Newsletter – June 28, 2023

AIR FREIGHT UPDATES

New York Area Airports Come To Near Standstill As FAA Problems Continue

simpleflying.com
Over the course of the last three days, over 20,000 flights in the United States Northeast have been delayed or canceled. New York area airports have been the most affected due to the thunderstorms in the area. The storms in the Northeast began on Sunday and have stretched all the way into Tuesday, June 27. Read more here

How Aircraft Shortages Will Impact the Supply Chain This Summer

supplychainbrain.com
The aviation industry faces a potential aircraft engine shortage this summer, due to a number of factors.
Airlines are being affected by Pratt & Whitney engine shortages and delays in maintenance, impacting Airbus A320 neo family and A220 operators. Many airlines are investing in newer planes and more fuel-efficient engines. At the same time, a scarcity of air traffic control staff is likely to complicate aerial route capacity in 2023. Read more here

Western Global Airlines grounds cargo jets as bankruptcy rumors swirl

freightwaves.com
A heavy debt load, weak cash flow associated with a significant decline in global air cargo demand and an employee lawsuit are raising questions about the ongoing financial viability of Western Global Airlines, an all-cargo carrier with a fleet of 21 aging aircraft that counts retailer Amazon as its top customer.
A review of flight tracking sites indicates Western Global is winding down operations, with the majority of aircraft having returned to home base at Southwest Florida International Airport in Fort Myers or its maintenance center in Shreveport, Louisiana. Read more here

OCEAN FREIGHT UPDATES

Panama Canal Delays Draft Restrictions but Lowers Number of Transits

maritime-executive.com
The Panama Canal Authority delayed the planned further draft restrictions for vessels making the transit that had been due to go into effect yesterday, June 25. They publicly cited expected rainfall while CNBC is reporting that they are also lowering the number of daily transits through the original locks to converse water.
Economists have warned of the potential for a significant impact on global trade and especially in the United States, which remains the Panama Canal’s largest customer. Read more here

MSC leads capacity exodus from transpacific – but Zim bucks the trend

theloadstar.com
Ocean carriers have removed almost a quarter of their capacity from the transpacific tradelane in the past year as freight rates have sunk below pre-pandemic levels.
Results from carriers operating on the transpacific are, at best, breaking even, prompting them to reassess their network coverage and redeploy tonnage on more lucrative routes, such as Asia to the Mediterranean. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Indian exporters ‘euphoric’ over prospects from new US trade ties

theloadstar.com
In another sign of “a clearer strategy” around trade diversification from China, the US is warming to India in a big way.
And it’s an opportunity that Indian exporters believe will drive significant long-term demand for their goods. Read more here (login required).