Newsletter – September 14, 2021
AIR FREIGHT UPDATES
Air Canada Reroutes Hong Kong Flights Via Seoul To Avoid Flight Ban
Air Canada has decided to re-route its Hong Kong-bound flights via the South Korean capital of Seoul. The decision comes after some of the airline’s crew have had to quarantine in Hong Kong following a reported positive coronavirus test. Such action may see the carrier avoid a flight ban in Hong Kong, which other airlines have already been subjected to. Read more here.
OCEAN FREIGHT UPDATES
Port operations in Shanghai and Ningbo halted by Typhoon Chanthu
Ports in Shanghai and Ningbo, the world’s largest and third-largest container hubs, have closed for the second time due to the impact of a typhoon this summer.
China’s National Meteorological Centre has issued an orange alert, the second-most serious level, for the Typhoon Chanthu, which is expected to make landfall in the Zhoushan Archipelago, Zhejiang province on Monday with strong gales and heavy rainfall. Read more here.
2M blank sailings resurface and take angry shippers by surprise
A container shipping line announcement that it would blank four sailings in the Golden Week period has left shippers, still struggling to get cargo out of Asia, “staggered” at the move.
The 2M is the first alliance to announce blank sailings over China’s October holiday period and has left some shippers in limbo, with booked cargo on the cancelled sailings and still struggling to find capacity on brim-full export ships from Asia. Read more here (login required).
Growing Chinese port congestion fires capes to 12-year highs
Capesize spot rates are rocketing once again, having risen by more than $5,000 on a Friday and a further $6,736 on Monday, taking them back above the $50,000 mark and to levels not seen since 2009.
Brokers Lorentzen & Stemoco described the current cape freight environment as a “perfect storm” in an update to clients today.
“The C5 between West Australia to China skyrocketed, transcribing into the C10 transpacific round voyage going ballistic … that then reverberated into the Atlantic,” analysts at Lorentzen & Stemoco explained. Read more here.
American retail associations demand liner change
A coalition of 152 companies and trade associations representing US importers, exporters, transportation providers and other supply chain stakeholders has submitted a letter of support to Congress endorsing the Ocean Shipping Reform Act of 2021.
The bipartisan legislation was introduced last month by Congressmen John Garamendi and Dusty Johnson. The new bill, created on the back of a wave of anger among US agricultural exporters, will ban carriers from declining all cargo bookings for exports. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
COVID-19 cases in southeast China more than double as Delta spreads
BEIJING, Sept 14 (Reuters) – New local COVID-19 infections more than doubled in China’s southeastern province of Fujian, health authorities said on Tuesday, prompting officials to quickly roll out measures including travel restrictions to halt the spread of the virus.
The National Health Commission said 59 new locally transmitted cases were reported for Sept. 13, up from 22 infections a day earlier. All of them were in Fujian, a province bordered by Zhejiang to the north and Guangdong to the south. Read more here.
Vietnam closures push retailers to shift tactics, suppliers ahead of the holidays
Brands and retailers are shifting their purchase orders, locations and financial outlooks after outbreaks of COVID-19 led to extended lockdowns in Vietnam.
Companies including Abercrombie & Fitch, Big Lots, Chico’s, Culp, Designer Brands and Lands’ End expected a financial hit, according to earnings calls and SEC filings. While some retailers were able to find alternate suppliers, many said delayed product deliveries would result in lost sales. Read more here.