Newsletter – May 25, 2021

AIR FREIGHT UPDATES

Breaking: The UK CAA Suspends Belarus Flag Carrier Belavia

simpleflying.com
In response to international condemnation of an incident in Belarus, the UK Civil Aviation Authority (CAA) has suspended the operating permit of Belarus’s national carrier, Belavia. In addition, the CAA is requesting all UK airlines to avoid using Belarus airspace as a safety precaution. Read more here.

OCEAN FREIGHT UPDATES

China – Yantian Export Laden box gate-in arrangement (2nd Update)

hapag-llyod.com
With regards to our previous customer letter on YICT Export Laden box gate-in arrangement, we would like to provide you with an update.
Please take note of the updated details below and share with the parties concerned.
With effect from 25th of May 22:00 PM till 27th of May 23:59 PM, please note that export Laden Boxes is NOT allowed to be gate-in into the terminal. Only picking up of Import Laden boxes and Export empty picking up are allowed during the time period.
From 28th of May 00:00 AM till 3rd of June, YICT will resume accepting export laden box, as long as it falls within the time period of 4 days prior to vessel arrival (ETA).
We appreciate your continuous support to Hapag-Lloyd.

Container capacity shortage set to last until fourth quarter

lloydsloadinglist.com
There is little chance of congestion in the supply chain being resolved before the fourth quarter of the year, although some signs of improvement may begin to appear in time for the traditional peak season.
“We still see an enormous surge in demand that is overwhelming the shipping industry,” said Hapag-Lloyd chief executive Rolf Habben Jansen. “This has had a huge impact on spot rates, and there are still operational challenges and capacity bottlenecks. Read more here.

Key Chinese ship repair area hit by Covid-19, makes vessel calls tricky

splash247.com
The Zhoushan archipelago in eastern China is among the most important destinations in the world for ship repair.
Shipowners planning to send their vessels there will need to be aware of new local rules in place designed to limit the spread of new variants of Covid-19. Read more here.

Crew evacuated and General Average declared as fire engulfs X-Press Pearl

theloadstar.com
General Average has now been declared on the fire-stricken X-Press Pearl after the blaze aboard the ship worsened overnight due to strong winds and deteriorating weather conditions.
The vessel’s owner and operator X-Press Feeders said that early this morning the vessel’s crew and 12 firefighters disembarked “as a safety precautionary measure”. Read more here.

How three Chinese companies cornered global container production

freightwaves.com
Never before has the humble ocean shipping container been this important to American business. If you can’t get one, you can’t move your international cargo — and supply has never been tighter. The cost of global trade is now contingent on how many containers exist, where they are and where they aren’t.
How many containers exist is controlled by China. Virtually every ocean shipping container in the world is built there. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Canada vs. US: ELD mandate differences that could put your fleet in violation

freightwaves.com
Within weeks – June 12 to be exact – commercial motor carriers operating in Canada will have to comply with that country’s electronic logging device (ELD) mandate. Similar to the regulation that went into effect in the U.S. in 2017, Canada’s ELD rule will require electronic data collection of truck drivers’ hours of service. Read more here (login required).

CANADA BUSINESS – GOVERNMENT UPDATES

Capacity crunch

edc.ca
“Rush hour,” proclaimed the town crier in that inimitable Monty Python movie and presto: The streets were jam-packed! Through the depths of our COVID-19 gloom, it seemed that as long as we still had vibrant demand, we’d easily be able to ramp up production to meet it. Surely the greater worry was whether the town crier would actually ever ring the bell again. Well, it seems that has happened—and we’re having a hard time getting busy again. Demand is vibrant, but there seem to be shortages everywhere, and for what’s available, prices are zooming up. Is it all temporary, or is it going to take time to work out? Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

More supply chain delays in India as cyclone forces Pipavav Port to close

theloadstar.com
Cyclone Tauktae has forced the Indian port of Pipavav to shut, putting increased strain on the country’s shipping networks.
Pipavav, operated by APM Terminals, said it had declared force majeure and would suspend operations until 1 June, following the cyclone making landfall last week along the coast of Gujarat in the north-west. Read more here (login required).

U.S. to double tariffs on Canadian softwood lumber imports

insidelogistics.ca
A move by the U.S. Commerce Department to increase preliminary tariffs on softwood lumber imports from Canada, if finalized, will raise producer costs and cut into their profits but is unlikely to affect prices to consumers of wood products, analysts say. Read more here.