January 28, 2021

Read the latest on Operations and Carrier updates. For questions, comments, or assistance, please contact us.

As we welcome 2021, we reflect on the many challenges 2020 presented. At Crane Worldwide Logistics, we are equipped to navigate the changes to best support our clients. We will continue to monitor the situations globally to keep you informed.

To see our previous updates, please visit our COVID-19 Resource Center. For the latest on Brexit, follow this link.

Many countries have entered into lockdown; however, all of our facilities and warehouses are still operational. We have warehouse space available, ground transportation options globally, and book air charters and fill space on ocean carriers.

Week 04 (January 24 - 30)

Ocean Port Operations Status

South China destined bookings have been suspended by CMA-CGM, Hapag-Lloyd, ONE, and OOCL until mid-February due to the local government stopping work to allow workers to quarantine before CNY.

Ports of Houston and New Orleans will proceed with expansion and dredging plans for 2021 due to new services and larger vessels arriving.

• Prince Rupert and Vancouver: Vessel wait time is 4-5 days, Port delays are an additional 3-5 days.
• Seattle: Fri 1/22 – T18 and T30 all day closed.
• Los Angeles/Long Beach:
  • Fri 1/29 – APMT, ETS, ITS, and YTI 2nd shift closed.
    • The vessel wait time is 10+ days. Over fifty vessels waiting to discharge, including over thirty container ships.
    • Two-port workers died last week and over seven hundred port workers have tested positive for COVID.
    • IPI On Dock Rail delayed 7+ days.
    • Major Chassis shortages, delaying MLB/Doors, average LALB MLB dwell is 3+ days, some stragglers aging to 7+ days.
    • Cargo is buried, expediting containers from any terminal after discharge is quite difficult.
    • Due to continuing stay-at-home-orders for the LALB area due to hospitalization surge, delays for vessels, rail, and trucking are expected to increase significantly over the next 3 weeks.
• New York/New Jersey: Vessel wait time is 4-5 days

