According to the UPS’ weekly freight and logistics news and market update report on May 25, 2023:
- Strikes are planned across European airports throughout May and June.
- Neste increases investment in sustainable air fuel with expanded Singapore refinery.
- Singapore Airlines and Qantas Airlines are increasing routing and capacity throughout Australia.
- Air Canada Cargo launches new freighter routes to Punta Cana and Costa Rica.
- New port calls to expand carrier's port rotations and increase connectivity in the Middle East.
- A federal judge has ruled against American Airlines and JetBlue’s “Northeast Alliance” citing the partnership as anticompetitive. The ruling supports antitrust groups insistence that the alliance could lead to increased fares for customers as competition is diminished. The airlines have not made any decisions on how to move forward but are evaluating their options.
- CMA CGM has suspended its service to US destinations. The company is concentrating on European, APAC and Middle Eastern hubs as they try to dial in the best routing options for their fleet.
- A total of 688,000 TEUs were handled at Port of Los Angeles in April, which represents a significant 22% decrease over April of last year, the port’s second busiest month ever recorded.
- The Port of Oakland is focusing on developing a nearby 50-acre site for cargo support operations. In addition to the new warehousing and intermodal facilities, the Port will also begin enlarging the port to ease the operation of larger vessels calling at the Port of Oakland.
- Recent data released this week encouraged S&P Global Market Intelligence to revise up its forecast of second-quarter growth of real GDP by 0.3%, to 0.2%. Core retail sales, which excludes sales of vehicles, were firmer than originally anticipated in April.
- Air Canada Cargo has added two weekly freighter flights to San Jose, Costa Rica. Air Canada aims to build their passenger and cargo service between the two regions and so increased capacity is expected.
- Hutchison Ports will invest 300 million pesos in the Port of Ensenada terminal to increase its maritime capacity. The large investment will go towards a 300 meter dock expansion and four hectares of yard space, among other port investments.
- Neste’s recent $1.7 billion expansion has made their refinery the largest renewable diesel and SAF (Sustainable Air Fuel) producer globally. Currently the plant is able to create 1 million tons of SAF per year. Demand for renewable fuel has been growing in recent years as governments, particularly in Europe, have been pushing for lower carbon footprints and a more sustainable future in the aviation industry.
- Qantas and Singapore Airlines have increased their commitment to additional capacity and routing into and out of Australia. Qantas has promised to add one million additional international seats over the next year while Singapore Airlines has committed to three daily A380 routes from Changi to Sydney and Melbourne. In addition, major Chinese carriers are re-establishing services to Australia while US and other APAC carriers are increasing the frequency of their flights to the country.
- In its third edition, the CPPI (Container Port Performance Index) has rated the Yangshan Port in China as the top performer considering the port’s significant year-over-year performance improvement, despite having faced typhoons and other disrupting factors last year.
- MSC (Mediterranean Shipping Company) has decided to include Jeddah, in Saudi Arabia as one of its Dragon Service ports of call, in a move that will enable them to offer direct calls at the city of Naples, in the south of Italy. The service operates weekly and utilizes an average of twelve vessels, each with a capacity of around 15,000 TEUs.
- Strikes planned for this summer in Europe.
- On May 23, the inspectors of the Foreigners and Border Services (SEF) at Lisbon Airport staged a strike with full participation from the workers due to the government's recent approval of a decree-law establishing a transition regime for SEF workers following a restructuring process. The Union of Investigation, Inspection and Borders Inspectors (SIIFF) has planned for the strike to continue throughout the entire month of June at Portuguese airports and border posts.
- The strikes at Humberto Delgado Airport that began on May 22 will also occur from May 27 to 29, June 3 to 5, June 10 to 12, June 17 to 19 and June 24 to 26. Strikes at other airports in Portugal including Porto, Faro and Madeira are scheduled to last 24 hours and will take place on May 29, June 5, June 12, June 19 and June 26.
- Workers at Air Europa airline in Spain have initiated a strike, joining the ongoing labor disputes in protest of the Ministry of Transport's enforcement of a law mandating that 90% of all flights must be operated, irrespective of whether workers are on strike, as well as wage increases.
