Friday, October 30, 2020
He added: "Forecasting tools have never been more critical. You don't have the luxury of air cargo capacity sitting on the side lines, you have to get it right. And you need to ask your forwarder if it has the right mix of capacity available for you."He also warned: "You need to increase your supply chain budget. Rates will elevate, costs will be higher. And you need to be open to creativity, which has never been more critical. It's time to challenge the status quo."Forwarders have long called for shippers to create more accurate air freight forecasts, noting the potentially high cost of spot rates and emergency shipments. But inaccurate volume and schedule forecasts next year will accentuate the problems.This year air freight has about 30 per cent less capacity - 6.5 million tonnes-worth were removed from the global fleet between April and July, as Covid-19 created a "seismic impact" on capacity, while there is a 70 per cent projected decline in passenger numbers.Add potential vaccines, and air cargo space is expected to fall short next year, reports London's Loadstar.Now that cargo is accounting for about 26 per cent of airline revenues, up from 12 per cent, it does have a louder voice in the boardroom, and airlines are studying the possibility of getting more freighters; but it is a slow process. Combined with demand from increased e-commerce and Covid-related shipments, capacity is expected to be in short supply for some time.
Cargo on the flight was carried in the bellyhold, on the seats and in the overhead lockers - and exceeded Group Concorde's previous cargo weight record carried on the same aircraft type: 47,167 kg, earlier in the month.Pharmaceutical products were transported on the flight, as well as auto parts, which added to the overall cargo weight.Prompted by the Covid-19 outbreak, LOT has been operating cargo-only PAX flights from Delhi since May, reports London's Air Cargo News."We acknowledge the great efforts of [the] LOT Cargo team along with airport authorities and ground handling agents who have achieved this milestone by excellent load planning," Group Concorde said. "The team has set an example of excellent team spirit, complete dedication and commitment, especially during this challenging pandemic."It added: "We want to thank LOT Polish Airlines management for having faith in Group Concorde and all the stakeholders for their continuous support to make this cargo operation successful. We assure you that Group Concorde team will remain committed to serve you with excellency and deliver our best services all the times."
American has deferred delivery of 18 Max jets that were meant to be delivered in 2021 and 2022 and will take them on a new timeline over 2023 and 2024, reports Bloomberg News. AA chief financial officer Derek Kerr said there would have to be a "substantial improvement in the demand environment" to justify taking the jets before then. Southwest, the largest Max customer, said it may restructure its order after already agreeing to take no more than 48 of the planes through December of next year.Both the schedule of new deliveries and the pricing of the order are on the table, Southwest CEO Gary Kelly told Bloomberg. "In this world that we're living in, we're talking to them about everything. I'm not happy that the Max has been delayed for now getting close to two years and we still don't know when we'll have it in service," said Mr Kelly. "We're looking at the pricing in a whole new environment and obviously we need certainty around the Max, period," he said.American is planning to reintroduce the Max in December on a Miami-to-New York route, pending approval from US regulators that finally appears within reach. But Southwest doesn't see the jet flying as part of its fleet until the second quarter of next year. That's a reflection of the logistical challenges involved with bringing mothballed jets back into service, but also a sign that Southwest already has more than enough planes as it is.Rival Airbus is also facing order revisions in the wake of the Covid pandemic and a slower-than-expected recovery in air travel. American said it had delayed some deliveries from the European plane maker, and Delta Air Lines said it had pushed out the handoff of US$5 billion worth of Airbus jets until after 2022. But the Max's prolonged grounding has made the plane particularly vulnerable. More than 1,000 Max jets have been removed from Boeing's backlog this year, either because the orders were cancelled outright or because delayed deliveries and stressed finances at the buyer made it doubtful they would be filled. There are now 3,357 Max jets on order before accounting for any potential future cuts on the part of Southwest and other carriers.
Representing the 2,200 Hong Kong based pilots, HKAOA and Labour Department officials met today to discuss whether Cathay Pacific had complied with the Hong Kong Employment Ordinance regarding the restructuring.HKAOA officials challenged Cathay Pacific's 28 October deadline for a career, life-defining decision by Cathay Pacific pilots. The decision involves whether to sign a vastly inferior new Employment Contract which shows permanent salary reductions of up to 58 per cent or have their existing Employment Contracts terminated.Said the Labour Department; "The employer should consult and secure consent from its employees prior to varying the terms of their employment contracts. Failing to do so may constitute unreasonable variation of the employment contractual terms."Said HKAOA general secretary Chris Beebe: "No consultation has occurred between the HKAOA and Cathay Pacific. Further, the requirement to sign a new contract in such an unrealistic, very short period is grossly unfair, after which termination is automatic."Mr Beebe said the lack of consultation was unfair and rushed and question whether consent can legitimately be given under these circumstances are of great concern".He said the situation is extremely serious both for our membership and for Hong Kong's global reputation which relies on ensuring employment conditions meet recognised international standards. "We are asking for action by the Labour Department to make sure Cathay Pacific lives by the rules," Mr Beebe said.
