NEWSLETTER – NOVEMBER 1, 2022

AIR FREIGHT UPDATES

Cargojet sees double digit revenue growth in third quarter

insidelogistics.ca
Cargojet Inc. credits its new strategy for a high performing third quarter, as the company adapts to uncertain customer demands while keeping a close eye on the economy.
The Mississauga, Ont.-based company, which provides time-sensitive overnight air freight services and aircraft leases, said it will continue to focus on long-term commercial contracts to protect against tightening consumer demand. Read more here.

Air Canada commits to 15 new planes

insidelogistics.ca
Air Canada has converted options for 15 Airbus A220-300 aircraft into firm orders, bringing to 60 the total number of the Canadian-built aircraft it will acquire for its fleet.
“This expanded order for the A220, built up the road from our Montreal headquarters, is an important development in the modernization of our fleet and a clear indication that we are emerging from the pandemic solidly positioned for the future. The A220 has become a mainstay of our narrowbody fleet, and its performance and passenger comfort are enabling us to compete effectively in the North American market,” said Michael Rousseau, president and chief executive of Air Canada. Read more here.

OCEAN FREIGHT UPDATES

‘Sudden decline in demand’ hits ONE liftings and profits in second half

theloadstar.com
Japanese ocean carrier ONE says it expects profitability to contract by 60%, year on year, in the second half of its fiscal year, ending on 31 March 2023, as trading conditions on global liner trades worsen. Read more here (login required).

Shipping giants reticent as IMO ship efficiency measures enter force

theloadstar.com
The International Maritime Organization’s (IMO) latest emissions reduction measures came into force today, a regulatory move which will grant an ‘efficiency rating’ to ships, similar to those used for buildings and household appliances.
The new rules, although enacted today, will only become mandatory from 1 January, are expected to drive older ships to the scrapyard, while others will need to reduce speed to comply. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

La Fontaine tunnel partially shut for next three years

montreal.citynews.ca
The much anticipated road-work in the Louis-Hippolyte-La Fontaine tunnel began Monday morning forcing the closure of three out of six lanes. Two lanes remain open Montreal bound, and one lane is open heading South-bound.
The tunnel will stay partially closed for three years, until November 2025, and the effects are expected to be felt on and off the Island. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

China manufacturing slips for third month in a row as zero-Covid policy bites

theloadstar.com
China’s manufacturing sector has shrunk for the third month in a row, with Beijing’s zero-Covid policy causing more logistics disruption and a dip in ocean shipment volumes.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) came in at 49.2 for October, the third consecutive month the number has been below 50, indicating a contraction in activity.  Read more here (login required).

CANADA BUSINESS – GOVERNMENT UPDATES

Labour shortage cost Canada $13 billion in the past year

insidelogistics.ca
Japanese ocean carrier ONE says it expects profitability to contract by 60%, year on year, in the second half of its fiscal year, ending on 31 March 2023, as trading conditions on global liner trades worsen.
After a strong performance in July, ONE said it had experienced a “sudden decline” in demand in the following two months and said it would “take some time for cargo movements and short-term freight rates to recover”. Read more here (login required).