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Newsletter – April 30, 2020
AIR FREIGHT UPDATES
As red ink begins to flood bottom lines, the mega-airlines begin to unravel
theloadstar.comThe disintegration of the major airlines has begun. Yesterday, British Airways (BA) announced the likely loss of 12,000 jobs, one quarter of its workforce, as it warned that it would take years to return to 2019 levels of passenger demand. Read more here.
Bailout Will Stop Air France Operating Short Domestic Flights
simpleflying.comOn 24th April, Air France-KLM managed to secure vital funding to help it through the coronavirus pandemic. Of that funding, Air France will receive €7bn ($7.6bn); however, the terms of that aid are now being discussed. Read more here.
Australian government helps exporters with air freight costs and capacity
lloydsloadinglist.comAustralia’s government has established a network of 15 air freight service providers and freight forwarders to accelerate delivery of agricultural and fisheries exports into key overseas markets, with the government also subsidising some of the market’s currently elevated air freight costs. Read more here.
OCEAN FREIGHT UPDATES
US to review ‘primary purpose’ of detention and demurrage
lloydsloadinglist.comThe US has issued new guidance on how it will assess the reasonableness of detention and demurrage regulations and practices of ocean carriers and marine terminal operators. Read more here.
Murakami to retire as chairman of K Line
splash247.comKawasaki Kisen Kaisha (K Line) has anounced its chairman, Eizo Murakami, will retire on June 23 but will continue to hold the title of special executive advisor. In Japanese corporate culture the chairman position tends to be a largely ceremonial role after a period as CEO en route to retirement. Read more here.
Panama Canal makes temporary changes to help clients during the pandemic
splash247.comTo help mitigate the economic impact of the Covid-19 pandemic, the Panama Canal has announced a temporary adjustment to its reservation system that will provide customers with added flexibility and relief. Read more here.
Plummeting oil price means carrier investment in scrubbers was a washout
theloadstar.comThe strategy of carriers, such as MSC, Evergreen and HMM, that heavily invested in exhaust-cleaning scrubbers appears to have backfired.Global oil prices have slumped to below $20 per barrel, due to the coronavirus pandemic, and bunker prices have reacted accordingly. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Bombardier to resume production
ch-aviation.comBombardier Aerospace (BBA, Montréal Trudeau) has announced it has gradually resumed manufacturing activities at its Canadian plants as of April 28, although a full ramp-up is expected to take “a few weeks”. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Vietnam confident exports can recover, but needs a rebound in global demand
theloadstar.comVietnam could see a v-shape freight recovery if the country continues to contain the spread of coronavirus.There have been just 270 cases reported and no deaths so far, prompting the government to relax social distancing measures in most provinces this week. Read more here.