Newsletter – October 28, 2020
AIR FREIGHT UPDATES
One in Four European Airports Face Insolvencybloombergquint.comMany European airports will struggle to stave off insolvency without state help unless travel recovers from its pandemic slump by the end of the year, according to Bloomberg.Airports Council International Europe predicts that 193 out of 740 airports in the region will soon struggle to pay their bills while government-imposed quarantine requirements remain in place, according to findings released Tuesday. The airfields in doubt are mainly smaller, regional hubs but still account for about 277,000 jobs, ACI said.European passenger numbers fell 73% year-on-year in September, meaning the region has lost 1.29 billion travelers since January.In Germany, Europe’s largest economy, Paderborn airport has already filed for insolvency after passenger numbers fell 85%. Read more here.
OCEAN FREIGHT UPDATES
Maersk in partnership with COVID-19 vaccine makerlloydsloadinglist.comCOVAXX, a US company developing a multitope synthetic peptide-based vaccine to fight COVID-19, has announced a global logistics partnership with Maersk.The agreement lays out a framework for all transportation and supply chain services that will be needed to deliver COVAXX’s vaccine candidate UB-612 around the world, once approved by regulatory authorities. Financial terms of the agreement have not been disclosed. Read more here.
Transpac carriers planning ‘unprecedented’ boost to capacitytheloadstar.comWith eastbound container volumes on the transpacific continuing to surge through October and November, carriers are planning significant capacity increases on the tradelane, says Sea-Intelligence.According to the shipping consultancy, “the transpacific trade stands out” as the route carriers are focusing on for volume growth.“We are now at a point where capacity has grown more than 20% on a year-on-year basis, which significantly exceeds what we have seen in the past,” said the shipping consultancy, describing the development on the tradelane as “unprecedented”. Read more here.
High demand for vaccine expected to boost ocean carriersseanews.comREEFER markets are more resilient in the Covid crisis and general slowdown than other cargo types, says New Jersey’s SeaCube Containers vice president Greg Tuthill.‘Vaccines are first going to be moved via air freight, but followed by replenishment or backfill by ocean freight, so there will be high demand for vaccine transport in the ocean mode,’ Mr Tuthill said.‘Population growth and urbanisation continue to demand more food from different regions,’ he told Rotterdam’s recent Cool Logistics Global conference. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Prologis sees logistics space in short supply by early 2021freightwaves.comA tightening logistics warehouse market could lead to a shortage of space as soon as early 2021, according to a new logistics real estate report from Prologis Inc. (NYSE: PLD)The San Francisco-based real estate investment trust’s research team concluded the uptick in demand for logistics space was centered on three primary catalysts: Increased confidence has boosted demand for leasing; the macro data suggests consumer consumption and COVID-19 can coexist; and there is improved visibility on the need to reconfigure supply chains to carry more inventory and accommodate rising e-commerce demand. Read more here.
Workers’ Ability to Absorb Change ‘Cut in Half’ in 2020, Gartner Sayshrdive.comDive Brief:The average employee’s capacity to absorb change without becoming fatigued “has been cut in half” this year compared to last year, researchers at advisory firm Gartner said in an Oct. 14 statement.Employees are worried about their health and job security, the health of their family members and the economy, Gartner said. Organizations may need to increase employees’ ability to absorb change through what the firm called an “open source” approach that focuses on how employees experience change rather than the outcomes of changed behaviors. Read more here.
Four Key Transportation Matters To Watch On Election Dayforbes.comIn less than a week, we will conclude an election during one of the most trying times in our nation’s history. Whether the final election results will be clear in less than a week is one of many unknowns surrounding this election. Transportation-wise, the results of multiple races could have major impacts on the future of ride-sharing, transit-funding, and infrastructure. Here are four key transportation matters to watch on November 3, 2020. Read more here.
Automation will lead to new jobs in supply chaininsidelogistics.caCHARLOTTE, N.C. – While investment in automation is seen as vital for companies to remain competitive, supply chain leaders still envision a strong need for human capital in the workplace, according to a Honeywell study.Most companies that responded to the 2020 Honeywell Intelligrated Automation Investment Study indicate that automation in supply chains can lead to opportunities for new jobs within the workplace. Two in three companies see opportunities for new and different jobs in customer service, distribution centres and warehouses. Read more here.