NEWSLETTER – OCTOBER 12, 2022

AIR FREIGHT UPDATES

India’s air cargo market takes a hit as forwarders face 18% tax on exports

theloadstar.com
Indian airfreight forwarders are finding themselves in a cash flow squeeze amid heightened growth challenges, following the 18% Goods and Services Tax (GST) imposed on export freight charges.
The levy comes after the government removed exemptions on 1 October. Read more here (login required).

OCEAN FREIGHT UPDATES

US FMC proposes new demurrage and detention billing requirements

splash247.com
The US Federal Maritime Commission (FMC) is proposing a new rule that seeks to bring more clarity, structure and punctuality to the demurrage and detention billing practices of vessel operating common carriers (VOCCs), non-vessel-operating common carriers (NVOCCs) and marine terminal operators (MTOs). Read more here.

Shipping lines still raking in billions despite sinking cargo demand

freightwaves.com
There’s no shortage of schadenfreude toward shipping lines these days. After making hundreds of billions in profits during the pandemic, there is gleeful talk of their looming comeuppance — of plummeting spot rates and carriers begging for business.
But anyone expecting shipping lines to book losses anytime soon will be disappointed. They’re still pocketing billions of dollars in profits each quarter. Spot rate declines and volume reductions are still being easily offset by higher contract rates. Read more here

GROUND AND RAIL FREIGHT UPDATES

Large Rail Union Rejects Deal

ttnews.com
OMAHA, Neb. — The U.S.’s third-largest railroad union rejected a deal with employers Oct. 10, renewing the possibility of a strike that could cripple the economy. Both sides will return to the bargaining table before that happens. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Canada’s economy has scope to slow with ‘exceptionally high’ vacant jobs, central-bank governor says

reuters.com
ORONTO, Oct 9 (Reuters) – Bank of Canada Governor Tiff Macklem said there is scope to slow the economy based on an “exceptionally high number” of job vacancies in the labor market.
In an interview aired on CBC Radio on Sunday, Macklem said the current inflation fight is the biggest test the central bank has faced since it started targeting inflation 30 years ago. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Warehouse rents near cargo airports skyrocket, report says

freightwaves.com
Rising expectations for fast delivery of high-value products has fueled demand for near-airport warehouses and forced tenants to pay substantial rent premiums compared to other industrial spaces in large metropolitan areas, according to a new report from CBRE.
The Dallas-based commercial real estate services and investment firm found that average rents for warehouses within a 5-mile radius of major airports are 18.8% higher than the average for the region. The analysis covered the 20 busiest U.S. airports for airfreight. Read more here.