- US West Coast ports contract negotiations continue; Operational disruptions are still expected due to the fatal earthquake in Türkiye
According to the UPS’s Weekly Freight And Logistics News And Market Update report on February 16, 2023:
TOP TAKEAWAYS
- Both negotiating parties of the US West Coast contract negotiations have been under pressure as shippers continue shifting imports away from the West Coast, fearing further disruptions if no agreement is reached.
- Shenzhen International Airport is constructing eight new logistics facilities that will be designed to handle an increased volume of e-commerce goods in the future, improving efficiency and available tonnage through the airport.
- Significant operational disruptions are expected in the Southern ports of Turkey due to the fatal earthquake at the Turkey – Syria border. Alterations to routes can be expected in the upcoming weeks.
- Section 301 tariff exclusions for certain products classified as medical care products are now extended through May 15 and may be extended for up to another 6 months.
NORTH AMERICA
Air
- Global Crossing Airlines Group (GlobalX) has received approval for cargo operations in US and the Caribbean, and expects to begin flights with its first A321 Passenger to Freighter aircraft. The A321P2F has 55% more volume than the Boeing B737-800 freighter and 14% more volume than the B757-200F. An increase in capacity is expected.
Ocean
- US West Coast contract negotiations continue after the ILWU (International Longshore and Warehouse Union) and the PMA (Pacific Maritime Association) decided to temporarily set aside their dispute regarding Seattle’s Terminal 5 jurisdiction. Both negotiating parties have been under pressure as shippers continue shifting imports away from the West Coast, fearing further disruption if no agreement is reached.
- The Port of Long Beach year-over-year container volume declined 28.4% in January, with imports and exports dropping 32.3% and 14.2% respectively. The port points to decreasing consumer spending and higher inflation-driven prices as some of the reasons behind the decline.
LATIN AMERICA
Air
- LATAM Cargo has opened a new cargo terminal (TECA) at the Florianópolis Airport in Brazil. This new terminal is 40% larger than the previous cargo terminal and aims to improve cargo operations including handling and storage for the air cargo that the airline moves through Brazil.
- Ethiopian Airlines Cargo has launched an all-cargo freight route between Sao Paulo, Brazil and Xiamen, China. This new route is expected to increase air cargo capacity throughout the two regions, especially for the following products which Ethiopian Airlines has mentioned will be exported from China on the route: “pharmaceutical products, high-tech products, integrated circuits and other high-value goods.”
Ocean
- 2022 numbers show that Panama’s ports displayed a 1.2% decline in cargo volume from 8.6 million TEUs to 8.5 million TEUs. Positive recovery is expected in 2023.
ASIA-PACIFIC
Air
- Shenzhen International Airport is investing in cargo terminals and faster handling of e-commerce goods. The airport will construct eight logistics facility projects that will see annual cargo capacity exceed 1.5 million tons.
Ocean
- New Zealand declares state of emergency after being hit by Cyclone Gabriella. As a result, containership traffic to some of the country’s major ports has been suspended. The storm has caused significant disruption as landslides, wind, and flooding have damaged roads, businesses and homes, leaving many people without power.
EUROPE
Air
- Starting March 26, a B787 Dreamliner aircraft is scheduled to fly twice per week between Brussels and Tokyo Narita every Wednesday and Thursday under ANA Cargo. Flights between Munich and Haneda are to also begin in the summer of 2023, moving three times a week. Cargo capacity is expected to increase amongst the regions.
- Beginning July 1, Turkish Airlines will increase the frequency of Istanbul – Copenhagen flights to 24 per week, just four flights less than its pre pandemic frequency. Additional bellyhold capacity is to be expected.
- On July 10, Portugal’s Azores Airlines will launch a wet-leased Plus Ultra A330-200 on four of its US and Canada routes, which will provide greater capacity in the in the summer 2023. Mild cargo flow is to be expected among the regions.
- Norwegian Airlines will lease six additional Boeing 737 MAX 8 aircrafts in the peak summer season, providing extra cargo and passenger capacity. The airline plans to increase its fleet to 85 aircrafts in the upcoming summer season and increase its fleet to 100, in the summer of 2025.
Ocean
- Due to the earthquake in southeast Turkey, many Turkish ports are currently facing significant operation disruptions and challenges. LimakPort’s bookings and operations in Iskenderun have been suspended due to severe damage. All booking cancellations, amendments, and destination of alterations for February were announced to be free of charge for both LimakPort and Port of Mersin. The containers will be diverted to nearby hubs or will be held in transshipment ports including port of Mersin in Turkey and Port Said in Egypt. There is no clear date when the port will return to normal operations, and truck movements around the area have also stopped due to severe road damage.
INDIA, MIDDLE EAST AND AFRICA
Air
- Etihad Cargo and Astral Aviation announced a new partnership which will increase Etihad’s presence in the African market. Starting April 1, Etihad will utilize increased cargo capacity from Nairobi through the introduction of additional services to the Etihad’s Abu Dhabi hub. From the Abu Dhabi hub, Etihad will provide connections to various destinations around the world.
- Beginning May 1, Etihad airlines will increase its flight frequency from Abu Dhabi to Frankfurt from an existing daily flight to four daily flights. This increase will provide additional cargo flow and bellyhold capacity.
Ocean
- DP World will construct a 2.19 million TEU terminal at Tuna-Tekra located in Kandla, Gujarat in India. The terminal will be constructed on the adjacent east side of the already existing dry bulk terminal. The terminal will include 1,100 meter berth with the vessel handling capacity of more than 18,000 TEU. Construction will start in 2026.
Ground
- Rail route between Mozambique and Malawi has been completed. The new line will connect commercial freight trains between Mozambique, Malawi and the Port of Beira. The line capacity increased from 16.5 million tons per axel to 20.5 tons, which will account to an annual 30 million tons. Additionally, the circulation speed doubled to 60 km/h.
CUSTOMS AND BROKERAGE
- US Customs and Border Protection (CBP) has determined that the disposable gloves made by YTY Group’s are no longer produced using forced labor. Effective February 8, such goods will no longer be detained at US ports of entry.
- Section 301 tariff exclusions for certain products classified as medical care products are now extended through May 15 and may be extended for up to another 6 months based on comments received by the United States Trade Representative (USTR) through March 7.
- The Consumer Product Safety Commission (CPSC) is publishing standards for consumer products containing button cell or coin batteries. The new requirements address the ingestion hazard of the batteries for children 6 years old and under.
- Effective March 18, 2023, there will be a new requirement from US Customs and Border Protection (CBP) requiring postal codes on all shipments from Mainland China to the US. The Uyghur Forced Labor Prevention Act (UFLPA) Region Alert enhancement will notify importers of goods that may have been produced in the Xinjiang Uyghur Autonomous Region and could therefore be excluded from importation into the United States.
This document is for informational purposes only. It does not constitute legal advice. Information herein was obtained from government, industry, and other public sources. It has not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to the recipient's specific circumstances.
