Newsletter – August 17, 2021

AIR FREIGHT UPDATES

Air cargo faces China supply chain disruption

aircargonews.net
New Covid quarantine rules for cargo workers at key gateways in China are putting air cargo supply chains under pressure.
Over the last few weeks, Covid cases in China have begun to pick up as the country contends with the contagious Delta variant of the virus. Read more here.

Pandemic rules bring China air cargo chaos as ground staff quit and rates soar

theloadstar.com
Ground handling staff in China are quitting in droves over new Covid rules, triggering the cancellation of hundreds of flights and the prospect of freight rates reaching “extraordinary” levels. According to one Chinese forwarder, long handling times at Shanghai Pudong (PVG) saw some cargo flights taking off empty over the weekend. Read more here (login required).

Parts Of China Toughens Crew Quarantine Rules Amid Delta Variant

simpleflying.com
Airport and airline staff in parts of China will be subjected to stricter quarantine measures in response to the spread of the Delta variant. Some staff could be forced into mandatory isolation for up to 28 days, as China struggles to contain the virus. Read more here.

‘Slack season’ is short-lived in July

aircargoweek.com
Global airlines managed the traditional ‘summer slack season’ for air cargo space in July by constantly tweaking capacity levels to address flat demand during the month versus pre-Covid levels.
New industry volume, loadfactor and rates data from analysts CLIVE Data Services and TAC Index also highlight airfreight rates lagging two weeks behind changes in the demand/supply ratio. Read more here.

OCEAN FREIGHT UPDATES

California congestion nears new high, East Coast gridlock worsens

freightwaves.com
It’s only mid-August — the early days of peak shipping season — but the record for container ships anchored off California is already on the verge of being broken.
Port congestion is simultaneously building along the East Coast, with anchorage numbers off Georgia well into the double digits and, for the first time this year, a growing queue offshore of the Port of New York and New Jersey. Read more here.

Partial reopening of Ningbo terminal scheduled for next week

splash247.com
Shipping agent sources in Ningbo have ascertained the port’s planned reopening of its Meishan terminal.
The aim is for a partial reopening of the terminal from a week today. Meishan, which has been closed for seven days because of a single case of Covid, accounts for approximately 20% of the 30m teu the port handles annually. It is mainly used by the Ocean Alliance. Read more here.

Indian exporters question the ‘cartelisation’ of box shipping

splash247.com
Another Asian country is beginning to debate whether container carriers have been colluding to create today’s sky high record freight rate environment.
A group of Indian exporters are gearing up to ask the Competition Commission of India (CCI) to ask it to investigate possible “cartelisation” by shipping lines. Read more here.

Carriers flock to transpacific as goldrush continues

lloydsloadinglist.com
THE booming transpacific trade has seen rates surging as US consumption keeps growing, encouraging carriers to build up ever more capacity on the trade lane.
“Since the second half of 2020, shipping lines have been struggling to match the huge uptick in demand on the transpacific trade,” said Sea-Intelligence chief executive Alan Murphy. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Hong Kong Reopens Its Borders: Here Are The Rules

simpleflying.com
Hong Kong was one of the first territories to close its border in response to COVID-19, taking strict measures to control the pandemic. However, after nearly 18 months with tough rules, the city is looking to reopen to the rest of the world and allow international travel. To this end, Hong Kong has reopened its border to travelers from scores of countries with some conditions. Here’s a look at the rules. Read more here.

U.S. consumer sentiment plummets in early August to decade low

reuters.com
Aug 13 (Reuters) – U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade, in a worrying sign for the economy as Americans gave faltering outlooks on everything from personal finances to inflation and employment, a survey showed on Friday. Read more here.

Industry group releases contactless delivery standard to increase safety, reduce dwell

transportdive.com
Dive Brief:
A task force led by the Consumer Brands Association has published an operational standard for contactless pickup and delivery at distribution centers, which it said can increase safety and visibility while reducing the time drivers spend at facilities. The documentation outlines the workflow and the data that need to be collected at each step. Read more here.