December 23, 2020
Read the latest on Operations and Carrier updates. For questions, comments, or assistance, please contact us.
We understand there have been many impacts this year on the air, ocean, and ground freight markets. At Crane Worldwide Logistics, we strive to provide our clients with the best service and communicate the most current information impacting the market. To see our previous updates, please visit our COVID-19 resource center on our website.
We have warehouse space available, ground transportation options globally, book air charters, and fill space on ocean carriers.
Week 52 (December 20 - 26)
In the UK, a new variant of the Coronavirus has been detected. Over fifty countries closed their borders to UK passenger traffic in response. The Dover-Calais crossing and Eurotunnel have recently re-opened, but there are significant backlogs and supply chain disruptions.
- Container shortage for the year leads to 1.1% container availability down to 40 million TEU. 2.7 million TEU expected to be manufactured in 2020. Hapag said they added 8% through purchase or lease of 250,000 TEUs. Maersk and CMA-CGM added 9-10%.
- Concerns for bids next year will not be just rates, but also service. Ocean carriers are 50% on-time for November, which is an all-time low since it was monitored from 2011, while in November 2019, it was 80%.
- CMA-CGM was thought to be refusing bookings for Asia to Europe, but they will be adding 10% more in January as they receive 3 more 23,000 TEU vessels. 26,000 TEU vessels are currently the largest vessels in the world.
Ocean Port Operations Status
- Prince Rupert and Vancouver: Vessel wait time is 4-5 days, Port delays are an additional 3-5 days.
- All US terminals closed Friday 12/25 for the Christmas holiday.
- Los Angeles/Long Beach:
- Thu 12/24 – Everport, LBCT, and FMS 2nd shift closed. Pier J and YTI all day closed.
- The vessel wait time is 5+ days.
- IPI On Dock Rail, delayed 14+ days, we have seen Cosco estimate rail movement in last week of January for vessels discharging last week.
- Major Chassis shortages, delaying MLB/Doors, average LALB MLB dwell is 5+ days, some stragglers aging to 10+ days.
- Due to recent stay-at-home-orders for the LALB area, delays for vessels, rail, and trucking are expected to increase significantly over the next 2 weeks.
- Virginia: New crane delivery and expected to be operations week 1, 2021. The impact is lost berth space November 2, 2020 – January 5, 2021.
- New York/New Jersey: Vessel wait time is 4-5 days.
Commercial Air Operations Update
IATA released an information page listing airlines' status globally, which is free for all to access. Visit the page here.
Charter Operations and Aircraft Availability
What charters do Crane Worldwide Logistics have available?
- Capacity is available for charters globally. Contact us for current rates and availability.
- If you have an opportunity, send us the details, and we can work on the current part charter capacity and pricing. Charter prices are based on current availability, and that could change rapidly. Size and rates have been fluctuating a lot over the past few days.
- Crane Worldwide Logistics must have a signed charter authorization from our client before signing the charter contract with the provider. Make sure you have someone standing by to sign agreements; capacity and rates change quickly.
- On all charters, funds must be received from our client before wheels up.
Air Freight Update
- COVID-19 - This week, another strain of the virus was discovered in the United Kingdom and Ireland, which caused countries in Europe, including the Netherland / Germany / Italy and South Africa/Hong Kong/India and Saudia Arabia, block all flights from both countries. The list continues to grow. This will have a major effect not only on flights but on cross-border trucking also.
- British Airways - Cargo workers at British Airways (BA), have voted in favor of strike action over changes to pay and conditions. The cargo handler members of union Unite voted 98% in favor of taking strike action over nine days, starting on Christmas day and finishing on January 2. The union represents the region of 850 members in BA’s cargo handling business. United claimed that workers face pay cuts of between 20-25% as well as changes to their terms and conditions. Unite assistant general secretary Howard Beckett said: “Our members are taking this action as a last resort. They are aware that it will cause severe disruption to air freight entering the UK, but they simply can’t afford to lose a quarter of their pay. “Even at this late stage, British Airways’ new chief executive Sean Doyle can do the right thing and avoid this strike action. “An IAG Cargo spokesperson said: “IAG Cargo is transporting critical supplies around the world, and like all airlines, has been struck financially by the crisis. Our offer would see almost half of cargo workers’ salaries rise, with no one else taking more than a 10% pay cut. We want to resolve this and urge the union to get back around the table. “The strike action could potentially come at a time when UK supply chains are under extra pressure as a result of the country leaving the European Union.
