Newsletter – July 29, 2021

AIR FREIGHT UPDATES

Air cargo posts strongest growth since 2017

insidelogistics.ca
First half-year air cargo growth reached eight percent, its strongest first half performance since 2017
Global air cargo markets showed a 9.9 percent improvement on pre-Covid-19 performance (June 2019).
This pushed first half-year air cargo growth to eight percent, its strongest first half performance since 2017 (when the industry posted 10.2 percent year-on-year growth), says the International Air Transport Association (IATA) in its monthly report. Read more here.

CIG crack down on pest transference

aircargoweek.com
The international freight transport organisations of the Cargo Integrity Group are calling for urgent action from actors in global supply chains to reduce the risk of pest transference through international cargo movements.
The five partners in the Cargo Integrity Group, known as CIG, say they recognise the vital importance of focusing on the threat of invasive pests to natural resources across the world, and of the urgency in crafting risk reduction measures that address the situation. Read more here.

OCEAN FREIGHT UPDATES

Port of Vancouver Operations Update 

ciffa.com
The CP and CN rail lines from Kamloops to Vancouver are in operation. CP reports no backlogged traffic and CN reports minimal backlogs. Targeted speed restrictions, increased track inspections, and fire prevention measures remain in place under Ministerial Order (MO) 21-06. Track inspections required under the Order may cause temporary delays. The hot and dry weather pattern is expected to cause increased fire risk this week, which may lead to more areas of southern B.C. to be classified with extreme fire danger ratings. The evolving fire situation may result in temporary stoppages to rail operations.
The Port of Vancouver continues to experience high volumes of on-dock container cargo and increased dwell times at all container terminals. Bulk commodities have seen a return to near-normal frequencies in deliveries by rail. Processed railcar volumes to and from the coast remain consistent.
Anchorage demand has diminished in the short term and requests across all anchorage classes can now be accommodated within the port’s jurisdiction.
The provincial state of emergency effective July 21 will remain in place until August 4 and applies to the entire province of B.C. The initial 14-day period may be extended or rescinded as conditions require.

Trans-Pacific ocean freight market ‘constrained’ as peak season looms

lloydsloadinglist.com
The peak season on the Asia-North America (TPEB) ocean shipping trade lane is set to begin in a “constrained” market which is expected to persist or tighten further as pre-holiday demand increases and heavy congestion hits both coastal ports and inland hubs, according to the latest weekly market update issued yesterday by forwarder Flexport.
As for the outlook on pricing, a GRI will be implemented from 1 August and a PSS (Peak Season Surcharge) is expected  on 1 September.
Flexport underlined that capacity/equipment was at a “critical/severe under capacity” level.
It recommended that shippers “continue to book well in advance (at least 4-6 weeks) prior to CRD for best chance of hitting it while encouraging suppliers to support departures from different origin ports and consider terminating cargo at destination coastal ports to prevent intermodal delays. Read more here.

Talk of tankers hitting a cyclical inflection point increase

splash247.com
Analysts are increasingly talking about tankers having hit rock bottom with the best time to pile into the sector being right now.
Cleaves Securities is the latest to posit this theory, suggesting oil tankers are now experiencing a “cyclical inflection point”.
“Spot and period earnings are still lacklustre, but asset prices are appreciating in concert with investors’ optimistic expectations as oil demand is seeing a post-pandemic recovery,” Cleaves stated in a new report.
With oil tanker equities priced at a 19% discount to NAV at the cyclical trough, Cleaves has reiterated its buy recommendation. Read more here.

Hapag-Lloyd confirms talks to buy ten 13,000 teu newbuilding resales

theloadstar.com
Hapag-Lloyd has told The Loadstar it is to acquire ten 13,000 teu newbuilding resales, as the German liner operator ups the ante in the ’vessel tonnage arms race’.
A spokesman said: “We are in negotiations about ten 13,000 teu vessels,” but declined to comment further.
However, Alphaliner says Hapag-Lloyd has struck deals with Evangelos Marinakis’ Capital Executive Ship Management and Lou Kollakis’ Chartworld Shipping, involving vessels the Greek owners have on order at South Korea’s Hyundai Samho Heavy Industries and China’s New Times … Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

China-Europe rail gets Vietnam connection, but huge mode shift brings delays

theloadstar.com
Booming China-Europe rail freight has expanded to Vietnam, but high demand and bad weather means lengthy delays.
Due to overstretched deepsea container trades, demand has been growing in South-east Asia for transport connections to Chinese rail hubs, via sea or truck.
Now, with a new Vietnam Railways (VNR) service, Hanoi has a direct rail freight link with Belgium, via Zhengzhou in China’s Henan province.
The railway operator said it was planning eight trips a month, with a journey time of 25-27 days, carrying … Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

FMC offers interim fixes to ease chronic congestion plaguing US supply chains

theloadstar.com
At a closed session of the Federal Maritime Commission (FMC) yesterday, commissioner Rebecca Dye presented eight interim recommendations to alleviate the massive backlog that has hit US supply chains since last year.
They include amending legislation to broaden anti-retaliation provisions and authorising the commission to order double reparations for regulatory violations.
The FMC is also looking to clarify the language on its website to make its position clearer, particularly where small claims are involved, and to hold a webinar to explain changes. Read more here (login required).