Newsletter- September 09, 2022

AIR FREIGHT UPDATES

August air cargo data could signal a better-than-expected peak season

aircargoweek.com
Global air cargo market performance data for August offered a glimmer of hope for volumes in the upcoming peak season as the decline in demand seen over the previous four months slowed and general air cargo rates between Europe and North America stabilised, according to the latest weekly analysis from CLIVE Data Services, part of Xeneta. Read more here.

Lufthansa Cargo aims to reduce plastic wrap waste

aircargonews.net
Lufthansa Cargo is hoping to reduce the amount of plastic it uses by adopting a new film to wrap cargo.
The airline said that starting in mid-September, it will become the first cargo airline to use a new type of film that consists of 10% recycled plastic and is also one micrometer thinner than previous films.
This will result in a saving of around 2 kg of film on each cargo flight. The carrier currently uses around 500,000 kg of plastic film each year. Read more here.

OCEAN FREIGHT UPDATES

Port of Montreal Shares Information About Role of Freight Forwarders

ciffa.com
The Port of Montreal has posted on its website a response to one of the most common questions it is asked: How do I ship my goods abroad?
The answer: “Whether you are importing or exporting, freight forwarders are your indispensable allies.”
The post also discusses the key role that CIFFA plays in the industry. Read more here.

GROUND AND RAIL FREIGHT UPDATES  

Economic impact from freight rail strike could total $2B per day

freightwaves.com
Rail stakeholders are concerned that a possible strike by some union members due to stalled contract negotiations could result in multibillion dollar economic impacts.
The Association of American Railroads estimates that a nationwide shutdown of rail operations could cost $2 billion in lost economic output each day, according to a report released Thursday. AAR reached its conclusions by updating data from a 1992 Federal Railroad Administration econometric study. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Transportation, logistics M&A not slowing down

freightwaves.com
M&A activity in the supply chain remains robust even as the freight industry enters the downside of the cycle. Multiple quarters of record earnings and cash flow generation have provided transportation companies the opportunity to solve for capacity, headcount and other supply constraints through acquisition. Providers are also continuing to diversify their offerings to mitigate cyclicality. Read more here.

It’s going to be a weird Christmas for Target, Walmart and Amazon

freightwaves.com
Our biggest retailers have way too much inventory and not enough consumer buzz. That’s a problem heading into the Christmas shopping season.
Big box behemoths like Best Buy and Bed Bath & Beyond have bloated stockrooms and falling sales. Meanwhile, retailers like Amazon and Dollar General have seen an uptick in inventory value through this summer, according to their latest earnings reports — even as Wall Street begs companies to stop stocking up. Read more here.

How will the European energy crisis affect freight markets?

freightwaves.com
Volatility in European power markets stemming from EU and U.K. sanctions against Russian energy — imposed in retaliation for Russia’s invasion of Ukraine in February — may soon cool off, but only after carving a slice out of the continent’s economy.
On Monday, U.K. Prime Minister Liz Truss announced plans to cap household energy bills at the equivalent of $2,300 annually. Meanwhile, German Chancellor Olaf Scholz unveiled a 65 billion euro relief package to ease the pain of energy prices that have quadrupled in his country. Read more here.