Newsletter- February 1, 2022

AIR FREIGHT UPDATES

The last hurrah for Air Canada’s ‘Charlies’ as the seats go back in

theloadstar.com
In response to surging demand for PPE and rapid test kits, Air Canada (AC) has ramped up its deployment of passenger aircraft for cargo services.
For its aircraft that have seen their seats removed to make space for cargo in the cabin (known internally as ‘Charlies’), this surge spells a last hurrah before they are returned to passenger configuration. Read more here.

Fewer China flights may worsen chip shortage with port snarled

ajot.com
Congestion at the world’s biggest port in Shanghai is being compounded by reductions in air-cargo capacity at the city’s main airport, a situation that’s likely to raise costs further for the semiconductor industry.
It’s now taking more than two months for goods to get shipped by sea from Shanghai to the U.S., a wait time that’s too long for the crucial chips used in everything from cars to computers, according to Keelvar, a European-based supply-chain services provider whose customers include Samsung Electronics Co., Logitech International SA and Siemens AG. Read more here. 

Air cargo rates to stay high as challenges remain

aircargonews.net
Strong air cargo rates are set to continue but capacity and ground handling challenges will continue.
This was the takeaway from the World Cargo Summit’s Air Cargo Market Update & Outlook, which focused on the market outlook for 2022 and beyond, hot spots for growth and the outlook for cargo charters. Read more here. 

OCEAN FREIGHT UPDATES

Long-term rate increases losing momentum as carriers seek to lock-in BCOs

theloadstar.com
There are signs that the exponential rise in long-term liner contract rates is losing steam after 14 consecutive months.
Ocean and air freight rate benchmarking platform Xeneta’s XSI long-term contract rate index fell 3.6% this month, following a decline of 1.6% recorded in December. Read more here (login required).

CMA CGM set to acquire majority stake in compatriot delivery firm Colis Privé

splash247.com
France’s CMA CGM has entered into a preliminary agreement to acquire a majority ownership interest in compatriot last-mile logistics player Colis Privé for an undisclosed sum.
The deal will see the Marseille-based liner take a 51% stake from the Hopps Group, with the option of increasing its interest further. The completion of the transaction would strengthen the presence of CMA CGM’s logistics subsidiary, CEVA Logistics, in e-commerce services, especially last-mile deliveries, the company said. Read more here.  

35% of trade capacity on the transpacific to the west coast is now non-alliance

splash247.com
The transpacific has seen so many new players enter the red-hot tradelane during the pandemic to the point where non-alliance services account for 35% of the trade capacity, according to new data from Danish consultancy Sea-Intelligence. The other three major trades to the east coast as well as to Europe have seen much less change. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Alberta premier says massive blockade preventing access to U.S. border ‘must end’

cbc.ca
Large protest started Saturday; RCMP says traffic still blocked in both directions
Alberta Premier Jason Kenney is calling for a massive vehicle blockade preventing access to the Canada-U.S. border crossing to end, saying it is causing “significant inconvenience for lawful motorists.”  Read more here.