Newsletter – July 28, 2021

AIR FREIGHT UPDATES

Cargo-partner expands air cargo charter ops as demand surges

aircargonews.net
Freight forwarder cargo-partner is expanding its air charter network in response to rising demand and congestion in ocean and rail freight.
The company said that advancing global vaccination efforts are boosting production capacity and come at the same time as a “sharp increase in demand for consumer goods”.
Demand from the automotive, retail and high tech sectors is particularly strong, the forwarder said.
Meanwhile, as result of a “tight market situation” in sea freight as well as on Asia-Europe rail operations, companies are looking for alternative transport solutions to maintain their supply chains. Read more here.

Expeditors the latest to outline ongoing air cargo constraints

aircargonews.net
Congestion and capacity shortages in air cargo are expected to continue as the industry deals with the impact of ocean shipping chaos, heightened demand and lost belly capacity, according to Expeditors senior vice president of global air Kelly Blacker.
Speaking on a company podcast, Blacker described the freight market as an eco-system with issues in one mode of transport having a knock-on effect in other modes.
The ongoing issues in ocean shipping — with container shortages, port congestion, delays and record prices — was pushing demand over to airfreight. Read more here.

OCEAN FREIGHT UPDATES

‘It’s an extreme situation’: Low water levels on St. Lawrence River add to already high shipping rates for companies

theglobeandmail.com
Falling water levels on the St. Lawrence River has prompted marine shipping companies to impose special fees on cargo, adding to the pain of Canadian companies already being hit by record transportation costs amid supply chain chaos.
Shipping lines apply the surcharges occasionally when water is low because the situation forces them to lighten their vessels’ loads. Fewer containers on each ship means they make less money with each shipment, and they try to counter that with a fee.
Germany-based Hapag-Lloyd AG, Switzerland-based Mediterranean Shipping Co. SA (MSC) and France’s CMA CGM SA are among the transporters applying low-water surcharges, which took effect this week. All three carriers posted advanced notices on their websites advising of the changes. Read more here.

Further port disruption possible as Canada’s border services officers plan strike

splash247.com
Canadian border services officers (BSOs) have voted in favour of strike action, although the impact of their decision is still unknown. According to the Canada Border Services Agency (CBSA), 90% of BSOs have been identified as essential workers, leaving them legally unable to withhold essential services.
The BSOs, represented by the Public Service Alliance of Canada, will be in a legal strike position next week. The union has said that a strike could cause a “significant disruption to the flow of goods”; the CBSA, on the other hand, has warned only of the possibility of an increase in border wait times and picketing outside CBSA premises. The agency said it has developed mitigation strategies to ensure operations will continue. Read more here.

Typhoon could continue to disrupt Shanghai ports

lloydsloadinglist.com
Typhoon In-Fa, which slammed into eastern China last weekend, prompting local authorities to evacuate more than 100,000 people and shut schools, markets and businesses, could continue to impact ocean and air freight flows in the Shanghai region in the coming days.
In its latest weekly supply chain weather forecast, issued yesterday, Everstream Analytics said that although the tropical storm’s winds have slowed to 40 mph, heavy rainfall up to 20 inches “threatens to put some assets at high risk with severe flooding, including Shanghai Pudong Airport and the ports of Ningbo, Shanghai, Changzhou, and Nanjing.” Read more here.