Newsletter – May 22, 2020

  • Newsletter – May 22, 2020


    China’s new air cargo gate-in rule eases congestion, but impacts freighters
    China’s new ‘gate-in’ rule for air cargo has prompted fears of more freighters flying out empty. Following some of the worst-ever cargo congestion at Shanghai PVG at the start of the month, which then spread to other airports, authorities issued a new directive to ground handling agents that cargo may not arrive more than 28 hours before a flight. Read more here.

    Governments help correct COVID distortions in airfreight market
    Taking a page from neighboring Australia, the government of New Zealand has launched an emergency program to reestablish airfreight supply chains interrupted by the suspension of passenger flights so important exports can get to global markets.
    The air cargo assistance programs guarantee export cargo on key routes under agreements with air carriers. Essential medical supplies ordered by the governments are loaded on return flights. Read more here.

    Principles for industry restart
    IATA announced a commitment by the airline CEOs on its Board of Governors to five principles for re-connecting the world by air transport. Read more here.

    Frenemies: air cargo should embrace its freight cousins, not passengers
    The Loadstar has never been glowing about IATA: the behemoth lobby group that insists on keeping cargo in a corner, though profiting highly from it, and is piloted by the passenger business.
    But – and one suspects this is down to the cargo team – in a brilliant spirit of cooperation, it has stepped up to help its rivals in ocean freight navigate the perils of e-freight. Read more here. Read more here.


    Wan Hai stays in the black, but Evergreen and Yang Ming’s red ink raises merger talk
    Niche carrier Wan Hai was the only Taiwanese container line to post a net profit in the first quarter of this year as its larger compatriots, Evergreen and Yang Ming, traded in the red.
    The parlous position of the liner industry has renewed speculation of a merger of these two into one state-sponsored container line, a development that would be strongly resisted by their individual managements. Read more here.


    Canadian Prime Minister To Review Travel Vouchers As Refunds
    Canada’s Prime Minister is finally commenting on a topic that many Canadian’s have been extremely vocal about since the COVID-19 pandemic started. This morning, Justin Trudeau said that his government acknowledges that many travelers are now out of pocket for canceled flights and that discussions will be had with various stakeholders to “figure out a way forward.”  Read more here.


    Canceled orders, delayed payments: How supplier collaboration could reverse apparel’s nose dive
    When demand drops at the consumer level, the blow dealt to the supply chain gains force the closer it gets to the source. It’s a phenomenon called the “bullwhip effect” and with an 89% drop in U.S. apparel sales in April year over year, the industry is in the midst of a bullwhip for the ages.
    “Global clothing supply chains have unraveled in just a few short weeks, as has the trust and goodwill between many buyers and manufacturers,” said Leonie Barrie, apparel analyst at GlobalData, in emailed comments. Read more here.

    Experts: 3 ways coronavirus has shifted supply chains’ focus
    The coronavirus pandemic has brought supply chains to the forefront, whereas previously, many were accustomed to it running unseen in the background of everyday life. But for supply chain leaders, the pandemic has shifted focus from business as usual to crisis management, and planning for more robust supply chains in the future. Read more here.

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