Newsletter – June 7, 2022

AIR FREIGHT UPDATES

New Normal: Expensive Tickets Not A Major Factor In Post-COVID Travel

simpleflying.com
With surging fuel prices increasing the airfares significantly, airlines were initially worried about its impact on the returning passengers. However, if the last couple of months is anything to go by, increasing ticket prices doesn’t seem much of a problem in a post-COVID world.  Read more here.

China airfreight rates predicted to rise in coming months

aircargonews.net
Airfreight rates out of China are expected to rise over the coming months while the peak season could be muted, according to Bruce Chan, senior analyst at investment bank Stifel.
In the latest Baltic Exchange market round-up, Chan said that rates out of Hong Kong and China had remained high over the last couple of months despite an easing of demand. Read more here.

Supreme Court rules airline cargo handlers exempt from arbitration

freightwaves.comThe U.S. Supreme Court on Monday unanimously ruled that a federal exemption against mandatory arbitration in wage-and-hour disputes for interstate transportation workers covers cargo loaders at Southwest Airlines, enabling a class action suit over overtime pay to proceed.
Justice Clarence Thomas’ opinion in Southwest Airlines Co. v. Saxon said cargo handlers are engaged in interstate and foreign commerce and subject to the Federal Arbitration Act, which exempts certain classes of transportation workers from being bound by private contracts to protect vital commerce from labor strife. Justice Amy Coney Barrett did not participate in the decision. Read more here.

Retailers chasing inventory now could lead to ‘muted’ airfreight peak

theloadstar.com
The inventory levels of major retailers could see the airfreight peak towards the third quarter be a little “muted”, but consistently busy for the coming months.
US retailers reporting first quarter financial results noted that their inventory levels were down – and that they had been forced to significantly increase costs by using airfreight. Read more here (login required).

OCEAN FREIGHT UPDATES

Ports introduce back-up plans as 25,000 truckers strike in South Korea

Unionised truck drivers in South Korea went on strike today, demanding that freight rates which guarantee basic wages must be achieved.
The Safe Trucking Freight Rates System was introduced during the first wave of the Covid-19 pandemic in 2020 to deter dangerous driving and to ensure minimum wages. It is scheduled to expire in December, after three years. Read more here (login required).

MSC calls out Panama Ports Company for disrupting its operations

splash247.com
Mediterranean Shipping Company (MSC) has criticised Panama Ports Company (PPC) for obstructing its operations and for looking to impose two companies to receive the maintenance and inspection deals for reefer-related services.
In a letter addressed to the director of the Panama Maritime Authority (AMP), Noriel Araúz, the liner giant complained that since January of this year it has experienced unprofessional behaviour and coercive actions by PPC, a subsidiary of Hutchison Ports Holdings in charge of the operations in the ports of Balboa on the Pacific side and Cristóbal on the Panama Canal Atlantic entrance. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Shanghai Trucking Shortage Gradually Eases But Hurdles Remain

bnnbloomberg.ca
(Bloomberg) — Optimism is growing that a trucking shortage in Shanghai is quickly improving, providing some relief to supply-chain congestion, though major hurdles still remain.
Traffic into the city is picking up, with some logistics experts seeing activity returning to about 80% of levels seen before Shanghai’s Covid-19 lockdowns. The trucking situation in Shanghai could return to normal within the next one to two weeks, digital freight forwarder Flexport Inc. said in an e-mailed reply to queries. Read more here.