Freight Market Update - Week of September 10, 2021

• US volume to China may continue to face backlogs and reduced flight capacity
• Airlines announce they will resume flights in routes between the Americas

Air

• International passenger flights will be allowed to land at five more Canadian airports.
• American Airlines pilots union plans protests at US airports.
• Multiple Canadian airlines have resumed international flights, including:
  - On September 7th, Air Canada Rouge resumed services that had been suspended since spring. The airline will have routes between Toronto and Las Vegas and Orlando to/from Regina.
  - As of September 8th, Air Canada Express flights increased from/to Vancouver at the West Kootenay Regional Airport. Flights between Montreal and Toronto Island Airport have also resumed.

Ocean

• The Port of New Orleans has resumed operations after a three-day closure due to hurricane Ida. Initial reports don't indicate any significant damages to the facility.
• More carriers are routing to Portland because they are finding available space there. Due to the strong congestion in Los Angeles/Long Beach, Portland's popularity is growing.

Air

• Airlines and travel agencies signed a letter asking the Argentinian Government to open its borders
• Ecuadorian authorities signed a decree to eliminate the 5% Capital Outflow Tax on foreign currency (ISD) for air transport operators.

Ocean

• The Port of Santos was responsible for 28% of Brazilian trade in July. According the Seatrade Maritime News, the port’s volume grew 19% from January to July 2021.

Ground

• Inland conditions in Mexico may be impacted by floods, evacuation and power outages caused by severe weather and a 7.0 magnitude earthquake.
• A Brazilian truck drivers’ strike has blocked several roads, especially in Santa Catarina, Paraná and Espírito Santo. Several protests have taken place in the country since its Independence Day holiday on September 7th.

Air

• Delays of up to seven days continue in the Shanghai Pudong International Airport due to a rise in Covid cases this week. Some carriers have been forced to cancel services or divert flights to other airports.
• Hong Kong International Airport has completed pavement works for a third runway. The new runway will significantly impact the air freight business in the country, and the airport chairman expressed optimism that it will begin operations in 2022.

Ocean

• Singapore-based freight visibility service provider Portcast has received a $3.2 million investment with the goal of expanding its geographic reach, demonstrating the growing importance of freight visibility in the market.
• Maersk container ships from Ningbo-Zhoushan port (Shanghai, China) will arrive in Baltimore this week via the Panama Canal, marking the first completed route connecting Southeast Asia with the US city.

Air

• UPS opened its expanded air hub at East Midlands Airport (EMA) in the UK, doubling its capacity at the airport.
• Small and large firms alike are struggling to find for air freight capacity, leading to delays from China.
• The Russian air freight market segment experienced solid results in the first half of the year, and it is expected to keep gradually regaining its pre-crisis position.

Ocean

• Vessel delays continue to lead to port congestions and tight equipment situation.
• Transatlantic Westbound: Rates are expected to increase in Q4 2021. Equipment shortages and congestion at LAX/LGB ports are impacting westbound shipments. It is recommended to book shipments 5+ weeks prior to sailing date.

Air

• Due to the strict restrictions in China and heavy port congestions in Bangladesh, the demand for air freight capacity is tightening.
• 37,319 metric tons of cargo were processed by Kempegowda International Airport in Bengaluru just this month, reaching the highest rate in a single month since it opened in 2008.¹

Ocean

• A global port operator from Saudi Arabia has announced plans to expand and enhance Jubail Commercial Port (JCP) to help reduce congestions and delays.
• JNPT, Mumbai’s primary container operating port, announced a 28.45% growth in container traffic on Tuesday.²
• Covid-19 is taking a severe toll on the maritime industry in Bangladesh, with understaffed port yards leading to severe cargo congestion.

• New or modified FDA import alerts have been posted on soap, seafood, peppers, and more. Get more details on the newly added items here.

• Covid-19 continues to have a large impact on Asia. Countries like the Philippines, Thailand, Vietnam, South Korea and Malaysia are reporting high numbers of daily infections, affecting all areas of the freight forwarding industry.
• As of September 7th, Canadian borders have been opened to fully vaccinated foreign travelers with no quarantine required.