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Newsletter – June 19, 2020
AIR FREIGHT UPDATES
Air cargo load factors reach two-year high
aircargonews.netAir cargo load factors have reached their highest level since at least 2018, according to the latest analysis from CLIVE Data Services.Figures from the data provider show that dynamic load factors – based on volume rather than weight – have now hit 71%, representing the highest level since the company began monitoring the market in 2018. Read more here.
Lessons from Qantas violation for overweight cargo
freightwaves.comPoor communication between crew and load planners led a Qantas Airways (AX: QAN) passenger plane to take off above approved weight limit and spurred the airline to deploy hand-held scanning devices to automate most of the freight confirmation process, according to the results of an investigation by the Australian Transport Safety Bureau (ATSB). Read more here.
OCEAN FREIGHT UPDATES
Ocean freight rates soar as tight capacity meets climbing demand
lloydsloadinglist.comOcean freight rates on key transpacific lanes have risen strongly in the last week, as an increase in demand continues to meet restricted capacity.Digital rates specialist Freightos noted that China-US East Coast prices have exceeded $3,000/FEU for the first time since July 2019, and China-US West Coast rates have reached a 30-month high, although figures from Drewry indicate that Asia-Europe prices dipped slightly last week. Read more here.
Grim outlook for box terminals: ‘real pain’ coming in second quarter
theloadstar.com“All but essential” expansion plans and capital spending have been put on hold by container terminal operators that have seen volumes and share prices slashed this year, and a resulting hit to their balance sheets.“Stock markets have plummeted, seaborne trade has dropped like a stone and the world economy is heading for deep recession,” said Drewry’s senior analyst ports and terminals, Eleanor Hadland. Read more here.
SE Asian ports need to invest billions as shippers seek alternatives to China
theloadstar.comContainer terminals in South-east Asia may need to invest up to $13bn to keep pace with expected coronavirus-driven supply chain diversification from China.According to Eleanor Hadland, senior analyst, ports and terminals at Drewry, in addition to the country’s rising costs and the trade war with the US, the pandemic is going to be yet another “push factor” reducing China-centric procurement models. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Exports to drop 20 percent this year
insidelogistics.caOTTAWA – Export Development Canada is forecasting that exports this year will fall 20.3 percent due to the COVID-19 pandemic.In its updated global export forecast released Thursday, the agency says exports will bounce back in 2021, but the predicted rise of 19.0 percent will leave them short of where they were in 2019 before the crisis. Read more here.
As Canada reopens, the search for PPE consumes company resources
thechronicleherald.caOTTAWA (Reuters) – Canadian companies are scouring the globe, often at great expense, to secure personal protective equipment (PPE) for staff and customers as businesses reopen and coronavirus restrictions are eased.While larger companies, such as Canadian National Railway Co, are tapping their own global networks to located PPE, smaller companies are battling higher costs to stock up. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Five Reasons the Virus E-Commerce Surge Is Here to Stay
supplychainbrain.comOne of the byproducts of the coronavirus pandemic has been a remarkable surge in e-commerce volumes. By late April, many carriers were seeing peak-like weekly volumes more than 50% higher than those in February.The growth is ongoing, resulting in record business-to-consumer volumes for carriers throughout the United States. Here are five reasons why this may be the new normal. Read more here.