Newsletter: April 4, 2022

AIR FREIGHT UPDATES

Airfreight customers take hit from Ukraine rates rise

aircargonews.net
Airfreight customers will pay the price as the Russia-Ukraine war continues and impacts rates.
Speaking exclusively to Air Cargo News, The Air Charter Association chief executive officer Glenn Hogben says airlines have been forced to change their Asia-Europe routes to avoid Russian and Ukraine airspace since the later country was invaded, meaning flights take longer and aircraft use more fuel, resulting in more costs. Read more here. 

Air Canada wants more cargo jets 3 months after launching service

freightwaves.com
Eight cargo jets are only the beginning for Air Canada.
The first carrier in North America to return to a combination passenger-and-freighter fleet intends to invest in more all-cargo aircraft as logistics contributes more to long-term profitability, the company’s cargo chief says. Read more here. 

OCEAN FREIGHT UPDATES

West coast congestion worries return to LA and northern California

theloadstar.com
The spectre of a repeat of last year’s congestion is beginning to rise on the US west coast as ocean container dwell times at major gateways have increased in recent weeks and the availability of rail equipment and chassis has decreased.
Ports and terminal operators are raising the alarm over rising container dwell times caused by lack of rail equipment, which has forced them to slow unloading of containerships. Read more here (login required).

Yang Ming plans to order more 15,000 teu ships and some feeders

theloadstar.com
Taiwanese liner operator Yang Ming plans to order more 15,000 teu ships and feeder vessels, in expectation of the strong demand for container shipping continuing.
The company also plans to add 70,000 containers to its fleet, with 40,000 ordered last year to be delivered this month. Tenders will be invited in the summer for the remaining 30,000 boxes. Read more here (login required).

Lessons learned from the Felicity Ace disaster

splash247.com
In February, the 60,000 gt car carrier, Felicity Ace, caught fire and burned for over a week before recovery teams could board. After running aground while being towed to safety, the ship began to sink and is now two miles beneath the surface of the Atlantic Ocean. The crew safely abandoned ship but the loss of the vessel’s cargo, comprising close to 4,000 vehicles estimated at $330m and accounting for anticipated wreck salvage costs, the total damages arising out of the casualty are expected to fall just shy of $500m. Read more here. 

GROUND AND RAIL FREIGHT UPDATES

About that “driver shortage”

freightwaves.com
The most polarizing term in trucking is the “driver shortage.”
To drivers, the term often gets them fired up and angry – it makes them feel as if they are a commodity.
The trucking industry is one of the most cyclical industries on the planet; it goes through booms and busts. Read more here. 

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Three-day mass testing gets underway for Shanghai’s 26m residents

splash247.com
Three-day mass testing across Shanghai’s 26m residents kicked off today with the military drafted in to help in the huge exercise. Authorities in China’s commercial hub have declined to say when the city’s lockdown will end with the global logistics community desperate for more firm news out of Shanghai. Read more here. 

Supply chains remain in chaos as Shanghai lockdown is extended indefinitely

theloadstar.com
The Shanghai lockdown has been extended indefinitely, a move that casts further uncertainty over Chinese supply chains, as new data is published showing the impact on China’s ocean freight volumes.
The severe restrictions in the eastern half of the city, including Pudong, were due to be lifted on Friday, but nearly all areas remain under lockdown and local authorities have given no timeframe for its end, other than saying it would be done “in stages”. Read more here (login required).