Newsletter – July 4, 2022

AIR FREIGHT UPDATES

4 July Chaos: Over 10k US Flights Have Been Delayed So Far This Weekend

simpleflying.com
After several months of relentless mess for the aviation industry, it would seem that there is no end to this turmoil as the July 4th weekend brings about over 10,000 flight cancellations and delays. The massive rate of cancellations and delays is higher this year than before the pandemic, further emphasizing how problematic air travel has been since it rebounded. Read more here.

Air freight companies urged to prepare for next phase of EU import controls

theloadstar.com
The EC has urged companies to start preparing for the second phase of its customs security and safety programme for air freight.
This launches on 1 March next year – testing processes in advance is mandatory and must be done before February. Read more here (login required).

OCEAN FREIGHT UPDATES

West Coast dockworkers fail to reach labor agreement with port employers

supplychaindive.com
Dive Brief:
Union dockworkers at West Coast shipping ports failed to reach a labor agreement with cargo carriers and terminal operators on Friday, but both sides committed that “normal operations will continue at the ports,” according to a joint statement.
The International Longshore & Warehouse Union’s existing contract with the Pacific Maritime Association, which covers more than 22,000 workers at 29 ports, expired at 5 p.m. The two groups pledged that “cargo will keep moving” until an agreement is reached. Read more here.

California ports piling up again: Too many containers sitting too long

freightwaves.com
At the height of last year’s “will Christmas be canceled?” supply chain freak-out, the ports of Los Angeles and Long Beach — with the Biden administration’s backing — proposed a highly controversial fee on import containers that sat too long in terminal yards.
The mere threat of this fee, announced on Oct. 25 for implementation Nov. 15, seemed to initially chase more boxes out the gates, as designed. Every week since then, like clockwork, the ports have cited progress and announced that the fee enforcement would be postponed until the following week. Read more here.

Warning to shippers: don’t tear up contracts to rush into a tempting spot market

theloadstar.com
Xeneta’s ocean shipping contract rate index jumped by 10% in June, but further big monthly increases seem unlikely as container spot rates head south and shippers have more supply options.
The increase in the freight rate benchmarking firm’s XSI crowd-sourced index followed a 30% leap in May, meaning the index now stands 170% higher than a year ago. Read more here (login required).

Boxport congestion spreads across the globe again

splash247.com
Boxport congestion is growing across multiple continents. Clarkson’s containership port congestion index shows that as of last Thursday 36.2% of the global fleet was at port, up from 31.5% in the pre-pandemic years from 2016 to 2019, with Clarksons observing in its latest weekly report that congestion on the US east coast has recently risen to near record levels. Read more here.

MSC set to build super port in Vietnam, despite ‘poor economic justification’

theloadstar.com
The world’s biggest shipping line, MSC, wants to build a new transhipment “super port” in south Vietnam.
According to local media, MSC-owned Terminal Investment Ltd (TIL) has signed an agreement with Ho Chi Minh City to build a $6bn port in Can Gio, a district on the city’s outskirts. Read more here (login required).

CANADA BUSINESS – GOVERNMENT UPDATES

Government of Canada invests in projects to improve supply chain efficiency for Canadian airlines across the country

canada.ca
The Government of Canada is committed to strengthening Canada’s trade corridors, which support our supply chains, help grow our economy and ensure its recovery, while creating good, middle-class jobs.
Today, the Minister of Transport, the Honourable Omar Alghabra, announced close to $105 million for three new projects with NAV CANADA under the National Trade Corridors Fund. These projects will help improve supply chain efficiency for Canadian airlines across the country. Read more here.