Newsletter – September 8, 2020

  • 08

    Sep

    Newsletter – September 8, 2020
    AIR FREIGHT UPDATES
    American Airlines: Customers accepting of no-show fee for cargo
    aircargonews.net
    American Airlines’ customers have been understanding about its decision to adopt a no-shown fee for cargo that is not delivered as expected.
    The carrier’s recently appointed president of cargo, Jessica Tyler, told Air Cargo News that the no-show fee had been introduced earlier this year as cargo capacity had become constrained. Read more here.
    Asia airfreight rates are high and climbing higher
    freightwaves.com
    After a three-week lull, prices for air exports from China have turned noticeably upward, a trend most international trade professionals expect will continue through the end of the year as the traditional peak shipping season overlaps with high demand for coronavirus medical supplies and online retail orders, and major product releases from big tech companies. Read more here.
    OCEAN FREIGHT UPDATES
    Demand puts pressure on Maersk Spot, but ocean-rail service now permanent
    theloadstar.com
    Strong customer demand has forced Maersk to remove its Maersk Spot product from some departures.
    Maersk Spot offers a loading guarantee, online booking and a fixed price and forwarders reported it had been disabled, with “Maersk unable to get the bookings away on westbound,” said one. Read more here.
    More blanked sailings and volume volatility – ‘that is simply the new norm’
    theloadstar.com
    Container terminals should “get used to blanked sailings and volume volatility”, while shifting trade flows could benefit hub ports over gateways.
    According to Lars Jensen, CEO of SeaIntelligence Consulting, liner industry consolidation has been “phenomenal” in allowing carriers to manage capacity through blanked sailings, with the bumper profits seen in Q2 likely to ensure the frequent withdrawal of capacity becomes a mainstay. Read more here.
    Top 10 box lines report record positive quarter
    lloydsloadinglist.com
    Despite lower revenues and tonnages compared with last year, for the first time since 2010 each of the leading 10 shipping lines that report their financial results made an operating profit per TEU transported, container shipping analyst Sea-Intelligence has highlighted. Read more here.
    Container shippers face higher contract rates
    lloydsloadinglist.com
    Rising spot rates on key headhaul and backhaul trades due to pandemic-driven capacity management could lead to higher contract rates for shippers, according to analysts at Drewry.
    “Following the surge in spot ocean freight rates on most lanes since the start of the coronavirus crisis, and pro-active management of shipping capacity by the major lines, it now seems likely that a significant number of contract shippers will see increases in their newly negotiated 2021 freight rates,” Drewry said. Read more here.
    GROUND AND RAIL FREIGHT UPDATES
    Driver exits could extend capacity crunch
    freightwaves.com
    Shippers who are expecting the current trucking capacity crunch to end in the same manner it did in 2018-19, with carriers rushing to hire drivers and add equipment, may be left wanting.
    The Labor Department reported this past week another 1.4 million jobs were added to the economy in August. One would think the transportation sector would be the beneficiary of many of those positions due to the rapid recovery in the sector starting in May. Read more here.
    CANADA BUSINESS – GOVERNMENT UPDATES
    How Walmart solved carrier payment woes in Canada with blockchain
    freightwaves.com
    Before Walmart Canada deployed blockchain technology to pay trucking companies, the company and its carriers were often bogged down by invoice disputes. Up to 70% of invoices had some sort of issue where numbers didn’t align with company expectations.
    The results were not good. Walmart personnel would lose time sorting out the long list of charges that go into each load. Meanwhile, payments to carriers were delayed. Read more here.
    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
    Forwarder groups from Hong Kong and China team up
    aircargonews.net
    The Hong Kong Association of Freight Forwarding and Logistics (HAFFA) and the China International Freight Forwarders Association (CIFA) have signed a Memorandum of Understanding (MOU) that will see them work more closely. Read more here.

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