Newsletter – August 25, 2021
AIR FREIGHT UPDATES
Delays of seven days for Shanghai cargo while ‘super peak’ approaches
Shippers and forwarders are facing delays of up to seven days on air cargo shipments from Shanghai Pudong International Airport (PVG) with the situation expected to ease in early September.
Ground handling and ramp operations have been hit by a series of Covid cases over recent days that have resulted in carriers cancelling services and diverting flights to other airports. Read more here.
Stealing your own freight: O’Hare cargo delays force drastic measures
Desperate logistics service providers in Chicago are resorting to a number of new tactics, including bribery and undercover extraction missions, to avoid worsening congestion that is trapping shipments for more than a week at O’Hare International Airport’s cargo terminals, according to industry executives.
Shipment volumes at O’Hare have exploded in the past 18 months as businesses turn to air transport for critical imports of personal protective equipment, replenishment of depleted inventories and to overcome manufacturing and ocean supply chain disruptions. Read more here.
Alitalia Cancels All Flights And Prepares For Closure In October
It’s official: Alitalia is shutting down. While the end of the airline has been clear for months now, the carrier has officially announced that it will stop flying from 14th October. All flights beyond this date are canceled, and passengers may request a refund or travel before the 14th. From the 15th of October, ITA will become the new Italian flag carrier, kicking off a new era for Italian aviation. Read more here.
Air freight rates soar due to Shanghai challenges
Fresh outbreaks of Covid-19 among air cargo handlers in Shanghai and other Chinese airports that are causing cancellations and a lot of uncertainty for ex-China air cargo are also pushing up air cargo rates, with spot prices ex-Shanghai rising 15-25% to US destinations this week and 12-15% to airports in Europe, new data from digital rates specialist Freightos reveal. Read more here.
OCEAN FREIGHT UPDATES
Ningbo’s Covid-hit Meishan Island box terminal now fully open
The Meishan Island International Container Terminal (MSICT) at Ningbo-Zhoushan port, which partially reopened last week has now reported that the terminal will resume full operations from today.
A Covid-19 scare, following a positive test on a docker who lived at the terminal’s dormitory, saw MSICT close on 11 August, sparking fears of another substantial event to disrupt global supply chains. Read more here (login required).
MSC takes secondhand spree past the 100-ship mark
Mediterranean Shipping Co (MSC) has taken its secondhand spending spree past the 100-ship mark in the space of just 12 months, essentially adding the equivalent of the entire fleet of Israeli carrier ZIM in a very short timeframe.
Alphaliner reports MSC has bought another four ships recently – the 2,572 teu Cosmos for $33m, the 1,794 teu Jennifer Schepers for $21m, the 1,740 teu Okee Ann Mari for $20m, and the 3,739 teu Xin Feng Yangzijiang for $30m. Read more here.
GROUND AND RAIL UPDATES
The itch to switch: Railroad swapping in Canada vs. the US
President Joe Biden’s executive order targeting the maritime and railroad industries, among others, calls for enhancing competition for shippers. One of the issues that the July order directs the Surface Transportation Board to examine is reciprocal switching. The board can do this by beginning a rulemaking or reinvigorating an earlier proceeding on the issue. Read more here.