Newsletter: April 29, 2022

AIR FREIGHT UPDATES

Shanghai PVG air cargo capacity drops by two thirds in April

aircargonews.net
Air cargo capacity out of Shanghai has been reduced to just a third of its level last year in response to the city wide lockdowns that have caused production to grind to a halt.
The latest statistics from Accenture’s Seabury Consulting show that in the first two weeks of April, cargo capacity from Shanghai Pudong (PVG) is 66.4% down on the same period in 2021.  Read more here. 

Canada’s Cargojet quietly quadruples order for 777 freighters

freightwaves.com
Cargojet is investing in eight Boeing 777 passenger planes that will be converted to a pure cargo configuration, quadrupling its original order, according to a recent management document presented to shareholders and industry sources.
Canada’s largest all-cargo airline took a step into larger aircraft in November when it announced an agreement to buy the first two 777-200s converted by Mammoth Freighters, an Orlando, Florida-based startup. But the company has not widely broadcast that it now has eight of the large jets in its fleet plan. Read more here. 

OCEAN FREIGHT UPDATES

Qinhuangdao port enters lockdown as Beijing readies stimulus package

splash247.com
The northern port of Qinhuangdao in Hebei province is the latest Chinese commodities hub to get hit by virus-related lockdowns as China’s top politicians discuss urgent stimulus measures to pump-prime the national economy.
The city has locked down its Haigang district, which includes the giant coal handling complex, although officials at the port claim it is operating normally. Read more here. 

Shippers still favouring contracts, despite short-term spot rate discounts

theloadstar.com
While long-term container contract rates from Asia continue to advance, ocean carriers have been busy offering significant discounts on spot rates from China this week, as cargo availability temporarily dries up due to Covid lockdown restrictions.
However, the momentum in long-term contract sign-ups at significantly higher rates is underpinning the huge first-quarter profits being reported by carriers. Read more here (login required).

Proposed California inland port project to relieve port congestion

ajot.com
The California Inland Port project proposes to develop four inland logistics hubs in California’s San Joaquin Valley stretching from Bakersfield in the south to Sacramento in the north helping to reduce congestion at California ports, according to Lois Yates, a partner at Global Logistics Development (GLD) Partners. Read more here. 

CANADA BUISNESS GOVERNMENT UPDATES

John Ivison: Canada’s supply chains, fragile at the best of times, are now broken

nationalpost.com
Tiff Macklem and his colleagues at the Bank of Canada have been dismissed as “financially illiterate” by no less an authority than Conservative leadership candidate Pierre Poilievre (BA).
Macklem’s appearance at the House of Commons finance committee on Monday will not have endeared him to his critics. Inflation is too high, “higher than we expected,” the Bank of Canada governor admitted. An annual inflation rate of five per cent costs the average Canadian an additional $2,000 a year, he said in his opening statement. Read more here.