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AlwaysFree: UPS Freight And Logistics News And Market Update - Week Of March 30, 2023

Author: SSESSMENTS

  • Continued strikes across Europe disrupt cargo flow; Multiple businesses have requested help from the White House to conclude the West Coast port labor talks

According to the UPS’s weekly freight and logistics news and market update report on March 30, 2023:

TOP TAKEAWAYS

  • Industry and business associations believe White House intervention may help push West Coast port labor talks to a conclusion amid continued drawn out negotiations
  • Delta and other major carriers have continued to invest in temperature controlled facilities to address growing needs in the sector
  • Latin American carriers and ports continue to add routes and invest as overall demand stays strong in the region
  • Continued capacity growth weakens the overall US air freight market as demand wanes
  • Continued strikes across Europe disrupt cargo flow across major markets

NORTH AMERICA

Air

  • Delta Air Lines has launched the largest temp-controlled facility at JFK, doubling its existing capacity for pharma and perishable goods to approximately 16,000 square feet. Delta will operate 34 flights out of JFK that will include the top ten pharma markets across Europe, Middle East and Africa.
  • The US Airforwarders Association (AFA) has appointed a senior lobbyist to approach Congress and address the US air cargo infrastucure concerns. They aim to educate Members of Congress about the immediate needs for investment across US airports.
  • Demand is down due to continued capacity growth in freighter routes and passenger aircraft belly space which has caused the market to become oversaturated.

Ocean

  • Multiple business groups sent a letter to the Biden Administration asking for their intervention, as West Coast port labor contract talks have shown little progress since the tentative agreements were reached back in February, fueling uncertainty and fear of a possible strike.
  • The GPA (Georgia Ports Authority) will be installing eight new gantry cranes at the Ocean Terminal of the Port of Savannah, as a part of a renovation project aimed at converting it into an all-container terminal. This will enable the port to accommodate larger vessels and handle up to two million TEUs annually.

LATIN AMERICA

Air

  • Throughout March, LATAM Cargo airlines has solidified its presence in Ecuador by renewing their cargo service and adding a new Boeing 767-300 Converted Freighter which will increase their cargo capacity.
  • Latin America currently has the best international air cargo performance compared to other regions. The region experienced a 4.6% increase in volume in January year-over-year, despite its global share registering as only 3%.
  • Avianca airline has added two new direct routes from Brazil to Columbia in an effort to increase business and tourism between the two countries. Cargo capacity is expected to increase as a result.

Ocean

  • The port in Paraná in Brazil has resumed the shipment of sugar within ocean containers. This service was suspended for the last two years due to the increased ocean freight rates, so this resumption of service indicates a positive recovery for the sector.

Ground

  • Menzies aviation received licenses allowing them to add ground services at the Juan Santamaria International Airport in Costa Rica. This makes them the only airline to provide a full service offering including ground, air cargo and security.

ASIA-PACIFIC

Air

  • Shipping and logistics company, Maersk, announced a new air service between its new cargo hub at Billund Airport in Denmark and Hangzhou, China, in response to an increase in cargo demand between the two regions.

Ocean

  • ZIM has announced it will stop offering its ZEX (eCommerce Xpress) Pacific Southwest service by the end of March. This means that the carrier will no longer be calling the Port of Los Angeles, and will return to its original Pacific Northwest and US East Coast service coverage.

EUROPE

Air

  • Finnair will launch 21 flights per week to five cities in North America in the upcoming summer season: Chicago, Seattle, New York, Los Angeles and Dallas. Cargo flow and bellyhold capacity can be expected to increase among the regions in the upcoming months.
  • Flight disruptions are expected at airports in France as workers have planned industrial strike actions over pay dispute during the week of March 27 – April 2. The Directorate General of Civil Aviation (DGAC) has directed airlines operating in Paris Orly, Bordeaux, Marseille-Provence and Toulouse-Blagnac to reduce flight schedules by 15-30% in the upcoming days in response to the planned strike. Thus, significant disruptions and delays in both passenger and freight traffic is predicted in the following days.
  • France’s Lyon Saint-Exupéry Airport has acquired the IATA CEIV Pharma certification, which will guarantee the handling process for pharmaceutical products and enable the airport to maintain the necessary temperatures in the cool storage units as deemed fit by pharmaceutical laboratories.

Ocean

  • Significant port congestions, disruptions and delays are expected at two ports in France: Le Havre Port and Fos sur Mer Port due to labor strikes. Le Havre Port Dockers plan to stop operations during the week of March 27 to April 2, between noon and 4:00 pm, while Fos sur Mer Port Dockers plan to stop operations from 11:00 am to 3:00 pm.
  • Due to current delays in the Port of Mersin, Turkey, CMA CGM has implemented a new Port Congestion Surcharge (PCS) of $100/TEU for dry containers, from the port to destinations across the world including West & East Mediterranean, North Africa, Morocco and other locations.

Ground

  • Luxembourger intermodal company CFL received 2.3 million euros from the European Commission to fund the renovation of the Bettembourg -Dudelange terminal, which has connections all over Europe. Following the renovations, the cargo handling capacity predicted to increase by 60%.
  • New Katowice-Ostrava line will be constructed between Poland and Czechia, which will not only accommodate passenger trains, but will also have sections available for rail freight services, increasing cargo capacity within the region.
  • The Italian Ministry of Transport announced a project worth 75 million euros to enhance the intermodality of the Alessandria Smistamento rail terminal on the TEN-T Rhine-Alpine Corridor.

INDIA, MIDDLE EAST AND AFRICA

Air

  • Qatar Airways Cargo has signed a three-year cargo and freight handling contract at New York’s JFK Airport with Worldwide Flight Services (WFS) in hopes of extending its global partnership.
  • Air India has launched new flights connecting Ahmedabad, Amritsar, Kochi and Goa to London Gatwick. Additional bellyhold capacity is to be expected.
  • United Arab Emirates’ Etihad Airways launched new direct flights to Kolkata, East India, reaching a total of seven weekly non-stop flights. Cargo flow and increased bellyhold capacity can be expected between the two regions.

Ocean

  • Hapag-Lloyd will launch West Africa 1 (WA 1), a new container service, on May 15, which will connect Tanger Med, Nouakchott, Freetown, Conakry and Monrovia on a fortnightly frequency. Connectivity among African ports will increase in the early and peak summer season.

CUSTOMS AND BROKERAGE

  • Foreign and domestic facilities that manufacture, process, pack or hold food for human or animal consumption in the US are now required to obtain and submit a unique facility identifier (UFI) when submitting registrations. Without a complete registration, the food being imported is subject to being held at the port of entry.

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.

Tags: All Products,AlwaysFree,Americas,English,US

Published on April 6, 2023 12:46 PM (GMT+8)
Last Updated on April 6, 2023 12:46 PM (GMT+8)