Newsletter – June 4, 2021

AIR FREIGHT UPDATES

Air cargo rates set to stay elevated during summer lull

aircargonews.net
Airfreight rates cooled as the month of May progressed but this is unlikely to signify the start of a return to pre-Covid levels.
The latest figures from the Baltic Exchange Air Freight Index (BAI) show that rates from Hong Kong to North America increased to $8.70 per kg in May from $8.48 in April.
From Hong Kong to Europe prices reached $4.73 per kg from $4.61 in the prior month. Read more here.

OCEAN FREIGHT UPDATES

Yantian congestion pushes box spot rates to new highs, ceiling still not in sight

splash247.com
Hobbled by growing congestion at Chinese export gateway Yantian and key receiving terminals such as Oakland and Hamburg, the Shanghai Containerized Freight Index shot up by another 3.3% today to hit new records. The box spot index operated by the Shanghai Shipping Exchange climbed 117 points to close the week on 3,613 points, up 157% year-on-year. Read more here.

Suez Canal Authority to blame for Ever Given’s high speed: UK P&I Club

splash247.com
The insurer of the giant, 20,388 teu Ever Given has fired back in the ongoing compensation battle to get the ship freed.
The UK P&I Club yesterday disputed claims made earlier by the Suez Canal Authority that the ship’s captain was to blame for the accident that led to the 400 m ship blocking the waterway for six days in March. Read more here.

Modest inventory bump not likely to slow freight’s flow anytime soon

freightwaves.com
After a few quarters of sales growth significantly outpacing inventory additions, the two were closer to parity at retailers specializing in general merchandise and household goods during the fiscal first quarter, which concluded at the end of April. While stock levels are beginning to improve, it appears it may take retailers a while to rebuild positions to normal historical levels. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Truck broker guidance, ELD data research rolled into highway bill

freightwaves.com
The Democrats’ version of the highway bill retains many of the truck-centric policies of last year’s version with two notable add-ons: guidance on truck brokers and dispatch services and a policy for using truckers’ electronic logging devices (ELDs) for government research.
The $547 billion “Investing in a New Vision for the Environment and Surface Transportation in America (INVEST in America) Act,” issued on Friday, is expected to be considered before the House Transportation and Infrastructure (T&I) Committee on June 9. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

New container ship service sets sail between Hamilton and Montreal

ajot.com
Hamilton Container Terminal (HCT), in partnership with the Hamilton-Oshawa Port Authority (HOPA Ports) and Desgagnés, is taking the first step in developing a container feeder service between Hamilton and Montreal. Docking at Hamilton’s Pier 14, the M/V Sedna Desgagnés is due to make the new service’s first voyage June 10.
This shipment is the first of what is expected to be an increasingly frequent service for container movements on the Great Lakes. The container ‘feeder’ vessel will carry approximately 350 containers (350 TEUs) originating in the GTHA from Hamilton to Montreal. These containers, carrying a diverse range of cargoes, will be transloaded in Montreal to other vessels destined for various overseas ports. Read more here.