Newsletter – November 5, 2020

  • 05

    Nov

    Newsletter – November 5, 2020
    AIR FREIGHT UPDATES
    Air cargo momentum builds; air travel stumbles
    freightwaves.com
    Airlines continued to rehabilitate cargo business in September, but the air travel recovery from the coronavirus pandemic is stalling, the industry’s leading trade group said Wednesday. The backslide in passenger growth due to the disease’s resurgence will reduce aircraft capacity for companies with goods to ship. Read more here.
    OCEAN FREIGHT UPDATES
    Colombo port congestion brings extra expense for Bangladeshi shippers
    theloadstar.com
    Feeder vessel operators to and from Chittagong and the hubs of Colombo, Singapore and Port Klang are to slap emergency cost recovery surcharges (ECRS) on outbound and inbound shipments to Bangladesh.
    The moves comes amid acute congestion at the hubs, linked to pandemic-related reduced numbers of port workers,
    Feeder vessels calling at Colombo are facing waits of up to five days and, in Singapore, more than two days to get a berth. This creates uncertainty for feedered containers to get onboard their mother vessels, according to stakeholders.  Read more here.
    Shanghai Shipping Exchange launches freight index to spur derivative trading
    lloydsloadinglist.com
    Shanghai Shipping Exchange has rolled out a new index for container shipping rates as the state-backed bourse seeks to develop its role in derivative trading.
    The Shanghai Containerised Freight Index based on Settled Rates mirrors the average settled spot rates upon departure of boxships on the Shanghai-Europe and Shanghai-US west coast trades, said SSE in a release. Read more here.
    Expected November peak a new low for air freight as lockdowns shut shops
    theloadstar.com
    Lockdowns in Europe, forcing shops to close, have led to significant air freight cancellations as retailers re-think their supply chains.
    One European retail forwarder told The Loadstar he had seen thousands of cubic metres-worth of bookings cancelled in the past 72 hours as the second UK lockdown came into force today. Read more here.
    Double-whammy for shippers: record rates and surcharge surges
    theloadstar.com
    With shippers facing skyrocketing container freight rates and premium fees across main and secondary trades, ocean carriers are now pummelling their customers with a mass of equipment imbalance and intermodal surcharges.
    The strategy of carriers is to get as many boxes back to Asia in the shortest possible time to take advantage of exceptionally strong demand and record high rates, and to do so it is hitting shippers with extra costs. Read more here.
    GROUND AND RAIL FREIGHT UPDATES
    Pride Group orders Tesla trucks
    insidelogistics.ca
    MISSISSAUGA, Ontario – Pride Group Enterprises (PGE) has reserved 150 Tesla Electric Semis.
    The company has made a deposit to secure the initial units, and has taken an option to increase the order to 500 trucks.

    It costs $26,000 to reserve a unit, making Pride Group’s initial investment approximately $3.9 million. The trucks are available in two configurations, with either 475- or 800-kilometres range. According to Tesla’s Canadian website, the prices are $190,000 and $230,000 respectively. Read more here.

    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
    Supply chains facing ‘a perfect storm to end all storms’
    lloydsloadinglist.com
    Global cargo owners and supply chains, particularly in the US, are facing “a perfect storm to end all storms”, with surging demand and changing supply models meeting major air and ocean freight capacity constraints – and combining with multiple other issues including shortages of available shipping containers, drivers, delivery vehicles and truck chassis, according to logistics sources. Read more here.
    Supplier deliveries slow as manufacturers await election results: ISM
    supplychaindive.com
    Dive Brief:
    Supplier deliveries continued to slow as manufacturers worked to restock their inventories, according to the latest figures from the Institute for Supply Management’s manufacturing report, released Monday. The ISM Supplier Deliveries Index was at 60.5 in October, up from 59.5 in August. Readings above 50 indicate slowing deliveries. Read more here.

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