Newsletter – June 13, 2023

AIR FREIGHT UPDATES

Virgin Atlantic Cargo is “highly unlikely” to operate freighters again in current market

aircargonews.net
Virgin Atlantic Cargo (VAC) is “highly unlikely” to operate freighters now the air cargo market is in decline following its pandemic peak.
VAC managing director Phil Wardlaw told Air Cargo News that favourable economic conditions that include high demand and rates would have to occur in the market for freighter operations to be a possibility. Read more here.

OCEAN FREIGHT UPDATES

Biden acts to resolve US west coast port disruptions

splash247.com
President Joe Biden has acted, dispatching his labour secretary to California in a bid to thrash out a pay deal between employers and dockworkers amid an escalating ports crisis along the west coast of North America.
Sporadic walk-outs over the past 11 days have damaged productivity at many terminals in the US after unions, exasperated at 13-month long pay negotiations, decided to take action, a situation which has now worsened following news north of the border where members of the the International Longshore and Warehouse Union Canada have voted overwhelmingly to proceed with a 72-hour strike at the ports of Vancouver and Prince Rupert, industrial action which is likely to take place before the end of this month. Growing congestions south of the border, especially at the drought-hit Panama Canal, is also bringing concern to supply chain executives (see map below). Read more here.

FMC takes action to ensure carriers cannot unreasonably turn down business

splash247.com
Emboldened with greater powers since the introduction of the Ocean Shipping Reform Act last year the Federal Maritime Commission (FMC) in Washington DC has unveiled proposed changes in rule making for carriers attempting to turn away cargoes.
During the covid pandemic, carriers were strongly criticised by shippers for their decision to turn away certain business in favour of higher paying shipments, something the FMC has sought to address over the past year. Read more here.

Box lines try surcharges to raise yields as Indian freight rates falter

theloadstar.com
Container carriers serving India-Europe tradelane are looking at how to reduce the impact of rapidly sliding freight rates.
Hapag-Lloyd, for example, a strong player on the tradelane, has announced a heavylift, or container overweight, surcharge for shipments booked from West India (Nhava Sheva/Mundra) to North Europe from next month. Read more here.

GROUND AND RAIL FREIGHT UPDATES

DP World Fraser Surrey 24-Hour Site Shutdown, June 21-22

ciffa.com
BC Hydro will be performing upgrades to equipment on the terminal from 8:00 am on June 21 to 8:00 am on June 22. Through that period, DP World Fraser Surrey will not be in operation.
To avoid congestion, drivers are asked to not arrive ahead of 08:00 on June 22.
If you have any questions, contact your DP World Fraser Surrey contact.

CN Network Update: Wildfires near Edson, Alberta

ciffa.com
CN has resumed operations on the mainline between Edmonton and Jasper.
Note that conditions in the area have yet to stabilize and further delays may be encountered.

CANADA BUSINESS – GOVERNMENT UPDATES

Supply chain fears as labour talks at US and Canadian box ports hit new lows

theloadstar.com
The war of words between Pacific Maritime Association (PMA) and the ILWU dockworkers’ union intensified yesterday after the employers accused the ILWU of “orchestrating disruptive work actions” at US west coast ports.
And in another blow to North American shippers, ILWU workers in Canada agreed last week by a huge majority in favour of strike action this month, if required, to support their new contract negotiations. Read more here (login required).