Newsletter- August 4, 2022

AIR FREIGHT UPDATES

Airlines set to save billions with fuel hedges amid $100 oil

ajot.com
Airlines with oil hedges are set to save billions of dollars on their fuel bills this year, the first such gains since the industry was ravaged by the coronavirus pandemic.
Both Southwest Airlines Co. and Air France-KLM said they stand to gain about $1 billion each from their hedging policies, a benefit that will at least partially cushion the companies against higher oil prices.  Read more here.

Vietnam Airlines Flights Are Now Avoiding Airspace Near Taiwan

simpleflying.com
Vietnam Airlines has opted to avoid the airspace near the Taiwan Strait following China’s decision to conduct live-fire near the territory. Vietnamese authorities ordered all carriers to avoid the area following an advisory by China to all airlines in Asia on Wednesday.  Read more here.

Air Canada Struggles To Handle Q2 Demand But Cuts Losses

simpleflying.com
The adage that it never rains but pours seems to have struck home at Air Canada. After a long time on the ground, the airline is struggling to keep its head above water as demand surges five-fold from last year.
In its second-quarter (Q2) results released on Tuesday, Air Canada reported passenger revenue of C$3.441 billion ($2.69 billion), eight times higher than in Q2 2021 and 80% of Q2 2019. Read more here.

OCEAN FREIGHT UPDATES

FMC unveils plan for data collection initiative mandated by the Ocean Shipping Reform Act

splash247.com
The US Federal Maritime Commission (FMC) is seeking public comments on its proposed plan for gathering import and export information from vessel-operating common carriers that is required under the Ocean Shipping Reform Act of 2022 (OSRA).
The law mandates that the FMC collect and publish total import and export tonnage and the total loaded and empty 20-foot equivalent units (teu) per vessel of vessels calling the US, with all necessary information to be provided by the carriers. The commission will report this information each quarter. Read more here.

Liner schedule reliability improves for the first time since the start of the pandemic

splash247.com
For the first time since the start of the pandemic liner schedule reliability has improved on a year-on-year basis, but six out 10 boxes are still arriving at port late to the consternation of shippers forking out freight prices five times their historical average.
“Global schedule reliability seems to have broken the trend seen since the start of this year, with schedule reliability increasing by 3.6 percentage points in June 2022 to 40.0%,” a new report from Sea-Intelligence states. Read more here.