Newsletter – September 29, 2021
AIR FREIGHT UPDATES
Canada Lifts Ban On Flights From India
Canada has lifted a ban on direct flights from India after high COVID-19 cases in the subcontinent saw authorities step in and temporarily suspend services. Transport Canada has posted an update on its website confirming the change. Read more here.
IATA: Cargo demand increases as outlook remains positive
IATA has reported in its latest market analysis that cargo volumes increased in August 2021, compared with pre-Covid levels (August 2019), and the outlook remains positive.
The association said global air cargo demand, measured in cargo tonne-kilometers (CTKs), was 7.7% higher in August this year than pre-Covid levels (August 2019). Read more here.
OCEAN FREIGHT UPDATES
Prince Rupert targets transloading ‘at scale’
The Port of Prince Rupert in British Columbia is currently constructing a ‘Connector Corridor’ between its Fairview Container Terminal and Ridley Island, which has historically been a bulk handling area. It plans to build a container transloading facility on Ridley Island for transferring bulk commodities and forest products from rail cars and trucks into containers, tapping into the flow of empty containers that are currently exported through Prince Rupert. Read more here (login required)
White House urged to switch port spending focus to the west coast
The head of the port of Los Angeles has asked the federal government to switch priorities in terms of port investment areas to help alleviate supply chain crunches hitting the nation’s retailers.
Speaking with Bloomberg Television yesterday, Gene Seroka, the port’s executive director, claimed the government has spent approximately $11bn in the eastern Gulf coast compared with roughly $1bn in the west coast over the past decade. Read more here.
Smaller vessels contribute to port congestion
Ports are handling a much higher number of container vessels than before the pandemic, adding to congestion, according to the latest issue of Sea-Intelligence’s Sunday Spotlight.
“Simply put, it takes more time to handle two 5,000 TEU vessels than it does to handle one 10,000 TEU vessel in a congested environment, as a minimum due to the extra time going to and from berth,” said Alan Murphy, CEO, Sea-Intelligence. Read more here.
RAIL & GROUND FREIGHT UPDATES
Congestion, weather and chip shortages cloud rail’s outlook: Cowen
Supply chain congestion, weather-related incidents such as wildfires and Hurricane Ida, and ongoing automotive production challenges could force the Class I railroads to revise their financial outlooks for 2021, according to a note from investment firm Cowen. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Canada pension fund to buy Ports America from Oaktree
Canada Pension Plan Investment Board (CPP Investments) has struck a deal with Oaktree Capital Management to take over full control of Ports America, the largest US terminal operator.
The deal is worth over $4bn, Reuters reported, citing two sources familiar with the matter. Read more here.