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27
Feb
Newsletter – February 27, 2020
AIR FREIGHT UPDATES
These Are The Airlines Most Affected By Coronavirus
simpleflying.comThe coronavirus has affected many different airlines in many different ways, with some being almost entirely grounded and others only suspending one route for a few services. Read more here.
Squeezing airline profits can weaken air freight service and the value chain
theloadstar.comPricing remains a significant bone of contention between supply chain partners, despite a strengthening of relationships.Shippers, forwarders and airlines clashed at Air Cargo India in Mumbai this week, as they blamed high prices for any deterioration in service quality. Read more here.
Olympic Flight Plans Spark Outrage Among Tokyo Residents
simpleflying.comNew flight paths planned for Tokyo Haneda Airport, which could see more than 100 aircraft a day passing low over residential districts, has sparked an outcry from local residents. The new paths, due to be introduced at the end of March, will allow for more takeoff and landing from the airport, adding needed capacity in time for the summer Olympic Games. Read more here.
OCEAN FREIGHT UPDATES
China demand slump causing record void box sailings
lloydsloadinglist.comThe reaction of container lines to the lack of cargo export demand from China due to the coronavirus-induced (COVID-9) economic shutdown is becoming evident in record numbers of blanked sailings and inactive vessels. Read more here.
Ocean carriers unlikely to recover the full cost of IMO 2020 compliance
theloadstar.comNotwithstanding the significant impact to the bottom line of ocean carriers from the coronavirus outbreak, it is also becoming increasingly apparent that they have failed to pass on all of the extra cost of IMO 2020 cleaner fuel legislation to their customers. Read more here.
GROUND AND RAIL FREIGHT UPDATES
Rail Blockades Update
ciffa.comCPThe blockade on CP’s mainline near Chase, B.C., has ended and CP is resuming operations on its Shuswap Subdivision. Customers should expect near-term delays of 24 to 36 hours.In Eastern Canada, CP’s rail network has been blockaded by protesters since February 8 at the Kahnawàke Mohawk territory, south of Montreal. This blockade has severed rail connections into Atlantic Canada and the U.S., and is preventing CP from serving carload customers in the area. The embargo (CPRS000520) to control the flow of shipments over this part of our network remains in place.CP is reviewing options to reroute traffic where possible.CNCN has posted information about blockades on its rail network on its website.As of yesterday afternoon, all blockade locations, except for Caledonia, Ont., had active train movement, although in Tyendinaga, east of Belleville, Ont., its operations remain disrupted and limited. CN is working with the Ontario Provincial Police on resuming normal operations on this part of its network.
High winds prompt empty-trailer ban on part of NYS Thruway
freightwaves.comForecasts of wind gusts up to 60 mph have prompted a ban on hauling empty trailers along part of the New York State Thruway in western New York starting at 3 a.m. Thursday. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
COVID-19 – Refreshed Perspective on Force Majeure and Frustration
ciffa.comThe outbreak of the novel coronavirus (COVID-19) and its potential impact on contractual performance, such as unforeseeable delay in the delivery of goods and services, have generated a lot of discussions on the availability of force majeure clauses and the associated doctrine of frustration.Read about some of the key relevant issues and practical tips in invoking, as well as resisting, the application of force majeure clauses and the doctrine of frustration in an article from Linklaters LLP in Lexology. Read the article here.