Newsletter – September 11, 2020
AIR FREIGHT UPDATES
Strong demand and ‘very tight capacity’ predicted for air cargo markettheloadstar.comWhile it is chaos on the high seas, air freight out of China has seen demand slow – slightly – after Apple delayed a product launch, leaving unexpected capacity in the market.However, noted Flexport this week, this was a “short-term blip before the market is expected to gain strength, hitting a mini-peak ahead of the Golden Week holiday in early October”. Read more here.
OCEAN FREIGHT UPDATES
China set to step in and hold down box line rates, with ocean freight ‘a global mess’theloadstar.comChinese authorities are set to interfere in both pricing and capacity management on the transpacific, as rates soared to record highs again this week.China’s ministry of communications today discussed refusing to allow carriers to increase the spot rate from China to the US, and that their suspended sailings must be reinstated from week 42. Read more here.
Current ocean freight recovery may not be sustainedlloydsloadinglist.comThe current boom in volumes, particularly on the transpacific, could be masking what may turn out to be a long and slow recovery for the container sector.“The container shipping industry is particularly vulnerable to changes in consumer spending, which has been severely impacted by lockdowns across the world,” BIMCO chief shipping analyst Peter Sand said in his latest outlook for the sector. Read more here.
US container imports surgelloydsloadinglist.comUS container imports surged to “unexpected” high levels this summer and may have hit a new record, as the US economy continues to reopen and retailers stock up for the holiday season, according to the monthly Global Port Tracker report by the National Retail Federation (NRF) and Hackett Associates. Read more here.
Port of Halifax: HEA and ILA Agree to One-Year Contract Extensionciffa.comThe Halifax Employers Association, acting for and on behalf of its members (steamship companies and agents employing labour, stevedores and container-terminal operators handling vessels in the Port of Halifax), and the Council of I.L.A. Locals for the Port of Halifax, acting for and on behalf of its members (the Halifax Longshoremen’s Association, Local 269, the Halifax Freight & Steamship Checkers Union, Local 1341 and the Halifax Gear Repair and Maintenance Men, Local 1825), have reached an agreement to extend the current collective agreement and the existing Mid-West Cargo rebate agreement for an additional year, to expire on December 31, 2021.The contract extension was agreed to in response to the uncertainty created by the COVID-19 pandemic to provide labour stability in the longshore industry in the Port of Halifax.
Ship early for Xmas: airfreight capacity bottlenecks push e-commerce to seatheloadstar.comSkyPostal has sounded an alarm for disappointments at Christmas.The Florida-based parcel delivery network for Latin America warned e-commerce merchants to ship early for the Christmas season to avoid delays. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Toronto Pearson First Canadian Airport to Achieve Global Health Accreditationairportscouncil.orgWASHINGTON – Toronto Pearson International Airport, operated by the Greater Toronto Airports Authority (GTAA), is the first Canadian airport to be accredited under the Airports Council International (ACI) Airport Health Accreditation programme. Read more here.