Newsletter – October 29, 2021

AIR FREIGHT UPDATES

New cargo customs requirements add to the strain at Frankfurt

aircargonews.net
Cargo shipments at Frankfurt Main Airport are continuing to face delays as a result of high demand and new customs procedures for imports.
The latest figures from Europe’s busiest cargo hub show that demand at the airport continues to surge – in September cargo volumes increased by 13.4% year on year to 188,177 metric tons while compared to 2019 cargo volumes for the month are up by 7.7%. Read more here.

OCEAN FREIGHT UPDATES

Maersk warns clients of the supply chain risks emanating from China’s electricity rationing measures

splash247.com
Maersk, the world’s largest containerline, has warned clients of the supply chain risks from China’s ongoing power shortages.
Splash has been reporting regularly over the past month on the extreme energy crunch being experienced across the People’s Republic, something that has impacted almost every segment of shipping. Read more here.

Shippers fear ‘catastrophic’ fallout from ‘crazy’ California port fees

freightwaves.com
The cure is worse than the disease, say critics of an emergency plan of the ports of Los Angeles and Long Beach backed by the Biden administration. If you think port congestion is bad now, just wait for what comes next.
On Wednesday, two days after the ports of Los Angeles and Long Beach announced a surprise emergency fee for containers lingering too long at terminals, the National Shippers Advisory Council (NSAC) held its inaugural meeting. Read more here.

‘Fridges, rain boots, shoes, toys’: B.C. coast littered with debris from stricken cargo ship

vancouverisland.ctvnews.ca
COURTENAY, B.C. – At least four shipping containers that were lost from a stricken cargo ship off the B.C. coast have come ashore on Vancouver Island, the Canadian Coast Guard confirmed Thursday.
The containers have spilled refrigerators, toys, yoga mats and clothing onto remote beaches near Cape Scott Provincial Park on the northernmost tip of the island. Read more here.

California takes steps to fast-track transport infrastructure development

splash247.com
California Governor Gavin Newsom and the US Department of Transportation (USDOT) have established a strategic partnership to help facilitate infrastructure improvements in California. The Emerging Projects Agreement will enable California to expedite work on a network of related projects that collectively are designed to improve the movement of imports and exports through the state. Read more here.

ONE chalks up another $4bn profit in Q2 and expects $12bn for the year

theloadstar.com
Japanese ocean carrier Ocean Network Express (ONE) said it now expects a net profit of nearly $12bn for its financial year ending 31 March 2022, following a $3.5bn surplus the year before.
ONE posted a profit of $4.2bn for its second quarter, for an H1 result of $6.76bn, but said although cargo demand was still strong, it expected some “volume decrease” around Chinese New Year and anticipates $5bn of profit for H2. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Inventories remain low for US retailers despite import boom

lloydsloadinglist.com
The continuing import boom of cargo into the US is now sufficient to keep pace with sales, but not high enough to rebuild retailer inventories, according to data compiled by Sea-Intelligence.
It looked at the sales and inventory data released by the US Census Bureau and what that means for container shipping. The inventory to sales ratio showed that the two-stage drop in relative inventory levels seen in June-August 2020, and from December-March 2021, did not reverse in August, with the relative inventory levels remaining at the same low levels, as has been the situation since April 2021. Read more here.

Shopify says ‘extreme’ levels of pandemic-fuelled online shopping are easing

globalnews.ca
“As the world begins to return to some normalcy and the extreme levels of online shopping over the past year make way for more in-person retail and experiences, e-commerce’s share of overall retail has reset lower than the peak last year,” said Amy Shapero on a conference call Thursday with financial analysts to discuss the company’s latest results. Read more here.