Newsletter – October 5, 2021
AIR FREIGHT UPDATES
CMA CGM expands air freight fleet with order for two B777 freighters
Container shipping and logistics giant CMA CGM Group is to purchase of two new Boeing 777 freighters to expand the group’s air freight division operations, as global container shipping groups continue to extend their businesses beyond their core ocean shipping role.
CMA CGM launched its dedicated air freight division, CMA CGM Air Cargo, in February 2021, commencing commercial operations in March. Following the arrival of the first of four A330-200F aircraft that CMA CGM planned to purchase, its first flight was between Liege (Belgium) and Chicago, expanding with the arrival of its second aircraft to include flights to New York and Atlanta, and subsequently Dubai. Read more here.
Wow: COVID-19 Expected To Cost All Airlines More Than $200 Billion
IATA has today released its latest market outlook for the global aviation industry. IN total, it forecasts that the industry will have lost more than. $200 billion by the end of 2022. Losses are slowing, but are yet to stop entirely. IATA further warns that proposed price increases tabled by airports and air navigation service providers could stall the recovery. Read more here.
OCEAN FREIGHT UPDATES
Ever Given docks at Qingdao yard, will reenter service in late October
This year’s most famous ship, the 20,388 teu Ever Given, finally docked at a Qingdao shipyard yesterday and is now undergoing assessments ahead of a busy repair schedule.
The Shoei Kisen-owned ship, which suffered damages when it grounded and blocked the Suez Canal in March, is now moored at Qingdao Beihai Shipbuilding Heavy Industry, where its repair schedule is expected to last three weeks before it reenters service on an Asia-Europe loop operated by the Ocean Alliance. Read more here.
Viewpoint: LA empty containers tell a compelling story
New analysis into the empty container exports out of the Port of Los Angeles shows just how desperately the flow of trade is trying to right itself.
According to customs data, the share of empty exports to total exports leaving the Port of Los Angeles is up over 10% and leaving at a faster rate compared to pre-pandemic levels. The rate of empty containers leaving the Port of Long Beach and Port of New York/New Jersey is slightly higher. Exports originating from these ports are currently under review by the Federal Maritime Commission after a noted imbalance of 2020 U.S. exports versus empty containers. Read more here.
Delays soak up more than a tenth of boxship capacity
Containership capacity equivalent to 12.5% of the global fleet is unavailable due to delays caused by congestion in ports, despite the huge increase in the amount of deployed tonnage.
An analysis of vessel delays and capacity deployments by Sea-Intelligence showed that the amount of additional capacity required to meet demand is being outstripped by the amount of capacity being held up out of service as it awaits berthing slots. Read more here.
GROUND AND RAIL FREIGHT UPDATES
CN, Canadian Pacific foresee lower grain volumes, colder-than-normal
Colder weather and lower grain volumes are just some of the issues that Canadian railways CN and Canadian Pacific anticipate as winter approaches, according to the winter operational plans that both submitted to the Canadian government.
The railways are required to submit the plans under the Canada Transportation Act. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
India follows China in reporting extreme coal shortages
China’s extreme shortages of coal, which powers around 70% of the national grid, have been making plenty of headlines in recent weeks. The same story is unfolding in neighbouring India, a country with a similarly high reliance on coal for its power generation. The severe shortages in India are expected to push up dry bulk’s ton-mile scenario dramatically in the coming weeks as New Delhi sources coal from further and further away to keep the lights on. Read more here.
Amazon makes Black Friday the 1st Monday in October
Amazon.com Inc. has moved its Black Friday shopping day up by seven weeks, a sign the mega-retailer wants holiday orders in the pipeline as soon as possible to avoid delivery snafus caused by persistent supply chain bottlenecks.
In an announcement Monday, Amazon (NASDAQ:AMZN) said it was making “Black Friday-worthy” deals available “earlier than ever” across every product category. Black Friday, which historically falls on the day after Thanksgiving, is scheduled this year for Nov. 26. Read more here.