Newsletter- August 12, 2022

AIR FREIGHT UPDATES

Air Canada shows big ambitions for cargo startup

freightwaves.com
Air Canada isn’t just testing the waters for a stand-alone freighter division — it’s jumping in with both feet.
The carrier, which has long had a unit that manages cargo in the belly of passenger jets, was one of the first to harness the revenue opportunity from cargo-only passenger aircraft when the pandemic knocked out regular travel business and discovered there is strong demand for additional cargo lift into the Canadian market. Read more here.

OCEAN FREIGHT UPDATES

FMC to determine if supply chain congestion warrants issuance of emergency order requiring information sharing

splash247.com
The US Federal Maritime Commission (FMC) is seeking public comment on whether supply chain congestion has created conditions warranting the issuance of an emergency order requiring common carriers and marine terminal operators to share key information with shippers, truckers and railroads.
The Ocean Shipping Reform Act of 2022 (OSRA) authorises the FMC to issue such an emergency order after seeking comments from the trade on three questions: Has congestion created an emergency situation of a magnitude such that there exists a substantial, adverse effect on the competitiveness and reliability of the international ocean transportation supply system?  Read more here.

Shift back to ocean from air as rates lower and port problems ease

aircargonews.net
Over the last two years the air cargo industry has benefitted from a modal shift from ocean to air but leading forwarders have indicated that the trend started to reverse in the second quarter.
CH Robinson and DHL Global Forwarding said that during the second quarter there was a shift back to ocean as the cost of container shipping comes down and congestion at ports eases. Read more here.

More blank sailings on the cards as ocean spot rates continue to tumble

theloadstar.com
Container spot rates are falling fast on all export routes from China in what should normally be the peak season for demand.
According to today’s reading of the Ningbo Containerized Freight Index (NCFI), all 21 of the routes it covers were trending in the red. Read more here (login required). Container spot rates are falling fast on all export routes from China in what should normally be the peak season for demand.
According to today’s reading of the Ningbo Containerized Freight Index (NCFI), all 21 of the routes it covers were trending in the red. Read more here.

Fall in imports and new cranes ease congestion at Chittagong Port

theloadstar.com
An increase in cargo handling equipment and a decline in import cargo has seen Bangladesh’s prime seaport, Chittagong, significantly reduce both volumes and berth waiting times for vessels.
Less traffic at the ports is due in part to government constraints on the import of luxury items, following a severe fall in foreign currency reserves. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Trucking execs see volatile demand as retailers cut inventory

transportdive.com
Trucking industry leaders are reporting mixed demand for services as retail inventories pile up with easing consumer demand.
While companies such as Landstar and Marten reported record Q2 revenue, some executives have also noted pockets of softening demand or even described future conditions as volatile and unpredictable. Many carriers are slowing, if not stopping hiring entirely, after reporting labor shortages just months ago. Read more here.

U.S. fleets substantially hiking driver compensation

trucknews.com
U.S fleets have hiked driver compensation substantially over the past two years, according to a new study from the American Trucking Associations (ATA).
While the survey of fleets with more than 135,000 company drivers and 20,000 independent contractors didn’t include Canadian members, the ATA noted pay increases were widespread and substantial. Read more here.