Newsletter – August 4, 2021

AIR FREIGHT UPDATES

Airfreight rates out of China rise as new Covid restrictions impact airports

theloadstar.com
Airfreight rates ex-China are soaring after Covid cases prompted the closure of Nanjing Airport.
Authorities are blaming “lax” procedures at the airport and, with another Covid case connected to a cargo worker at Shanghai Pudong, forwarders fear new crew restrictions could reduce available airfreight capacity.
Located 300km north of Shanghai, in Jiangsu province, Nanjing isn’t yet under “full” lockdown, but one Chinese forwarder said inter-province travel rules had already caused some disruption to logistics. Read more here.

Top 25 cargo airlines: Freighter operators to the fore

aircargonews.net
FedEx, UPS and Qatar were last year the largest air cargo carriers once again, but there were major winners and losers in the overall top 25 airlines as the Covid pandemic took its toll on the market (see full at end of article).
According to IATA’s latest World Air Transport Statistics report, the top 25 cargo airlines last year saw traffic in scheduled cargo tonne km (CTK) terms decrease by 3.3% year on year, which is better than the overall industry decline of 9.1%.
IATA says the decline in demand was down to supply chain disruption caused by strict lockdowns, the lack of belly cargo capacity due to the grounded passenger fleet as well as the direct impact of lockdowns on demand. Read more here.

Europe’s airports and handlers ‘ditching cargo’ as passenger flights resume

theloadstar.com
Airlines are switching European airports as severe staff shortages keep freighters on the ground for hours, while others are having to fly before they are fully loaded.
German and Belgian airports were said to be among the worst affected according to carriers – who spoke to The Loadstar anonymously, fearing “vindictive” handlers would drop them altogether.
One carrier, which said it had faced losing about one-third of its capacity in recent weeks because of the shortage of handlers, said airports and handlers would get “little sympathy from cargo operators”. Read more here.

OCEAN FREIGHT UPDATES

Chinese Ports Report Growth in Cargo and Container Volumes in 2021

maritime-executive.com
Much of the focus during the current surge in shipping volumes has been on the growth in import volumes at the ports in North America and Europe. Most of the volume is originating at Chinese ports and now Chinese officials gave a readout on the growth in cargo volumes during the first half of 2021.
China’s Ministry of Transport reports that cargo and container throughput volumes at China’s ports showed strong growth in the first half of the year. This comes despite disruptions in the supply chain including the blockage of the Suez Canal for six days in March after the Ever Given became stuck and the nearly month-long struggle at the southern ports and primarily Yantian due to a cluster of COVID-19 that impacted port operations. Read more here.

HPC launches Beirut redevelopment initiative

container-news.com
Hamburg Port Consulting (HPC), the logistics consultancy for ports, sea, inland terminals, and intermodal rail transport, along with its partners have announced the launch of a new communication platform called “Beirut PortCity Dialogue” for helping the Beirut port and city development.
After the devastating Beirut explosion on 4 August 2020 which severely damaged both the port and surrounding areas, the Covid-19 pandemic, the nationwide financial crisis, unemployment and political instability, the Lebanese people are facing hard times. Read more here.

Forwarder angst as carriers switch vessels onto the best-paying tradelanes

theloadstar.com
Ocean carriers continue to shift tonnage from intra-Asia and north-south trades to more lucrative east-west routes, which is in turn driving freight rates up on these secondary trades, threatening the sustainability of global markets.
Alphaliner said its data showed transpacific routes between Asia and North America had attracted the most extra tonnage over the past few months.
There has been a substantial increase in extra capacity, said the consultant. “Alphaliner currently counts more than 30 ships between the Far East and the west coast of North America alone.” Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

CN, CP Deliver Grain Haul Records in 2020-21 Crop Year

insidelogistics.ca
Both Canadian National and Canadian Pacific railways achieved record grain movements in the 2020-2021 crop year.
CN moved over 31 million metric tonnes (MMT). This record exceeds the previous record for carload movement of 29.4 MMT set in the 2019–2020 crop year. CN also moved over 1.1 MMT of grain from Western Canada via containers, with grain volumes moved from Eastern Canada in addition to these levels. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Warehouse digital twin coming alive in international research project

insidelogistics.ca
The project is based on the idea that continuous data evaluation will make it possible to create a real-time digital twin of a warehouse or production environment.
Automated guided vehicles are already being used on a large scale in warehouses and production facilities. With modern sensor technology such as laser scanners and cameras, they find their way safely through racks, production lines, and warehouses. In the process, they generate a considerable amount of data about the environment in which they move. Read more here.