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Aperture & Focus 2022: Week 29
Jul. 29, 2022
Aperture & Focus
Global Aperture
Slack season for the global air cargo market translates to relative cargo stability in the form of nominal declines in cargo throughput, according to recent data reports by WorldACD analysts.
A new industry watchdog reports that without efficiency modifications, more than 75% of operating vessels will not meet decarbonization targets established by the IMO’s Marine Environment Protection Committee (MEPC) for the coming year. Barring the acquisition of eco-friendly ships, scrubber technology upgrades, and climate-neutral engine conversions, some operators may be forced to comply with new emissions goals by slow steaming—a strategy that would lengthen transit times and exacerbate downstream performance.
Global electronics manufacturers see chip shortages easing as production output rises against falling demand. This trend may become more pronounced in the future following the passage of the US CHIPS Act on July 27, which will subsidize domestic semiconductor production.
Regional Focus
Americas
Major airports in the US have adjusted to the transport industry’s “new normal,” with the notable exceptions of Atlanta’s Hartsfield-Jackson and New York’s JFK Airport. California’s Port of Oakland fully resumed operations on July 25 following a five-day trucking protest related to state contract labor laws. The sea freight market can also breathe a sigh of relief as port labor negotiations for U.S. West Coast see progress, according to a joint statement issued July 26.
In Canada, United Truckers Association (UTA) members will meet July 31 to vote on the strike action as early as August 1 in response to Vancouver Fraser Port Authority’s Rolling Truck Age Program.
Recent amendments made to the 2011 Air Transport Agreement between Colombia and the US will reciprocally provide seventh-freedom all-cargo rights, marking their 200th anniversary of diplomatic relations with mutual expansion of international air transit networks.
Asia-Pacific
Beijing quietly resumes international air travel on July 27 as several carriers—including —announce flight services to Korea, Japan, Russia, and UAE destinations. Rising Covid-19 transmissions have pushed Shenzhen authorities to reduce daily cross-border cargo traffic with Hong Kong by 2,000 trucks from July 25 until further notice. Furthermore, drivers must procure negative test results within 24 hours—the added scrutiny may draw demand toward waterway feeder services through the weeks.
Major carriers—including CMA CGM, MSC, and Hapag-Lloyd—will levy surcharges on overweight Indian exports to US and Canada, which have become more common due to an acute shortage of empty containers in South Asia. Preceded by the ongoing economic crisis in Sri Lanka, the equipment deficit may thin out further as a $6 billion IMF bailout shrinks the value of Pakistan’s rupee.
Both countries also suffer from declines in oil imports, which also threaten to slow transport operations. In response, Maersk introduces an inland service route between India and Bangladesh to fill unmet shipper demands.
Europe, Middle East & Africa
Cross-border traffic congestion eased on July 24 at the Port of Dover following a 'critical incident' announced two days prior that left trucks queued for up to six hours. However, France-bound traffic via the Eurotunnel continues to experience disruption that began over the weekend.
Dockworkers at Port Felixstowe voted on July 28 overwhelmingly in favor of strike action in August, joining the UK’s rail and telecom industries in the country’s ongoing labor movement—specific dates have not been announced.
More unionized airport staff in Germany launched a daylong strike on July 27, forcing airline cancellations of more than 1,000 passenger and cargo flights throughout the country—airports affected include Frankfurt, Munich, Düsseldorf, Dortmund, and Hanover-Langenhagen.
Excessive port delays on July 28 have led exporters to bypass UAE’s Port of Fujairah after cargo operations were suspended due to strong winds and flooding.