Newsletter – February 15, 2021

AIR FREIGHT UPDATES

Air Canada taking aim at seven B767 freighters

aircargonews.net
Air Canada is hoping to have seven freighters operating by the end of next year.
Speaking as it announced its fourth quarter financial results, president and chief executive Calin Rovinescu said cargo will play an increasingly important role at the airline in the future. Read more here.

OCEAN FREIGHT UPDATES

Diversifying CMA CGM develops air cargo division with purchase of four freighter planes

splash247.com
Diversification at French liner CMA CGM is accelerating with news of the establishment of an air cargo division. CMA CGM Air Cargo has been created with the purchase of four four Airbus A330-200F freighters. Like containerline freight rates, air cargo rates are currently exceptionally high. Read more here.

Shippers take to the sky as ocean congestion grows

freightwaves.com
Supply chains have fractured under the weight of recent import demand, forcing shippers like Peloton (NASDAQ: PTON) to find pricier alternatives in order to not miss their window of opportunity. Judging from FreightWaves’ new Inbound Ocean TEU Volume Index (IOTI) and the recent Transportation Air Cargo Index (AIRUSD), that is not the only company choosing to fly versus ship goods over the Pacific. Read more here.

Red hot box rates show first signs of cooling

lloydsloading.com
Sky-high spot rates have been sustained on container shipping’s trunk trades in 2021 so far, but there are finally signs of respite ahead of the post-Chinese New Year period.
The latest Shanghai Containerised Freight Index, forecasting rates for Chinese exports for the coming week, shows spot prices weakening slightly on both the transpacific and Asia-Europe trades. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

WestJet Comes Out Strongly Against Air Transat-Air Canada Deal

simpleflying.com
Archrival to Air Canada, Canadian carrier WestJet has finally spoken out publicly on its rival’s acquisition of leisure carrier Air Transat. WestJet’s CEO issued a public statement on the airline’s blog, expressing disappointment over the government of Canada’s recent approval of the deal. Stating that Canadians will see higher fares and reduced service, let’s look further into WestJet’s dismay and if the airline’s claims have merit. Read more here.

INTERNATIONAL BUSINESS- GOVERNMENT UPDATES

Major winter storm keeps trucking across the South

freightwaves.com
A destructive winter storm Sunday hit the southern Plains, making travel dangerous and slowing down supply chains due to potential road closures.
The storm has caused widespread power outages and has led to highway accidents and airport closings.
Snow and ice piled up across several states and will cause more issues Monday and Tuesday from eastern Texas to the Mississippi, Tennessee and Ohio valleys. Read more here.

Can retailer prudence derail the inventory restocking thesis?

freightwaves.com
The retail inventory restocking thesis has been touted by nearly every industry analyst (us included) as a promising growth driver for freight given the continued strength in consumer demand (thank you, stimmy) and historically low inventory-to-sales ratios. While this holds true for the majority of segments, especially the pandemic favs (furniture, home improvement, electronics), apparel companies are a different story. Read more here.