Newsletter – July 14, 2021

AIR FREIGHT UPDATES

Air cargo gains from rising prices in ocean shipping

aircargonews.net
High ocean freight rates caused by service disruption is helping push forwarders and shippers to use airfreight.
In its latest market summary, airline association IATA said that air cargo is benefitting from “exceptionally congested” container shipping supply chains. Read more here.

FAA extends exemption to allow passenger-freighters until year-end

theloadstar.com
The FAA has finally extended the exemption which allows passenger aircraft to carry cargo in the cabin.
The deadline expired on 10 July, but it has been extended until the end of this year; and EASA’s exemption in Europe also expires on 31 December.
The FAA noted that the “demand for passenger air travel has significantly increased; however, the amount of air freight capacity available on passenger-carrying part 121 flights remains below pre-Covid-19 pandemic levels … air freight capacity has not yet … Read more here (login required).

OCEAN FREIGHT UPDATES

Rail disruption continues to cause vessel congestion at Port of Vancouver

splash247.com
Although CP and CN railways have resumed service to the Port of Vancouver, the impacts of wildfires in British Columbia continue to be felt at the port. On Tuesday afternoon, there were reportedly 41 vessels at anchor waiting for berth space.
While Canadian Pacific’s rail line into Vancouver is open, the railway is sharing the line with Canadian National, whose line is still out of service. A port update on July 13 said that the CP line “is processing a significant backlog of trains” and that “CN is making steady progress on maintenance and repair work to damaged rail infrastructure.” Read more here.

Cosco, ONE, Yang Ming and Maersk all tipped to order in next great wave of boxship expansion

splash247.com
The stunning amount of boxships ordered so far this year is set to continue with big names such as Cosco, Ocean Network Express (ONE), Yang Ming and Maersk all tipped to be in discussions with Asian yards.
More than 300 boxships were ordered in the first half of the year, according to data from Alphaliner. Combined with a healthy number of newbuilding contracts signed in late 2020, the 2021 order frenzy has gone from a low of 2.29m teu a year ago to 4.94m teu as of June 30. Read more here.

Container congestion registered in every corner of the planet

splash247.com
he state of global container congestion continues to roil supply chains right across the world.
Exclusive data from maritime intelligence service eeSea shows the world’s most congested box spots, ranking all ports by the sum of mainline vessels either in port or waiting. The ratio between in port and waiting is an approximation of the congestion. Hong Kong, for example, has a high waiting ratio of 67%. Oakland, Savannah, Seattle, Vancouver are all above 65%, while Yantian, the scene of a Covid-19 outbreak that hampered productivity throughout June, has done well to clear much of its backlog over the past couple of weeks. Read more here.

China – Yantian Export Laden box gate-in arrangement update

hapag-lloyd.com
With regards to our previous customer letter on the export Laden box gate-in arrangement for Yantian International Container Terminals (YICT), we would like to provide you with an update.
With effective from July 16, 2021,
YICT will only accept export laden containers within 7 days prior to the expected berthing date of the vessel.
The quota of tractors will remain unchanged.

Ocean rate hikes leading towards significant goods price inflation

lloydsloadinglist.com
Most imported goods face sizeable increases in prices in the coming months, as the impact of unsustainable container shipping prices gradually filters down through supply chains, some freight sources believe.
The managing director of one substantial UK logistics and maritime services group told Lloyd’s Loading List that significant inflation in goods prices was inevitable now that current levels of shipping costs exceed the value of the goods inside the boxes in probably the majority of commodities shipped by sea – unless governments or competition regulators can somehow persuade container lines to return pricing to more sustainable levels. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

COVID-19 lockdowns in Malaysia threaten medical glove supply

freightwaves.com
The threat: Glove manufacturers in Malaysia are warning that recent COVID-19 lockdowns could disrupt the global supply of rubber gloves.
In response to rising COVID-19 cases, the Malaysian government recently restricted movement and economic activity in some parts of the country, according to NPR.
Last week, the Malaysian Rubber Glove Manufacturers Association asked the government to allow glove manufacturers to continue operating during the lockdown, according to Reuters. Read more here (login required).