Newsletter – March 28, 2023
AIR FREIGHT UPDATES
How Asiana Airlines & Korean Air Are Looking To Speed Up Their Merger
Asiana Airlines has created a special task force that will work to expedite its merger with Korean Air. The group will focus on acquiring approval from the three remaining foreign antitrust regulators and any other challenges the merger must overcome. Read more here.
OCEAN FREIGHT UPDATES
Supply chains ‘finally beginning to stabilise’, says Maersk
Maersk believes supply chains “are finally beginning to stabilise and find equilibrium”.
Indeed, its Asia-Pacific March update is generally upbeat, advising that demand across its network is either stronger, or is about to strengthen, particularly on secondary trades. Read more here (login required).
Shippers and liners oppose plan to prevent US ocean carrier VSAs
Shippers and shipping lines joined forces today to oppose the US Ocean Shipping Antitrust Enforcement Act (OSAEA) which they say will hit efficiency and increase costs.
OSAEA seeks to repeal anti-trust exemptions for carriers, but will also prevent US lines from entering into vessel-sharing agreements (VSAs). Read more here (login required).
Yang Ming says shippers taking time to commit to contracts as rates fall
Transpacific contract negotiations with shippers are taking longer as rates are expected to fall sharply, according to Yang Ming .
Most negotiations have not been completed, while contract rates are expected to fall by at least 50% from their level in 2021 and 2022, when freight rates soared to all-time highs on the back of Covid-19-related bottlenecks. Read more here.
Spain cracks down on ship-to-ship transfers
Spain is cracking down on ship-to-ship (STS) transfers as its coastline becomes a hotspot for Russian cargoes heading to Asia, often on old, substandard tonnage.
From next month tankers looking to carry out STS operations must seek authorisation from the closest Spanish port captaincy. Read more here.
MCSA shuts door on brokers in rate transparency dispute
WASHINGTON — The Federal Motor Carrier Safety Administration has denied a rulemaking petition by the Transportation Intermediaries Association (TIA) to remove a requirement that freight brokers disclose to carriers transaction records between brokers and shippers. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Slowdown in warehouse construction will keep rents on the rise
The bumpy economic conditions have pushed many transport rates to pre-pandemic lows, but warehouse rents remain stubbornly high.
And what’s worse is they are predicted to continue rising – albeit at a reduced pace. Read more here (login required).
Is inflation crushing e-commerce volume growth?
Walmart on Thursday announced layoffs affecting approximately 200 employees in its Bethlehem, Pennsylvania, fulfillment center. Earlier in the week, Amazon CEO Andy Jassy announced that the e-commerce giant would cut 9,000 jobs, the latest in a string of layoffs. Read more here.