Newsletter – November 5, 2021

AIR FREIGHT UPDATES

Fury in China as ‘greedy’ airlines capitalise on market turmoil to raise rates

theloadstar.com
China’s master co-loaders have accused airlines of “greed” and “sneaky practices” following the breaking of BSA contracts.
While they acknowledge that additional GRIs and surcharges on top of their rates are reasonable in the current market, they are far less sympathetic to the sharp practices many airlines have indulged in since August in a bid to raise rates by three or four times the amount agreed. Read more here.

Exorbitant ocean rates, need for speed give air cargo an edge

freightwaves.com
Increased use of airfreight by shippers trying to avoid clogged ports is adding pressure to overtaxed air capacity and sharply pushing up rates, especially out of Asia, but new data showing demand plateaued in October reinforces evidence that the traditional busy shipping season started earlier than normal. Read more here.

OCEAN FREIGHT UPDATES

White House starts publishing supply chain dashboard

freightwaves.com
With the U.S. economy relying heavily on clearing out freight bottlenecks up and down the supply chain, the White House on Wednesday started a twice-monthly dashboard featuring key performance indicators to measure progress.
Metrics used in the dashboard, compiled by the Biden administration’s Supply Chain Disruptions Task Force, include ships at anchor at the ports of Los Angeles and Long Beach, cumulative container import volume and retail inventories. Read more here.

Suez Canal transit tolls to rise 6%

splash247.com
The Suez Canal Authority will raise its tolls next year by 6% for all ships bar cruiseships and LNG carriers. The new fees come into effect from February.
Egypt is widening and deepening the southern part of the Suez Canal where the Ever Given containership ran aground blocking the waterway for six days in March. Read more here.

Container trade delays heaping misery on Australian importers and exporters

theloadstar.com
The prolonged disruption to container supply chains has left Australian businesses increasingly vulnerable, according to the Australian Competition and Consumer Commission (ACCC).
Today, the ACCC released its annual container stevedore monitoring report, which found delayed shipments and rapidly rising freight rates were putting “intense pressure” on exporters and importers. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

CP shareholders to vote Dec. 8 on Kansas City Southern deal

insidelogistics.ca
Canadian Pacific Railway Ltd. says its shareholders will vote next month on the issuance of shares in connection with its proposed acquisition of Kansas City Southern.
The Calgary-based railway says all shareholders as of Monday will be eligible to vote Dec. 8 during a virtual special meeting.
CP Rail has agreed to purchase the U.S. railway for about US$31 billion, including the assumption of US$3.8 billion of debt. Read more here.

INTERNATIONAL USINESS – GOVERNMENT UPDATES

Champagne in U.S. to talk unblocking supply chain

insidelogistics.ca
Unblocking North America’s clogged supply chain and making it more resilient to outside shocks – especially from China – tops Francois-Philippe Champagne’s agenda as he starts two days of meetings in Washington.
Champagne told The Canadian Press he will be using his face time in Washington to press the Biden administration on the potential in Canada’s largely untapped rare-earth mining sector, which would allow the U.S. – and its continental neighbours – to be less reliant on China, the world’s leading supplier of those minerals. Read more here.