NEWSLETTER DECEMBER 5, 2022
AIR FREIGHT UPDATES
Pandemic Recovery: Used Aircraft Are Being Leased At Record Rates
The aviation industry has always typically been cyclical, with gradual periods of growth until it gets punctured by downfalls triggered by unforeseen external factors. As the industry commenced on its recovery path this year in the post-pandemic era, one notable observation was how used aircraft were being leased out in higher volumes. Let’s discuss why. Read more here.
United States Aviation Fuel Prices Drop 1.2% From September
The US Department of Transportation’s Bureau of Transportation Statistics (BTS) has released its latest set of figures showing fuel prices and fuel consumption by US airlines in the last month.
In October 2022, US airlines consumed 2.3% more fuel than in September 2022. This is largely due to an increase in flying as air travel continues to recover from the pandemic. For comparison with pre-pandemic levels, this figure is down 7.0% on October 2019. Read more here.
Toronto Pearson International Airport Reopens Runway 06L/24R After Eight Months Of Work
After several months of closure, Toronto’s second-busiest runway has reopened. The airport shut down runway 06L/24R in April this year to allow a full rehabilitation of the facility. The project was one of Pearson’s most extensive runway repair missions in its history, and was necessary to ensure the safe operation of the runway going forward. The airport states that the repairs will extend the life of 06L/24R by around 30 years. Read more here.
Potential Holiday Chaos As Airline Staff Plan Strikes Worldwide
The Thanksgiving holiday just passed in the United States, and Christmas is rapidly approaching, a hectic time for airlines everywhere. Airlines are preparing for a busy December, and staff at many airlines worldwide are preparing to strike if contracts are not renewed. Read more here.
OCEAN FREIGHT UPDATES
Container shipping rates still sinking, no sign yet of market floor
So much for the theory that container lines are a nefarious cartel that can control freight pricing — spot rates are still falling over a year after they peaked.
“This cliff that rates have fallen from shows there is more competition in the market than a lot of people had feared,” said Patrik Berglund, CEO of rate-tracking company Xeneta, in a recent interview with American Shipper. Read more here.
Container terminal operators face rising costs in a softer market
Container terminals around the world are facing a double-whammy of skyrocketing costs and a market downturn.
There will also be a sharp decline in the storage revenue windfalls that boosted their bottom lines in the past two years.
During Drewry’s Container Ports & Terminals webinar this morning, senior analyst for the sector Eleanor Hadland said terminal operators were facing a number of challenges. Read more here (loging required).
GROUND AND RAIL FREIGHT UPDATES
Shippers call on government to crack down on striking South Korean truckers
South Korea president Yoon Suk-yeol is preparing another executive order to compel truckers to return to work as the 12-day strike increases in intensity.
Both sides have become more entrenched and the language increasingly confrontational, with the president comparing the strike to the threat posed by North Korea. Read more here (login required).