- Delta Air France/KLM - This is an exciting week as COVID-19 vaccines begin distribution – and on Tuesday night, the Delta team successfully transported two of these shipments across the country to San Francisco and Atlanta. The safe, secure, reliable, and efficient transportation of Pharma products is a key priority for Delta, and our long-proven expertise was critical to delivering life-saving vaccines this week. In addition to test shipments that commenced in early fall, these shipments prove Delta’s readiness to help support this monumental effort and distribute vaccines across the globe. In addition to robust domestic shipment capabilities to support rapid distribution within the U.S., Delta has a broad and nimble global distribution function in coordination with Air France KLM Martinair Cargo and Virgin Atlantic Cargo that enables end-to-end compliance and assurance for customers across our broad network. Our team and our entire company are ready to assist with the logistics and distribution of the vaccine! Proven Success - Delta Cargo teams have successfully completed COVID-19 vaccine shipments with flawless delivery Delta was recognized with the “Decade of Excellence” Award by Flight Global as the world’s best-performing airline of the past 10 years, as well as the top North American airline Speed – Delta’s extensive domestic & global network allows our team to access shipments immediately and transport within just a couple hours Please reach out and let me know how we can help you during this critical time.
- International Airlines Group - (IAG) (IAG) reportedly reached an agreement to buy Air Europa for €500 million ($612.5 million), with payment to be postponed until 2026. According to the Spanish newspaper El Confidential, the unnamed sources reported that the IAG has agreed to a deal to buy Spanish carrier Air Europa for €500 million on December 18, 2020. In November 2019, IAG initially agreed to buy Air Europa for €1 billion ($1.2 billion). However, due to the economic downturn caused by the COVID-19 pandemic, British Airways parent company IAG has been pushing to reduce the price. In October 2020, the International Airline Group Luis Gallego CEO said the group was still interested in buying Air Europa. “For sure, if possible, we would like to do this deal,” Gallego said. “We are waiting to see the package and the conditions attached, and at that moment, we will continue the negotiation. “The purchase of Air Europa would further expand the IAG network, as the group already controls a significant part of the Spanish airline market, owning Iberia and Vueling airlines.
Ground Transportation Operations
- The trucking industry will face continuing uncertainty in 2021. Based on changing consumer patterns and a stalled industrial recovery, freight networks have shifted through 2020. It will most likely last past this pandemic and into the economic recovery for those patterns to stabilize. Demand continues to outpace supply as carriers work on filling seats and adapting their networks to this shift. Demand for drivers is causing higher levels of turnover and forcing carriers to raise driver pay to stay competitive.
- Tender volumes dropped 5% last week from the previous week but are still up 42% over last year. However, tender rejections rose slightly week over week to 26.75% and are well above the same week in 2019. Rates remain well above 2019 levels as well.
- Parcel companies have limited capacity and imposed surcharges, which have caused a shift into other modes, causing strains on the USPS and LTL networks. E-commerce demand has grown exponentially and exhausted all available last-mile delivery capacity.
- Intermodal containers and trailers—at 308,016—saw an 11.1% annual increase, topping the weeks ending December 5 and November 28, at 297,217 and 246,504, respectively.
- The national average price of gasoline also surged significantly, by 6.6 cents to $2.224 a gallon, only 30.8 cents cheaper than a year ago.
Global Border Crossing Status and restrictions
- Facilitated by the United Nations Economic Commission for Europe, read more here.
- Sixfold have a free application that maps out European borders with live information on crossing times. Read more here.
