Newsletter – August 2, 2021

AIR FREIGHT UPDATES

Cargo industry welcomes new ICAO secretary general

aircargonews.net
The freight industry has welcomed the new secretary general of the International Civil Aviation Organization (ICAO) as cargo continues to grow in importance to the overall aviation industry.
In a joint statement, the International Federation of Freight Forwarders Associations (FIATA), The International Air Cargo Association (TIACA), the Global Express Association (GEA), and the International Port Community Systems Association (IPCSA) all welcomed Juan Carlos Salazar of Colombia to the top role at the United Nations’ body.
The groups said that Salazar’s appointment comes at a critical time for air cargo.
They said they are all eager to support ICAO in its work to develop and strengthen air cargo operations, which will be “increasingly vital for global trade and long-term economic recovery of ICAO Member States as the broader supply chain evolves with the global marketplace”. Read more here.

Asian carriers schedule more ‘preighter’ flights to meet peak season demand

theloadstar.com
With no let-up in travel restrictions, Asian carriers are planning more passenger-freighter flights to cope with peak season demand.
The ‘preighter’ phenomenon seems to be winding down in the US and Europe, as economies open up and authorities weigh safety considerations of carrying cargo in cabins, as well as the extra handling time required.
However, Korean Air said today it had operated 10,000 cargo-only passenger flights since March last year, and still flies 800 ‘preighters’ every month.
Its first service was between Incheon and Ho Chi Minh City, expanding to 65 routes to North America, Europe, South-east Asia, China and Japan, with 400,000 tonnes lifted so far. Read more here.

Will All Airlines Be Able To Repay COVID-19 State Aid?

simpleflying.com
European airlines have accessed more than $45 billion in bailouts from their governments. While aid has not been made available for every airline, some individual brands and groups have received multi-billion-dollar bailouts, most in the form of repayable loans. Speaking to Simple Flying, easyJet CEO Johan Lungren cast doubt on whether they will ever be repaid at all. Read more here.

IAG Cargo dismisses falling yields in Q2 – ‘more than offset by sold-tonnes’

theloadstar.com
IAG Cargo’s second-quarter results show an upturn of just 17.3% in revenues, year on year, while yields fell 32.1%.
The revenue increase was far lower than that of its competitors.
IAG Cargo’s half-year revenues were €769m ($924,), up 25% on the previous year, and while higher than those of American Airlines, Air Canada and Delta, the North American majors all – including those which like United Cargo were quick to react to the pandemic – saw far greater rises, with United up 65%. Read more here.

OCEAN FREIGHT UPDATES

Profits in the wake of faster containerships trump green concerns

theloadstar.com
Japanese carrier ONE has said its ships have raised their speed, increasing fuel consumption and pollution, to take advantage of higher demand.
THE Alliance carrier and its partner Hapag-Lloyd have both reported stellar profits for the second quarter.
ONE posted net profits of $2.6bn for its fiscal Q1, while Hapag-Lloyd reported an estimated ebit of $2.2bn, in preliminary results.
This comes despite the Singapore-based Japanese line noting increased costs, “due to faster vessel speeds to improve schedule reliability”. Read more here.

2020 Bulkers and RB British Marine bulk carriers collide in China

splash247.com
Norway’s 2020 Bulkers informed that its vessel, Bulk Shenzhen, was involved in a collision with the RB British Marine-managed bulk carrier RB Lisa while navigating under pilot on the Yangtze River today early morning local time.
The Liberian-flagged vessel is partly loaded with 103,655 mt iron ore cargo for Jinangyin, China. Bulk Shenzhen is now anchored at a safe anchor position on the Yangtze for investigation and incident formalities, 2020 Bulkers said. Read more here.

Vietnamese supply chain dislocation worsens

splash247.com
Soaring cases of Covid-19 are seeing ships back up in greater numbers along Vietnam’s southern coastline, while ports are now turning away vessels and are struggling to source available containers.
Ho Chi Minh City’s Cat Lai Terminal has stopped accepting reefer cargoes through to the middle of the month as it has no available space left in its facility.
Much of Vietnam has been in lockdown for nearly a month, with port productivity dropping and ships queueing for berth space south of Vung Tau. Many ports are now working with just 50% of their workforce. A drop in the number of available truck drivers has made the situation worse, while factory output has slumped in recent weeks. Read more here.

US company sues ‘collusive’ ocean carriers, alleging price manipulation

freightwaves.com
Household furnishings manufacturer accuses COSCO, MSC of backing out of contract to take advantage of soaring trans-Pacific spot market rates
A U.S. manufacturer is accusing two of the world’s largest ocean carriers of reneging on its container service contract for imports from Asia so that the carriers can instead charge other shippers exorbitant transportation rates on the spot market. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Derailed train means European intermodal cargo hits the buffers again

theloadstar.com
Cargo owners are still facing transport headaches in mainland Europe after a potential bypass for intermodal services, hit by mid-July’s flash floods, was severed following a train derailment.
Connecting the ports of Antwerp, Ghent and Zeebrugge through the French Ardennes, the route was closed when a train carrying containers of phosphoric acid came off the tracks, causing extensive damage.
One source told The Loadstar: “For intermodal terminals in Wallonia, this means both lines connecting Athus and Arlon are blocked, and the estimated date for re-establishment of any sort of traffic is 9 August. The situation at Liege is, however, normalising.” Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

What will the reopening of the Canadian border mean for freight?

freightwaves.com
Canada is beginning to reopen its borders for nonessential travel after a 16-month shutdown in response to COVID-19. Starting Aug. 9, fully vaccinated U.S. citizens and permanent residents can enter the country.
Even though trade has been exempt from the restrictions — allowing trucks to move freely between Canada and the U.S. — the reopening of the border still has significant implications for freight. And not just because more congestion and wait times will undoubtedly accompany the return of passenger traffic.
It stands to be a big driver for freight demand.
“The opening of the border will be a boon for the transportation and logistics industries as a whole,” said Peter Stefanovich, managing partner at Left Lane Associates, a Toronto transportation mergers and acquisitions advisory firm. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

5 charts show Amazon’s growing logistics network as it puts inventory closer to consumers

supplychaindive.com
Amazon doubled down on its commitment to expand supply chain capacity on its latest earnings call. And in 2020, its capital expenditures were more than three times greater than those of Walmart.
Amazon doubled down on its commitment to expand its logistics and fulfillment network on its latest earnings call.
The e-commerce giant is focused “squarely on adding capacity to meet the current high customer demand,” Director of Investor Relations Dave Fildes said Thursday.
A lot of Amazon’s planned capacity will open in the second half of the year. But this is far from the start of its build. In fact, Amazon’s effort to develop an insourced supply chain extends back years with efforts to build out its fleet, develop air infrastructure and get closer to consumers. Read more here.