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Newsletter – June 5, 2023
AIR FREIGHT UPDATES
Profitability Forecast For Airline Industry Doubles To Almost $10bn
simpleflying.com
The International Air Transport Association (IATA) has upgraded its revenue predictions for 2023, following steady demand and a reduction in fuel costs. The airline industry’s net profits are expected to reach $9.8 billion for the year, significantly from the organization’s previous projection of $4.7 billion, which it made in December 2022. Read more here.
OCEAN FREIGHT UPDATES
US west coast port disruption stretches into fourth day
splash247.com
A wave of industrial action across US west coast ports has entered its fourth day as contract talks between employers and staff stall.
The Pacific Maritime Association, which represents west coast terminal operators, said Friday that dockworkers were “staging concerted and disruptive work actions” that had stopped or severely disrupted operations stretching from terminals at southern California’s big container port complex at Los Angeles and Long Beach to Seattle with Oakland suffering the largest disruptions. The industrial action carried on over the weekend and is ongoing today. Read more here.
Worker no-shows force US west coast port terminal shutdowns
theloadstar.com
Just when it seemed that US west coast labour contract negotiations were advancing toward settlement, dockworker absences on Friday forced several terminals to halt operations and impacted cargo flows at other facilities.
The action affected terminals at Los Angeles and Long Beach, as well as the ports of Oakland, Hueneme and Seattle. Read more here (login required).
Hapag-Lloyd CEO bullish on prospects for a peak season
theloadstar.com
Hapag-Lloyd’s CEO believes there is a “better than 50%” chance of a normal peak season this year.
During a virtual live information session this morning, Rolf Habben Jansen said that, although there were pockets of inventories remaining elevated, “by and large they are starting to come down”.
And he added that bookings had been “somewhat stronger in the last few weeks”. Read more here (login required).
Power cut a ‘double-whammy’ for Indian shippers at APMT Pipavav
theloadstar.com
Indian shippers, just recovering from recent cargo flow hiccups at Nhava Sheva Port (JNPT), have received a bigger blow.
APM Terminals Pipavav has temporarily shut down operations because of a power outage in the harbour, caused by extreme weather along the west coast at the end of last week. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATES
Is Canada losing out to US and Mexico on nearshoring boom?
freightwaves.com
Canada scored a major victory earlier this year when German automaker Volkswagen announced that it was building a $14 billion battery plant for electric vehicles in St. Thomas, Ontario.
Slated to open in 2027, the Volkswagen EV battery factory will be the first of its kind in Canada. Read more here.