Week 51 (December 13 - 19)
- Los Angeles and Long Beach set records for US imports from Asia in August and again in October.
- Vessel delays in USWC ports are increasing. Berthing is delayed up to a week in some cases.
- Southeast US ports are seeing an increase in volume.
- Chassis shortage is expected in USEC ports.
- For US export, there is a shortage of space and equipment in several inland locations.
ONE APUS Update
- The vessel safely berthed in Kobe, Japan, and is under operation.
- The process for assessment for damaged and lost containers may take up to a month.
- The container vessel on 30th November 2020 lost 1,816 containers during severe weather. Included in the lost containers they had 64 hazmat containers, with 54 of them containing fireworks, 8 with batteries, and 2 with liquid ethanol.
Air Freight Update
- Air France KLM Martinair Cargo (AFKLMP) - Has launched a sustainable aviation fuel (SAF) program that allows customers to select how much of their freight they would like to be flown using SAF. The “world’s first” SAF program for airfreight allows shippers and forwarders to determine a percentage of their shipments that they would like to be flown using alternative fuels. “When investing in SAF, our customers receive a third-party audited report, justifying the purchased volume of SAF in relation to traffic and indicating the reduction in CO₂ emissions achieved,” the cargo division said. “By participating in the cargo SAF program, our customers not only reduce the carbon footprint but confirm their commitment to leading the industry towards a more sustainable future. Only with the support of all industry stakeholders can we successfully develop a more viable market for SAF.”AFKLMP said that it set up the program to help stimulate demand for SAF as it is not yet widely available.
- Air New Zealand - will expand its international air cargo operations following the launch of the second phase of a government supply chain support scheme. The airline will operate around 55 international flights per week after the government announced phase two of the International Air Freight Capacity (IAFC) Scheme that aims to maintain air cargo supply chain connectivity in light of reduced passenger operations. Air New Zealand general manager cargo Anna Palairet says this is great news for the airline and for importers and exporters wanting to get their product to key markets around the world. “It’s great to see the extension of the IAFC scheme as it provides much-needed support and stability to New Zealand importers and exporters,” she said. “Our flying schedule remains largely the same, and it’s exciting to see new services to Guangzhou and Perth, as well as some enhancements to the ongoing schedule to improve the connectivity for South Island Exporters. With the festive season just around the corner, these additional flights will be instrumental in helping New Zealand exporters get their produce on holiday tables around the world. We’ll be sending more than 1000 tons of lamb up to the UK in time for Christmas and more than 3,500 tons of stone fruit around the globe with a majority moving into China for the Chinese New Year".
- Cathay Pacific - Expat pilots are finding difficulty in obtaining and renewing Hong Kong work permits after the airline suffered a great economic downturn reaching 5,300 staff layoffs earlier in October 2020. After large layoffs, permanent cuts in pay, and changes in staff contracts, Cathay Pacific ex-pat pilots are reportedly experiencing problems to obtain and renew work visas, as foreign pilots’ employment is under “great scrutiny” by the Hong Kong immigration authorities. According to the South China Morning Post, the work permits are being issued under stricter criteria; for instance, they are allegedly being given for three months instead of two years. According to the Hong Kong Immigration Department, the foreign nationals can be accepted for work under the General Employment Policy (GEP), which includes criteria such as the first degree in a relevant field, good technical skills, confirmed offer of employment, and work experience that cannot be readily taken up by the local workforce. “In general, applications for extension of stay for persons admitted into Hong Kong for employment under the GEP will be considered if the applicant continues to meet the relevant eligibility criteria,” the spokesperson of the Immigration Department commented.
- United Airlines - Targets to reach an ambitious goal to cut its greenhouse gas emissions by 100% by the end of 2050. The airline pledged to become a 100% green air operator. On December 10, 2020, United Airlines released its Commitment to the Environment, following which the airline pledged to become carbon-neutral by 2050. The American air carrier aimed to become the first airline in the world to involve Sustainable Aviation Fuel (SAF) in its regular operations by implementing test programs and demonstrations into daily flights with a low-carbon fuel. United Airlines also outlined its desire to reduce fuel consumption by an additional 2% in comparison to standard aircraft winglets while flying with Boeing Split Scimitar winglets. As the airline claims in its statement, it already has 400 aircraft equipped with these winglets in the fleet.