Rail Update

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

• Cathay Pacific - New measures against the spread of Covid-19 infections in Hong Kong could cost Cathay Pacific up to a quarter of its cargo capacity. The Hong Kong authorities are planning a 14-day quarantine and seven-day medical surveillance mandate for flight crews returning to the territory after a layover abroad. So far, flight crews have been exempt from Hong Kong’s quarantine rules, but the new regime is planned to come into effect sometime next month. The impact on Cathay will be severe. Management estimates it could affect as much as 60% of its passenger capacity and 25% of cargo capacity. The financial repercussions could raise its monthly cash burn by HK$400m (US$51.6m) to as much as HK$1.9bn. The new measure will have a significant impact on our ability to service our passenger and cargo markets. The actual extent of such impact is yet to be confirmed and will be affected by a number of factors, including the success of mitigation measures we are able to adopt, such as agile manpower resources management,” said group chief customer and commercial officer Ronald Lam. Cathay’s management is looking at ways to mitigate the impact of the new rules. One possible scenario is to set up complex sets of flights to create a closed loop that would see crews on travel for three weeks, followed by the quarantine period and a subsequent break.
• Fed-Ex - Plans to cut jobs in Europe and combine air networks as part of the integration of TNT. The US logistics giant acquired TNT for €4.4bn in 2016 as part of its European expansion plans and has been integrating IT systems and air, road and ground networks since then. The company will now address the duplication of roles and presented its plans to European employee representatives and team members yesterday. These proposals will regrettably have a “workforce impact” of between 5500 to 6300 people across operational teams and back-office functions, FedEx said. “In the course of these consultations, the full range of support measures for affected team members will be discussed with works council representatives from across the region,” the company stated in a press release. “These measures differ by country and may include voluntary redundancy, reassignment to other roles and priority access to open positions. “The consultation process will take place over an eighteen-month period in line with local country processes and regulations.”
• Canada - Two Air Transat flights from Haiti to Montreal were potentially carrying enough infected travelers to put all passengers at risk of COVID-19.  The Canadian government uses tracking system Health Canada to inform the passengers who have been potentially exposed to the virus while traveling. Usually the specific rows are identified and passengers are advised to take precautionary measures. After Air Transat flights TS663 on January 10, 2021, and TS665 on January 13, 2021, landed in Montréal-Pierre Elliott Trudeau International Airport (YUL) with several COVID-19 cases, Health Canada informed that all passengers in all rows were potentially exposed to the virus. Initially Health Canada listed affected rows on both flights as “unknown.” On January 15, 2021, the flight status was updated to “all rows,” as reported by the Toronto Sun. The Air Transat operated both flights on wide-body Airbus A330s, which can seat up to 375 passengers. However, the exact number of passengers on the flights is not announced. On January 7, 2021, Canada imposed the requirement of a negative COVID-19 test for all inbound passengers, in order to tackle a surge of new cases and the novel variant of the virus originating from the United Kingdom. However, Haiti was excluded from the new requirement. Due to the limited testing capacity, passengers arriving to Canada from Haiti are not required to show a negative test result. Since the new requirement was introduced, 72 international flights carrying COVID-19 infected passengers have landed in Canada. On January 15, 2021, the Canadian Prime Minister Justin Trudeau said he was not excluding the idea of international flight ban. “We're doing whatever it takes to protect Canadians, including looking at banning certain flights if necessary,” said Trudeau. “Decisions must be made based on public health guidance.”
• Canada continued - To tackle a surge of COVID-19 cases and the new strand of the virus originating from the United Kingdom, Canada will soon make negative tests mandatory for airline passengers to enter or return to the country. The screening test must be taken no more than 72 hours before arrival at Canada's airports, harbors, or at border posts by land. The exact deadline for the enforcement of this new measure was not disclosed, though according to Dominic Leblanc, Canadian Minister of Intergovernmental Affairs, it should be soon. “If I was on a Caribbean beach this week, I would look for a clinic to do a screening test before I returned to Canada,” Leblanc told Radio Canada. The requirement for a quarantine of 14 days upon arrival remains in force. The National Airlines Council of Canada, which regroups the four largest airlines of the country, namely Air Canada (ADH2), Westjet, Air Transat, and Jazz Aviation, reacted to the announcement. “Today's announcement was made without prior coordination with industry, and with many important operational and communications details yet to be determined,” the Council objected. “Major Canadian airlines have invested millions of dollars to protect the health and safety of our passengers and employees, and to protect public health.”
• Hong Kong - One of the most important global airfreight gateways is facing the specter of tighter measures that could have a profound impact on cargo capacity. According to a report in the South China Morning Post, the Hong Kong government is looking to implement measures next week that include a mandatory 14-day quarantine for airline crews. This would apply to those on passenger and freighter aircraft returning to the territory after an international layover – so far, they have been exempt from quarantine requirements. In Hong Kong’s fourth wave of Covid-19 infections, the number of new cases has risen lately, with 70 registered on Thursday alone. Seven were of foreign origin. Last summer, FedEx’s pilot union asked management to suspend Hong Kong operations, citing “unacceptable conditions” for pilots in quarantine and those who tested positive and were allocated to public hospitals. Around the same time, the union representing UPS flight crews called for pilots to have the right to decline missions to Hong Kong, which was then experiencing its third wave of Covid-19 infections. Both companies declined those requests. The impact of the new quarantine mandate for returning flight crews would hit Cathay Pacific the hardest, with serious repercussions for its long-haul network.
• KLM - immediate future hangs in the balance, following an indecisive debate in the Dutch parliament yesterday. The carrier is hoping to acquire exemptions for crew from the new government mandate that every person flying into the Netherlands needs both a PCR test as well as a rapid Covid test. KLM told the government it would not leave any crew who tested positive in a different country, and if the exemption for crew were not given, it would cancel all flights requiring an overnight stay – including freighter flights. The government said it was open to alternatives to crew, and has given the carrier until Tuesday, when there will be a vote, to come up with an alternative plan, according to local media. Pieter Elbers, chief executive of KLM, said: “I am pleased that the minister says he is open to alternatives. What we now have to do together – and KLM is completely open to that – is see how we can find a workable, effective and suitable solution. “However, the new rule applies from 1-21-21, so time is of the essence. A spokesperson for KLM told The Loadstar there was a “contingency call” later today, which should result in more detailed news.  This will only affect passenger flights from NL to S. Africa/S America & Panama.
• United Airlines - United Airlines looks to mandate COVID-19 vaccination for its employees and calls for other companies to follow its lead. The Chicago-based carrier wants all of its 60,000 staff to be vaccinated for COVID-19, Chief Executive Scott Kirby told employees on January 21, 2021. Kirby believes it would be the best practice to require vaccines from the airline’s employees and said United would be among the first wave of companies to require vaccines, if other companies follow. “Because I have confidence in the safety of the vaccine, and I recognize it’s controversial, I think the right thing to do is for United Airlines, and for other companies, to require the vaccines and to make them mandatory,” said Kirby to CNBC. Other US carriers are not as determined to instill the mandatory vaccination. Delta Air Lines is working for the aviation employees to be considered as front-line workers to receive the vaccine earlier in the rollout and Southwest is encouraging employees to be vaccinated. Meanwhile American Airlines (A1G) (AAL) said the company is not planning on following United’s idea of mandatory vaccinations. “We do not plan to require our team members to receive the vaccine unless vaccinations are ultimately mandated for entry to certain destinations,” a spokesman for American Airlines (A1G) (AAL) said.

