NEWSLETTER NOVEMBER 4, 2022

AIR FREIGHT UPDATES

Busy Schedule: Air Canada Resumes Flights To Cuba

simpleflying.com
Air Canada has returned to Cuba, with flights resuming to Havana following the removal of the final COVID-19 restrictions in the country. The first flight to Havana operated on October 28th, with a service from Toronto Pearson International Airport. Cuba is a popular destination for Canadians, particularly in the winter months, and is an important market for the Cuban tourist industry. Air Canada returning to Cuba provides more competition for Canadian airlines already flying to the country and gives more choices for passengers. Read more here.

Air New Zealand Advises Passengers Not To Use Baggage Trackers

simpleflying.com
Following the baggage tracker drama with Lufthansa about the ban on using Apple’s AirTags, fellow Star Alliance member Air New Zealand is almost following suit. On its website, the flag carrier categorized baggage trackers under lithium battery-operated devices and has advised passengers against using them. Read more here.

OCEAN FREIGHT UPDATES

Maersk moves to establish large-scale green methanol production in Spain

splash247.com
A.P. Moller – Maersk is looking to produce up to 2m tonnes of green methanol a year in Spain by 2030 to supply fuel for its containerships and slash its carbon footprint.
The world’s second-largest liner has agreed with the Spanish government to explore the opportunities for large-scale plants in the ports of Andalusia and Galicia. The deal was signed on Thursday in Madrid by Maersk CEO Søren Skou and Prime Minister Pedro Sanchez.  Read more here.

End of an era: Profits finally peak for shipping giant Maersk

freightwaves.com
Three months ago, executives of Maersk expected the container shipping market to peak and turn downward sometime in the fourth quarter. Just a few weeks later, they were proven wrong. It peaked sooner.
“Demand for ocean shipping began its decline in August, and this was clearly observed in both rates and volumes,” said Maersk CEO Soren Skou during a quarterly call on Wednesday.
Third-quarter profits marked yet another record high for Maersk — net income was $8.9 billion — but it will be the last hurrah of the boom era. “We have now seen the peak in extraordinary earnings,” said Maersk CFO Patrick Jany. “Halfway through the quarter we began to see the long-expected normalization of freight rates.” Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES 

Holiday retail sales to climb 6% to 8%, NRF says

freightwaves.com
The National Retail Federation (NRF) predicted Thursday that noninflation-adjusted holiday retail sales will rise 6% to 8% to up to $960.4 billion. That’s a 40% to 50% drop from 2021’s record levels but still what the trade group called a healthy increase in light of high inflation and economic downturn concerns.
Online and other nonstore sales will range between $262.8 billion and $267.6 billion, which would be up 10% to 12% from the past holiday season when more people shopped online due to the COVID-19 pandemic, NRF. The U.S. retail industry’s leading trade group said it expected consumers to do more in-store holiday shopping than they did  last year. Read more here.

Lower import costs help some retailers over those that stockpiled

freightwaves.com
“The positive side is, if you are a small business and you’re competing with some of these larger importers, they brought their stock in at a much higher cost level. They’ve imported it at a much higher freight rate, it’s been sitting in a warehouse or in a container, it’s continuing to accrue cost. And you’re seeing that with the inflationary pressures. So even though spending has gone down and importing has come down, prices have remained elevated, because all of these goods are incurring costs. Read more here.