Newsletter – April 23, 2020

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    Apr

    Newsletter – April 23, 2020
    AIR FREIGHT UPDATES
    PPE ‘mayhem’ continues to push China air cargo rates

    aircargonews.net

    Air cargo rates out of China increased again last week as demand for the transport of personal protective equipment (PPE) continued to surge. Read more here.

    OCEAN FREIGHT UPDATES
    HMM launches world’s biggest box ship – but its first voyage may be the last
    theloadstar.com
    As South Korean shipping line HMM today formally launched the world’s largest containership, the country’s government outlined an enormous financial package to prop up its maritime industries.
    According to a report in The South Korea Herald, the ministry for oceans and fisheries has set aside SKw1.25trn (US$1bn) to help shipping lines, shipyards and other maritime players. Read more here.
    Box Carriers ‘Turning a Deaf Ear’ to Calls to Cancel Bunker Surcharges as Oil Price Slumps
    theloadstar.com
    With oil prices plunging to less than $20 per barrel, ocean carriers are coming under increased pressure to cancel their bunker surcharges and introduce negative bunker adjustment factors (BAFs) across their networks. Read more here.
    New York terminal scrambles to block Maersk’s exit
    freightwaves.com
    Global carriers are heavily curtailing ocean services as the coronavirus decimates import demand. Just as it makes sense to rationalize vessel deployment, it also makes sense to rationalize terminal usage. There will inevitably be terminal winners and losers in the months ahead. Read more here.
    Consolidation pays off for carriers during crisis
    lloydsloadinglist.com
    Consolidation of liner shipping carriers appears to have borne fruit, as seen in their ability to stabilise freight rates amid the unprecedented economic shock wave brought about by the coronavirus pandemic. Read more here.
    CANADA BUSINESS – GOVERNMENT UPDATES
     ‘Longer U-shaped recovery’: Economists say Canada faces rougher road than U.S. because of high household debt and oil dependency
    business.financialpost.com
    While health authorities in British Columbia and Ontario say coronavirus cases might be peaking, some economists expect Canada’s economic rebound to be more protracted than anticipated.
    Two reports released on Monday, from TD Bank and from the audit and tax firm RSM Canada, sought to temper expectations that there would be a V-shaped recovery, in which activity bounces back as quickly as it shut down. Read more here.
    CargoM Members and Partners: Survey to Enable Sharing of Storage Space and Workforce during Pandemic
    ciffa.com
    Given the current situation, CargoM has created an inventory of storage space and companies with available workers to help its members and partners meet urgent needs.
    If your company is a member or partner of CargoM and is in one of the following situations, you are asked to complete the “Available storage spaces and workforce survey” to get help from, or provide help to, other companies in the region.
    •If you have storage space available.
    •If you need storage space.
    •If you have additional labour needs to support your activities.
    •If you have the option of relocating some of your employees.
    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
    China Says India’s New Investment Rules Violate WTO Principles
    bloomberg.com
    China urged India to revise new investment rules that seek to block companies from neighboring nations taking over local businesses, saying they’re in violation of principles laid down by the World Trade Organization.
    The curbs seeking to cut the risk of opportunistic takeovers as the coronavirus outbreak drives down valuations of Indian companies “go against the general trend of liberalization and facilitation of trade and investment,” Ji Rong, spokeswoman of the Chinese Embassy in India, said in a statement on Monday.  Read more here.

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