Ground Updates

United States

• The spot load market in December ended up 69% over the previous December and up 8% from November.  However, the dry van segment spot load postings slid for the second week in a row.  It also saw the load to truck ratio dropping, resulting in spot rates seeing a decline last week. Flat Bed rates increased, as capacity tightened due in large part to record housing starts, with volume rising 11% over previous week. Dry Van volume slipped a little from previous week but was still 70%+ up from pre-pandemic baseline.
• Tender rejects remained well above historical averages at 23% but down from spikes seen in December.
• Intermodal volumes remain below peak levels that were hit in November but saw a nice bounce back from levels achieved during the holidays.
• The LTL industry continues to see strong demand, with spillover coming from both the parcel industry and the full truckload market.  Rates are anticipated to be 4%-5% above 2020.
• The Port of LA / LB continues to see severe congestion causing delays in transiting containers and impacting inland freight flow.
• A couple of truckload carriers announced investments in companies developing Autonomous Vehicles last week.
• The American Transportation Research Institute (ARTI) released the results of their industry survey, and for the fourth year in a row, Driver Shortage remained the top issue. The top 5 issues:
  • Driver Shortage
  • Driver Compensation
  • Truck Parking
  • Compliance, Safety, Accountability (FMCSA)
  • Insurance Cost / Availability
• The Drug and Alcohol Clearinghouse recorded 54,995 driver violations in 2020, and only 4400 of those drivers working through the protocol to return to work.

Regional Updates

APAC

• The Chinese New Year/Lunar New Year is being celebrated from February 12, 2021 – February 26, 2021. Many factories are closing down at the end of January to allow travel time to reduce the travel rush.
• Crane Worldwide Logistics Station Closures
  • PVG - Feb 11-17, 2021
  • CKG - Feb 11-17, 2021
  • SZX - Feb 11-17, 2021
  • HKG - Feb 12-17, 2021

