services of its Special Project Logistics (SPL) unit, Maersk has dropped the charges of seven 40-foot containers to a symbolic nominal freight fee of $1 per container to deliver donated supplies from entities including Harvard University’s Boston Children’s Hospital, BE Industries, Geisinger Health, Burke Rehabilitation Hospital and BAXT Cosmedical.  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.


    Federal government watching for Canadian port backlogs
    Finance Minister Chrystia Freeland says she is keeping a close eye on the pace of trade at Canadian ports for signs of strain.
    While Freeland suggested Thursday she hasn’t seen difficulties similar to those south of the border, she does say the government is mindful of supply-chain issues in the Canadian economy. Read more here.


    Don’t cancel Christmas just yet, say freight forwarders
    Freight forwarding companies remain committed to delivering a suitably festive Yuletide, as we witness a seasonal whirlwind of worry and rumour that this year’s Christmas festivities in around ten weeks may just not happen as a result of the current supply chain challenges.
    Robert Keen, Director General of the British International Freight Association (BIFA) says it is time to maintain a sense of perspective, or the headlines may become a self-fulfilling prophecy. Read more here.

    No end in sight for China power crisis as pressure grows on supply chains
    China’s power crisis is expected to further disrupt supply chains bringing longer lead times and a preference for high-value goods.
    Last month, factories across Guangdong’s Pearl River Delta manufacturing heartland and nine other provinces were forced to cut output due to government-imposed energy caps. Read more here.

    Comments are closed.