Newsletter – March 15, 2021

AIR FREIGHT UPDATES

CMA CGM Air Cargo Flies First A330-200F Commercial Flight

simpleflying.com
The new air freight division of the CMA CGM Group, a French container transportation and shipping company, has just completed its first cargo flight between Europe and the United States. Based at Liege Airport (LGG), the global shipping giant flew its recently acquired Airbus A330-200F from LGG to Chicago O’Hare International Airport (ORD) on March 13. Read more here.

Allow seventh freedoms for air freight, pleads ICAO

theloadstar.com
Countries should lift restrictions on air cargo operations in a bid to improve supply chain connectivity, according to ICAO.
In a series of recommendations announced on Friday, following council approval, ICAO is pushing for wider adoption of seventh freedom traffic rights for cargo operators. Read more here.

Edmonton Airport to speed fueling for cargo jets

freightwaves.com
Faster fueling that speeds up aircraft turn times is one of the selling points behind a CA$36 million ($27.million) investment in new cargo infrastructure at Edmonton International Airport that is being shared by the Government of Canada.
The expansion project is designed to accommodate growth in air shipments and support exports, a key government priority. Cargo operations have grown significantly during the past five years and were up 7.5% in 2020 to 101.4 million pounds despite a significant drop in passenger flights and the belly cargo they carry. Read more here.

OCEAN FREIGHT UPDATES

More regional supply chain visibility may be the cure for toxic port congestion

theloadstar.com
The response by shipping lines to booming demand and the congestion crisis has triggered a “vicious cycle” of yard logjams at ports around the world.
According to Drewry, while agile shipping lines have been able to swiftly add capacity on the fastest-growing tradelanes, the container terminals and landside operators have struggled to keep up. Read more here (login required)

Rates hold steady despite softer demand, with carriers firm on contract prices

theloadstar.com
Container spot rates from Asia to Europe remained virtually unchanged this week, despite softer demand, assisting carriers to lock-in shippers with huge contract rate hikes.
On the transpacific, there was no let up in demand and BCOs are struggling to secure new deals with carriers.  Read more here (login required).

CMA CGM sees volumes remaining strong for first half of 2021

lloydsloadinglist.com
CMA CGM said it expects volumes to remain strong throughout the first half of 2021 after a “year of contrasts”.
“Due to the multiple lockdowns and the unwavering consumption of goods, our customers had to deal with unprecedented complexity with regard to the management of their logistics,” said chief executive Rodolphe Saadé. “In 2021, the volumes shipped should remain strong, at least throughout the first part of the year.” Read more here.

Vietnam recovery held back by steep ocean rates and box woes

theloadstar.com
It’s getting harder and harder for SMEs to find container shipping space ex-Vietnam, opting instead for short-term storage.
Demand for Vietnamese goods is higher than ever, according to forwarders in Ho Chi Minh City, but only multinationals can afford the current steep freight rates.
One local warehousing executive told The Loadstar: “SMEs are looking for overflow warehousing space since they can’t afford – or are not willing to pay – the incredibly high ocean freight rates. Read more here (login required).

Opening the silos: data-sharing is key in port call collaboration

splash247.com
Greater collaboration and information-sharing is needed among stakeholders to optimize ship route planning and curb congestion at ports that is spurring pollutive emissions and raising costs for shipping companies.
“Data transparency is the oil in the machine to make port call execution more efficient,” Captain Ben van Scherpenzeel, director of nautical developments, policy and plans at the Port of Rotterdam, told a recent Immediasea forum of industry participants hosted by Blue-C. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Double digit growth projected for warehousing and fulfillment

insidelogistics.ca
The warehouse and fulfillment sector is projected to see double-digit growth over the next five years.
According to research recently published by Interact Analysis, the e-commerce habit brought on by the Covid-19 pandemic has been “embedded for the long term”. Although demand is likely to flatten out as the virus is brought under control, warehousing and fulfillment centers will continue to play a key and growing role in the world of retail. Read more here.

Thousands of UK firms halt trade with EU

lloydsloadinglist.com
Nearly one in five British company directors polled said their businesses had halted trade with the European Union in January due to Brexit, of which nearly half said this would be permanent, although the figures were much lower for pure goods traders and manufacturers. Read more here.