Newsletter – July 21, 2020
AIR FREIGHT UPDATES
US Passenger Growth Begins To Stall As Virus Surgessimpleflying.comUS passenger numbers have begun to stall amid surging numbers of COVID infections. After weeks of gains, passenger growth has slowed. In fact, on the weekend of July 17th, the TSA recorded fewer passengers entering screening checkpoints than on the weekend of July 10th– one of the first times this has happened since air travel demand began to recover. Read more here.
Air freight rates looking up as passenger-freighters leave the markettheloadstar.comAir freight rates have ticked up after the declines of the past weeks, with forwarders reporting further increases on the way.One forwarder noted: “Rates have jumped by up $1 per kg this week from Shanghai to Europe, and carriers announced increases yesterday and today. We expect further advice tomorrow and for the weekend.” Read more here.
OCEAN FREIGHT UPDATES
Cancelled sailings out of India causing rollovers and bookings logjamtheloadstar.comContainer trades out of India are faced with increasing congestion, due to a combination of blanked sailings, equipment shortages and carriers unable to clear a backlog of bookings.According to forwarding sources in the country, every carrier is facing a “space crunch across India on all tradelanes and services”. Read more here.
China ports tighten reefer container control amid virus concernslloydsloadinglist.comIn a move that could lead to an increase in costs of logistics and time for custom clearances, about 20 ports in Southern China have imposed restrictions on handling of reefer containers amid concern that imports of frozen food are testing positive for coronavirus. Read more here.
Ocean freight and idle rates ‘have peaked’lloydsloadinglist.comLogistics investment analyst Jefferies expects container shipping freight rates and container line margins will increasingly come under downwards pressure in the second half of this year following the surprisingly resilient ocean freight prices in the second quarter (Q2) and first half (H1) of 2020, with idle container ship capacity being redeployed as demand recovers and fuel prices having bottomed out. Read more here.
MSC unveils its updated intra-Asia networkcontainer-news.comMSC (Mediterranean Shipping Company) has announced an upgrade to its intra-Asia network, adding a new service and updating its four existing strings.Starting in week 30, the week of 20 July, the enhancements to the intra-Asia network offer direct connections for long haul cargo from Greater China and South East Asia, as well as comprehensive port coverage between Indonesia, South China, Taiwan, Philippines, Vietnam and Thailand, according to the company. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Walmart Canada adds DCs, supply chain tech in C$3.5B pushfreightwaves.comWalmart Canada plans to build two new distribution centers and bring more technology into its supply chain as part of a C$3.5 billion (US$2.6 billion) investment to grow its e-commerce and in-store operations.Walmart said it will spend C$1.1 billion to construct the new distribution centers near Toronto and Vancouver and renovate an existing one in Ontario. Read more here.