Freight Market Update - Week of September 17, 2021

• Ocean terminals in Shanghai and Ningbo have resumed operations
• Severe weather impacts Asia-Pacific and North America

Air

• Air Canada is re-routing some flights to avoid potential quarantine issues after a crew member tested positive for Covid-19. Previous flights from Toronto (YYZ) and Vancouver (YVR) to Hong Kong International (HKG) are now making an intermediate stop at Seoul Incheon (ICN) to change crews.

Ocean

• Hurricane Nicholas rocked the Gulf Coast this week, causing closures and power outages at several ports, including Freeport Harbor Channel and the Port of Houston.
• Most ports, including the Port of Houston, have resumed normal operations.
• On Tuesday, Vessel traffic was suspended on Calcasieu Ship Channel due to unsafe conditions caused by the storm. As of Wednesday evening, restrictions remain in place.

Air

• On September 14, Aerolíneas Argentinas resumed its weekly flights between Buenos Aires and Montevideo.
• LATAM Airlines is planning to send four Boeing 787 Dreamliners aircraft to its Brazilian subsidiary, LATAM Brazil. Starting in October, several new flights have already been planned for these new members of the LATAM Brazil fleet.
• LATAM Airlines projects that it will return to pre-pandemic levels of profitability by 2024. The company, which filed for bankruptcy in May 2020, also announced that it expects to see a 78% increase in operating income by 2026.
• On September 15, American Airlines signed a letter of intent to purchase a 5.2% stake in Brazilian airline GOL.

Ocean

• Ports in Peru and Brazil are facing space constraints

Ground

• Brazilian truck drivers’ protests, which caused roadblocks in 16 states last week, seem to have ended. Companies continue to monitor the political situation in the country, as protests could resume at any time.

Air

• Hong Kong International Airport has released its traffic results for August, reporting a significant increase in its year-over-year numbers. The airport reports two-digit growth percentages in all three cargo categories (imports, exports and transshipments).
• Flights out of PVG have started recovering after typhoon Chanthu, but capacity remains tight.
• The Association of Asia Pacific Airlines (AAPA) announced its new goal for year 2050: zero carbon emissions. This ambitious goal will demand considerable effort for the industry, including technology and operations improvements.

Ocean

• As of September 14, Ocean terminals in Shanghai and Ningbo have resumed operations after closing for 2 days due to Typhoon Chanthu.

Ground

• Various districts in the Chinese cities of Xiamen, Quanzhou, and Putian were on lockdown due to positive COVID-19 tests. Essential services have not been impacted, but testing may be required for drivers performing pickups and deliveries.

Air

• Available capacity remains down for Transatlantic & for Transpacific.
• Air Astana will offer more capacity on its London-Istanbul trade lane, effective September 18, 2021.
• Leipzig/Halle Airport in Germany has reported increased cargo volume (+18.4%) year-over-year, noting that it has already exceeded 1 million tonnes this year to date. The airport credits growing e-commerce demand and medical relief supplies for its rapid growth.

Ocean

• APAC Westbound: Space and equipment challenges continue.
• Transatlantic Westbound: Equipment availability remains tights, shortages still reported at inland depots.
• Space to Mexico and South America West Coast remains tight. Carriers continue tocut free time at destinations to provide a quicker turnaround of equipment. It is recommend to book 4 to 5 weeks prior to scheduled vessel departure to obtain space.

• New or modified FDA import alerts have been posted for herbs, flowers, fruits and more. Get more details on the newly added items here.

• On Tuesday, the U.S. Government announced a goal to produce 3 billion gallons of sustainable aviation fuel (SAF) per year by 2030.
• The UAE General Civil Aviation Authority (GCAA) and other air cargo industry players are requesting an all-cargo specific regulatory framework to distinguish the sector from passenger aviation.
• Hurricane Nicholas made landfall on the U.S. Gulf Coast on Monday. The storm affected oil output in the region, causing U.S. gasoline prices to rise slightly. The affected region also faced widespread power outages.
• According to accountancy group UHY Hacker Young, UK import duties have risen by 42% since Brexit took full effect in January 2021.

• As of September 13, a vaccine mandate is in effect in British Columbia. Any person aged 12 and over must show proof of at least one dose of vaccine to access a range of non-essential indoor areas.