EMEA

• United Kingdom
  • Air
    • Mainland EU connections back to normal
    • UK RA/KC Security status not currently recognized by EU so any freight transiting through Mainland EU treated as ‘Insecure’
    • Limited Capacity to India, Australia & US
  • Ocean
    • UK Container and truck haulage now stable but very busy (expect up to 4 days for collections/deliveries).
    • Ports less congested but still delays. Most SSL now implementing UK port congestion surcharges.
    • Vessels delayed inbound and outbound by up to 7 days.
    • Some vessels still omitting UK ports.
    • Vessel space for exports on most lanes/lines
• Germany
  • Air
    • Relaxing demand for capacities – North America rate levels at € 3,00 to € 4,85/kg – short term space is at € 6,50/kg, also.
    • The handling agent situation at FRA airport is relaxing because of the reduced demands.
  • Ocean
    • Container space out of China is critical into Germany, also rail and truck capacities are low! Also, vessels out of Germany into China and US are currently overbooked, current space bookable is 4 weeks. Currently offering the clients option to book it LCL as co-loaders seems to have space open.
• Italy
  • Air
    • Air export to US has reduced significantly compared with peak rates at end of December.
    • Rates to AP back down to pre-COVID levels, except for Australia.
    • Import from AP still at a premium, pre-Chinese New Year, with high volatility.
    • Expecting to see effects of rates to ME following lifting of Qatar embargo.
  • Ocean
    • Equipment problems have eased but still space restraints on both EB and WB export lanes. LATAM rates increased after many years. Heavy cargo not being loaded onto vessel. Import from FE not takings bookings locally, customers looking for space (the rate hikes have been accepted on the market).
• Netherland & Belgium
  • Air
    • Space capacity slightly opening up, decrease in costs.
    • Booking confirmation are subject to airline approval.
    • Still require booking in advance.
    • Flight schedule subject to change without further notice and transit.
  • Ocean
    • Space very still tight EU- Middle East & EU-Far East, Far East – EU.
    • Container shortages resulting into additional fees implemented by carriers such as Equipment Imbalance fee.
    • Rates Far East – EU at all record high level, expectations this will continue until Chinese New Year and the weeks after Chinese New Year.
    • Congestion in the US Port such as New York and Los Angeles as well as inland Rail terminals in the USA.
    • Timely booking, correct and long-term accurate forecast is key to ship in time.
    • HL: Area Germany & Central Europe – Equipment Shortage 40´GP & HC – Temporary Booking Stop.
    • HL: Equipment Imbalance Surcharge - Exports from North Europe (excl. UK and Ireland).
• Ireland
  • Air
    • Cargolux has now been advised by the relevant EU department due to Brexit cargo transiting the UK via RFS to LUX is no longer part of the EU Security Regime. For this reason, it must be screened again at Luxembourg. LUX security will apply for this as follows:
      • Primary Screening 0.15 / Kg Min 20.00
      • Secondary Screening 0.25 / Kg Min 115.00 (inclusive of Primary Screening)
        • Clients are responsible for covering these charges.
  • Ocean
    • Stena doubling Rosslare-Cherbourg sailings due to post-Brexit demand. Rosslare Europort, which is operated by Iarnród Eireann, will have up to 30 direct services to and from Europe next year. We are seeing a huge shift away from UK Land bridge into mainland Europe.
• Qatar
  • Air
    • Received circular from QA on resuming service to Damma, Riyadh and Jeddah by next week. Awaiting circular on the other countries too.
  • Ocean
    • Milaha issued circular on resuming service. But not yet started booking. Few NVOCC operators service between Jebel Ali and Doha till date was not authorized. They used to switch BL in Oman. In the present circumstances, they are able to issue Direct BLs.  All other lines like MSL, CMA, HLL, MSC awaiting approval from line desk for discharge/loading in Jebel Ali port.
  • Land Freight
    • struck following COVID-19 protocol by the drivers that is to have hotel quarantine for one week which is not a viable option. But there a discussion going on in the Ministry of Transport to remove this hassle by forming an isolation camp near Abu Samra border for the drivers arriving from Saudi Arabia.
• Saudi Arabia
  • Qatar embargo is lifted and operations have resumed for air and ocean. Border clearance is likely to resume during week 3.
  • Air
    • Booking confirmation are subject to airline’s approval. Flight schedule subject to change without prior notice and transit delays.
  • Ocean
    • Space constraints continues with many challenges. Most of the carriers are implementing new tariff per cntr (inspection charges @ depo) There is increase on THC by Mawani by 8-10% on STD + 25% on DG.
• United Arab Emirates
  • Qatar embargo is lifted and operations have resumed for air and ocean.
  • Air
    • Booking confirmation are subject to airline approval. Flight schedule subject to change without further notice and transit delays.
    • Flight schedule subject to change without further notice and transit delays.
    • Though there was an announcement of flights resuming their operation to DOH last week, it did not go as per the plan and likely to resume by end of this week or 1st week of Feb.
  • Ocean
    • Space constraints continues.
    • GRI got implemented from 24th Jan, Quantum yet to be known.
    • Qatar movements resumed by carrier Qatar National Navigation & Maersk. Others yet to start.
• South Africa
  • Air
    • Market rates are still on a per shipment basis, and some airlines are now applying their gold/express rates.
    • Space availability is subject to the time of booking and last minute off-loads can be expected due to space availability.
  • Ocean
    • Co-Loaders are constantly sending through GRI increases during the month for Far East trade lane.
    • Some Co-loader rates are being revised BI-monthly.
    • Constant Space and Price issues from Far East for FCL.
    • Currently the Rates are extremely high, eg: Rate end of November for a 40ft(Ningbo-Durban): USD 3500.00, currently the rates are USD 6250.00.
    • Delays for Inland movement from Durban to Johannesburg via Rail due to cable Theft.
    • Sailings into Cape Town, from the Far East are difficult to secure space, and rates are much higher.