DP World's Fairview Container Terminal saw movement of 1.2 million TEU in 2019, a 17 per cent increase over 2018."Container shipments are critical to future growth at the Port of Prince Rupert," the plan said.Port president Shaun Stevenson said the plan would guide continued growth and diversification."The plan reflects the feedback we have received from local [Indians] local government and residents, balancing environmental and community values while we work towards creating even greater economic and employment opportunities," he said.The year also saw the AltaGas' Ridley Island Propane Export Terminal come online and growth in Ridley Terminals' coal handling where cargo levels were up 18 per cent over the previous year. Thermal coal rose 46 per cent while petroleum coke rose nine per cent and thermal coal dropped three per cent.In 2019, several infrastructure projects supporting growth and diversification at the Port of Prince Rupert were announced, including the Ridley Island Export Logistics Park, the Zanardi Bridge and Causeway Project, and the Metlakatla Import Logistics Park.An anticipated C$2 billion (US$1.5 billion) in capital expansion projects starting in 2020 was expected to support further cargo growth, including DP World's Fairview Terminal expansion project that will bring the terminal's capacity up to 1.8 million TEU by 2022; the Vopak Pacific Terminal project, which is currently under environmental assessment and expects to make a final investment decision in 2020; as well as Pembina's $175 million Prince Rupert Export Terminal which was deferred in March due to a downturn in gas prices and pandemic impacts.
"By combining, Maersk plans to provide an 'end-to-end logistics solution', and if successful, is poised to gain enormous advantages over competitors," said Mr Crook, also the former head of DHL Global Forwarding. "It may be too early to call Maersk the Amazon of the supply chain, but this takes them a major step closer. It's time for other carriers to consider building out their own end-to-end offerings if they want to compete with Maersk," he said..Typically, importers must juggle a wide range of logistics companies - carriers, customs brokers, freight forwarders - to ensure the delivery of a single shipment. "Damco already managed all those relationships on behalf of their customers' supply chains. As a result, it can provide a seamless experience for their customers - and a single point of contact for all parties," he said.By integrating Damco's logistics offerings, Maersk hopes to reach its customers directly, simplify their operations significantly, and eliminate the need for intermediaries such as freight forwarders. There are a number of reasons this is likely to change market dynamics significantly, he said. "For example, will Damco's current customers still be able to book with other carriers? Will Maersk's new forwarding platform ever engage the services of, say, Mediterranean Shipping Co or Hapag-Lloyd," Mr Crook said. Some of the market advantages from which Maersk will profit without a vigorous response from others in the industry include: Pricing advantages: As the largest ocean carrier in the world, Maersk enjoys economies of scale that will allow them to keep prices as low as possible. Damco has a large roster of its own customers, and they can now use those existing relationships to steer shipping contracts to Maersk. Forwarders have to rethink their digital strategy in light of this market development. Considering Maersk's current market dominance coupled with this new offering, other logistics businesses must aggressively innovate if they want to survive and thrive.
The year-on-year rise can be attributed to the rapid growth in domestic traffic together with growth in demand in key international markets said the Drewry statement."The index for Asia (except China) has also been increasing over the last few months to reach 124.8 in August, but the revival has been sluggish when compared with China. "While the index grew by 2.6 points (2.2 per cent) over July 2020, it is still more than four per cent below the level recorded in August 2019." it said.The two sub-regions of America (North and Latin America) witnessed monthly growth in August 202, but failed to achieve the year-ago level of August 2019. While the index for North America grew 8.4 points (six per cent) in a single month to reach 148.1 points in August 2020, this was still 3.2 per cent (4.8 points) lower than in August 2019. "Some North American hubs such as New York, Savannah and Los Angeles reached their highest-ever monthly throughput figures in August 2020," Drewry analysts noted.The Latin American index at 110 points in August 2020 was three per cent higher than in July 2020, but about 12 per cent lower than in August 2019.Meanwhile, Europe's index at 111 points witnessed a monthly as well as a year-on-year decline in August 2020. While the index was one per cent lower than in July 2020, it was more than nine per cent lower year on year. With a second wave of Covid taking hold across the region the prospects for recovery seem bleak.The index for Middle East and South Asia reached close to 121 points in August 2020, a significant lag from the pre-Covid high of around 127 recorded in December 2019. Oceania has witnessed monthly as well as annual growth in August 2020. The index was 136.8 points, with 8.1 per cent monthly and 11.8 per cent annual growth.Africa's port throughput index surpassed the milestone of 100 points in August 2020 to reach 102.6 points. It was close to 14 per cent higher than in July 2020, but 10.3 per cent lower year on year. The index for Africa is however based on a small sample.
