Newsletter – September 9, 2021
AIR FREIGHT UPDATES
‘No capacity left’ for ad hoc peak season bookings, says ABC
Without the normal air cargo slowdown over the summer, there’s “no capacity left” in the scheduled freighter market heading into peak season.
According to Eric Lamare, APAC director of scheduled cargo at Volga-Dnepr Group’s AirBridgeCargo, a unique summer for the industry has created a “very active” peak season ? not least because of the massive disruption at Shanghai Pudong, which is still unravelling. Read more here (login required).
Drones used for last-mile delivery are “here to stay”
Drones will become a preferred transportation mode for last-mile deliveries of pharma products into hard-to-reach areas with a concentration of healthcare facilities in the coming years, according to a new white paper from Pharma.Aero and the Humanitarian Logistics Association. Read more here.
OCEAN FREIGHT UPDATES
Congestion worsens at US west coast ports
Congestion has worsened again in recent days at US west coast ports, leaving some experts to conclude that the disruptions to US and global supply chains caused by the current ocean freight bottlenecks will take at least a further six months to unravel.
Recent reports indicate that the numbers of vessels waiting at the ports of LA and Long Beach (LAX/LGB) had risen again to an historic high of more than 40 vessels queueing, “with no expectation to improve in the near term”, freight forwarder Flexport noted. Read more here.
EU, US and Chinese regulators meet to discuss liner issues
Maritime regulators from the European Union, the US and China have met virtually this week for the fifth biennial meeting of the Global Regulatory Summit to discuss competition issues related to liner shipping. Read more here.
Spiralling shipping costs threaten survival of small businesses
Shippers are facing a “meltdown of the container shipping market” as they enter the peak season, according to the latest Container Shipping Market Review from the Global Shippers’ Forum and MDS Transmodal.
With deployed capacity failing to keep pace with growing consumer and business demand, a “rapidly disintegrating” box shipping market was pushing up shipping rates beyond the reach of many small and medium sized businesses. Read more here.
Cash-rich container lines look to squeeze out feeder operators
Ocean carriers are squeezing their feeder service providers from both sides: firstly by refusing to entertain contract rate increases, and secondly by turning the heads of shipowners with offers of employment for their vessels.
While most line contracts with commercial feeder operators run until the year-end in Northern Europe, port congestion, higher bunker costs and a massive spike in daily charter hire has forced the shortsea carriers to ask for interim increases and higher minimums. Read more here (login required).