Newsletter – October 17, 2023

AIR FREIGHT UPDATES

Uptick in airfreight rates creates mirage of market recovery
freightwaves.com
Air logistics stakeholders may want to pump the brakes on celebrations of shipping volumes and rates finally climbing from the depths of a prolonged downturn. Newfound optimism is tempered by the fact that growth has more to do with normal seasonal patterns than a fundamental shift in demand. The market is essentially flat versus an anemic final stretch in 2022, according to the latest data. Read more here.

Transatlantic trade boom as travel returns
aircargoweek.com
The transatlantic corridor is one of the world’s most important trade lanes, and a vital part of IAG Cargo’s network.
Currently, serving 27 US destinations with over 400 weekly rotations from their hubs in Spain, the United Kingdom, and Ireland, IAG Cargo recently expanded its network to include Portland, welcome back Pittsburgh, and connect with Cincinnati. Read more here.

OCEAN FREIGHT UPDATES

Asian carriers will be hit harder by CBER demise than European peers
theloadstar.com
Asian box lines possess far fewer large containerships than their European peers and may be more adversely affected by the EC decision last week not to renew consortia block exemption regulation (CBER) when the immunity expires on 25 April 2024.
Former Yang Ming chairman Bronson Hsieh told Taiwanese newspaper ETToday that 20% to 50% of European carriers’ slots were placed in alliances, while for the Asian carriers, the percentage was 70% to 80%. Read more here (login required).

GROUND & RAIL FREIGHT UPDATES

Economy the top issue facing trucking industry
trucknews.com
The economy emerged as the number one issue on the minds of trucking industry professionals, according to an annual survey of more than 4,000 people by the American Transportation Research Institute (ATRI).
It was the first time the economy topped the list of trucking industry concerns since the Great Recession, when it occupied the number one spot for three years. It came as no surprise to Rebecca Brewster, president and COO of ATRI, since research this year by the organization revealed that trucking operational costs surpassed $2 per mile for the first time ever. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Montreal Port Authority gets $110m for new container terminal
splash247.com
Transport Canada has awarded CAD 150m ($110m) for the construction of a new container terminal for the Montreal Port Authority in Contrecoeur, Quebec.
The previous design-build-finance-operate-maintain (DBFOM) procurement process from November 2021 to handle both the terminal’s construction and operation did not provide any bidders since circumstances like interest rates and inflation changed since that time. Read more here.

INTERNATIONAL BUSINESS-GOVERNMENT UPDATES

Bangladesh’s economic crisis: How did we get here?
atlanticcouncil.org
The International Monetary Fund (IMF)’s willingness to support Bangladesh’s request for a $4.5 billion bailout package over the next three years confirms that the country’s economy is facing a serious crisis.
It is the third country in the region, after Sri Lanka and Pakistan, that knocked on the door of the IMF in recent months. While the economic crises in Pakistan and Sri Lanka were widely reported in international media, Bangladesh’s situation flew under the radar for quite some time thanks to the government’s repeated denial of any impending crisis. Bangladeshi Prime Minister Sheikh Hasina’s government—for years—touted the economic success of the country and recently celebrated the opening of Bangladesh’s largest bridge as a symbol of its self-reliance.  Read more here.

The ‘double-edged sword’ that makes shipping an ‘easy target’ for cyber crime
theloadstar.com
Maritime organisations must protect their digital assets as cyber criminals become increasingly capable and ransom payments increase, warned a recent study by Thetius, CyberOwl and HFW.
“Everything attached to a network can be hacked; everything is being attached to networks, therefore everything is vulnerable”, said Rod Beckstrom, former director of the United States Cyber Security Centre. Read more here (login required).