Global Border Crossing Status and restrictions

• Facilitated by the United Nations Economic Commission for Europe, read more here.

Land Borders

• Sixfold have a free application that maps out European borders with live information on crossing times. Read more here.

U.S. Customs and Border Protection assesses an annual user fee for each customs broker district and national permit held by an individual, partnership, association, or corporation. CBP has announced 2021’s user fee is $150.33 and is due to CBP no later than January 29, 2021.

Week 03 (January 17 - 23)

Ocean Operations

• US imports from Asia hit a record level in Q4 2020
• The next 3 years are shifting to a carrier’s market as supply and demand will be in greater balance.
• Rate trends suggest the rates will be lower compared to the all-time high rates that exist in most major trade-lanes as of today. They will adjust downward but the days of cheap maritime transport are likely over and will not fall below pre-May 1, 2020 levels for the next 3 years.
• Demand planning is becoming more critical to one’s success than in the past in terms of providing an accurate rolling forecast at least covering a 6-week cycle.
• The top 15 ocean carriers control 97.4% of the market. Ocean carrier consolidation is not over and expects further consolidation which will reduce choice and capacity and force schedule changes.
• The free time associated with Equipment detention will be reduced as carriers seek to expedite the turning of their boxes instead of them being used as extended warehousing.
• WAVE (Weekly Advance Volume Estimate) Port of Long Beach

ONE APUS Update

• Please be informed, a web portal is now made available to better provide the latest updates on the vessel and container information. To find the status of the container you will need the Container number, Port of Load, and Port of discharge.
• Customers are recommended to visit this site on a daily basis to check for updated information.
• Please visit: https://one-apus.loc-group.com/
• ONE aims to ensure a minimum 5-day period between the time that your container was discharged and the date of any inspection. They would therefore recommend that customers make a request for a joint inspection as soon as the system allows them to do so.
• As of January 13, 2021, ONE confirmed 277 containers have been safely discharged.

Port Congestion at LA–LB

• The number of container ships waiting to berth in Southern California has exceeded the number of ships at berth every day but two since Christmas, with the ships waiting to call marine terminals exceeding levels seen during the 2014-15 labor crisis.
• In the 18 days since Dec. 25, only on Jan. 11 were there more ships at berth than at anchor, with 35 ships at marine terminals and 34 ships waiting to unload. The number of ships at and awaiting berth was the same at 27 on Dec. 27. As of Tuesday, there were 31 ships at anchor and 29 at berth, according to the Marine Exchange of Southern California, the agency that manages ship traffic. During the 2014-15 West Coast labor crisis, the most container ships at anchor were 28 on March 15, 2015. That was exceeded this year on Jan. 8, when there were 37 ships at anchor. (Source: JOC)
• Rail car equipment remains tight, which is contributing to elevated dwells for on-dock departures. The current average on-dock rail dwell is 7.5 days, with the highest dwells being seen to Fort Worth and Memphis destinations. Local off-dock rail ramp connections continue to experience delays as a result of reduced chassis and trucking capacity. In addition, a backlog from the holidays and increased COVID cases have contributed to the delays.

Rail Update

• 2021 is announced as the European Year of Rail. “The European Commission initiative will highlight the benefits of rail as a sustainable, smart, and safe means of transport.” https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2528 The Year of Rail is a key element for a greener future to contribute to the target of becoming climate-neutral by 2050 set by the EU. To the website: https://europa.eu/year-of-rail/index_en.
• Westbound congestion delay currently 3-5 days for departure from China.
• Eastbound congestion delay currently 1-2 days for departure from Europe.
• Nordic Railgate project gains further traction on the Silk Road with new Xi’An to Oslo service.

