Newsletter – September 15, 2021
AIR FREIGHT UPDATES
Lufthansa Cargo offers CO2 ‘neutral’ freight service
Lufthansa Cargo is offering all of its customers the option of CO2 neutral transportation on segments utilising freighter flights.
The airline will achieve the CO2 neutrality through the use of Sustainable Aviation Fuel (SAF) and certified offsetting projects to avoid or compensate for the emissions generated during airfreight transport from the outset. Read more here.
Hong Kong-US air cargo rates index reaches new high for the year
Air cargo prices on services from Hong Kong to North America surged to a new high for the year last week as the peak season kicks in and Golden Week approaches.
According to the Baltic Exchange Air Freight Index (BAI), average rates on the route reached $9.70 per kg last week, which beats the previous high of $9.53 per kg recorded in mid-May. Read more here.
OCEAN FREIGHT UPDATES
Carriers blank nearly half of all Asia – Middle East sailings
Consumers in the Middle East face slimmer choices in the shops as global liners shun the region in favour of the higher paying main east-west tradelanes.
New analysis from Alphaliner shows carriers have blanked up to 50% of dedicated Asia – Middle East sailings due to a lack of tonnage and vessel delays as well as the keenness to ensure other higher paying routes are better serviced. Read more here.
The risks of hire deductions and reductions in a booming market
In time charters, a charterer periodically pays hire to an owner. The charterer may have crossclaims against the owner for breach of performance warranty, loading less cargo, etc. A charter may pay less hire on account of off-hire.
Crossclaims/off-hire claims can be classified into three categories. First, the vessel is off-hire, meaning no hire is due for the period. Second, the vessel is not off-hire, but deduction for certain expenses is contractually allowed. Read more here.
Shipping stocks hit fresh highs amid COVID-era supply chain chaos
The mainstream press is now awash in articles on global supply chain breakdowns, exorbitant shipping costs, clogged ports, emptying store shelves and rising inflation. That’s good news for sentiment toward many (but not all) ocean shipping stocks.
After a summer lull, shares of bulker owners, container lines, container-ship lessors and liquefied natural gas (LNG) carriers are moving up again and hitting new peaks. Stocks of crude and product tanker owners — who are heavily exposed to delta variant fallout — have yet to join the party. Read more here.
US shipper launches $270k D&D claim against carrier and terminal operator
An aggrieved shipper in the US, Eucatex North America Inc, filed a complaint yesterday with the Federal Maritime Commission (FMC), claiming CMA CGM and Fenix Marine Services (FMS) charged exorbitant detention and demurrage (D&D) fees for 43 containers.
Eucatex, a home floor and fittings specialist, booked cargo in October 2020 from, São Paulo, Brazil, to Long Beach, California, through Blu Logistics and French liner operator CMA CGM. Read more here (login required).
CANADA BUSINESS – GOVERNMENT UPDATES
Teamsters plan unionization vote at Alberta Amazon DC
A group of warehouse workers in central Alberta could become the first Amazon employees in Canada to hold a unionization vote, and the union behind the campaign says they won’t be the last.
Teamsters Local Union 362 said Tuesday it has filed for a unionization vote at the Amazon warehouse in Nisku, just south of Edmonton. The million-square-foot DC employs about 600 workers. Read more here.