Newsletter – July 21, 2022

AIR FREIGHT UPDATES

Rates predicted to stay high despite a muted air cargo peak season

aircargonews.net
Transportation rates are expected to stay above pre-pandemic levels for the foreseeable future despite the recent slowdown in demand.
Seko Logistics chief growth officer Brian Bourke said that demand had slowed this year compared with 2021 and that the constant peak season experienced over the last two years has been replaced by pre-covid seasonal trends. Read more here.

Freighters ‘squeezed out’ amid ground handling disruption at Frankfurt

theloadstar.com
Ramp and warehouse congestion continues to hamper ground handling operations at Frankfurt Airport, Europe’s biggest hub for air cargo traffic.
According to one pan-European air freight road feeder services (RFS) operator, which has a number of major cargo-carrying airlines among its customers: “The situation is serious as airlines are having to re-route freighters to alternative hubs, and this is causing disruption and delays. Read more here (login required).

OCEAN FREIGHT UPDATES

Rodolphe Saadé fights calls for a windfall tax

splash247.com
Billionaire Rodolphe Saadé came out fighting yesterday, determined to steer politicians in Paris away from pummelling his company with a windfall tax to help households battle soaring inflation.
A growing number of French politicians are calling for a steep 25% windfall tax on some local transport and energy companies, including Saadé’s CMA CGM containerline and TotalEnergies. Read more here.

Chinese ports continue recovery

insidelogistics.ca
Import and export ocean shipment volumes have continued to bounce back at Chinese ports over the past weeks as Covid-19 lockdowns have eased.
Volume at the Port of Shanghai has increased since mid-May, with the 14-day average ocean shipment volume now up five percent compared to March 12th (the day before lockdowns went into effect) and up five percent week-over-week for shipments tracked by FourKites. This is up from mid-May, where shipment volume was down as much as 25 percent over the same period.  Read more here.

GROUND AND RAIL FREIGHT UPDATES

Truck traffic grinds to a halt at Port of Oakland due to protests

supplychaindive.com
OAKLAND, Calif. — A second day of protests at the Port of Oakland led to more widespread closures and business impacts, as hundreds of truckers and allies descended on the port to rally against AB5.
The California labor law has been in the trucking industry spotlight for weeks now, as its enforcement in the trucking industry could force thousands of owner-operators into employment with a company. For many, self-employment has been the appeal of the drayage business. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Inflation rate will remain ‘painfully high’ all year, Bank of Canada governor anticipates

ctvnews.ca
As Canadians continue to feel the squeeze from an increased cost of living, Bank of Canada Governor Tiff Macklem says Canada’s inflation rate is set to remain “painfully high” for the rest of the year.
On Wednesday, Statistics Canada reported the country’s annual inflation rate rose to 8.1 per cent in June, up from 7.7 per cent in May, marking the largest yearly change since January 1983. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Inflation is not changing e-commerce return policies

motonewstoday.com
As rising fuel prices and continued supply chain disruptions have pressured retailers and e-commerce brands, many are looking for ways to offset costs. With returns from online sales jumping to 20.8% in 2021, according to data from the National Retail Federation, more retailers are looking to reverse logistics for that solution.
NRF’s recent report, Consumer Returns in the Retail Industry 2021, said that $761 billion in merchandise was returned in 2021 overall. For every $1 billion in sales, retailers incur $166 million in costs because of returns. Online returns totaled $218 billion in 2021. Read more here.