Newsletter – August 8, 2023

AIR FREIGHT UPDATES

Disrupting the cargo business model

aircargonews.net
As the COVID-19 pandemic decimated most industries, including commercial air travel, its fraternal twin air cargo surged in activity and profitability.
This was a boon for airports (including Pittsburgh) that saw record levels of cargo service and traffic as shippers and forwarders sought alternatives to badly congested major gateway airports. Read more here.

IATA reports improving air cargo market in June

aircargonews.net
Air cargo volume declines narrowed to their lowest level of the year in June with hopes that lower levels of inflation could aid economic recovery.
The latest figures from IATA show that in June air cargo demand decreased by 3.4% year on year, while capacity was up 9.7% and the average load factor was down 5.8 percentage points at 43.2%. Read more here.

OCEAN FREIGHT UPDATES

ILWU Canada members ratify negotiated tentative agreement; the BCMEA is ready to work to restore stability to Canada’s supply chain

bcmeanegotiations.com
The British Columbia Maritime Employers Association (BCMEA) has received confirmation that International Labour and Warehouse Union Canada (ILWU Canada) voting membership have ratified the four-year negotiated tentative agreement that was achieved with the assistance of the Canada Industrial Relations Board earlier this week. The BCMEA ratified the agreement on July 31st. The agreement was reached after five months of negotiations, conciliation and mediation, and five weeks of labour instability at B.C.’s ports. Read more here.

Panama Canal draught restrictions start to bite, sparking liner surcharges

theloadstar.com
Evergreen’s latest addition to its neo-panamax fleet had to offload 1,400 containers to pass through the Panama Canal, due to low-water restrictions.
The event starkly highlights the problems the vital waterway and its users are facing. Read more here (login required).

Cash-rich box ship owners check out new sectors for investment

theloadstar.com
Despite weakening market conditions, non-operating containership owners (NOOs) have built up huge revenue backlogs from long-term leases of ships to ocean carriers, underpinned by binding charter party contracts.
NOOs rarely agree to the early termination of charters – unless they have a more lucrative offer waiting in the wings – and the only option for charterers struggling to cover the cost of daily hire and operating costs of a vessel is to offer surplus tonnage on the sub-let market. Read more here (login required).

Five S Korean firms showing interest in takeover of HMM

theloadstar.com
Five South Korean corporations have shown an interest in taking over flagship carrier HMM.
State-controlled finance institutions Korea Development Bank (KDB) and Korea Ocean Business Corp (KOBC) invited tenders to acquire their combined 57.87% stake in HMM. Read more here (login required).