Newsletter – May 4, 2020
AIR FREIGHT UPDATES
Air Canada posts billion dollar loss in Q1insidelogistics.caMONTREAL – Air Canada recorded a net loss of $1.049 billion in the first quarter of 2019.The company today reported first quarter 2020 EBITDA (earnings before interest, taxes, depreciation and amortization) of $71 million compared to first quarter 2019 EBITDA of $583 million. Read more here.
E-commerce faces tough cargo capacity shortage because of bellyhold relianceaircargonews.netIATA and the Universal Postal Union (UPU) have warned that the e-commerce sector is facing a shortage of air cargo capacity because of its reliance on passenger operations.The two organisations said that the coronavirus outbreak had created a surge in e-commerce demand as more people shopped from home, while air cargo capacity has been slashed due to a 95% reduction in passenger flights which are typically used to transport mail. Read more here.
Philippines Suspends International Flight Arrivals For A Weeksimpleflying.comThe Philippines has placed a week-long suspension on inbound international flights starting from 08:00 on 3rd May as a result of the COVID-19 pandemic. The move was put in place as a result of congestion at international airports after 20,000 Filipinos returned home via repatriation flights. Read more here.
CANADA BUSINESS – GOVERNMENT UPDATES
It’s a recession, says C.D. Howe Instituteinsidelogistics.caTORONTO – The C.D. Howe Institute’s Business Cycle Council says Canada has entered a recession due to the economic devastation caused by the COVID-19 pandemic.In a report released Friday, the council said the economy peaked in February before the steps taken to slow the spread of the coronavirus brought the economy to a standstill. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Insurance Group Warns of Potential Cargo Crime Wave as Freight Builds Up Due to Pandemichandshippingguide.comWORLDWIDE – Insurance group TT Club has issued a stern warning regarding the accumulation of cargo building up around the globe as the coronavirus outbreak plays havoc with transport systems. The Club points to the lag between the large-scale sourcing regions of China and other parts of Asia and the consuming markets of Europe and North America which it says has caused significant blocks of freight to be stuck in less secure facilities in both exporting and importing nations. Read more here.
Could surging Chinese imports signal a full freight recovery?freightwaves.comTotal U.S. maritime shipment volumes have grown to higher levels they were at prior to the COVID-19 pandemic that shuttered China’s production. The pandemic was starting to become a significant public health concern for China right around the time of their biggest holiday of the year, the Lunar New Year aka Chinese New Year (CNY). Import volumes from China typically slow for about four to six weeks following the holiday due to factories shutting down and taking time to ramp back up, making it difficult to tell just how much impact the virus was having on production. Read more here.
COVID-19 long-term impacts: Increased automation, remote workingfreightwaves.comThe COVID-19 impact on supply chains has been total, as it ended up playing havoc on demand and supply equations, while also creating uncertainty in available capacity for hauling freight. But as more and more countries flatten the pandemic’s growth curve, demand is expected to increase in the coming months. And as Chinese industries get back on their feet, volumes will decidedly grow as well. Read more here.
Warehouse, sample sales shift online amid pandemicinsidelogistics.caVANCOUVER – Last year, more than 2,000 shoppers descended on a Toronto pop-up store, looking for deals at undergarment maker Knix’s first warehouse sale. It was a success: the company sold out of most items during the three-day event and needed to double its staffing. Read more here.
Global Oil Demand Starts a Long, Painful and Uncertain Recoverybloomberg.comFew have a better watchtower over oil demand than Joe Gorder, chief executive officer of major U.S. refiner Valero Energy Corp. But this week Gorder didn’t even need his business insight to know that fuel consumption was starting to recover in America.He only needed to look at the streets of San Antonio, the Texas city where he’s based, to see traffic emerging after weeks of lockdown. Read more here.