Newsletter – May 27, 2020
AIR FREIGHT UPDATES
Air Canada raises $750 million to boost liquidityfreightwaves.comAir Canada (TSX:AC) late Tuesday announced it is raising more than $750 million in working capital through the sale of CA$500 million ($357.5 million) of stock and a private placement of $400 million in bonds.The development came the same day as the International Air Transport Association warned that airlines could eventually fail because of debt loads they are taking on to support operations. Read more here.
Airline Stocks Shot Up Today – Why’s That?simpleflying.comAmid optimism about the economy re-opening faster than expected and with forward bookings picking up, shares in US airlines shot up today on the back of broader stock market gains. Analysts believe its also a sign the markets are normalizing in response to altered business conditions. Read more here.
OCEAN FREIGHT UPDATES
Canada turns to maritime to help move 1.6 billion pieces of PPEfreightwaves.comWhen the Canadian government started importing personal protective equipment (PPE) and other medical supplies from China for COVID-19, it leaned on air cargo flights — 42 to be exact. But with 1.6 billion pieces still on order, the feds need ships.“We now intend to resort to maritime considering the volume of PPE that could be shipped,” Anita Anand, the federal minister of public services and procurement, said during a news conference Tuesday. Read more here.
Six out of the top 10 carriers have now sought state aid since the start of the coronavirus pandemicsplash247.comNews yesterday that Pacific International Lines (PIL) is seeking a de facto state bailout has brought into sharp focus the financial viability of the contianer shipping industry as a whole, having made paltry profits for a decade now faced with a historic drop in demand thanks to Covid-19. Read more here.
Maersk throw weight behind renewable methanol as a fuel of the futuresplash247.comSome of the biggest names across the Danish transport spectrum including Maersk are joining forces to produce sustainable fuels for road, maritime and air transport in the Copehnhagen area. The news is also notable for Maersk’s determination to pursue renewable methanol as one of its main fuels for the future. Read more here.
Cape routings increase despite shipper furylloydsloadinglist.comContainer lines have continued routing vessels via the Cape of Good Hope this month despite shippers protesting against the needless burning of fuel.Taking advantage of lower bunker costs, carriers are steaming around the Cape to avoid Suez Canal tolls that can total around $700,000 for a fully laden 20,000 TEU capacity container ship. Read more here.
Seaworthiness probe after CMA CGM vessel loses 40 containers in rough seas
A containership off the coast of Australia lost 40 boxes overboard in rough weather on Sunday, with cargo including face masks now washing up on beaches near Sydney.
CMA CGM’s 5,510 teu APL England lost propulsion during heavy seas, according to the Australian Maritime Safety Authority (AMSA), while sailing to Melbourne from Ningbo…read more here.
INTERNATIONAL BUSINESS & GOVERNMENT UPDATES
India pledges easy access to land for factories leaving Chinahindustantimes.comIndia is developing a land pool nearly double the size of Luxembourg to lure businesses moving out of China, according to people with the knowledge of the matter.A total area of 461,589 hectares has been identified across the country for the purpose, the people said, asking not to be identified because they aren’t authorized to speak to the media. Read more here.