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Newsletter – June 8, 2020
AIR FREIGHT UPDATES
Airlines Are Removing Seats To Carry Cargo On More Planes With Capacity Shortage Likely To Persist
forbes.com
While COVID-19 is subsiding in Asia and the West and passenger travel confidence is gaining, more aircraft are losing their seats.
Airlines initially removed seats to increase space for urgent COVID-19 medical equipment. The world’s usual cargo capacity – in the bellies of passenger aircraft – was lost when flights were suspended. Read more here.
How The Air Cargo Market Has Changed In The Last Few Years
simpleflying.com
The air cargo market has had a few challenging years in recent times. In 2019, it noted the biggest decline in a decade, with volume falling by more than three percent. Margins have worsened continuously for three years in a row. The trade war between the United States and China has had an adverse effect on the market too. And now, the pandemic has reduced air freight capacity, while bringing interesting changes to the market. Read more here.
ICAO task force provides Covid-19 guidance for safe air cargo operations
aircargonews.net
ICAO has provided a series of guidelines on how air cargo operations should be carried out at airports to reduce the spread of coronavirus.
The guidance was issued by ICAO’s Aviation Recovery Task Force (CART) after consulting with countries, regional organisations, the World Health Organisation and aviation industry groups. Read more here.
OCEAN FREIGHT UPDATES
Carriers show their hand, Q3 blank sailings proliferate
splash247.comCarriers are now showing their hand, giving an indication of prospects for global trade in the second half of the year. The prognosis is not good.Lines in two of the three alliances have now started announcing blank sailings for Q3 with Copenhagen-vased Sea-Intellignece reporting 10-15% of capacity has already been remove on the Asia-Europe tradelane for the third quarter while 5 to 10% has been axed so far on the transpacific to both the west and east coasts of North America. Read more here.
Assets sale boosts CMA CGM in Q1: ‘market conditions are poor but profits are up’
theloadstar.comCMA CGM moved back into the black in the first quarter, thanks to the sale of terminals, and the carrier remains bullish about the outlook despite the impact of Covid-19 on its liftings.The French transport and logistics group recorded a $48m net profit for Q1, compared with a loss of $37m the year before – but this was only achieved due to a $185m gain from the disposal of eight port terminals to joint-venture Terminal Link. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
OPEC+ group extends crude oil output cuts through July
freightwaves.comThe OPEC+ group has agreed to extend its production cuts through July, apparently satisfied so far with a rise in the market that at the close of trading Friday had brought the U.S. West Texas Intermediate crude benchmark to just below $40 a barrel. Read more here.
Lawmakers in Eight Countries Form New Alliance to Counter China
ajot.comA group of senior lawmakers from eight democracies including the U.S. have launched a new cross-parliamentary alliance to help counter what they say is the threat China’s growing influence poses to global trade, security and human rights. Read more here.