Newsletter: March 9, 2022

AIR FREIGHT UPDATES

Hong Kong air cargo hit by massive reduction in trucking from mainland

theloadstar.com
The southern China air freight market has changed “dramatically” as Covid rages in Hong Kong, severely impacting the local trucking market to and from the mainland.
Forwarders estimate there is a 70% cut in truck capacity, further diminishing Hong Kong’s air export market. Read more here (login required).

Air freight “turned upside down” as capacity slumps and rates climb

theloadstar.com
Air freight capacity has indeed shrunk, according to the first data following Russia’s invasion of Ukraine, and the consequent restrictions on Russian and other airlines. North East Asia – Europe capacity has shrunk by up to 22% in the last week, compared with the week before. Read more here (login required).

OCEAN FREIGHT UPDATES

Soaring Bunker Prices Could Speed Up ‘Return to Normal’ for Container Shipping

gcaptain.com
Low-sulphur bunker prices increased another $100 per ton yesterday and, having soared by a third since the end of February to about $1,000 per ton, are adding millions of dollars to the cost of operating a ULCV on an Asia-North Europe round-trip.
And with a Russian oil ban “on the table”, as sanctions are ratcheted-up following the invasion of Ukraine, traders are predicting oil could hit $200 a barrel by the end of the month – more than double the price at the beginning of the year. Read more here.

CMA CGM to use $18bn profits for further growth and concessions to SMEs

theloadstar.com
CMA CGM is to ringfence 90% of the $18bn net profit it made last year for growth, including purchasing more ships and equipment, and pledged exclusive space on its vessels to small and medium-sized shippers.
The French line is among major ocean carriers under fire from US lawmakers who accuse them of unfairly driving up prices. Read more here (login required).

Online booking still down at JNPCT after ‘cyber-attack’

theloadstar.com
Jawaharlal Nehru Port Trust (Nhava Sheva) is making slow progress getting terminal systems at its own facility (JNPCT) back on track after a suspected cyber-attack on 20 February.
Sources in JNPT told The Loadstar it had recovered its systems, but online applications were still not “up and running”, a port official said. “Online data uploading has not yet been reactivated, which is expected to take another two to three weeks.”  Read more here. 

Soaring bunker prices could hasten ‘return to normal’ for liner trades

theloadstar.com
Low-sulphur bunker prices increased another $100 per ton yesterday and, having soared by a third since the end of February to about $1,000 per ton, are adding millions of dollars to the cost of operating a ULCV on an Asia-North Europe round-trip. Read more here (login required).

GROUND AND RAIL UPDATES

Canadian Pacific staff vote for strike action as merger with KCS looms

theloadstar.com
Canadian Pacific Railway (CP) is in for a bumpy ride: 3,000 employees have voted for a strike, to begin as early as 16 March, while rival Canadian National (CN) and various interest groups are calling on the US Surface Transportation Board (STB) to impose conditions on the merger of CP with fellow Class I carrier Kansas City Southern (KCS). Read more here (login required).

Canada delays ELD mandate enforcement until 2023

freightwaves.com
Canada’s transportation regulators have agreed to delay enforcement of the federal ELD mandate by an additional six months, until Jan. 1, 2023.
The Canadian Council of Motor Transport Administrators (CCMTA) announced the delay on Monday, saying regulators and the trucking industry need more time. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Cargoes pile up across Europe on day 14 of the Russian invasion of Ukraine

splash247.com
The global seaborne commodities trading map continues to be redrawn at a blistering pace in the wake of the Russian invasion of Ukraine two weeks ago.
Yesterday, the United States announced a ban on Russian oil and other energy imports. Read more here.