Newsletter- February 11, 2021

AIR FREIGHT UPDATES

Air cargo market more volatile as hopes fade for return of bellyholds

theloadstar.com
Hopes for a recovery in bellyhold airfreight capacity to relieve the tight lift situation are fading as passenger traffic suffers setbacks from the Covid-19 pandemic.
Faced with high prices and a shortage of services, forwarders are reinforcing their dedicated lift arrangements. Read more here.

OCEAN FREIGHT UPDATES

The permutations for shipping of a muted Chinese New Year

splash247.com
The world’s largest human mass migration is a muted affair this year, something that has significant ramifications across many strands of shipping.
Chinese officials expect 1.15bn trips during the Lunar New Year holiday period, which started today, a 60% drop from pre-virus 2019 days. Read more here.

Inflection point: Contract rates overtake spot rates

supplychaindive.com
Contract rates exceeded spot rates for the first time in seven months during the last week in January, according to DAT, breaking a remarkable run for the spot truckload market.
“Since the pandemic began in March last year, dry van spot rates increased by almost 90 cents a mile, while contract rates increased by around half that amount during the same period,” said Dean Croke, DAT principal analyst. “As a result, shipper freight bids, negotiated in late 2020 during the peak of the spot market rally, resulted in higher negotiated contract rates for 2021 freight.” Read more here.

Buoyant Maersk sets aside up to $5.5bn for acquisitions

splash247.com
A record fourth quarter helped A.P. Møller – Mærsk double its 2020 profits with a significant chunk of the cash earned earmarked for acquisitions.
In the fourth quarter last year, EBITDA rose 85% to $2.71bn while full year EBITDA hit $8.3bn for the world’s largest containerline. Read more here.

The oceans are becoming a large container terminal

splash247.com
We continually read, see and hear news of hundreds of containers fallen into the sea from large containerships with their huge decks full of crumpled teu and feu.
The instability of the environment in which they navigate is the cause of these mishaps, but the origin of these accidents is in the design of the ships, the operations in the terminals, in the cargo lashing systems, the pressures for the minimum stay in port and the greatest economic savings in ship operations – all of them negatively influencing the safety of the ship and the crew. Read more here.

CMA CGM applies new surcharges as box shortages bite

container-news.com
CMA CGM has announced new surcharges for various trades across the globe that will be implemented this month and in March as the container boxes remain scarce and congestion continues to delay cargo. Read more here (login required).

CANADA BUSINESS – GOVERNMENT UPDATES

Bombardier to Stop Making Iconic Learjet to Drive Up Profit

bloomberg.com
Bombardier Inc. will stop making Learjet aircraft and cut 1,600 jobs as part of a wide-ranging plan to boost profitability and reduce costs.
Production of the iconic private aircraft, which came onto the market almost six decades ago, will cease in the fourth quarter, the Montreal-based manufacturer said in a statement Thursday. That will allow the company to focus on its larger, faster and more lucrative Challenger and Global business jets. Read more here (login required).

INTERNATIONAL BUSINESS- GOVERNMENT UPDATES

NRF expects record imports through June, with retailers buying goods early to ensure carrier space

supplychaindive.com
Dive Brief:
The National Retail Federation expects the largest container gateways in the U.S. to continue setting import records through the first half of 2021, according to a forecast from the trade association, released this week. Read more here.

Why The US Must Collaborate To Lift International Travel Restrictions

simpleflying.com
The new US administration under Joe Biden has a difficult task at hand: to help the aviation industry recover from the COVID-19 pandemic while keeping a well-established health protocol to protect the travelers from the disease, and allowing the resumption of international connectivity. Read more here.