Newsletter – May 26, 2020
AIR FREIGHT UPDATES
Airlines Are Starting To Resume Passenger Flights – What’s Next?
With signs that aviation restrictions are slowly lifting in some regions of the world, airlines and airports are cautiously resuming passenger flights. But what steps need to be taken by airports and airlines before air travel returns to normal? Read more here.
German government offers Lufthansa $10 billion bailout
After fully privatizing Deutsche Lufthansa AG (FWB: LHA) early a quarter-century ago, the German government will become a minority owner in an effort to rescue the country’s largest airline from economic devastation wrought by coronavirus travel restrictions. Read more here.
Airlines must see cargo as a ‘core business’ from now on
Air cargo will be a critical area of resiliency for airlines and airports for the foreseeable future — if managements make it a strategic priority
The passenger airline industry news these days is unremittingly bleak…Read more here.
OCEAN FREIGHT UPDATES
Import cuts could trigger more shortages as states reopen
After “blanking” (canceling) around 20% of Asia-to-U.S. capacity this month and next, it now appears almost certain that carriers will cut fewer sailings in July.
Ocean carriers had previously blanked about 10% of July capacity and there have been no additional trans-Pacific reductions for that month over recent weeks. Read more here.
Container shipping faces its largest ever drop in teu-miles
Clarkson Research is reporting that container shipping faces its most significant drop in teu-miles ever.
“The container secor seems amongst the most exposed to the impacts of Covid-19, with consumer demand in key regionbs under significant pressure, and the decline ib box trade in TEU-miles in 2020 (proijected at -10.3%) expected to be the steepest on record,” researchers at the London-headquartered outfit wrote in the company’s most recent weekly report. Read more here.
‘No hope’ of bounce-back in demand for container shipping this yeartheloadstar.com
Cold water is being poured on any optimistic outlook by some ocean carriers for a speedy recovery of the container industry from the impact of Covid-19.
In his latest assessment of the market, Bimco’s chief analyst, Peter Sand, said the current economic situation “provides no hope for a short-term recovery”. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
Ottawa to update status of PPE procurement efforts
OTTAWA – The federal government will update Canadians today on the results of the mad scramble to procure personal protective equipment – just as demand is poised to skyrocket with more people returning to work and public health officials preparing for a potential second wave of COVID-19 infections. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Lockdowns mean South-east Asia e-commerce volumes are ‘growing like crazy’
South-east Asia’s e-commerce logistics players are experiencing “huge” demand amid the coronavirus pandemic, while lockdowns present new operational challenges for last-mile supply chains.
According to Khanh Nguyen, Vietnam chief operating officer of last-mile logistics startup Ninja Van, online sales growth has been strongest in Singapore and Malaysia. Read more here.
Oil price volatility will hit owners of road freight assets hard, says analyst
The increasing instability of oil prices looks set to further jeopardise the future of transport and logistics operators.
And in particular, smaller road freight firms unable to withstand sudden fuel price increases. Read more here.