Newsletter – July 20, 2020
AIR FREIGHT UPDATES
Outbound airfreight market tightens from China, Hong Kongfreightwaves.comAirfreight rates out of China are beginning to creep up again and there are signs the cost to ship goods to North America and Europe could quickly escalate again as shippers flock to air transport while the supply of aircraft falls.A confluence of factors associated with a resurgent coronavirus, ocean freight dynamics, Hong Kong health safety rules and operational issues at all-cargo operators is causing the Chinese airfreight market to tighten, according to market researchers and logistics specialists. Read more here.
Vietnam Airlines Is Seeking Government Assistancesimpleflying.comVietnam Airlines is requesting a government bailout to the tune of VND12 trillion, or $518 million. Sources report that that the airline is set to report a loss of VND13 trillion ($561 million) for the year. The airline, like many others the world over, has been hit hard by the drop in air travel caused by coronavirus-related travel restrictions. Read more here.
OCEAN FREIGHT UPDATES
Update from Maritime Employers Association, Port of Montrealciffa.comAn update issued by the Maritime Employers Association on Friday regarding the Port of Montreal labour negotiatons said:We had 8 days of intensive negotiations since July 3rd. We will resume next Wednesday July 22th.Climate is good, but little progress has been achieved on key elements.Our priority remains negotiations in order to reach a mutually profitable agreement.
Carriers continue capacity balancing and reduce rates to attract cargotheloadstar.comContainer spot rates from Asia to Europe fell back this week as carriers started to reduce rates slightly to attract cargo.Today’s Shanghai Containerized Freight Index (SCFI) edged down 1.4% on the week to North Europe, to $907 per teu, while the Mediterranean component declined 1.2%, to $940 per teu. Read more here.
Mexico puts military in charge of nation’s portsfreightwaves.comAs part of a new nationwide anti-corruption initiative, Mexico’s land, air and seaports will be operated and monitored by the military, Mexican President Manuel Lopez Obrador announced Friday.Mexico’s army will now be in charge of the country’s 49 customs offices – including the Mexican side of ports along the U.S.-Mexico border – in an effort to combat corruption and the massive smuggling of drugs across ports of entry. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Stores reopen but there’s no relief for shuttered Bangladesh clothing exporterstheloadstar.comWestern clothing retailers have yet to renew normal orders with Bangladesh’s garment factories, which are still only working at half their capacity.Much of last year’s output remains unsold in warehouses, and the lack of orders this year has forced Bangladesh’s government to set its annual export target for fiscal year 2020/21 at $6bn below year 2019/20’s $54bn. Read more here.