Newsletter – November 9, 2020

AIR FREIGHT UPDATES

Air cargo delays as Covid closes West Terminal at Shanghai Pudong Airport

theloadstar.com

Freight delays are expected at Shanghai Pudong Airport after a cargo worker was found to have tested positive for Covid-19.

The airport said today: “Due to the diagnosis of a new Covid-19 patient at the West Terminal of Shanghai Pudong Airport, the terminal is now closed and it requires Covid-19 testing for all involved persons. All import and export cargo movements will be affected and operations maybe delayed.” Read more here.

Air Canada Cancels 12 Airbus A220 And 10 737 MAX Orders

simplflying.com

Air Canada lost over half a billion dollars in the last quarter, and despite lowering cash burn to around $7 million a day, it is expecting a tough winter ahead. As part of its efforts to improve its position, it has deferred some new narrowbody aircraft deliveries. More significantly, it has also canceled orders for 10 Boeing 737 MAX and 12 Airbus A220s entirely. Read more here.

Aid For Airlines? Canada Says Grant Refunds First

simpleflying.com

The Canadian government is to step up with some direct financial support for its homegrown airlines. On the weekend, authorities announced the imminent start of relief talks with Canada’s airlines. However, there is a catch – the carriers have to get their act together concerning passenger refunds before the government opens its checkbook. Read more here.

OCEAN FREIGHT UPDATES

UK importers scramble to find container haulage as carriers skip congested ports

theloadstar.com

UK shippers have been hit by a further series of container shipping ad hoc capacity contractions as a number of vessels recently skipped UK port calls or reduced their time at berth.

It’s all due to continuing congestion at the country’s major container gateways.

Last week, the port of Southampton welcomed the first call of the LNG-fuelled CMA CGM Jacques Saade, the new flagship ultra large container vessel (ULCV) in the French carrier’s fleet. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Fuel price volatility could return amid peak season surge

freightwaves.com

With trucking capacity as tight as it has been in over a decade thanks to the COVID-19 pandemic, truckload carriers are enjoying some of the highest spot market rates since 2018. A big component of those rates is fuel costs, which after a sharp drop in April due to low demand have been extremely stable until this week, compressing the spread between the wholesale (rack) and retail price at the fastest pace in months. Read more here.

Ottawa orders trains to slow down in the cold

insidelogistics.ca

OTTAWA – A new Ministerial Order, issued under the Railway Safety Act, restricts train speeds based on cold temperature conditions, instead of restricting train speed based on a winter date range as previously required.

Railway companies will be required to develop and submit a Winter Operations Plan specific to each subdivision where higher risk key trains operate. The measure is intended to reduce the risk of derailments during cold temperatures, and to improve the efficiency of Canada’s winter rail operations. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

E-commerce boom and logistics demand help save Vietnam from recession

theloadstars.com

There is high demand for contract logistics in north Vietnam, as strong domestic consumption helps the country buck the trend and avoid recession.

In May, French 3PL FM Logistic opened a $30m distribution centre in Bac Ninh, 20km from Hanoi, for retailers stocking fast-moving consumer goods, ambient foodstuffs, drinks and home and personal care products. Read more here.