Newsletter – October 25, 2021

AIR FREIGHT UPDATES

Air freight high rates and capacity squeeze continues

lloydsloadinglist.com
Air freight rates ex-Asia have remained at exceptionally high levels this week as the squeeze on uplift and airport handling capacity continues at key export and import hubs.
The Baltic Air Index (BAI) shows that spot prices this week from Hong Kong and Shanghai to North America remain above US$ per kilo, with rates to Hong Kong to Europe rising to $7.24 a kilo, with rates from Shanghai to Europe trailing a little at US$6.59/kg. Read more here.

Cathay Pacific hikes transpac BSA prices as market surges

aircargonews.net
Cathay Pacific Cargo is hiking its block space agreement (BSA) prices on its transpacific and India services in response to current market conditions.
In a letter sent out to customers, the Hong Kong-based carrier said it would impose a General Rate Increase (GRI) of HK$18 per kg on the base rate of all the Block Space Agreements for transpacific routes with effect November 15 until the end of the contractual period. Read more here.

OCEAN FREIGHT UPDATES

Container ship fire off British Columbia smoldering, no longer spreading

reuters.com
Victoria, BRITISH COLUMBIA, Oct 24 (Reuters) – A container fire that broke out on Saturday on a cargo ship carrying mining chemicals off British Columbia is smoldering and appears to be under control, Canadian Coast Guard officials said on Sunday.
Sixteen crew members were evacuated from the MV Zim Kingston on Saturday, while five remained onboard to fight the fire. Read more here.

Maersk’s forwarder move could be abuse of its dominant position, says Clecat

theloadstar.com
Expectations that one of the world’s major container carriers will not offer services to some customers including some freight forwarders could be seen as an abuse of its dominant market position and a denial of service, says freight forwarder association Clecat. Read more here (login required).

Shadow inflation: Shipping costs are up way more than you think

freightwaves.com
Name something that costs far more than it did before the pandemic that simultaneously gives you far less value for your money than it used to.
Of all the goods and services in the world, it’s hard to find a better pick than ocean container shipping. As rates have skyrocketed, delivery reliability has collapsed amid historic port congestion. Ocean cargo shippers are paying more than they ever have before for the worst service they’ve ever experienced.  Read more here.

Exclusive: Congested Port of LA receiving empty containers from Gulf, Southeast

freightwaves.com
American Shipper is reporting another wrinkle facing the Port of Los Angeles as it tries to clear the massive congestion. Thousands of additional empty containers are en route to the Port of Los Angeles from East Coast and Gulf Coast ports.
Over the last couple of weeks, up to 2,000 empty containers originating from the ports of Charleston, South Carolina; Savannah, Georgia; New Orleans and Houston were headed to the Port of Los Angeles to be loaded onto vessels. These containers were requested by the carriers and will create more burden for the port terminals to receive local trucks trying to unload their own empty containers. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Think everything’s expensive now? Wait until you see what’s next

bnnbloomberg.ca
Consumers around the world are about to get socked with even higher prices on everyday items, companies from food giant Unilever Plc to lubricant maker WD-40 Co. warned this week as they grapple with supply difficulties.
The maker of Dove soap and Magnum ice-cream bars jacked up prices by more than 4 per cent on average last quarter, the biggest jump since 2012, and signaled elevated pricing will continue into next year. A similar refrain came from Nestle SA, Procter & Gamble Co. and Danone SA, whose products dominate supermarket aisles and kitchen cupboards. Read more here.