Newsletter – March 6, 2020

  • 06

    Mar

    Newsletter – March 6, 2020
    AIR FREIGHT UPDATES
    Buffet Bets Big With $45.3 Million Delta Share Purchase
    simpleflying.com
    With the global travel sector being heavily impacted by the ongoing coronavirus, many decided to sell off their airline shares, dropping prices by up to 30%. Warren Buffet spotted an opportunity in the selloff and decided to do the opposite, purchasing $45.3 million worth of Delta’s stock. Read more here.
    GSAs eye online booking as the air cargo sector goes omnichannel
    theloadstar.com
    Omnichannel is a word more often associated with high street retailing than air cargo, but it’s becoming a reality for airlines as options for distribution take off.
    Booking platforms, carrier websites and, of course, the traditional phone call all feature in the buying, selling and distribution of capacity – but the lines are blurring. Read more here.
    OCEAN FREIGHT UPDATES
    How OPEC’s coronavirus cuts affect ocean shipping
    freightwaves.com
    The market expected a new coronavirus-induced 1 million-barrel-per-day (b/d) production cut from OPEC+, the coalition of OPEC and participating non-OPEC nations. What it got on Thursday was a much bigger proposed cut of 1.5 million b/d. Read more here.
    As China returns to work, box carriers look to rate hikes to help regain losses
    theloadstar.com
    Ocean carriers are preparing for a return to fully booked ships.
    The recovery in China’s manufacturing is reported to be up to around 80% of pre-new year levels, and regional transport movements are also getting back up to speed, it seems. Read more here.
    Port of Halifax Terminal Fluidity Update
    ciffa.com
    The Port of Halifax and its terminal and rail partners are in the process of returning to normal operations following the recent rail blockades.
    As of the morning of March 5, the terminals are reporting the following import terminal KPIs:
    PSA Terminal (South End):
    Average Days-on-Dock: 7.2 days
    % of containers on-dock within 72 hours of discharge: 12%
    % of containers on-dock more than 72 hours of discharge: 88%
    Ceres Terminal (Fairview Cove):
    Average Days-on-Dock: 3.9 days
    % of containers on-dock within 72 hours of discharge: 40%
    % of containers on-dock more than 72 hours of discharge: 60%
    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
    ‘This is a crisis.’ Airlines face $113 billion hit from the coronavirus
    cnn.com
    London (CNN Business)Global airlines stand to lose $113 billion in sales if the coronavirus continues to spread, according to the International Air Transport Association.
    The losses would be similar to those experienced by the aviation industry during the global financial crisis of 2008, IATA warned as it dramatically increased its estimate of the damage caused by the outbreak. It said airlines could lose 19% of their business if the virus isn’t contained soon. Read more here.
    US toughens Customs rules for e-commerce sales to crack down on counterfeit goods
    theloadstar.com
    The US is to step up the fight against the shipment of counterfeit goods, particularly those sold through e-commerce platforms.
    Last month, President Trump issued a new executive order that allocated more federal funds to help crack down on such sales, comprising four elements that the US Customs and Border Protection (CBP) needs to address, according to an advisory note from US law firm Arent Fox. Read more here.

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