Newsletter – June 30, 2022

AIR FREIGHT UPDATES

AirBridgeCargo’s Europe staff given termination notices, and bonus if they go

theloadstar.com
AirBridgeCargo (ABC) staff in Europe were yesterday handed termination notices and packages, according to numerous sources.
The staff, who actually work for Air Freight Logistics, ABC’s GSA and are thought to number about 60, were said to have been offered two months’ salary and a termination bonus if they accepted the deal. Read more here.

Full bellies again for air cargo, but some players still hungry for freighters

theloadstar.com
Global air cargo capacity is almost back to 2019 levels as passenger flights and their bellyhold capacity make a “fundamental return” to the market.
According to Accenture’s Seabury Cargo, global air cargo capacity was down only 4% between 13 and 26 June, compared with the corresponding pre-Covid period in 2019. Read more here.

Asia Pacific passengers surge but freight falls back

aircargonews.net
Cargo traffic carried by Association of Asia Pacific Airlines (AAPA) members fell 5.6% in May 2022 compared with May 2021.
AAPA blamed supply chain disruptions and slowing demand, leading to a year-on-year decline in freight tonne kilometres in May. Meanwhile, offered freight capacity expanded by 1% year-on-year compared to the same month last year, which led to a 4.8 percentage point decline in the international load factor to an average of 69.4% for the month. Read more here.

OCEAN FREIGHT UPDATES

Carriers return to aggressive voyage blanking to mitigate reduced demand

theloadstar.com
Ocean carriers are resorting to more aggressive blanking strategies to manage a dip in demand, according to the latest report from project44.
The supply chain logistics and technology platform’s June Ocean Carrier Report says the 2M alliance of Maersk and MSC was “the most aggressive, cutting back its services by as much as 71% in the second week in May”. Read more here (login required).

French government urges cash-rich CMA CGM to help out as nation battles economic woes

splash247.com
Is the Macron, Saadé bromance on the rocks? Sensational, multi-billion euro record profits for CMA CGM are clashing with blanket hausse des prix (cost of living) headlines, with France skirting close to recession amid rampant inflation.
Yesterday France’s finance minister took aim at CMA CGM, and other transport and energy companies, warning them to share some of their profits or risk the wrath of government. Read more here.

Lawmakers want to favor carriers that prioritize US exports

freightwaves.com
Container lines would receive unprecedented loading and unloading status at U.S. ports if new legislation aimed at prioritizing American exports were to become law.
The American Port Access Privileges Act, introduced Wednesday by U.S. Congressmen John Garamendi and Jim Costa, both California Democrats, would put American exporters “at the front of the line at our ports” in supporting the economy, according to the lawmakers. Read more here.

GROUND AND RAIL FREIGHT UPDATES

CP Announces Ratification of Three New Labour Agreements

ciffa.com
Canadian Pacific announced yesterday that three collective bargaining agreements have been ratified by employees of CP’s Dakota, Minnesota & Eastern (DM&E) South; Central Maine & Quebec (CMQ) U.S. and Central Maine & Quebec Canada subsidiaries.
The agreements provide higher hourly wages for all employees. They affect a total of approximately 430 employees represented by United Steel Workers Local 1976 on the CMQ Canada, SMART Transportation Division representing all employees on the CMQ U.S. and the Brotherhood of Locomotive Engineers and Trainmen representing all train and engine employees on the DM&E South. Read more in a CP press release

Analysts Forecast U.S. Vehicle Shortages as Supply Chain Woes Persist

reuters.com
Cox Automotive on Tuesday lowered its U.S. auto sales forecast for 2022, as analysts at both Cox and Edmunds.com said continued supply chain disruptions will leave dealers short of new vehicles for the foreseeable future.
Cox dropped its full-year forecast to 14.4 million vehicles from 15.3 million. Edmunds said second-quarter U.S. sales will be higher than in the first quarter, but will still trail last year’s depressed volume. Read more here.

