Newsletter – May 28, 2021

AIR FREIGHT UPDATES

Cargolux sees new trends in a new era as air freight margins and capacity tighten

theloadstar.com
Air cargo yields on the transatlantic may begin to soften this summer, according to Richard Forson, chief executive of Cargolux.
But so far this year, yields have remained strong and are set to give the freighter operator a strong set of six-month results.
“I think we will have a pretty solid first half. The question is to what extent long-haul fights will be re-instated, especially in the summer months. Short-haul is starting to get busy, as is US domestic,” he said. Read more here (login required).

OCEAN FREIGHT UPDATES

Ever Given was travelling too fast: SCA

splash247.com
In the ongoing tit-for-tat between the Suez Canal Authority and Japanese owner Shoei Kisen over who was to blame for the blockage on the key waterway in March, the Egyptians have hit back.
Interviewed by Reuters, SCA chairman Osama Rabie said Shoei Kisen’s 20,388 teu Ever Given was travelling too fast through the canal and the size of the vessel’s rudder also contributed to the accident. Read more here.

Asia-Europe rates pass the $10,000 mark

splash247.com
Box freight rates from Shanghai to Rotterdam have crossed the $10,000 per feu mark for the first time in history.
The Drewry World Container Index released Thursday showed the rate for a 40-foot container from Shanghai to Rotterdam rose to $10,174, up 3.1% from a week ago and a 485% jump from a year ago. Read more here.

Container line schedules take another hit as port congestion in China spreads

theloadstar.com
Yantian International Container Terminal (YICT) has extended its export suspension until Monday, as port congestion worsens throughout China.
The Shenzhen gateway was due to resume accepting export containers today, following a two-day suspension starting Tuesday evening.
However, according to an update from Maersk, it was extended yesterday for a further 72 hours, with container gate-in times reduced from four to three days of a vessel’s estimated time of arrival (ETA), from 31 May until 6 June. Read more here (login required).

Calm before the storm: box rates set for new surge as carriers prepare new GRIs

theloadstar.com
Container freight rates on the main east-west trades continued at elevated levels this week, although some routes began to see pricing tail off.
Today’s reading of the Freightos Baltic Index shows the spot rate between Asia and the US east coast slip to $7,358 per 40ft, down from $7,477 per 40ft last week. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Trucking company shutdown among Canada’s largest since pandemic began

freightwaves.com
A heavily indebted Canadian trucking company has shut down after a court-appointed trustee assumed control of the Calgary, Alberta-based carrier and terminated 131 employees and contractors, most of them drivers.
People Express Transport, which specialized in hauling produce and meat in western Canada and the U.S., ceased operations on April 22, the day that a judge placed the carrier into receivership under Canada’s Bankruptcy and Insolvency Act. It had a fleet of about 150 trucks and owed CA$12.2 million ($10.1 million), according to court documents filed in the Court of Queens Bench of Alberta. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

World faces longer supply shortage as China’s factories squeezed

ajot.com
Eric Li’s factory making glass lampshades for companies including Home Depot Inc. is being stretched to its limits with sales doubling their pre-pandemic level.
But like many Chinese manufacturers, he doesn’t plan to expand operations—a reticence that could slow the pace of China’s economic growth this year and prolong a shortage of goods being felt around the world as demand picks up. Read more here.

Consumer prices not affected by changes in freight rates: analysis

shippingazette.com
CONTAINER shipping consultancy Sea-Intelligence says changes in freight rates do not have any meaningful macro-economic impact on consumer prices.
In its latest Sunday Spotlight, the consultancy said it analysed the link between freight rates and consumer prices, and whether the extremely elevated current rate levels will have an inflationary impact on consumers. Read more here.

Labour shortage slowing manufacturing recovery

insidelogistics.ca
The resilience of manufacturing is unwavering — but not without struggle. A new study has found that although many manufacturers are emerging from the Covid-19 pandemic on solid footing, a mounting shortage of skilled labour threatens to delay the sector’s full recovery. Read more here.