Newsletter – December 20, 2023

AIR FREIGHT UPDATES

Staff shortage and extreme weather throws Lufthansa Cargo off course
theloadstasr.com
Lufthansa Cargo has warned customers of severe delays and cancellations until the end of the year, and said it is reviewing existing bookings.
And the carrier added that it “cannot ensure the usual quality of service”. Read more here.

Airfreight faces a rocky 2024
2023 brought forth a myriad of challenges, shaping the industry’s landscape. From geopolitical situations to sustainability pressures, the airfreight market grappled with a complex set of factors.
“It was a very challenging year with significant belly capacity returning to the market whilst demand continued to be subdued based on uncertainty impacting consumer confidence and sentiment,” Glyn Hughes, Director General of The International Air Cargo Association (TIACA), explained. Read more here.

OCEAN FREIGHT UPDATES

Brace for increased shipping rates as lines avoid Red Sea
insidelogistics.ca
Maersk announced on December 19th that all vessels previously paused and due to sail through the region will now be re-routed around Africa via the Cape of Good Hope for safety reasons.
Recent missile attacks by Houthi militants in the Red Sea have prompted leading shipping entities like CMA CGM, Hapag-Lloyd, Maersk, and Mediterranean Shipping Co. to temporarily halt transits through the Suez Canal. Additionally, the Panama Canal has been effectively closed to MPV (multipurpose) shipping until at least May, leading carriers to explore alternative routes via the Cape of Good Hope and the Strait of Magellan. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Statement from CBP on Suspension of Rail Operations in Eagle Pass and El Paso, Texas
cbp.gov
“CBP is continuing to surge all available resources to safely process migrants in response to increased levels of migrant encounters at the Southwest Border, fueled by smugglers peddling disinformation to prey on vulnerable individuals. After observing a recent resurgence of smuggling organizations moving migrants through Mexico via freight trains, CBP is taking additional actions to surge personnel and address this concerning development, including in partnership with Mexican authorities. Read more here.

UP to customers: Urge Congress to help reopen US-Mexico rail crossings
freightwaves.com
Union Pacific wants customers to urge Congress to pressure U.S. border officials to provide a timeline for when freight rail operations might resume at U.S.-Mexico border crossings at El Paso and Eagle Pass, Texas.
U.S. Customs and Border Protection announced Sunday that effective at 9 a.m. EST Monday, cross-border freight rail operations at three bridges connecting Texas and Mexico would be suspended in response to increased migrant smuggling operations in the region. El Paso has two railroad bridges, one each for BNSF Railway and Union Pacific, while Eagle Pass has one rail bridge that serves both railroads. Read more here.