Newsletter – July 27, 2020
AIR FREIGHT UPDATES
Rival air cargo booking platforms expand to keep pace with demandtheloadstar.comCovid-19 is accelerating the digitisation of the air cargo industry: severe capacity problems, volatile rates and remote working are driving demand for real-time online bookings, according to the platforms.It’s not just that online sales are growing, Freightos is noting that web bookings in February were seven times higher than a year earlier – and although they fell in April, by this month they were three times higher than a year ago. Read more here.
Tough times for air cargo handlers as carriers get more pickytheloadstar.comAir cargo handlers have had a tough time recently, and airlines appear to be shuffling the pack.Yesterday brought news that WFS had won new contracts in Spain, while Qatar Airways Cargo has picked Menzies as its new handler at Heathrow. Read more here.
OCEAN AND RAIL FREIGHT UPDATES
Chinese port congestion approaching record levelssplash247.comChinese port congestion is approaching record levels thanks to rampant demand, dire weather and slower operations because of Covid-19 protocols.For capesizes, Breakwave Advisors estimated earlier this week 7% of the global fleet is currently stuck in ports, a number that is double the level compared to a few years ago. Read more here.
China’s worst floods for 100 years impacting tanker tradessplash247.comChina’s worst floods for 100 years are having a significant impact on the tanker trades. The country has been battered by heavy rains for most of this month with many dying in extreme floods and growing concern about whether or not the massive Three Gorges Dam can withstand the deluge. Read more here.
Carriers have weathered the Covid storm, suggests OOCL trading updatetheloadstar.com
OOCL carried fewer boxes but improved its revenue in the second quarter, providing the industry with some hard evidence that ocean carriers successfully managed the demand turbulence of the pandemic. Read more here.
GROUND FREIGHT UPDATES
Canadian rail carriers take a hit from Covid, but CN and CP are bullish on H2theloadstar.comThe balance sheets of Canada’s two class-one rail companies took a hit from Covid-19, but their top brass are upbeat on prospects for the second half of 2020, pointing to signs of strength in several key sectors.Canadian National (CN) reported a 19% drop in revenue to C$3.2bn (US$2.35bn) for the second quarter, with volumes down across most commodity groups, and despite cost-cutting, operating income slumped 53%, to C$785m. Read more here.