What We're Reading: BDP Trendwatch Week 44

IMO concludes draft carbon deal, in face of green lobby objections

Delegates at the International Maritime Organization (IMO) intersessional meeting have agreed draft measures on cutting the carbon intensity from existing ships, amid some acrimony over the discussions as the environmental lobby pressure shipping to do more.

The latest proposals are expected to be agreed at the next Marine Environment Protection Committee (MEPC) 75 set for 16-20 November, but some environmental non-governmental organisations (NGOs) have said that the proposals do not go far enough, while industry figures believe that industry must take an ordered approach to greenhouse gas (GHG) reduction.

Source: Container News


UK should learn a lesson from 'disastrous' Australian customs switch

Australia’s “disastrous” implementation of a new customs system in 2005 bears marked similarities with the UK approach to post-Brexit customs, which could lead to months of delays, experts have warned.

A source familiar with Australian logistics history told The Loadstar that, just as the UK government has through the Brexit process, Australia chose to ignore industry and push ahead with “ill-informed” changes.

“What happened in 2005 was that, overnight, everything changed despite industry stressing it was not ready for the swap,” said the source.

Source: The Loadstar


Air cargo demand continued to rally in September

Air cargo demand continued its gradual recovery in September with figures heading back towards year-ago levels, according to data from WorldACD.

Figures from the data provider show that demand in September was down 12.5% year on year, which brings “some reason for optimism”. This compares with a 33% decline in demand in April when the market low was reached.

WorldACD figures also show that demand bucked seasonal trends in September and increased by 8% compared with August.

Source: Air Cargo News


Transpac carriers planning 'unprecedented' boost to capacity

With eastbound container volumes on the transpacific continuing to surge through October and November, carriers are planning significant capacity increases on the tradelane, says Sea-Intelligence.

According to the shipping consultancy, “the transpacific trade stands out” as the route carriers are focusing on for volume growth.

“We are now at a point where capacity has grown more than 20% on a year-on-year basis, which significantly exceeds what we have seen in the past,” said the shipping consultancy, describing the development on the tradelane as “unprecedented”.

Source: The Loadstar


Enjoying the widest direct cargo flight network of the world, Turkish Cargo continues to build the global air bridge

Maintaining its successful business processes across the world, Turkish Cargo increased the number of destinations of its direct cargo operations to 95 by adding London, Bucharest, Bangkok, Singapore, Beirut and Lahore to its direct cargo flight destinations. Global carrier reinforced its position as the air cargo brand with the widest direct cargo flight network of the world.

Source: AJOT


OOCL Q3 revenue climbs 16.3%

Orient Overseas Container Line (OOCL) posted a 16.3% increase in revenue — a healthy third-quarter recovery from the height of the COVID-19 pandemic.

The Hong Kong-based container carrier reported total Q3 revenue was $1.91 billion. Revenue on trans-Pacific trade was up 18.4% to $825.3 million and 2.4% on the trans-Atlantic to $151.6 million.

Source: Freightwaves, American Shipper


Airplane parking lot in middle of nowhere has never been busier

Aircraft engineer Dan Baker expected his career would let him see the world. And since starting as an apprentice aged 16 with British Airways in London, it’s taken him to Africa, the Caribbean, New Zealand and the Middle East, where he worked for Emirates.

Now he’s in a desert of a different sort—Australia’s vast red center. With the coronavirus pandemic upending global aviation and putting millions out of work, Baker has found an unlikely job in Alice Springs, storing and maintaining scores of grounded jumbo jets.

Source: AJOT, Bloomberg


Aussie unions and carriers return to the negotiating table

A two-day Australian Fair Work Commission (FWC) hearing due to start in today has been cancelled following an agreement between the Maritime Union of Australia (MUA) and Patrick Terminals to start new negotiations.

According to carrier representatives, Shipping Australia Limited (SAL) the FWC was due to begin deliberations whether to grant Patrick Terminal’s request to suspend all industrial action, but the two sides have agreed to new talks with a deadline for reaching agreement on 1 December.

Source: Container News


COVID-19 to usher in potentially drastic shifts in supply chain management, Foley survey finds

Manufacturing executives expect their supply chains to emerge from the COVID-19 pandemic looking quite different than they did previously, according to a new survey conducted by the law firm Foley & Lardner LLP. Drawing on responses from nearly 150 manufacturing executives – the majority of whom are members of their company’s C-suite, and who work in a wide array of industries – the Global Supply Chain Disruption and Future Strategies Survey Report offers a view into the future of global supply chains.

Foley delved deeper into the issues highlighted in the survey in its newly published Accelerating Trends: Assessing the Supply Chain in a Post-Pandemic World, which provides business insights and guidance for companies reviewing supply chain processes to mitigate risk, evaluating a shift in supply chains away from China, and using new technologies to improve efficiency.

Source: AJOT


Importers angry as UK box ports buckle under 'abnormal demand'

DP World’s London Gateway and Southampton container hubs are experiencing terminal congestion that threatens to further stymie the supply of holiday season products to the market.

Vessel-working and landside delays at the UK’s second and third-biggest container ports will add to the misery for importers hit by severe delays in recent months at the largest box port, Felixstowe.

Source: The Loadstar


Lufthansa Abandons Offices, Parks Planes to Cut Costs in Winter

Deutsche Lufthansa AG told staff that winter schedule cutbacks announced last week will cause it to bench an additional 125 aircraft and temporarily close large parts of its administrative operations.

The reduction will cut the carrier’s active fleet back to the level it operated in the 1970s, with the impact filtering through its operations, it said in a letter to employees seen by Bloomberg. Lufthansa had previously intended to use the planes in an already reduced schedule for the coming months, it said in the letter.

Source: AJOT, Bloomberg


Port of Halifax completes berth expansion and now eyes faster data flow

The Canadian port of Halifax has completed work on a berth expansion that allows it to handle two ultra-large container vessels (ULCVs) simultaneously at its South End container facility – now it is addressing the flow of information between port users.

The project had been in the making since January last year, when dredging began. A super post-panamax crane was installed in the summer, the fifth such crane at the port.

“The completion of this project comes as we are seeing the first of the 15,000 teu-plus ULCVs calling at our port, and it will help ensure we remain a competitive international gateway,” said Halifax Port Authority president & CEO Captain Allan Gray.

Source: The Loadstar