AIR FREIGHT UPDATES

AirBridgeCargo’s Europe staff given termination notices, and bonus if they go

theloadstar.com
AirBridgeCargo (ABC) staff in Europe were yesterday handed termination notices and packages, according to numerous sources.
The staff, who actually work for Air Freight Logistics, ABC’s GSA and are thought to number about 60, were said to have been offered two months’ salary and a termination bonus if they accepted the deal. Read more here.

Full bellies again for air cargo, but some players still hungry for freighters

theloadstar.com
Global air cargo capacity is almost back to 2019 levels as passenger flights and their bellyhold capacity make a “fundamental return” to the market.
According to Accenture’s Seabury Cargo, global air cargo capacity was down only 4% between 13 and 26 June, compared with the corresponding pre-Covid period in 2019. Read more here.

Asia Pacific passengers surge but freight falls back

aircargonews.net
Cargo traffic carried by Association of Asia Pacific Airlines (AAPA) members fell 5.6% in May 2022 compared with May 2021.
AAPA blamed supply chain disruptions and slowing demand, leading to a year-on-year decline in freight tonne kilometres in May. Meanwhile, offered freight capacity expanded by 1% year-on-year compared to the same month last year, which led to a 4.8 percentage point decline in the international load factor to an average of 69.4% for the month. Read more here.

OCEAN FREIGHT UPDATES

Carriers return to aggressive voyage blanking to mitigate reduced demand

theloadstar.com
Ocean carriers are resorting to more aggressive blanking strategies to manage a dip in demand, according to the latest report from project44.
The supply chain logistics and technology platform’s June Ocean Carrier Report says the 2M alliance of Maersk and MSC was “the most aggressive, cutting back its services by as much as 71% in the second week in May”. Read more here (login required).

French government urges cash-rich CMA CGM to help out as nation battles economic woes

splash247.com
Is the Macron, Saadé bromance on the rocks? Sensational, multi-billion euro record profits for CMA CGM are clashing with blanket hausse des prix (cost of living) headlines, with France skirting close to recession amid rampant inflation.
Yesterday France’s finance minister took aim at CMA CGM, and other transport and energy companies, warning them to share some of their profits or risk the wrath of government. Read more here.

Lawmakers want to favor carriers that prioritize US exports

freightwaves.com
Container lines would receive unprecedented loading and unloading status at U.S. ports if new legislation aimed at prioritizing American exports were to become law.
The American Port Access Privileges Act, introduced Wednesday by U.S. Congressmen John Garamendi and Jim Costa, both California Democrats, would put American exporters “at the front of the line at our ports” in supporting the economy, according to the lawmakers. Read more here.

GROUND AND RAIL FREIGHT UPDATES

CP Announces Ratification of Three New Labour Agreements

ciffa.com
Canadian Pacific announced yesterday that three collective bargaining agreements have been ratified by employees of CP’s Dakota, Minnesota & Eastern (DM&E) South; Central Maine & Quebec (CMQ) U.S. and Central Maine & Quebec Canada subsidiaries.
The agreements provide higher hourly wages for all employees. They affect a total of approximately 430 employees represented by United Steel Workers Local 1976 on the CMQ Canada, SMART Transportation Division representing all employees on the CMQ U.S. and the Brotherhood of Locomotive Engineers and Trainmen representing all train and engine employees on the DM&E South. Read more in a CP press release

Analysts Forecast U.S. Vehicle Shortages as Supply Chain Woes Persist

reuters.com
Cox Automotive on Tuesday lowered its U.S. auto sales forecast for 2022, as analysts at both Cox and Edmunds.com said continued supply chain disruptions will leave dealers short of new vehicles for the foreseeable future.
Cox dropped its full-year forecast to 14.4 million vehicles from 15.3 million. Edmunds said second-quarter U.S. sales will be higher than in the first quarter, but will still trail last year’s depressed volume. Read more here.