Newsletter – December 15, 2021
AIR FREIGHT UPDATES
US airline group warns 5G deployment could delay cargo
US aviation groups are warning that the deployment of certain 5G mobile networks in the country could result in disruption to flights, including delays to air cargo shipments.
The Aviation 5G Coalition, an industry consortium representing airlines, manufacturers and associations, said that AT&T and Verizon will activate their C-Band 5G on January 5. Read more here.
OCEAN FREIGHT UPDATES
‘Amazing’ transit times: From China, it’s faster to reach New York than LA
Time is the most valuable commodity in the world of trade. It’s priceless. A new report out on transit times from digital freight forwarder shifl shows the impact the massive congestion off the coast of Los Angeles and Long Beach has had on transit times.
The pipes of trade on the West Coast are so clogged it is now faster for vessels to travel to the East Coast and call on the Port of New York and New Jersey than to travel to the West Coast ports and wait, the report says. Read more here.
Port Klang and Piraeus join Ningbo and LA at the top of the congestion charts
To familiar congestion names Shanghai, Ningbo, Los Angeles and Long Beach, other ports such as Piraeus and Port Klang can now be added.
The global container port congestion crisis that has racked supply chains all year is shifting to new hot spots while some older problem places get back on track. Read more here.
Container shipping pioneer calls for creation of new US containerline
Liner veteran John McCown, who worked with container shipping pioneer Malcom McLean for 20 years, is calling for the creation of a dedicated American carrier shifting 53 foot boxes from China, an idea that has been widely shot down by leading container analysts contacted by Splash Extra this week. Read more here.
More freak weather: time to expect the unexpected, warns TT Club
As well as large-scale catastrophes ,such as in Vancouver recently, the increasing frequency of freak weather events due to climate change is translating into a rising level of risk to cargo, says insurer TT Club. Read more here (login required).
CANADA BUSINESS – GOVERNMENT UPDATES
Canada threatens to retaliate against U.S. over EV tax credit
Canada is threatening to retaliate with targeted tariffs on U.S. goods if tax incentives for electric vehicles produced by unionized American workers aren’t removed from the Biden administration’s Build Back Better Act. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Supply disruptions leading to continued inflation
A senior Bank of Canada official says the central bank isn’t sure when exactly supply-chain issues will work themselves out, which is clouding the outlook of when inflationary pressures should ease.
The central bank in October said it expected that peak to hit before the calendar turned to 2022, before gradually unwinding over the ensuing months. Read more here.
Factories shut and Ningbo restricts truckers in Zhejiang province lockdowns
Lockdowns across China’s Zhejiang province have prompted multiple factory closures, and new restrictions have been placed on trucking.
China reported new Covid cases in Tianjin and Guangzhou this week, including the Omicron variant, but the outbreak in Zhejiang, another major manufacturing heartland, remains the most serious. Read more here (login required).