Newsletter – August 10, 2021

AIR FREIGHT UPDATES

Europe Considers Reintroducing Travel Ban From The US

simpleflying.com
As COVID-19 cases continue to skyrocket in the US, the European Union is set to review its list of ‘epidemiologically safe’ countries in the following days. This means that the bloc might very likely reintroduce the recommendation to ban travelers from across the Atlantic, previously lifted in mid-June. Read more here.

OCEAN FREIGHT UPDATES

Number of ships at anchor rising at California ports

splash247.com
According to data from the Marine Exchange of Southern California, congestion is on the rise at the four major ports in southern California – Port Hueneme, Los Angeles, Long Beach and San Diego – and the marine oil terminal at El Segundo, the facilities monitored by the exchange. In fact, the number of vessels in port has not dropped below 100 since July 19, when the number was 94. Read more here.

Hot reefer market to outlast cooling freight rates

lloydsloadinglist.com
Rising reefer container freight rate could have a long tail that persists even after rates for dry cargo normalise.
Reefer rates had risen by 32% over the year to the end of the second quarter, according to analysts at Drewry. By the end of the third-quarter peak season, this could increase to as much as 50%. Read more here.

ZIM readies AI solutions for its shipping operations

splash247.com
Israeli carrier ZIM is set to deploy greater use of artificial intelligence in its daily operations following a tie-up with Tel Aviv-based Data Science Group.
The two firms will collaborate to create AI and machine learning solutions for shipping. The aim is to develop advanced models to forecast demand and plan shipping routes, automate logistical processes. They will do this while analysing the data accumulated from ZIM’s shipping fleet. Read more here.

NYSHEX launches in Europe ‘to restore trust’ between shippers and carriers

theloadstar.com
The New York Shipping Exchange (NYSHEX) is rolling out its ocean contracting digital container platform in Europe, after gaining impressive traction in the US market in the wake of the pandemic.
According to newly appointed MD for Europe Jeremy Haycock, one of the key elements for the NYSHEX platform is its ability to restore trust between the shipping lines and their customers, which he says is at rock bottom. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Canadian Pacific submits revised offer to acquire Kansas City Southern

freightwaves.com
Canadian Pacific has revised its offer to acquire Kansas City Southern ahead of a shareholder meeting in which KCS shareholders would have to confirm their desire to merge with CP rival CN.
CP (NYSE: CP) is offering a stock-and-cash “superior proposal” worth an estimated US$31 billion. Read more here.

Driver pay hikes not letting up

freightwaves.com
Demand for truck capacity remains high but the lack of qualified drivers to meet the need is even greater. Elevated consumer spending has resulted in a peaklike freight market for more than a year now, and the reasons why driver employment has been lagging are well known.
Many of the drivers who left the industry at the pandemic’s onset over fears of contracting the virus have yet to return. Low driver school enrollments due to COVID protocols and some 85,000 operators with failed drug tests (according to Drug & Alcohol Clearinghouse data) are just some of the obstacles the fleets face. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Canada’s economy rebounds, on track for 2.5% annualized growth

bnnbloomberg.ca
Canada’s economy sprang back to life at the end of the second quarter, as vaccine-led reopenings spurred a return to growth.
Gross domestic product likely grew 0.7 per cent in June after a 0.3 per cent drop in May, Statistics Canada reported Friday. May’s decline was in line with expectations; coupled with the preliminary estimate for a rebound last month, growth is on pace to come in around 2.5 per cent in the quarter on an annualized basis. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Cambodia garment workers ask global brands for pandemic aid

asia.nikkei.com
PHNOM PENH — Cambodian garment workers are demanding the world’s biggest clothing companies help recover millions of dollars worth of wages and benefits lost amid the coronavirus pandemic.
Their call comes as part of a broader movement by the region’s garment workers, underscoring the tough conditions facing the industry even as demand for clothing and shoes rebounds in the U.S. and other major markets. Read more here.