Newsletter – July 9, 2021

AIR FREIGHT UPDATES

IATA: Volumes outperform pre-Covid levels, but pace slows in May

aircargonews.net
IATA has reported in its latest market analysis that air cargo volumes in May continued to outperform pre-Covid (2019) levels – although the pace in demand in May was slower than that in April.
Global air cargo demand in May 2021, measured in cargo-tonne kms (CTKs), was reported as 9.4% higher than in May 2019 (used instead of last year for comparison purposes due to impact of Covid). This compares with the 12% growth against pre-Covid levels recorded in April this year. Read more here.

Stranger things: Air cargo becomes value play over ocean freight

freightwaves.com
Supply chains in 2021 are living in an alternate dimension. Up is down and down is up. That’s what happens when container shipping rates exceed $20,000 per box and air cargo, normally used for high-value goods and perishable products for which speed to market is critical, doesn’t seem budget-scary anymore.
The price for shipping goods by air is nearly double what it was before the COVID pandemic, but ocean freight has become so expensive – and even slower –  in recent months that air cargo actually seems like a relative bargain to many companies. Mode conversion for international freight is one factor in the air cargo market’s 14 consecutive months of growth, according to new data released Wednesday. Read more here.

OCEAN FREIGHT UPDATES

Shipper competition driving up ocean freight rates

lloydsloadinglist.com
A BATTLE of “shippers vs shippers” for equipment and cargo slots is helping to drive up freight rates and being used strategically by some shippers to compete with their rivals.
“There are clearly cargo owners now, particularly bigger ones, that have materially better conditions than the smaller ones,” said Vespucci Maritime chief executive Lars Jensen. “I also have a strong sense that some of these larger cargo owners will be using this for strategic competitive advantage.”

Port of Vancouver operations update

portvancouver.com
The CP rail line that was affected by the B.C. interior wildfires is operational and the backlog of trains is now being processed. The CN rail line routed through the impacted area is not operational at this time. Where possible, CN is detouring limited traffic to decongest the rail network. CN and CP are collaborating on co-production, and both CP and BNSF are working with CN on alternative routings for trains. Read more here.

Biden vows to tackle competition issues in liner shipping

splash247.com
President Joe Biden will shortly order American transportation agencies to address competition in rail and shipping, as shippers struggle with sky high freight rates.
Biden’s executive order will tap the Federal Maritime Commission (FMC) and the Surface Transportation Board (STB) to come up with solutions. Read more here.

Fireworks in container may have caused explosion and fire on ship in Jebel Ali

theloadstar.com
Unconfirmed reports suggest that the explosion and subsequent fire on board a containership anchored at the quay side in Jebel Ali was caused by a container load of fireworks, with initial industry fears of another X-Press Pearl.
The ship, thought to be the 210 teu Ocean Trader, owned by Sash Shipping Group, based in Dubai, had docked yesterday and at around 1am witnesses reported a loud explosion that shook buildings in the city. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Railways ordered to stop operations near Lytton, B.C.

insidelogistics.ca
CN and CP have been ordered to stop regular rail operations between Kamloops and Boston Bar, British Columbia.
Transport Canada issued a Ministerial Order “in the interest of safe railway operations, and to protect public safety for the temporary return of residents to inspect their homes in Lytton, British Columbia”, the transport ministry said in a statement. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Canada expected to regain some of its tax advantage

biv.com
Just half a year after Donald Trump’s departure from White House, his administration’s major 2017 corporate tax cuts, much like his presidency, are destined to come to an end.
U.S. President Joe Biden has proposed raising the federal corporate tax rate to 28% from 21%. While that isn’t a return to pre-Trump corporate tax rates, it is enough to restore some of the competitive tax advantage Canada enjoyed prior to 2017. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

UK importers ‘sleepwalking’ into chaos as customs declarations freeze ends

theloadstar.com
UK importers of European goods are “sleepwalking” into disaster, as the UK’s six-month moratorium on customs declarations comes to an end.
HMRC’s six-month delay on declarations for imported goods from 1 January aimed to reduce strain on the system and provide importers sufficient time to adjust to post-Brexit procedures. Read more here (login required).