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Newsletter – February 13, 2020
AIR FREIGHT UPDATES
Reports re-emerge suggesting Swissport is up for sale
aircargonews.netReports have re-emerged suggesting that cargo handler Swissport is up for sale.Reuters reports that the handler’s owner, China-based conglomerate HNA, is looking to offload Swissport at a discount in order to raise cash and cut debts. Read more here.
Amazon looks to build disruptive ‘startup cargo airline’ – or does it?
aircargoworld.comAmazon, the e-commerce giant, appears to be planning an expansion of its already substantial air cargo operations. According to a job posting that has since been removed but can be viewed here, the company’s Amazon Air Science and Technology team is looking to hire an applied scientist “to help scale and grow a startup cargo airline.” That implies a more substantive air cargo venture than the one Amazon has been undertaking through third parties in recent years. Read more here.
OCEAN FREIGHT UPDATES
Will coronavirus hike rates for backhaul US-to-Asia cargoes?
freigthwaves.comOne of the myriad coronavirus-related concerns is that container-shipping services on the backhaul routes to Asia could be impaired.With Chinese factories still largely shut down and land transportation to ports constrained, the volume of containerized cargo flowing on the two main headhaul routes — China-U.S. and China-Europe — will decrease. Or rather, it will not pick back up as previously expected following Chinese New Year. Read more here.
Commentary: Benefits of IMO 2020 and impacts on shipping industry
freightwaves.comThe views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.The latest revision to International Maritime Organization (IMO) regulations, known as IMO 2020, calls for cutting emissions of sulfur oxide (SOx) from ocean vessels to less than 0.50% by mass. This bold initiative, which went into effect on January 1, will help reduce the environmental impact of the international shipping industry. Read more here.
News / Retailers now believe sea-air the best way to get their goods out of China
theloadstar.comMajor retailers awaiting their spring-summer stock are planning to opt for sea-air to get their goods out of China.The garment industry wants its new season launches into shops before Easter, in eight weeks’ time, but “some 70% to 80% of Chinese factories are still not back up to speed,” said Grant Liddell, business development director for Metro Shipping. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATES
CN Forced to Implement Temporary Network Shutdowns
ciffa.comDue to the ongoing blockades on its network, CN has been forced to implement a first wave of temporary network shutdowns. CN has stopped moving goods between Western and Eastern Canada to Prince Rupert, B.C., and those destined to Western Canada and the U.S. Midwest from customers east of the Montreal area.Upwards of 300 trains have been cancelled since the blockades began. Further shutdowns will occur over the next few days unless the blockades come to an end immediately. CN is staging and parking trains across its network, forcing it to close off sections of the network to further traffic.These shutdowns are impacting multiple supply chains across North America.Once the blockades are removed, CN said it expects that “the recovery will require time and a disciplined approach, which will necessitate the full use of our assets, now greatly impeded by the Ministerial Order issued by the Transport Minister on February 6th.”
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Coronavirus is wreaking havoc on global mail delivery
ajot.comIn a world dominated by email and smartphones, the shipping industry still relies heavily on paper documents delivered by courier. With people unable or unwilling to travel to China because of the coronavirus, that dependence is wreaking havoc on commodities traders. Read more here.