Newsletter: March 11, 2022

  • 11

    Mar

    Newsletter: March 11, 2022
    AIR FREIGHT UPDATES
    China Looking to Divert Flights From Shanghai as Covid Surges

    bnnbloomberg.ca
    (Bloomberg) — China has discussed diverting international flights away from Shanghai to other cities, as the financial center’s growing omicron outbreak puts pressure on quarantine hotels and isolation facilities, according to people familiar with the matter.
    The country’s aviation authority asked airlines to nominate alternative ports of arrival for Shanghai flights, the people said, asking not to be named as the discussions were confidential. Passenger routes from Hong Kong won’t be affected, they said. One of the people said flights from Macau and Taiwan would also be exempted. Read more here. 

    Airlines begin to cut flying as they grapple with fuel costs

    ajot.com
    U.S. airlines have begun paring flight plans due to soaring fuel prices, underscoring the speed at which Russia’s attack on Ukraine has upended the industry and jeopardized a hoped-for rebound this year.
    Alaska Air Group Inc. will trim flying by as much as 5% in the first half in response to “the sharp rise in fuel costs,” according to a regulatory filing Tuesday. Read more here. 

    Air charter market struggles with lack of large-capacity aircraft

    theloadstar.com
    As AirBridgeCargo (ABC) looks to find ways to keep its metal in the air, the charter market is looking thin.
    The project market in particular is struggling; Ukraine carrier Antonov, which operates five AN-124s, has dedicated them all to humanitarian efforts. Read more here (login required).

    Bellyhold return gives hope for a more stable Indian air cargo market

    theloadstar.com
    With India preparing to resume international passenger services this month, air freight shippers and forwarders are looking forward consistent additional bellyhold capacity in a market saddled with high rates and unreliable service.
    “The government has decided to resume scheduled commercial international passenger services from 27 March, the start of summer schedule 2022,” said the Indian Ministry of Aviation. Read more here. 

    OCEAN FREIGHT UPDATES
    COSCO launches new daily express service between Yantian and Hong Kong

    container-news.com
    COSCO Shipping has officially commenced its new daily express service between the major Asian ports in Yantian and Hong Kong.
    The new service launched on 1 March, when the first barge, totaling 748 tons and loaded with 1.65 million nucleic acid testing reagents and other key supplies for pandemic control and people’s livelihood, departed the Yantian International Container Terminal in Shenzhen for Hong Kong. Read more here. 

    Choice of next HMM CEO sparks takeover speculation

    splash247.com
    The creditors of HMM, South Korea’s flagship carrier, have got tongues wagging in Seoul with the choice of the line’s next CEO.
    Bae Jae-hoon has decided not to renew his contract with HMM after three years in the job with Kim Kyung-bae designated as his replacement from March 26. Kim was the CEO of another shipping line, Hyundai Glovis, for eight years through to 2017. Read more here. 

    CANADA BUSINESS – GOVERNMENT UPDATES
    GTA transport plan includes new highways

    insidelogistics.ca
    Ontario’s 30-year vision to grow transportation networks around Toronto includes highway expansions and potential new transit networks, though many elements of the plan are not fully costed.
    Connecting the GGH: A Transportation Plan for the Greater Golden Horseshoe, sets out the 30-year plan. The Greater Golden Horseshoe extends from Waterloo, Wellington and Brant County in the west, Peterborough and Northumberland in the east, Simcoe County in the north, and Haldimand and Niagara in the south. Read more here. 

    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
    Russia bans wide range of exports in response to Western sanctions

    supplychaindive.com
    Dive Brief:
    Russia will suspend exports of medical and tech equipment as part of a wide-ranging export ban according to an order issued Thursday.
    The country will ban exports of over 200 products, including vehicles, agricultural machinery, electric equipment and “technological, telecommunication and medical equipment,” the government said.
    The sanctions will last until the end of 2022, according to the order. The country will also suspend exports of certain timber products to “states that are undertaking hostile actions against Russia,” according to the announcement. Read more here. 

    Viewpoint: That pain you’re feeling won’t be restricted to the fuel pump

    freightwaves.com
    Worries of inflation escalated Thursday after a white-hot Consumer Price Index of 7.9% was recorded. While news outlets are focused on crude, and crude-derived products, they are missing the big inflationary pressure — logistics prices.
    The rise in black gold has pushed up the price of bunker fuel, jet fuel and diesel. All of these cost increases will be folded in to the logistics bill of any item imported. This means the inflation you are seeing now on the shelves in grocery and retail stores will only go higher. Read more here. 

     

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