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Aperture & Focus 2024: Week 40
Oct. 2, 2024
Aperture & Focus
Global Aperture
At the 2024 World Safety and Operations Conference on October 1st, the International Air Transport Association (IATA) emphasized the importance of strengthening global safety standards, enhancing safety culture, and leveraging data analytics to address increasing operational challenges. Efforts include transitioning to risk-based audits for airlines, fostering collaboration through platforms like IATA Connect, and using data-driven insights to manage risks like GPS signal loss.
Global ocean schedule reliability in 2024 remained stable, with a slight month-over-month improvement in August 2024. Delays improved from six days in January to around five days in August. However, the strike at U.S. East and Gulf Coast ports, which began on October 1st, has already caused over 34 vessels to adjust their routes and skip scheduled stops to bypass U.S. ports prior to the strike.
Regional Focus
Americas
United States: While global air cargo demand growth slowed to 9% year-on-year in September, down from the double-digit increases of the previous 10 months, demand in the USA remains strong due to e-commerce and shifts from ocean freight to air freight driven by the U.S. East Coast and Gulf ports strike and the Golden Week holiday in China. Ongoing US port strikes are expected to increase the pressure on air freight demand during the month of October, especially as the peak holiday season approaches. The continued growth of e-commerce and demand for high-value goods, such as technology and pharmaceuticals, further drives air freight demand monthly.
The Port of Long Beach has fully reopened Ocean Boulevard and the Vincent Thomas Bridge after a battery fire incident on September 27th led to temporary closures. Two nearby container terminals were shut down for the day shift but are no longer impacted by the event.
Hurricane Helene made landfall across the southeastern U.S. on the night of September 26th, causing widespread devastation, especially in North Carolina. Many of the Florida ports that were in the storm’s path such as Jacksonville, Tampa Bay, Canaveral, and Fernandina had damage assessments cleared by the Coast Guard and reopened on September 29th.
Canada: A three-day strike by dockworkers at the Port of Montreal began on September 30th and is set to last until October 3rd. The work stoppage, over contract negotiations between the Montreal Longshoremen's Union and the Maritime Employers Association (MEA). affects the Viau and Maisonneuve Termont terminals, which manage over 40% of the port’s container traffic.
Asia-Pacific
China: Hong Kong Air Cargo Terminals Limited (Hactl) has launched its new Terminal Services Center (Export) (TSCE) at Hong Kong International Airport (HKG), featuring advanced digital tools to improve cargo handling and document management. The new system allows freight agents to submit export documents online, eliminating paper forms, reducing manual work, and providing real-time updates on cargo and documentation status.
Japan: Container throughput at Japan's six major ports reached 1.17 million TEUs in July, marking four months of consecutive increases. While most ports, including Tokyo, Yokohama, Nagoya, Osaka, and Kobe, showed positive trends in both exports and imports, Kawasaki experienced a notable decline, with throughput dropping 16.3% after a period of growth.
Taiwan: Typhoon Krathon will make landfall on Taiwan’s southwest coast on October 2nd. As a result, several airlines have canceled or rescheduled flights to Taiwan Taoyuan International Airport (TPE). Kaohsiung International Airport (KHH) and Port of Kaohsiung are closed October 1st through October 2nd.
Europe, Middle East & Africa
The European Union issued an official recommendation on September 28th advising against flying in Lebanese and Israeli airspace until October 31st. Major European airlines have extended their suspension of flights to the Middle East, with some postponing their Tel Aviv flights until the end of the year. Many have also adjusted flight paths to avoid Iranian, Iraqi, and Jordanian airspace, reflecting the heightened risks following recent military actions in the region.
Belgium: On October 1st, Brussels Airport (BRU) canceled all passenger departing flights due to nationwide strike by security personnel and airport workers for improved wages and working conditions. The protest is being led by European trade union federations UNI Europa and Effat. It remains unclear when the strike will conclude, however the airport has assured the public that cargo operations should be relatively unaffected by the strike.
Spain: The Port of Barcelona has achieved its first emission-free port call, allowing a container ship to operate on 100% renewable energy during its three-day docked stay thanks to the new Onshore Power Supply (OPS) system at Hutchison Ports BEST terminal. This innovative system adapts to the varying energy requirements of different ships and contributes to the decarbonization efforts of port activities.