- Virgin Atlantic - In an effort to survive one of the toughest winters in aviation history, Virgin Atlantic Airways made a deal to sell two of its newest aircraft. Virgin Atlantic is trying to raise up to £70 million by selling and leasing back its two Boeing 787 Dreamliners, reported Sky News. The deal was made with the aircraft lessor Griffin Global Asset Management, in partnership with the private U.S. investment firm Bain Capital. The sale-and-leaseback proceeds could also be used to pay for some of the debt after the airline's recapitalization completed in September 2020. “This financing opportunity, regarding two of our 787s, allows us to pay down debt and improve our cash position going into 2021,” said a Virgin Atlantic spokesperson. “Passenger and cargo flying continued throughout November, and following our Black Friday sale, we have seen encouraging demand for travel at Christmas, Easter, and Summer next year. “Virgin Atlantic, as an all-widebody airline, has been hit hard by closed borders and international flight restrictions. Around 3000 jobs were cut in the early stages of the pandemic, and a further 1,150 jobs were cut in September 2020. In August 2020, the carrier concluded a rescue deal worth up to £1.2 billion with Richard Branson's Virgin Group injecting £200 million, as well as £400 million of shareholder deferrals and waivers. The company hopes that the deal will help to secure Virgin Atlantic’s future for at least 18 months and save 6,500 jobs at the airline. The company aimed to cut as much as £280 million in costs, as it has retired older aircraft, including seven Boeing 747s. Since the beginning of the pandemic, Virgin Atlantic has been encouraged by its cargo division results. In November 2020, Virgin Atlantic Cargo launched a pharma service in preparation to distribute the COVID-19 vaccine throughout its network worldwide. In a most recent development, Virgin Atlantic Cargo started cargo flights between the UK and Pakistan on December 7, 2020. The flights will be supporting the growing trade volumes between exporters and importers in both countries.
Ground Transportation Operations
- December volume in truckload continues to be at peak levels and is anticipated to continue into Q1 2021. Pressure on capacity is all points in surface transportation, from the port of entry to the final mile. This continues to result in higher rates across the board. For 2021, FTR forecasts an increase in truck loadings of about 5% and an increase in rates of about 8%. While surging spot rates are largely responsible for higher rates in 2020, contract rates should lead the way in 2021 with a gain of around 10% across all segments.
- According to the Journal of Commerce, “US shippers are experiencing supply-chain problems across modes, including in the less-than-truckload (LTL) sector, where extended transit times, missed pickups and deliveries, and lack of capacity continue to disrupt shipping amid the resurgent COVID-19 pandemic. The ongoing surge in US imports and the worsening pandemic are combining to create shortages in all types of freight capacity just as pre-holiday demand nears its peak. COVID-19-related supply chain disruption never went away and likely will rise again as the number of COVID-19 cases and deaths climbs and state and local lockdowns reemerge. Just as ocean carriers have rolled shipments at Asian ports, LTL carriers have rolled pickups at American docks, shippers and 3PLs said. “Availability of equipment is a major issue for all carriers.”
- Ocean carriers continue to see an imbalance of equipment, a shortage of equipment at Asian ports, and bottlenecks of congestion in Southern California and NY/NJ. November saw an increase of 25.2% on import containers through the Port of Los Angeles. The port has shown growth in activity for four consecutive months, August through November. Import activity at this level is unusual this late in the year.
- Rail volumes increased 2.4% year over year, driven by intermodal volume up 7% year over year.
Week 50 (December 06 - 12)
On Monday, 30th November 2020, the container vessel ONE Apus (IMO# 9806079) confirmed several shipping containers were lost overboard during severe weather at 2315LT, approximately 1600NM North West of Hawaii, USA.
