Newsletter – March 21, 2023
AIR FREIGHT UPDATES
Global tonnages flatten as average rates further soften
Global air cargo tonnages appear to have stabilized following their post-Lunar New Year bounce-back in recent weeks and their steady decline throughout most of last year, while average rates continue their gradual softening trend, the latest preliminary figures from WorldACD Market Data indicate. Read more here.
Paris-Orly Airport to cut 20% of flights on Tuesday and Wednesday
France’s civil aviation authority has asked airlines to cut flights on Tuesday and Wednesday by 20% at Paris-Orly airport, the second airport serving the country’s capital and a hub for Air France-KLM’s French arm.
Flights at Marseille-Provence airport in the south of France will also be cut as strikes against the government’s pension reform plan continue. Despite these measures, the DGAC expects disruption and delays, it said in a statement on Monday. It recommends travelers postpone their trip if possible. Read more here.
OCEAN FREIGHT UPDATES
Crunch time for trans-Pacific container shipping contract talks
The annual contract season is down to the final stretch in the trans-Pacific shipping market. U.S. import costs, liner profitability and service reliability all hinge on where contract prices settle in the next few weeks.
The plot twist this year is that the prior round of annual contracts were signed at historically high levels and the timing of the current contract RFP season coincides with a period of still-sinking spot rates. Read more here.
GROUND & RAIL FREIGHT UPDATES
CN and Unifor Reach Tentative Agreements, Avoiding a Potential Strike
CN announced on Monday that it has reached new tentative collective agreements with Unifor. The collective agreements cover approximately 3,000 CN employees working in various departments such as Mechanical, Intermodal, Facility Management, and in clerical positions in Canada.
No details of the tentative agreements will be released publicly until the agreements are ratified.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Canadian Businesses Should Prepare for New Mandatory Reporting on Supply Chains and Forced Labour
Parliament is close to finalizing a new law that requires businesses to report annually on their supply chains and on forced labour.
Because of the new law, private-sector entities as well as government institutions will be required to file public reports on measures they have taken to prevent and reduce the risk of forced labour or child labour in their supply chains. The bill in question, S-211, Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Bill”) has moved to its final stage in the House of Commons and is expected to come into effect on January 1, 2024 with a first report due in May 2024. Read more here.