Newsletter – July 19, 2022

AIR FREIGHT UPDATES

Back After 18 Years: Air Canada To Reconnect Vancouver With Miami

simpleflying.com
Air Canada has announced Vancouver to Miami, reconnecting the two airports after an 18-year absence. The route is a significant decision. Not only was Miami Vancouver’s second-largest unserved US destination (behind only Fort Lauderdale), but Vancouver was overwhelmingly Miami’s largest unserved Canadian market. Read more here.

Air cargo reportedly back to normal at Shanghai Pudong Airport

aircargonews.net
Covid is on the rise again in Shanghai but “there has been no impact on airfreight” so far and turnover at Shanghai Pudong Airport (PVG) has bounced back, according to Flexport.
In a freight market update on July 12, the freight forwarder said that trucking also remains unaffected, despite the rise in cases. Read more here.

Rising fuel prices may not be as bad for airlines as it seems

aircargoweek.com
New McKinsey & Co research suggests that fuel price hikes are putting airlines under strain— but may prompt airlines to limit overcapacity, leading to better returns and industry stability.
Since the start of 2022, the price of jet fuel has risen by around 90 percent—and costs roughly 120% more, on average, than it did in 2021. Read more here.

OCEAN FREIGHT UPDATES

$173 per feu: Maersk warns EU’s emissions trading plans will be ‘significant’

splash247.com
One hundred and seventy euros ($173). That’s the price Danish carrier Maersk estimates clients will have to pay extra per feu on the Asia – Europe tradelane once a package of new European Union regulations kick in. For reefers, the extra charge is estimated on the same tradelane at EUR255.
In an advisory to clients, Maersk warned EU measures carry a large degree of extra-territoriality potentially affecting cargo moving outside of the EU’s borders. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Viewpoint: Rail service from LA/Long Beach ports moving at speed of sloth

freightwaves.com
The flow of trade is being derailed out of the ports of Los Angeles and Long Beach as $1.5 billion in trade is landlocked waiting for rail service. A combined 33,484 containers are sitting nine-plus days in San Pedro. This backup is eating up valuable space at the ports, inhibiting the fluidity of trade. The CNBC Supply Chain Heat Map shows the growing congestion at the West Coast ports and the diversion of trade to the East Coast increasing and creating more congestion. Read more here.

Trucking association raises concerns over Canada’s ELD mandate

freightwaves.com
A trucking association said the Canadian government still needs to iron out some details of its electronic logging device mandate before enforcement begins Jan. 1.
The Private Motor Truck Council of Canada (PMTC) continues to support the ELD enforcement deadline but questions whether the mandate’s public key technology (PKI) system will be ready, as well as how ferry exemption hours of service will be counted. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Garment factory workers strike in Yangon 

myanmar-now.org
Around 2,000 workers from a garment factory in Yangon’s Zaykabar Industrial Park in Mingaladon Township went on strike on Thursday morning, declaring that violations of their basic rights had grown unbearable.
The workers are employees of JW factory, which is owned by Great Glowing Investment and operated by another factory in the industrial park: ADK, or “A Dream of Kind.” They are both managed by the same Canadian nationals, according to Myanmar’s Directorate of Investment and Company Administration. Read more here.