The vessel was en route from Yantian, China to Long Beach, USA, when it encountered a storm cell producing gale-force winds and large swells, which caused the ONE Apus to roll heavily, resulting in the containers to dislodge and fall into the ocean. The Master diverted the vessel to ensure the ongoing safety of the crew and ship until conditions eased.
Furthermore, ONE confirmed the contents of the estimated 64 Dangerous Goods containers, which were among 1,816 units lost during the incident. 54 of the DG containers carried fireworks whilst a further 8 held batteries.
On December 08th, Owners of ONE APUS confirmed the ship was safely berthed in the Port of Kobe. The vessel is currently under a full safety inspection. Once the vessel and cargo are declared safe, surveyors from the various stakeholders will make their initial assessments whilst stowage planners and stevedores formulate and implement a plan to ensure the safe removal of the remaining units. A thorough evaluation will then be made on the exact number and type of containers that have been lost or damaged and damage to the vessel.
- Dubai, UAE - Containers are getting delayed more than usual due to transshipment delays. Space constraints, GRI’s are getting implemented in the trade.
- Germany - Container space out of China is critical in Germany. Also, rail and truck capacities are low! Also, vessels out of Germany into China and the US are currently overbooked; the current space bookable is 4 weeks. Currently offering the clients option to book it LCL as co-loaders seems to have space open.
- Italy - Further blank sailings with shortages of space and equipment (all types of 40’) leading to a sharp increase in export rates to all markets, particularly WB export from Europe. Freight rates from the Far East continue to increase significantly, and most vessels are booked for the next few weeks. Premium rates are required to secure any space available. The expectation is that the current market remains at least until the Chinese New Year.
New Silk Road Europe - China
- Please be informed that due to the difficult epidemiological situation in the world and for preventing the spread of coronavirus in PR China, all arriving in China containers and cargoes are 100% sanitized now at Alashankou and Khorgos border stations, which causes longer time in the handling of EB container block trains and decreases the daily amount of train transferring opportunities at Dostyk – Alashankou, and Altynkol – Khorgos borders.
- Windy Weather in Dostyk: Be informed that from the beginning of November 2020 has happened a difficult situation with WB and EB containers' handling, block trains transported through Alashankou/Dostyk border stations caused by adverse weather conditions – seasonal gale.
Air Freight Update
- Dubai - All bookings are subject to availability of space & capacity. DG shipments acceptance is subject to all required approvals from the Carrier and GHA. Shipments are offloaded at transit hubs and booked on the next available Flights as a priority are provided for Humanitarian Aids.
- Netherlands - Market demand for capacity access is continuously increasing throughout the current peak season. Access to capacity is becoming critical as overall demand for international long-haul passenger flights remains low and freighter utilization reaching the highest levels throughout 2020 to compensate for the shortfall of belly capacity. The imbalance of supply and demand is leading to further rate adjustments in the airfreight market. Transit times are expected to increase due to extended handling times at airport terminals and ground handling facilities.
- Italy - Continuous growth of air rates from China to Italy / Europe due to lack of space for the "normal" pre-Christmas seasonal traffic of Iphone12 etc. and the unexpected demand for PPE from European countries. Malpensa airport under great pressure due to staff shortages in airport warehouses (integration fund, reductions) and customs (smart working) and infections. Release of import shipments delayed by congestion due to unexpected volumes and staff shortages. Lack of space out of Italy and out of Europe to North and South America. Numerous passenger flight cancellations affecting cargo capacity. Rates dramatically increasing, especially for freighter service. Confirmed lack of space in Oceania. Space in the Middle East is critical.
- Germany - North America air freight rates continue to increase based on short term capacity availability – flights into the US are fully booked for the next 1 to 2 weeks.
