Newsletter – October 20, 2020

  • Newsletter – October 20, 2020


    AIR FREIGHT UPDATES

    IndiGo Looks To Operate Cargo Only Flights

    simpleflying.com

    As India continues to cope with low travel numbers due to the ongoing health crisis, Indian low-cost carrier IndiGo is considering the launch of dedicated freight services. While the decision has yet to be finalized, the airline is looking to bolster its revenue and sees cargo as a big opportunity. Related to this is the anticipation of a vaccine and the large-scale distribution required upon its release. Read more here.


    Cargo levels remain below 2019 at key European, Asian airports

    freightwaves.com

    Three major cargo airports in Asia and Europe continue to lose volume because of the paucity of passenger flights during the coronavirus pandemic, but the situation is marginally better than in early summer.

    Hong Kong International Airport, the largest cargo airport in the world, has gradually increased freight volumes since the bottom of the COVID crisis earlier this year, but September volumes slipped slightly from the prior month. Read more here.


    OCEAN FREIGHT UPDATES

    Extended ocean freight peak season keeps rates firm
    lloydsloadinglist.com
    Ocean freight spot rates on the world’s major east-west container trades appear to be have held firm in the first two weeks following China’s annual Golden Week period, a week that in normal years signals the end of container shipping’s annual peak season.
    However, demand and prices this year have remained strong in an extended container shipping peak period, in which cargo owners continue to rebuild inventory following the disruptions to demand and supply earlier this year. Read more here.

    HMM aids exporters adding two sailings from Busan to LA
    seanews.com.tr
    SOUTH Korea’s HMM announced that it will dispatch two more container ships to support South Korean exporters that are struggling to ship out their products to foreign countries amid the protracting Covid-19 pandemic.
    The 5,000-TEU container vessel HMM Prestige and the 4,600-TEU HMM Integral will depart from Busan on October 31 for Los Angeles with a schedule to arrive on November 11.  Read more here.

    GROUND AND RAIL FREIGHT UPDATES

    Revenue decline dampens Canadian Pacific’s Q3 profit
    freightwaves.com
    A decline in revenue dampened Canadian Pacific’s (NYSE: CP) profits for the third quarter.
    CP’s net income was C$598 million (US$453 million), or $4.41 per diluted share, for the third quarter of 2020, compared with $618 million, or $4.46 per diluted share, in the third quarter of 2019. This was a 3% decline year-over-year. All figures are in Canadian dollars.  Read more here.

    CANADA BUSINESS – GOVERNMENT UPDATES

    Canada Considers How To Help Its Airlines
    simpleflying.com
    As travel demand remains low, Canadian airlines are still struggling to cope financially. The Canadian government is yet to provide sector-specific support. Now, the Intergovernmental Affairs Minister Dominic Leblanc confirmed in an interview that the Canadian government is looking at several options to help save its airlines. Here’s what you need to know. Read more here.

    INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

    IMF Data Shows Virus Will Push China GDP Growth Well Beyond U.S.
    bloomberg.com
    The Covid-19 pandemic will produce lasting shifts to global growth, pushing China even more to the forefront.
    The proportion of worldwide growth coming from China is expected to increase from 26.8% in 2021 to 27.7% in 2025, according to Bloomberg calculations using International Monetary Fund data. Read more here.

    The challenge of securing temp-controlled facilities for the Covid-19 vaccine
    aircargonews.net
    One of the key challenges the air cargo industry faces when it comes to the  Covid-19 vaccine supply chain is ensuring there is enough temperature-controlled capacity at airports.
    However, building these facilities costs money and takes time. Under normal circumstances handlers would also want to secure a return on their investment. Read more here.

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