Newsletter – October 19, 2020
AIR FREIGHT UPDATES
Freighters will be ‘very near and dear’ for the next three years – Boeing
All-cargo aircraft must continue to shoulder a higher share of international freight flows, as passenger networks are expected to take years to recover – widebodies plying longhaul sectors being the last to return to normal.
Boeing’s recent 10-year market forecast shows the impact of Covid-19 on passenger travel and the need for aircraft to serve the market, and predicts 18,350 jet aircraft deliveries over the period, which is 11% lower than its projections a year ago. Read more here.
OCEAN FREIGHT UPDATES
‘We’re sold out’ says ONE, but we all face new hurdles in ‘this incredible year’theloadstar.comAs container shipping’s rollercoaster year continues a steep climb, one senior carrier executive has declared: “We’re sold out.”Jeremy Nixon, CEO of Ocean Network Express (ONE), said 2020, with global lockdowns and subsequent swings in demand, had been an “incredible year”. Read more here.
Alliance makes raft of November changes, and cancellationsseanews.com.trTHE Alliance, made up of ocean carriers Hapag-Lloyd, Yang Ming, Ocean Express Network (ONE) and HMM, have announced changes to a large number of services for November.In a statement, THE Alliance said: ‘In response to the Covid-19 pandemic, the members of THE Alliance have been making service adjustments to better align their resources with the fluctuating demand in the global shipping market.’ Read more here.
Vietnam plans second container port near Ho Chi Minh Cityseanews.com.trTHE Vietnamese government is planning to build another container port on the outskirts of Ho Chi Minh City, with several sites under consideration, following the surge in container volumes between East Asia and Southeast Asia, especially Vietnam.The increased throughput has been brought about by the trade tensions between the US and China with some manufacturers shifting production from China to Vietnam, according to Netherlands Fresh Plaza. Read more here.
GROUND AND RAIL FREIGHT UPDATES
News Alert: US, Canada, Mexico border closures extended to Nov. 21freightwaves.comThe closure of the U.S. land borders with Canada and Mexico will remain closed for nonessential travel until at least Nov. 21, officials from the three countries announced on Monday.Cross-border trucking and rail operations should remain unaffected by the continued closures in response to the COVID-19 pandemic. Read more here.
Carriers purchasing trailers over tractors during booming freight marketfreightwaves.comTender rejection rates continue to hover around all-time highs as carriers struggle to cover the recent freight boom, driving rates and revenues higher. The last time this occurred carriers rushed to purchase record amounts of equipment in 2018. But this time around, trailers are the equipment of choice over tractors.This past Monday Alan Adler reported that preliminary trailer orders for September look to be the third-highest month in history, exploding to 52,000 units. This is part of a five-month trend of increasing dry van trailer orders that began in May of this year. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Air Transat Expects More Layoffs With Vancouver Base Closure
The Air Transat Component of the Canadian Union of Public Employees (CUPE) has learned that the airline plans to scale down its flight attendant numbers come November. According to the union branch, there will be only 160 flight attendants next month – a dramatic drop from pre-pandemic levels. This news is accompanied by the airline’s decision to close its Vancouver base until further notice completely. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
US exporters in revolt over the cost of changing earliest return datestheloadstar.comUS agricultural exporters are demanding shipping lines end frequent changes to earliest return dates (ERD) – the earliest an export container can be delivered to the carrier – which can incur significant extra costs.More than three-quarters of responding exporters reported that at least 5% of their shipments incurred more costs as a result of ERD changes, according to a survey conducted by the US Agriculture Transport Coalition (AgTC) and tech company TradeLanes. Read more here.