NEWSLETTER NOVEMBER 10, 2022

AIR FREIGHT UPDATES

Freighters’ place in air cargo ‘cemented’ by Covid

aircargonews.net
The last few years have “cemented once and for all” that the global freighter fleet will represent more than 50% of the total cargo market in the long term.
Speaking at TIACA’s Air Cargo Forum event in Miami, Boeing vice president commercial marketing Darren Hulst explained that historically the freighter fleet had represented between 50% and 60% of total cargo capacity, but some industry pundits had expected this percentage to drop as bellyhold operations grabbed market share. Read more here.

OCEAN FREIGHT UPDATES

Transport Canada invests in new transload facility to relieve congestion at Port of Hamilton

splash247.com
Transport Canada yesterday announced funding of almost C$5m ($3.69m) to relieve supply chain congestion at the Port of Hamilton. The investment from the National Trade Corridors Fund for the Building Capacity in Canada’s Steel Supply Chain project will pay almost half of the close to $10m total project cost estimate.
The funds are intended to increase efficiency in the region’s supply chain by enabling the Hamilton-Oshawa Port Authority to create new interconnections between marine, rail and road that will enhance the transfer of steel products from one mode to another at the port. Read more here.

Container safety in motion as industry moves to cut losses

theloadstar.com
In an unprecedented period of container stack collapses between November 2020 and February the following year, some 5,762 boxes were lost from five major incidents, mainly in the Pacific.
The tragic events that winter featured comparatively new vessels, including ONE Apus and Maersk Essen. And, using the average value per container of $40,000 per box, that could be more than $230m in cargo losses – without calculating the environmental damage caused by these stack collapses. Read more here (login required).

Supply chain disruption alchemy turns shipping line returns to gold

theloadstar.com
Capacity constraints caused by congestion and disruption to global supply chains saw the stiffening of ocean freight rates, boosting carrier returns in the face of softening demand, during the first nine months of the year.
The effect on container shipping has been to raise average rates per teu, maintaining revenues at high levels even as demand waned. Read more here (login required).

Clogged depots to be a feature of 2023 container market

insidelogistics.ca
The shipping industry is witnessing a major slump in the order-to-inventory ratio with high inventories but slower demands. According to the November edition of the Container xChange Forecaster, this creates a ripple effect throughout container logistics.
As a result, one of the issues which will impact container repositioning and container movement well into 2023 is insufficient depot space. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES 

Holiday hangovers: Retailers seek to clear out inventory piles as the season

 ramps upsupplychaindive.com
In late September, Nike joined the cadre of companies to announce something along the lines of “decisive action” on inventory.
That was the phrase used — twice — by Nike Chief Financial Officer Matthew Friend on a call with analysts, one that mentioned the word “inventory” 48 times.
Friend echoed other executives in deploying that phrase. Target chief Brian Cornell, for example, mentioned “bold decisive actions” and a “decisive path” in an August analyst call (in which the word “inventory” was featured even more, at 73 times).  Read more here