The decision, made at a cabinet meeting, marks the first time Italy has vetoed a supply deal over 5G core networks with Huawei.Huawei strongly rejects the charges, and its Italian unit said it was ready to undergo any scrutiny to show that its technology was safe."The government has vetoed the operation, asking Fastweb to diversify its suppliers," a senior government source told Reuters. Fastweb had picked Huawei as the sole supplier for its 5G core network, sources said.
For the full nine months, Costamare posted a net loss of $18.1 million after declaring a net profit of $63.1 million in 219, drawn on revenues of $341.1 million, down 3.3 per cent. "During the third quarter the company continued its profitability," said chief financial officer Gregory Zikos."As part of our fleet renewal programme, we sold for demolition two vessels with an average age of 23 years and we agreed to acquire three larger secondhand ships on average 11 years younger. The new acquisitions will be initially funded with equity," Mr Zikos said."Meanwhile, our newbuilding programme is progressing on schedule, and we have now accepted delivery of three out of the five 13,000-TEU vessels, which have commenced their 10-year charters. "On the market, the inactive containership fleet continues to shrink to levels below two per cent, on the back of healthy demand for container shipping. Charter rates have been rising and we have chartered in total 13 ships during the quarter. We have 14 ships coming off charter over the next six months which positions us favorably, should market momentum continue," Mr Zikos said."With liquidity of above $200 million, no meaningful debt maturities over the next three years and minimal capex commitments we are well positioned for acquisition opportunities increasing shareholder value and returns," he said.
Estimated losses since bring the total up to $350 million with huge damage in logistics and administrative buildings according to port director Bassem Al Qaissi, reports Beirut's Blom Bank's research department."To date, there has been a shortfall in funding for the reconstruction of the port and its surroundings, highlighting the fact that the future of the sector depends on the action plans and policies of the new government in the coming weeks," said the Blom Bank blog."We also note that revenues declined due to the drastic fall in trade activity, for instance imported goods fell by 50.3 per cent year on year to $6.13 billion by July 2020.Total container activity including transshipment fell 39.1 per cent to 587,507 TEU. Transshipment activity slipped 31.7 per cent to 256,790 TEU over the same period. Moreover, the total volume of imported and exported merchandise fell 36.98 per cent to 3,267 tons.Accordingly, the transshipment volume of CMA CGM, one of the two major lines operating through Beirut, fell 6.1 per cent to 108,412 TEU. Similarly, the transshipment activity of MSC dropped 53.6 per cent to 85,386 TEU by September. In addition, the local volumes of CMA CGM and MSC also fell by 24.5 per cent and 57.3 per cent to 77,143 and 77,027 TEU, respectively.
Container volume fell 4.7 per cent due to a weaker demand for new goods in Europe. Falling imports from Asia has been accompanied by increased export to Asia, especially meat, chemicals and timber. Containerised exports were boosted by an improvement in Rotterdam's competitiveness in transshipments to China from Scandinavia and the Baltic.As a result, Rotterdam repositioned fewer empties than before when imports exceeded exports. Third quarter volumes also improved compared to the preceding quarter."At present, it is still too early to determine whether we have left the worst behind us in economic terms," said Port of Rotterdam Authority CEO Allard Castelein."Nevertheless, I am heartened by the revival of international trade flows and the resilience of our economy - in which the rate of recovery naturally depends to an extent on further developments in the COVID-19 pandemic," said Mr Castelein.Ro-ro was one of the hardest hit during the first three quarters due to the decreased transport of people and goods to and from the UK.A poor second quarter was followed by a strong third quarter because of stocking up in anticipation of full Brexit on January 1.Dry bulk volume fell 18.6 per cent year on year, but biomass throughput increased as a result of the increased demand from Dutch power stations.