- Following the floods in northern Italy, several unions, including CGIL, CISL, UIL and UGL, have decided to postpone their planned ground handling strike to June 4. This decision comes in response to issues related to employment contracts for handling staff at Italian airports and the lack of improvement in pay and working conditions over the past six years. Disruptions in cargo handling and the flow of cargo are expected.
- A nationwide, 24-hour general strike is scheduled by the Italian union USB (Unione Sindacati di Base) to protest work contracts and low wages, which will take place on May 26. This will impact bus, tram and metro services. Significant delays and cancellations are expected throughout the day.
- Trade unions have declared a new nationwide day of protests scheduled for June 6 due to President Emmanuel Macron's decision to implement the increase in the legal retirement age from 62 to 64 without a parliamentary vote. Disruptions in supply chains can be expected.
- From May 25 to 26, security staff at Heathrow Airport will be participating in a strike due to a pay dispute. The potential disruption of the walkouts remains unknown; however, delays and disruptions can be expected in cargo flow.
- The Spanish Airline Pilots Union (SEPLA) has announced a new series of strike days for pilots employed by Air Europa, scheduled to occur from May 22 to 26, May 29 to 30 and June 1 to 2, encompassing all the airline's operating bases and workplaces in Spain.
- The French carrier CMA CGM has announced a $100 per container surcharge for shippers moving containers from Turkey to West African ports.
- Hannibal has launched a new railway service in Italy, connecting the HHLA PLT terminal in Trieste with the Contship Italia Group's Rail Hub Milano Melzo. The service will operate as an open rail system for semi-trailers, marine containers and other equipment and it will initially run three times per week, with an expansion plan for daily connections by the end of 2023. The new link is expected to provide greater capacity for Turkey's import/export traffic through the Trieste Terminal and improving the integration of maritime and continental flows.
- A substantial portion of electrified railway tracks in the southern area of the Port of Antwerp-Bruges has been expanded. Previously consisting of ten electrified tracks, Bundle South has now been expanded to a total of 20, out of the 32 railway lines present. This enhancement will increase capacity for electric locomotives, meeting the high demand from industry and rail operators.
INDIA, MIDDLE EAST AND AFRICA
- Beginning in July, Etihad Airlines will resume service of four of their A380’s carrying passengers from Abu Dhabi to London. The new routes will increase belly capacity between the two hubs.
- Starting May 25, after a nearly six year break, Qatar Airlines and Gulf Air will resume operations between Doha and Bahrain. The airlines will operate daily flights between the two nations after restored diplomatic ties.
- French ocean carrier CMA CGM has revised its peak season surcharge (PSS) for shipments from the Indian Subcontinent, Middle East Gulf, Red Sea and Egypt to the United States East Coast and Gulf. The new surcharge will take effect starting June 17 and will remain in place until further notice. CMA CGM has set the updated PSS rates at $800 per TEU, $1,000 per FEU and $1,200 per 45' container, applicable to all container types.
- Hapag-Lloyd has included the Indian Port of Hazira in the Middle East India Africa Express (MIAX) service rotation. The updated rotation is set to begin on June 14, with the vessel Bea Schulte, which has a capacity of 4,616 TEUs.
- Ocean Network Express (ONE) has announced a port rotation change for its AIM weekly service, with the addition of a call at Hazira it aims to offer smooth and improved transport solutions. The new rotation will start with the arrival of the Bea Schulte vessel in Hazira on June 14.
CUSTOMS AND BROKERAGE
- The US-Taiwan Initiative on 21st Century Trade announced an early harvest agreement on May 18. The Office of the United States Trade Representative stated that once this agreement is signed in the coming weeks, the two sides will begin discussions on additional (and generally considered more difficult) issues outlined in the initiative's negotiating mandate. The first agreement will cover Customs, Trade Facilitations as well as other issue and Taiwanese officials have stated that they hope to conclude those talks by the end of the year.
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: Africa,All Products,AlwaysFree,Americas,Australia,English,Europe,ISC,Latin America,Middle EastPublished on May 26, 2023 9:21 AM (GMT+8)
Last Updated on May 26, 2023 9:21 AM (GMT+8)