Air Freight Update

• Air Canada - Will sell two passenger Boeing 767s to be converted into freighters before leasing them back as it targets growth in air cargo. The Montreal-headquartered company will sell two of its B767-300ER aircraft to ATSG-owned lessor Cargo Aircraft Management (CAM). The first aircraft will be inducted for conversion in March 2021. Both are expected to be redelivered to Air Canada by the end of 2021. This is the first sale-leaseback agreement between ATSG and Air Canada. In November 2020, Air Canada announced its plan to use converted freighters to grow its cargo business in response to “evolving opportunities in the airfreight market”. “Getting these two [Boeing] 767 freighters into our operation in 2021 is aligned with our announcement in November,” said Jason Berry, vice-president of cargo at Air Canada. “We are excited to be in a position to capture the market opportunities that currently present themselves. Delivering on our commitments is critically important to all of us at Air Canada. “The aircraft will be converted by Israel Aerospace Industries (IAI) of Tel Aviv, Israel. “It is always a great feeling to gain a new lease customer and we are proud to be able to again support a great airline like Air Canada,” said Mike Berger, the chief commercial officer of ATSG. “We are looking forward to delivering these airplanes and extending our special partnership with Air Canada. “We continue to see growth outside of the US, and ATSG continues to enable great companies to take advantage of growing global e-commerce and mobile-commerce trends. “Like most carriers, Air Canada has seen cargo become an increasingly important part of its business as a result of the Covid-19 outbreak as passenger demand dropped and cargo revenues increased.
• IAG - Has carried more than 1m Covid-19 vaccines to destinations in its global network. The carrier said some vaccines have been transported from its facilities at London Heathrow to North America and Europe. In addition, 80,000 doses were flown from its Madrid hub to the Canary Islands. It also shipped the Moderna vaccine from Dublin and Gran Canaria vaccines were all transported using IAG Cargo’s Constant Climate pharma service, which supports the movement of millions of temperature-sensitive pharmaceutical goods every year. John Cheetham, chief commercial officer at IAG Cargo, commented: “I am delighted that we have already successfully transported more than 1m doses of Covid-19 vaccines around the world. ”Since the start of the pandemic in March, more than three-quarters of our 1,000 charters in 2020 were used to transport thousands of tons of crucial medical supplies, PPE, and ventilators. “We remain committed to continuing to offer our expertise to help support the fight against Covid-19 during 2021.” IAG cargo has more than 100 approved stations supported by pharma specialists. In addition, its London Heathrow hub is GDP-certified and WDA licensed by the UK’s MHRA (Medicines & Healthcare Products Regulatory Agency). In 2019, IAG Cargo opened a new hub center in Madrid dedicated to handling temperature-sensitive pharma goods.
• Qatar - The Chief Executive Officer (CEO) Akbar Al Baker has seemingly changed his tone in regards to aircraft orders, as the airline will continue to take aircraft, according to a recently released statement by the CEO. “We will continue to take every single airplane that we have ordered from the both [Airbus and Boeing – ed. note] manufacturers because in Qatar Airways, we are very prudent in the way we place our aircraft orders and our requirements,“ was quoted, in June 2020, Al Baker stated that it was important for the two manufacturers to “to show to customers that they are not only with them in good times, but they will also be with them in bad times,” as Airbus and Boeing should “accept the requirements by airlines to delay deliveries of airplanes until at least 2022.” “If they do not oblige, they should also know that will permanently lose us as a customer to them,” Al Baker was quoted as saying.
• Norwegian - The long-haul low-cost carrier Norwegian will drop the long-haul from its business model, as the company looks into the future past its current restructuring process. Norwegian, in an announcement on the Oslo Stock Exchange, indicated that it “will henceforth focus on its core Nordics business, operating a European short-haul network with narrow-body aircraft. Under these circumstances, a long-haul operation is not viable for Norwegian and these operations will therefore not continue. “The Norway-based airline has already phased out two of its Boeing 787 Dreamliner aircraft, as the pair officially exited its fleet in March 2020, planespotters.net data shows. In early-January 2021, Norwegian flew at least six of its Dreamliner’s to Ireland’s Shannon Airport (SNN) in order for lessors to repossess them. The company itself has entered an examinership process in Ireland in November 2020, as it sought protection from its creditors in order to continue operations. At the time, Norwegian warned that it would need a fresh injection of capital in Q1 2021 if it were to continue flying after the examinership process. Now, the airline looks to “reduce its total debt to around NOK 20 billion ($2.3 billion). Norwegian also plans to raise NOK 4 - 5 billion in new capital through a combination of (i) a rights issue to current shareholders, (ii) a private placement, and (iii) a hybrid instrument,” read the announcement on the Oslo Stock Exchange on January 14, 2021.