- Volga-Dnepr Airlines - Antonov Airlines’ huge AN-255 has been brought back into commercial operation as the market struggles with a lack of capacity for oversized goods following Volga-Dnepr’s recent decision to ground the AN-124 fleet. The AN-225, known as Mriya, had already been busy this year with humanitarian cargo, but with more than 50% of the operational global fleet of AN-124s on the ground, it is to fly again with its 250-ton payload. “There is a surge in demand for AN-124 aircraft, and therefore, Antonov Airlines is doing its best to help customers in this difficult situation and support them worldwide, providing the required airlift capability,” said Andriy Blagovisniy, commercial director.
- Emirates - Announced that it expects more than 200,000 passengers to travel through Dubai International Airport (DXB) during the Christmas holiday period. The airline anticipated the higher passenger demand as residents and citizens of the United Arab Emirates (UAE) head home or abroad, showed the Emirates’ latest booking figures. In a statement released on December 8, 2020, Emirates expects that during the period between December 8 and December 21, 2020, more than 200,000 passengers would arrive at DXB airport on the carrier’s flights. The airline indicated that booking figures showed that the highest passenger traffic was expected to appear on December 11, 2020.
- Air France KLM Martinair Cargo (AFKLMP) - Has launched a sustainable aviation fuel (SAF) program that allows customers to select how much of their freight they would like to be flown using SAF. The “world’s first” SAF program for airfreight allows shippers and forwarders to determine a percentage of their shipments that they would like to be flown using alternative fuels. “When investing in SAF, our customers receive a third-party audited report, justifying the purchased volume of SAF in relation to traffic and indicating the reduction in CO₂ emissions achieved,” the cargo division said.
Ground Transportation Operations
- Demand continues to outpace supply. Last week saw a sharp uptick in Tender Volume, rising 5.5%. Tender rejects remain above 25%, with Temperature control leading all equipment types with a rejection rate at 45.19%. Shippers are being forced into the spot market at a much higher rate than in past years.
- The Trucking industry saw 9,600 additional jobs added last month. This was similar to the increase in August and well above September, which saw only 4,600 additional hires. Overall, the industry is still down over 63,600 jobs compared to February of this year. The industry is still being impacted by the pipeline of new entrants to the industry and an increase in retirements. Local driving and Parcel companies are growing their driver fleets faster than over the road, as competition for drivers remains fierce. This trend is anticipated to carry forward into 2021.
- November saw dealers place 52,000 orders for Class 8 tractors, very close to the record number of orders from August 2018 at 53,000 orders.
- Intermodal rates continue to rise, with rates up 75% in week 49 2020 compared to week 49 of 2019.
Week 49 (November 29 - December 05)
- Dubai, UAE - Space availability is limited. LCL consolidations are lacking volume. Consolidators, therefore, are sending to Singapore for further consolidations resulting in delays.
- Germany - Severe container space shortage out of China into Germany, Rail, and Truck capacity from China into Europe is limited. Vessels out of Germany into China and the US are currently overbooked. The current space, bookable, is 4 weeks.
- Italy - Following the "blank sailings" program, shipping lines have confirmed increases for December 2020, in the form of PSS, GRI, EIS. Current equipment shortages have created price increases—no easing of rates expected until the end of peak season in Q1 2021z.
New Silk Road Europe - China
- Space allocation for 14x40ft. HC with a departure on 14th of December from Chengdu to Duisburg available.
- Expected congestion will continue until the end of Q1, 2021, with rate levels changing every other week.
- New Link opened between Mukran and Xi’An.
Air Freight Update
- Major backlogs for retrieving import shipments some as much as to 4-5 days, some more being reported in both LAX and ORD due to a lack of staffing due to COVID-19.
- Dubai - Space constraints are currently being experienced to IAH, GRU, LAD, CAI, ABZ, LHR, SVG, MAA. Rates are expensive, and space is limited. Shipments are offloaded at transit hubs and booked on the next available flights due to space constraints.
- Due to upcoming holidays from 1st Dec to 5th Dec, there is a rush at Export acceptance & challenges to get the slot at Dnata.
- Germany - North America air freight rates continue to increase based on short term capacity availabilities.
- United Kingdom - U.K. to U.S. lanes are still heavily congested – bookings up to 7 days in advance.
