Newsletter – July 29, 2022

AIR FREIGHT UPDATES

China Reopens Beijing For International Flights

simpleflying.com
China is one of the most important markets within the Asia-Pacific region. Unlike the majority of its peer markets, the country has continued to impose the world’s strictest pandemic border regime. It is only just starting to gradually reopen, perhaps signifying a time for finally moving on from the pandemic. And for the first time in over two years, Beijing is welcoming back scheduled international commercial flights. Read more here.

OCEAN FREIGHT UPDATES

Record container ship traffic jam as backlog continues to build

freightwaves.com
If you only look at Los Angeles and Long Beach — the largest container import gateway in America — you’d think shipping congestion has drastically reduced. The number of ships waiting there has fallen to 26 from a high of 109 in January. But in fact, North American port congestion has just re-entered record territory. The offshore traffic jam is once again as bad as it’s ever been. Read more here.

Dock strikes and shippers eyeing rate renegotiation add pressure on carriers

theloadstar.com
The threat of dock strikes at Felixstowe and Liverpool next month, together with the potential resumption of industrial action at German ports, add to the supply chain woes of Asia-to-North Europe shippers.
Moreover, the risk of further disruption to carrier networks as they attempt to navigate heightened congestion at North European hub ports is likely to slow the decline in container spot rates on the tradelane, despite weakening demand. Read more here (login required).

‘Space, the ultimate frontier of logistics’, says CMA, while Maersk rejects discounts

theloadstar.com
Maersk has ruled out ocean freight rate discounts along the ‘patriotic’ lines established in recent weeks by CMA CGM.
All the Marseille-based shipping group’s customers  in France, will benefit from a reduction of €750 per 40ft container, but in response to a Loadstar question on whether it will follow suit for Danish customers, Maersk was clear. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Retailers downgrade outlook, as inflation and high inventories bite

theloadstar.com
Amazon yesterday reported a Q2 net loss of $2bn, which it said was in part related to its investment in Rivian Automotive electric delivery vehicles. Net sales, meanwhile, increased 7% to $121.2 bn.
In an earnings call, which showed how wide the Amazon business reaches, there was little of note for the transport and logistics industry. Of the $60bn spent on capital investments, some $15bn went on transport, but no further details were available. CFO Brian Olsavsky said: “For the second quarter, … Read more here.

Shippers turning to visibility systems to manage growing complexity

insidelogistics.ca
Driven by the increasing complexity in supply chains, the global supply chain management platform market is expected to grow by more than 11 percent a year, according to new analysis by Frost & Sullivan.

Issues such as unreported process delays and late deliveries, are prompting shippers to invest in real-time visibility into the status of their freight. Read more here.