Regional Updates

EMEA

• United Kingdom
  • Air
    • Mainland EU connections back to normal
    • UK RA/KC Security status not currently recognized by the EU so any freight transiting through Mainland EU treated as ‘Insecure’
  • Ocean
    • UK Container and truck haulage now stable but very busy (expect up to 4 days for collections/deliveries).
    • Ports less congested but still delays. Most SSL now implementing UK port congestion surcharges.
    • Vessels delayed inbound and outbound by up to 7 days.
    • Some vessels still omitting UK ports.
    • Vessel space for exports on most lanes/lines.
• Germany
  • Air
    • Relaxing demand for capacities – North America rate levels at € 3,00 to € 4,85/kg – short term space is at € 6,50/kg, also.
    • The handling agent situation at FRA airport is relaxing because of the reduced demands.
  • Ocean
    • Container space out of China is critical into Germany, also rail and truck capacities are low! Also, vessels out of Germany into China and the US are currently overbooked, current space bookable is 4 weeks. Currently offering the clients option to book it LCL as co-loaders seems to have space open.
• Italy
  • Air
    • Air export to the US has reduced significantly compared with peak rates at end of December.
    • Rates to AP back down to pre-COVID levels, except for Australia.
    • Import from AP still at a premium, pre-Chinese New Year, with high volatility.
    • Expecting to see effects of rates to ME following the lifting of the Qatar embargo.
  • Ocean
    • Equipment problems have eased but still space restraints on both EB and WB export lanes. LATAM rates increased after many years. Heavy cargo not being loaded onto vessels. Import from FE, not takings bookings locally, customers looking for space (the rate hikes have been accepted on the market).
• Netherlands & Belgium
  • Air
    • Space capacity slightly opening up, decrease in costs.
    • The booking confirmation is subject to airline approval.
    • Still require booking in advance.
    • Flight schedule subject to change without further notice and transit.
  • Ocean
    • Space very still tight EU- Middle East & EU-Far East,   Far East – EU. Container shortages resulting in additional fees implemented by carriers such as Equipment Imbalance fee.
    • Rates Far East – EU at all record high level, expectations this will continue until Chinese New Year and the weeks after Chinese New Year.
    • Congestion in the US Port such as New York and Los Angeles as well as inland Rail terminals in the USA.
    • Timely booking, correct and long term accurate forecast is key to ship in time.
    • HL: Area Germany & Central Europe – Equipment Shortage 40´GP & HC – Temporary Booking Stop.
    • HL: Equipment Imbalance Surcharge - Exports from North Europe (excl. UK and Ireland)
• Ireland
  • Air
    • Cargolux has now been advised by the relevant EU department due to Brexit cargo transiting the UK via RFS to LUX is no longer part of the EU Security Regime. For this reason, it must be screened again in Luxembourg. LUX security will apply for this as follows.
      • Primary Screening 0.15 / Kg Min 20.00
      • Secondary Screening 0.25 / Kg Min 115.00 (inclusive of Primary Screening)
        • Clients are responsible for covering these charges.
  • Ocean
    • Stena doubling Rosslare-Cherbourg sailings due to post-Brexit demand. Rosslare Europort, which is operated by Iarnród Eireann, will have up to 30 direct services to and from Europe next year. We are seeing a huge shift away from the UK Landbridge into mainland Europe.
• Qatar
  • Air
    • Received circular from QA on resuming service to Damma, Riyadh, and Jeddah by next week. Awaiting circular on the other countries too.
  • Ocean
    • Milaha issued a circular on resuming service. But not yet started booking. Few NVOCC operators service between Jebel Ali and Doha to date was not authorized. They used to switch BL in Oman. In the present circumstances, they are able to issue Direct BLs.  All other lines like MSL, CMA, HLL, MSC awaiting approval from the line desk for discharge/loading in Jebel Ali port.
  • Land Freight
    • Struck following COVID-19 protocol by the drivers that are to have hotel quarantine for one week which is not a viable option. But there a discussion going on in the Ministry of Transport to remove this hassle by forming an isolation camp near the Abu Samra border for the drivers arriving from Saudi Arabia.
• Saudi Arabia
  • Qatar embargo is lifted and operations have resumed for air and ocean. Border clearance is likely to resume during week 3.
  • Air
    • The booking confirmation is subject to the airline’s approval. Flight schedule subject to change without prior notice and transit delays.
  • Ocean
    • Space constraints continue with many challenges. Most of the carriers are implementing a new tariff per cntr (inspection charges @ depo) There is an increase in THC by Mawani by 8-10% on STD + 25% on DG.
• United Arab Emirates
  • Qatar embargo is lifted and operations have resumed for air and ocean.
  • Air
    • The booking confirmation is subject to airline approval. Flight schedule subject to change without further notice and transit delays.
    • TK started flights to Qatar via Turkey and the rest to follow soon.
    • Few carriers like EK, EY & LY (Israel Airlines) are operating to Tel Aviv (TLV).
  • Ocean
    • Space constraints continue.
    • From Jan 24th GRI would get implemented from Jebel Ali to many destinations.
    • Israel Ocean movements have started from carriers like Maersk, Hapag, and ZIM.
    • Qatar movements resumed by carrier Qatar National Navigation via Sohar. The rest of the carriers to start soon.
• South Africa
  • Air
    • Market rates are still on a per shipment basis, and some airlines are now applying their gold/express rates.
    • Space availability is subject to the time of booking and last minute off-loads can be expected due to space availability.
  • Ocean
    • Co-Loaders are constantly sending through GRI increases during the month for the Far East trade lane.
    • Some Co-loader rates are being revised BI-monthly.
    • Constant Space and Price issues from the Far East for FCL.
    • Currently, the rates are extremely high, eg: Rate end of November for a 40ft(Ningbo-Durban): USD 3500.00, currently the rates are USD 6250.00.
    • Delays for Inland movement from Durban to Johannesburg via Rail due to cable Theft.
    • Sailings into Cape Town, from the Far East are difficult to secure space, and rates are much higher.

