Newsletter – May 12, 2022

AIR FREIGHT UPDATES

Indian Airports Leave International Airline Fee Collection System

simpleflying.com
Airports in India, which relied on the International Air Transport Association (IATA) to collect dues for various charges from foreign carriers, will now manage the task locally. The change in procedure comes after the Airports Authority of India (AAI) withdrew from taking IATA’s assistance in payment collection recently to protect itself from any loss of revenue related to the Devas case. Read more here.

OCEAN FREIGHT UPDATES

ONE and Evergreen launch cross-alliance slot-charter transpac deal

theloadstar.com
Slot charter and exchange agreements between carriers in rival alliances are increasing as container lines prioritise their search for capacity over the commercial risks of customer retention.
Moreover, container lines are favouring ‘used or not used’ corresponding capacity exchange agreements that dispense with rate setting, that could assist the slot charterer to gain market share from the slot donor line and avoid complex accounting that can cause lengthy contract disputes. Read more here (login required). Read more here.

Carriers Blank More Sailings as China’s COVID Lockdowns Continue

gcaptain.com
Ocean carrier alliances are preparing to blank more than a third of their sailings from Asia over the coming weeks in response to a reduction in export freight, according to the latest report from Project44.
The blanking strategies by the alliances to mitigate the impact of the Covid lockdowns in China will further extend cargo lead times, particularly to North Europe. Read more here.

Safety management among carriers yet to catch up with ship sizes, say insurers

theloadstar.com
Whether or not the increasing size of ships is reaching a point of diminishing returns, according to a new report by Allianz, which suggests the bigger-is-better mentality is only exacerbating safety issues.
Last year, demand for 7,000teu-or-less vessels reached such a fever pitch that owners were able to buy ships second-hand and repay their lenders in weeks through rates alone. But container lines have been haunted by safety issues related to ship size, Allianz says. Read more here (login required).

GROUND AND RAIL FREIGHT  UPDATES

The state of last mile amid slowing e-commerce demand

freightwaves.com
The challenges of the past few years have strained last-mile delivery networks. And just as they have started maturing with new entrants and efficiencies unlocked, e-commerce started slowing from its pandemic roll. Where exactly it stops, no one is quite sure, but last-mile providers don’t have time to wait. They must service the now and build for the future. Read more here.

CANADA BUSINESS – GOVERNMENT   UPDATES

Labour shortages forcing Quebec SMEs to shift operations

insidelogistics.ca
Fifteen percent of Quebec-based small and medium companies (SMEs) say they have had to relocate operations outside the province because they cannot find workers.
According to the Quebec manufacturers association’s (STIQ) most recent Quebec Industrial Barometer, labour shortages are the worst the association has seen since starting the barometer 13 years ago. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT   UPDATES

Prologis: US logistics real estate market hits record-low 16-month supply

freightwaves.com
Several data points provided Wednesday by logistics real estate provider Prologis showed warehouse space is likely to remain constrained for some time.
A new metric, “true months of supply (TMS),” which compares current vacancies plus the development pipeline to trailing net absorption, has fallen to 16 months in Prologis’ 30 U.S. markets. Historically, that metric hovers around 36 months during expansionary periods and prior to 2021, it has never dipped below 32 months. Read more here.