- Terminal handling constraints and delays at major U.K. LHR handlers – queues for several hours.
- Italy - Continued air rate increases from the Far East to Italy / Europe due to lack of space for the "normal" pre-Christmas seasonal traffic and the unexpected demand for PPE from European countries. Malpensa airport under great pressure due to staff shortages in airport warehouses (integration fund, reductions), customs (smart working), and infections, leading to delays in releasing import shipments.
- Air China/China Southern & Eastern - The following airlines have canceled flights into LAX Dec 1 through Dec 10. Airline name MU, China Eastern CA, Air China, CargoCZ, China Southern.
- Air France KLM Martinair Cargo (AFKLMP) - Has signed up to re-introduce SkyCell’s hybrid pharma containers as the industry continues to prepare for a Covid-19 vaccine. SkyCell said its solutions can secure products within a temperature range of 2-8°C and 15 – 25°C and now -70°C, which meets the requirements of Covid-19 vaccines being prepared for launch. Enrica Calonghi, global head pharmaceutical logistics Air France KLM Martinair Cargo, said: “Shipping pharma and healthcare products is a core activity for AFKLMP Cargo. Partnerships, such as those with our container suppliers, play a crucial role in the entire chain, especially when it comes to guaranteeing the necessary quality, reliability, and connectivity. “Together, we are ready to play a key role in the distribution of Covid-19 vaccines, thereby helping to ensure that as many people as possible around the globe will have access to vaccines in these challenging times.”
- Qantas – Australia national airlines will start mandating passengers that to fly, you must have taken and show proof that you had the covid-19 vaccine. This will go into effect once the vaccine is made available.
- Volga-Dnepr Airlines - Volga-Dnepr Airlines has confirmed the temporary suspension of its An-124-100 freighter aircraft, effective from November 25. The carrier’s An-124-100 fleet will remain suspended until an investigation by the Federal Agency for Air Transport, which seeks to identify the cause of an “aviation incident” on November 13, is complete. At Tolmachevo Airport in Novosibirsk, Russia, the incident resulted in an An-124-100 having to make an emergency landing. No-one on board the flight were hurt. The An-124 flight was a charter from Seoul, South Korea, to Vienna, Austria, with a tech stop in Novosibirsk.
- Trucking is still seeing demand outpacing supply. The increase in spot market rates is impacting contract rates and pushing them higher. Some industry analysts are predicting rates to push 10% higher into 2021. Outbound tender volumes dropped last week due to the holiday.
- Tender rejects spiked back up last week, surpassing 28%. The driver shortage continues to impact the industry. Equipment shortages network out of balance and changing freight patterns impact driver utilization, contributing to the tight supply. Not only is there a year-over-year shortfall in trucking employment numbers — the first in more than a decade — but the number of truck drivers at smaller fleets dropped very sharply, just as freight demand rose, US data shows. The number of truck drivers at carriers with up to 100 trucks fell by more than 150,000 from July to October, tightening already scarce capacity, according to an analysis of Federal Motor Carrier Safety Administration (FMCSA) data by third-party logistics (3PL) provider Tucker Company Worldwide and shipper risk management firm Qualified Carriers.
- Constraints placed on many shippers by parcel companies are causing a shift into other domestic networks. Final mile companies and LTL companies are seeing this surge in demand due to the retail peak.
- Although rail carloads decreased 7.2% last week from the same week in 2019, Intermodal activity was up 11.5% year over year at 301,129 units. That number was also higher than the two previous weeks.
- Diesel Climbs 4¢ to $2.502 Amid Stronger Demand. The U.S. Energy Information Administration reported Nov. 30 in its weekly survey that trucking’s main fuel increased 4 cents nationwide and now costs $2.502. It’s the first time since April that diesel's price has been above $2.50 a gallon.
- The price has risen each week in November. Even with the rise, diesel is 56.8 cents less expensive than it was a year ago.
- UK Trucking is limited due to lockdown measures. Dwell time can be expected from container arrival to delivery, approx. 2-3 days longer than usual.