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Aperture & Focus 2024: Week 31
Global Aperture
Airfreight demand out of Asia-Pacific surged in the month of June according to the latest reports from the Association of Asia Pacific Airlines (AAPA) and the International Air Transport Association (IATA), who reported year-on-year volume growth of 16.4% and 17% respectively, outpacing the global average and reflecting robust growth driven by e-commerce and maritime shipping disruptions. This strong performance is expected to persist throughout 2025, supporting the air cargo sector despite ongoing global economic uncertainties.
Regional Focus
Americas
United States: The U.S. Trade Representative has postponed the start of steep tariff increases on Chinese imports, including a 25% duty on ship-to-shore cranes, now under review with a final decision expected in mid-August. This delay follows significant pushback from port authorities and industry groups, who warn that the tariffs could raise crane costs, harm port efficiency, and strain supply chains.
Canada: Labor disputes affecting Canada’s West Coast ports and major railroads are expected to escalate in August, with a Canadian Industrial Relations Board ruling on the rail issues due by August 9 and hearings on the port labor dispute scheduled from August 6 to 9. These potential strikes, coupled with wildfire-related disruptions, could severely impact trade, prompting calls for measures to prevent future disruptions.
Asia-Pacific
Sri Lanka: The country’s Colombo Port has achieved the highest growth rate in container volumes among major global hubs this year, with a 23.6% increase in the first half of 2024, surpassing the Port of Long Beach. However, capacity constraints and congestion are causing delays and driving transshipment volumes to alternative ports like DP World Cochin, while upcoming regional competition from Vizhinjam Port could impact Colombo's future dominance.
Taiwan: Typhoon Gaemi has caused significant disruption in Taiwan by sinking a cargo vessel and affecting other ships in the region. The storm's hazardous conditions have disrupted maritime operations, complicating search and rescue efforts for missing crew members, and further straining logistics and transportation networks in the area.
Bangladesh: Student protests in Chittagong have caused significant disruptions, leading to a backlog of nearly 40,000 TEUs at the port and substantial demurrage charges for importers. The port's capacity issues and high costs are exacerbating financial losses from factory closures, prompting calls for government intervention to waive charges and ease the burden on businesses.
Europe, Middle East & Africa
United Kingdom: The country’s decision to expand the French border control zone at Dover's Western Docks is expected to reduce peak-time queues when the European Union's new Entry/Exit System (EES) takes effect on October 6th. Shifting passenger processing from the Eastern to the Western Docks alongside incoming enhancements to port infrastructure will minimize traffic disruption that will impact the flow of cargo traffic between the UK and EU.
France: The country will lift the ban on freight transport crossing the English Channel, resuming movement from the United Kingdom under a new EU-wide health protocol. This reopening is critical for maintaining supply chains and preventing disruptions, particularly in the fresh food supply industry, amid the ongoing pandemic and Brexit uncertainties.
Turkey : Turkey is advancing a carbon pricing scheme similar to the EU Emissions Trading System (ETS), aiming to prevent shipowners from avoiding ETS fees by using Turkish ports. This move is expected to close the loophole for avoiding carbon tariffs, potentially impacting Turkey's port traffic gains and aligning its emissions regulations with EU standards as part of its aspiration to join the EU.