Newsletter – March 9, 2021

AIR FREIGHT UPDATES

Amazon Clicks Buy Now On $131 Million Cargo Airline Share

simpleflying.com
Amazon continues to make strides to gain more ground, or rather, airspace, in the cargo market. The retailer has now made use of options it acquired five years ago to purchase close to 20% of airfreight operator Air Transport Services Group for $131 million. It has further warrants to buy shares in both Atlas Air and Sun Country Airlines, all Amazon Air aircraft operators. Read more here.

OCEAN FREIGHT UPDATES

Port of Montreal strike threat already disrupting shippers

insidelogistics.ca
The Shipping Federation of Canada is warning that a potential strike at the Port of Montreal is already having a damaging impact even as negotiations are set to resume Wednesday with the help of mediators.
The trade association representing the interests of ocean-going ships says the threat of a work stoppage is forcing North American importers and exporters to divert large volumes of international cargo away from the port and is causing havoc to supply chains. Read more here.

2M snubs congested west coast ports as Asia-US pendulum services are axed

theloadstar.com
To improve schedule reliability, 2M partners Maersk and MSC are to avoid congested US west coast ports with two transpacific pendulum services.
From this week, the AE1/Shogun and AE6/Lion loops from Asia will turn in North Europe instead of going on to the US.
And to “facilitate the network adjustments”, the 2M said it would blank next week’s AE55/Griffin sailing from Asia to North Europe. Read more here (login required).

K Line creates carbon neutral division

splash247.com
Japanese shipping major Kawasaki Kisen Kaisha (K Line) is sharpening its focus on developing green solutions for its operations.
K Line revealed today it will form a new carbon neutral promotion group from April 1. The new group will pursue business development opportunities for its potential net zero emissions businesses. Read more here.

California port pileup leaves old records in the dust

freightwaves.com
Labor unrest at West Coast ports in 2015 was a landmark event for U.S. importers. Massive congestion amid contentious contract negotiations with the dockworkers union convinced some importers to shift business to East and Gulf Coast ports and diversify supply chains.
But despite its lasting impact, what happened in 2015 pales in comparison to what’s unfolding at the ports of Los Angeles and Long Beach in 2021.
Data on the number of ships at anchor in San Pedro Bay is compiled by the Marine Exchange of Southern California. American Shipper compared the Marine Exchange’s 2015 numbers to congestion figures for 2020-21, measuring from the time anchorages started to fill in each case.  Read more here.

Storage rent doubles as import boxes pile up at Chittagong ahead of Ramadan

theloadstar.com
Chittagong Port Authority (CPA) this week doubled the rent for FCL import containers staying in the port yard for more than 11 days after the facility became flooded with uncollected boxes, disrupting Bangladesh’s prime gateway.
The number of FCL containers at the port yard exceeded its designated capacity of 34,864 teu, forcing the port authority to store them at places allocated for other boxes. Read more here (login required).

GROUND AND RAIL UPDATES

Canada’s fast-approaching ELD mandate won’t be enforced — at first

freightwaves.com
Canada took a slower road than the United States to implementing its electronic logging device (ELD) mandate for commercial vehicles. In doing so, it added teeth: a requirement that ELDs undergo certification by a third party accredited by the government.
When the Canadian ELD mandate takes effect on June 12, it won’t have any immediate bite. Initial enforcement measures, according to the Canadian government, will consist of “education and awareness.” The mandate approaches as no ELD has been certified for use under the Canadian rule. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Logistics investment goes on hold as US supply chain review looms

theloadstar.com
US companies are unlikely to make significant moves in global sourcing strategy over the coming three months as the government conducts a strategic review of the nation’s supply chains.
On 24 February, President Biden signed an executive order for a 100-day review of critical supply chains to identify vulnerabilities, following the shortage of semiconductors that has disrupted car production. The review targets four groups of critical goods as well as six sectors of industry. Read more here.