Newsletter – October 8, 2020
AIR FREIGHT UPDATES
Rising air freight load factors and rates a ‘toxic combination’ for shipperstheloadstar.comHigh load factors, air freight rates and uncertainty is a “toxic combination” for shippers as the air cargo market continues to grow.According to the latest data, volumes are flowing back into air freight and prices are rising while the industry waits to see what is in store for the ‘peak’ period.September saw a record dynamic load factor, of 70%, up two percentage points (pp) from August and 8pp higher than a year earlier. Read more here.
How Airlines Are Preparing To Ship The COVID-19 Vaccinesimpleflying.comAs the world edges closer to finalizing a COVID-19 vaccine, some airlines are already preparing to ship them. To ensure distribution efforts run efficiently, carriers are readying essential facilities like cold storage and cargo planes for when the time comes.This comes despite very little information on where vaccines will be manufactured, and what temperature they need to be kept at. Nonetheless, after the IATA last month warned carriers and authorities of the pressing need for preparation, many are now taking action. Read more here.
OCEAN FREIGHT UPDATES
Evergreen Marine names new chairmansplash247.comTaiwanese shipping line Evergreen Marine has announced the appointment of Chang Yen-I as the new chairman of the company, replacing Anchor Chang who has moved to Taipei Port Container Terminal (TPCT) as chairman.TPCT is jointly owned by Evergreen, Wai Hai and Yang Ming. Read more here.
Charter market still soaring: ‘We’ll beat any rate to secure a panamax’theloadstar.comContainership charter rates continue to soar against a backdrop of tight supply across most sectors.This is reflected in the latest idle tonnage report from Alphaliner showing 23 fewer ships (for 123,462 teu) in the idle fleet.This is now down to 140 vessels, for 520,831 teu, representing just 2.2% of the global fleet. Read more here.
FMC examines ocean carrier billing practicesfreightwaves.comThe U.S. Federal Maritime Commission (FMC) said it is seeking information from the container-shipping public on alleged attempts by ocean carriers to hold companies financially responsible for transportation services that they did not contract for and may not legally be required to pay.The FMC said it received comments for its earlier Docket No. 19-05, Interpretative Rule on Detention and Demurrage under the Shipping Act, from industry groups such as the Agriculture Transportation Coalition and National Customs Brokers and Forwarders Association of America that raised concerns about these billing practices and initiated the notice of inquiry. Read more here.
Transpacific rates nearly triple last year’s despite record high capacity in Golden Weeksupplychaindive.comDive Brief:Capacity on the Transpacific for Golden Week was “unprecedented,” according to Sea-Intelligence. Available space exceeded the next highest capacity year, 2018, by more than 150,000 TEUs.The latest schedules for the Asia to North America West Coast route show “a staggering 26.6%” YoY increase in capacity for week 40, which ran Sept. 28 to Oct. 4, according to a Sea-Intelligence report. Golden Week began Oct. 1 and is a holiday in China that usually coincides with a downturn in ocean traffic. Read more here.