Newsletter – September 17, 2021

AIR FREIGHT UPDATES

Bangladesh air rates double as Dhaka Airport struggles to handle cargo

theloadstar.com
Air freight rates from Bangladesh have almost doubled in the past month, with rates to the US now at about $12 per kg, to Europe $5 per kg and $4.25 to the Far East, according to local forwarders.
A month ago the rates were $6-$7 to the US, less than $4 to Europe and about $1.5 to the Far East.
Freight forwarders blame the rate rises on higher demand than capacity, scanner malfunction at Dhaka Airport, sea route volatility, Christmas-linked demand for … Read more here (login required).

Canadian Airlines Ask For Staff Volunteers To Cope With Travel Surge
simpleflying.com
With passenger traffic reaching its highest point since the pandemic began, Canadian airlines are asking staff to volunteer at airports. A surge in summer air travel has prompted Canada’s two biggest airlines Air Canada and WestJet, to ask their team members to help overcome employee shortages by volunteering to work at airports. Read more here.

OCEAN FREIGHT UPDATES

John Lewis joins retailers chartering container shipping capacity
lloydsloadinglist.com
UK retailer John Lewis Partnership has reportedly joined a growing list of importers taking the extraordinary step of chartering or commissioning the chartering of additional container shipping capacity in order to guarantee stock for this winter’s peak retail period. Read more here.

Little relief in sight for container equipment shortages
lloydsloadinglist.com
THE shortage of containers that is plaguing shippers is not due to any underinvestment in the equipment fleet, but due to the extended time they are spending in transit, according to container shipping specialist Drewry.
“Not only have we got rising cargo demand but there is the continuing disruption across the container supply chain which means it is taking much longer for containers to complete their voyages,” Drewry head of research Martin Dixon told this week’s Digital Container Summit, explaining that said it was these delays that were leading to inefficiencies in the container fleet. Read more here.

‘Scandalous’ new surcharge wipes out effect of carrier rate hike moratorium
theloadstar.com
The huge earnings of ocean carriers in the first half of the year will gather pace in Q3 and Q4, as old contracts expire to be replaced by new but much higher short- and long-term deals.
Maersk was obliged yesterday to again upgrade its full-year ebit guidance by a further $4bn-$4.5bn, after it reported Q3 trading was “significantly ahead of our previous expectations”, assessed during its outlook update in August. Read more here (login required).

Port terminal capacity won’t keep pace with increasing volumes
theloadstar.com
Terminal utilisation rates are set to increase over the next few years, putting further pressure on the global port congestion crisis.
According to Drewry, handling volumes will grow by an average of 5% a year between 2020 and 2025, whereas capacity will grow 2.5% a year, to reach 1.34bn teu.
As a result, average utilisation rates will increase from 67% to over 75%. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

CN Rail Walks Away From K.C. Southern, Ending Takeover War
ttnews.com
Canadian National Railway Co. declined to increase its offer for Kansas City Southern after a monthslong takeover battle, ceding to Canadian Pacific Railway Ltd. a prize that would create the first railroad spanning the U.S., Canada and Mexico.
Kansas City Southern terminated its $30 billion agreement with Canadian National and agreed to Canadian Pacific’s $27 billion merger proposal, according to a statement Sept. 15. The merger will need approval from shareholders, Mexican regulators and the Surface Transportation Board. Read more here.

CN outlines details of strategic plan
ajot.com
CN announced the details of its strategic and financial value creation plan, “Full Speed Ahead – Redefining Railroading,” which will allow CN to continue delivering high-quality service to customers while generating profitable growth and enhanced returns to shareholders. The plan announced today builds upon CN’s January 2021 strategic plan to lead on safety, customer value, operational excellence, sustainability and social inclusion, while also delivering industry-leading shareholder returns. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Inflation rate rises to highest level since 2003
insidelogistics.ca
Canada’s headline inflation rate reached its highest point in nearly two decades last month as the consumer price index in August rose 4.1 percent compared with a year ago.
The annual pace grew from the 3.7 percent registered in July, and marked the largest year-over-year inflation increase since March 2003.
The rise was driven by the rollback in economic restrictions as well as supply-chain issues, like those for semi-conductors that helped drive price growth for autos with new vehicle prices up 7.2 percent year-over-year in August, for the fastest pace since 1994. Read more here.