Newsletter September 26, 2022
AIR FREIGHT UPDATES
A lift for belly capacity on the way after Hong Kong lifts hotel quarantine rule
Hong Kong has finally scrapped its hotel quarantine rule, paving the way for extra bellyhold cargo capacity and a potential boost to the city’s ailing economy.
Previously, travellers entering Hong Kong had to quarantine at a hotel for three days, followed by four days of movement restrictions, but this has been replaced by daily testing for the first week after entering the city. Read more here (login required).
Boeing CEO: Promises about clean aviation fuel outpace technology
WASHINGTON — Expectations for quick decarbonization of aviation are unrealistic and create pressure to invest in unproven technologies instead of mass production of sustainable aviation fuel, which will have an immediate benefit, said Boeing CEO David Calhoun.
Speaking last week at a U.S. Chamber of Commerce aerospace event here, the Boeing (NYSE: BA) chief questioned the speed at which governments and stakeholders are promising change when little biofuels infrastructure exists and alternative propulsion systems are still over the horizon. Read more here.
Rosy outlook beckons for freighter conversions
Freighter conversion suppliers expect a strong e-commerce market to support the switching of passenger jets to cargo use, although capacity and manpower could present challenges.
Mike Doellefeld, vice president of commercial freighter conversions at Boeing, is upbeat about prospects for the 737-800BCF, noting that the company has redelivered about 100 conversions, and has orders for 250 more. Read more here.
Cargo volumes decline at Brussels airport as passenger flights return
As Brussels airport welcomed 2.2 million passengers through its doors, the hub saw cargo traffic continue its gradual decline.
2,154,380 passengers chose Brussels Airport in August, 82% of the number of passengers recorded in August 2019. As in July, this growth was primarily due to a strong recovery in the holiday market and visits to family and friends. Read more here.
OCEAN FREIGHT UPDATES
Sea-Intelligence: Carriers are Increasing Blank Sailings in October
The major shipping lines are once again resorting to blanking sailing from their schedules as a means of controlling capacity after an extended period of deploying every available ship to meet the surge in demand. Using the guise of the upcoming Golden Week holiday tied to China’s Autumn Festival, carriers are expected to increase the number of canceled sailings above historic norms according to the latest calculations from the analysts at Sea-Intelligence. Their data support the earlier predictions by carriers such as Maersk and Hapag-Lloyd which called for a slowing and market normalization in the second half of 2022. Read more here.
MSC raises US and Swiss law clash as it defends broken contract claim
In its case against home decor manufacturer MCS, Switzerland-based shipping line MSC has questioned the conflicting requirements of US and Swiss law over documents required for ‘discovery’
Last year’s complaint by MCS to the US Federal Maritime Commission (FMC) included claims that MSC and Cosco had acted illegally by colluding with other lines and not meeting their contractual responsibilities. It has since withdrawn the claims of collusion. Read more here (login required).
GROUND AND RAIL FREIGHT UPDATES
Two Biggest U.S. Rail Unions Will Tally Contract Votes in Mid-November
CN Operations Resumed in Atlantic Canada after Hurricane Fiona
All CN routes in the Atlantic Region have been restored after Hurricane Fiona, and all operations for both carload and intermodal services have resumed.