Newsletter – January 19, 2024

AIR FREIGHT UPDATES

Retail’s Red Sea move feeding airfreight volumes?
aircargonews.net
Signs are starting to emerge that retail shippers are sending more goods by airfreight as the Red Sea crisis continues, but the next few weeks will determine whether there is a real shift from ocean freight to airfreight, according to Xeneta.
Niall van de Wouw, Xeneta chief airfreight officer, said: “When the Red Sea crisis escalated in December we stated that, once the impact starts to be felt in airfreight, things could happen very quickly. Read more here.

Drone Delivery Canada signs deals for operations at Edmonton Airport
aircargonews.net
Drone Delivery Canada (DDC) has, with the assistance of its sales agent Air Canada, entered into multiple commercial agreements to deploy its drones at Edmonton International Airport (YEG).
In addition to YEG, DDC has signed commercial agreements with Apple Express Courier Ltd., BBE Expediting Ltd., and MFN Management Inc. (a wholly owned corporation of Montana First Nation). Read more here.

OCEAN FREIGHT UPDATES

THE Alliance members left with few options in wake of Hapag-Lloyd’s departure
splash247.com
The dramatic consolidation among container shipping’s global carriers over the past decade leaves the remaining liners of THE Alliance with few options in the wake of the departure of its largest member, bar perhaps one very tricky conversation to be had in Taiwan.
Hapag-Lloyd and Maersk this week have shaken up the global liner alliance structures on the main east-west trades, announcing the creation of the Gemini Cooperation from February next year. Read more here.

Spot rates from Asia ‘out of control’: pre-CNY quotes of $10,000+ reported
theloadstar.com
Container spot rates from Asia to the US and Europe continued to soar this week as a swift solution to the attacks on shipping in the Red Sea by Houthi rebels looks increasingly unlikely.
Moreover, reports to The Loadstar suggest that some shippers of low-rated contract cargo are seeing their allocations slashed by up to 80% by their carriers, forcing them onto the spot market. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Bangladesh’s garment market feels the heat from the shipping crisis
theloadstar.com
The Red Sea crisis has started to bite into Bangladesh’s apparel exports to Europe and the US, the two main destinations for the country’s apparel, accounting for 65% of total shipments.
Bangladesh is the second-largest apparel exporter worldwide and garments are the main foreign currency earner for the small South Asian nation. Read more here (login required).

Freight crime on the up as gangs become more tech-savvy
theloadstar.com
Internet-enabled crime and insider involvement are creating easier conditions for theft and fraud in supply chains, as criminal gangs get more tech-savvy.
Risk management industry association, TAPA, warned this week: “Crime is spreading, losses are soaring, risks are escalating and the majority of logistics providers are still ignoring solutions readily available.” Read more here (login required).