Newsletter – August 25, 2020

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    Newsletter – August 25, 2020
    AIR FREIGHT UPDATES
    New air cargo security standards could gum up e-commerce exports
    freightwaves.com
    The U.S. supply chain industry appears divided over how the government should implement new international security standards for cargo carried on freighter aircraft and whether certain exporters get special treatment to minimize associated cost increases.
    Some worry there could be shipping delays if the Transportation Security Administration doesn’t figure out a plan well before the standards take effect July 1. Read more here.
    Air Cargo Market Report: China rate rebound takes a breather
    freightwaves.com
    Airfreight rates to the U.S. plateaued in mid-August after rising for more than a month, influenced by a drop in demand from South China and passenger airlines temporarily adding more capacity. Still, finding affordable air transport in Southeast Asia, writ large, is difficult.
    The dip freight activity isn’t expected to last long as retailers gin up shipments for the peak season buildup to the holidays. Read more here.
    Cobwebs and corrosion: Reactivating parked aircraft requires extra care
    freightwaves.com
    Parking planes during the pandemic doesn’t mean technicians ignore them until airlines are ready to fly again. A great deal of mechanical support work, including electrical checks and engine starts, takes place to keep aircraft serviceable.
    Even when approved maintenance schedules are followed, there are threats to the safe return of aircraft from extended downtime. Read more here.
    OCEAN FREIGHT UPDATES
    Capacity discipline positions carriers for multi-billion dollar profitable year
    splash247.com
    Analysts at Copenhagen-based Sea-Intelligence have re-evaluated their liner profitability projections for 2020 on the back of the many positive interim results posted recently. If the global carriers can hold their nerve, they’re now collectively on course for one of their best years. Read more here.
    GROUND AND RAIL FREIGHT UPDATES
    US importers forced to pay for empty truck runs to get goods from Mexico
    theloadstar.com
    To secure sufficient capacity for their imports from Mexico moving by truck, US firms are paying for empty trucks heading south of the border.
    Cross-border flows are a tale of two countries at this point; trucks going into the US interior are fully loaded while little is headed into Mexico. Read more here.
    Preparing for an upswing
    insidelogistics.ca
    In spite of the pandemic’s chilling effect on economic activity, two major Canadian intermodal infrastructure projects have announced significant progress in recent weeks, alongside a mixed prognosis for short-term recovery in the sector. Read more here.
    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
    Supply chain alliance forming in Asia-Pacific to counter China
    bloomberg.com
    India, already seeing some success luring supply-chain investments away from China, may team up with Japan and Australia to counter Chinese dominance as trade and geopolitical tensions escalate across the region.
    The three export powerhouses are discussing a supply resilience initiative, Bloomberg News reported last week. The talks are now at a working level, but Japan would like to elevate them. Read more here.
    Working from home and new spending patterns boosting major tradelanes
    theloadstar.com
    After the demand growth contraction of the second quarter, ocean carriers are cautiously optimistic that Q3 will see volumes bounce back, at least to the levels of a year ago.
    A carrier source told The Loadstar this week its liftings from Asia to North Europe for August were up on last year. Read more here.

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