Trendwatch: Imports Slow at Port of Los Angeles as Trade Tensions Mount; US, UK implement trade deal; Cathay Pacific takes off from Hong Kong to Munich for the first time

Imports Slow at Port of Los Angeles as Trade Tensions Mount

The Port of Los Angeles reported its lowest monthly cargo output in more than two years in May, citing a shipping slowdown caused by tariffs.

In a June 13 briefing, Port of Los Angeles executive director Gene Seroka said that the port processed roughly 716,000 twenty-foot equivalent units in May, down 5% from that same month last year. And although May is typically a stronger month for cargo, leading into the summer's peak shipping season, imports still fell 19% from April, as well as 9% year-over-year. Seroka also warned that unless the Trump administration reaches long-term trade agreements to minimize the strain from tariffs, "we'll likely see higher prices and less selection during the year-end holiday season."

US, UK implement trade deal

The United States and United Kingdom on Monday finalized terms to carry out the trade deal framework, the two countries announced in early May. 

The agreement institutes several of the provisions outlined in the initial framework, per an order signed by President Donald Trump at the G7 Summit in Kananaskis, Alberta. 

Cathay Pacific takes off from Hong Kong to Munich for the first time

Cathay Pacific welcomed the launch of its new non-stop flights between Hong Kong and Munich, marking the first time the airline has directly connected its home hub to the Bavarian capital. These flights further bolster Cathay Pacific’s presence in Europe, coming shortly after the launch of its seasonal flights to Rome on 5 June and ahead of its return to Brussels on 3 August.

Together with low-cost carrier HK Express, Cathay Pacific continues to launch passenger services to more destinations around the world. The Cathay Group has now reached 100 passenger destinations worldwide, providing customers with more connectivity and choices when they travel.

Shipping groups are starting to shy away from the Strait of Hormuz as Israel-Iran conflict rages on

Some shipowners are opting to steer clear of the strategically important Strait of Hormuz, according to the world’s largest shipping association, reflecting a growing sense of industry unease as the Israel-Iran conflict rages on.

Israel’s surprise attack on Iran’s military and nuclear infrastructure on Friday has been followed by four days of escalating warfare between the regional foes.

Crude markets volatile as Israel-Iran conflict escalates

Oil prices were volatile on Monday, after surging 7% on Friday, as renewed military strikes by Israel and Iran over the weekend increased concerns that the conflict could widen and significantly disrupt oil exports from the Middle East.

Brent and West Texas Intermediate crude futures both surged by more than $4 a barrel before giving back gains. 

Explaining the hidden dangers of fire initiating cargoes

Following its identification of ‘cargoes of concern’, the Cargo Integrity Group now focuses on the issues that may commonly compromise safety by initiating or proliferating fire under certain conditions.

It is recognized that many of the cargoes in this category, labelled ‘reactive hazards’ already fall within the scope of Dangerous Goods regulations. These regulations start from the premise that the transport of Dangerous Goods is prohibited – except in accordance with the details of the regulations.

Lufthansa Cargo eyes to grow its narrow body freighter network

Lufthansa Cargo is expanding its narrowbody freighter operations, having recently launched Beirut as a new destination, as it doubles down on speed and technology to meet growing global demand. In an interview to The STAT Trade Times, recorded in Munich, during air cargo Europe and transport logistics trade exhibitions, CEO Ashwin Bhat noted, "The whole idea of investing in narrowbody freighters during the peak of COVID was about speed because we understood that the world is going to be dependent on logistics in terms of speed and in terms of solutions. That's where we invested in the A321. We are looking at further growth of the A321Fs."

Qantas Freight expands China freighter operation

Qantas Freight will expand its China freighter operation with the start of a new flight to Shanghai later this month.

The new twice-weekly service will operate between Shanghai and Sydney using one of the airline’s Airbus A330-200 converted freighters.

The service is due to launch on 26 June, departing on Thursdays and Sundays.