Week 02 (January 10 - 16)

Ocean Operations

Port Houston imports up 26% in December.

• Despite the weighty impact of the coronavirus on U.S. port volumes last spring and summer, Port Houston narrowly missed a record-setting year for container traffic.
• During its record 2019, Port Houston handled 2,990,175 twenty-foot equivalent units (TEUs). Thanks to a resurgence of imports that began in late summer, Port Houston moved 2,989,347 TEUs in 2020.
• The container influx continued in early winter. December’s volume was up 4% year-over-year, from 253,830 TEUs in 2019 to 264,626 in 2020.
• The big jump in December came in loaded imports, up 26% year-over-year to 126,771 TEUs. That made for the second-highest month ever for loaded imports at Port Houston. Incidentally, the best month for loaded imports was just recorded in October. (Source: JOC).
• Port of Houston is going to start the project of expanding the channel in 2021. Project 11 will widen the channel by 170 feet along its Galveston Bay reach, from 530 feet to seven hundred feet. This will allow a larger vessel to call the port.

Air Freight Update

• Emirates - On January 11, 2021, Dubai air carrier Emirates announced its plan to expand operations in the United States amid increased air travel demand. Emirates currently serves 114 destinations on six continents. Emirates will re-launch non-stop operations to Seattle from February 1, 2021, Dallas, and San Francisco from March 2, 2021, growing its North American network to 10 destinations. Flights to/from Seattle (four weekly flights) and Dallas (three weekly flights) will be operated with two-class Boeing 777-200LR aircraft. Four weekly flights to/from San Francisco will operate on Boeing 777-300ER aircraft, following the resumption of services to Boston, Chicago, Houston, Los Angeles, New York JFK, Toronto, and Washington DC. Dubai carrier Emirates will also be providing additional flights to New York, Los Angeles, and Sao Paulo. Effective February 1, 2021, Emirates will be operating double daily flights to John F. Kennedy International Airport (JFK) and a daily flight to Los Angeles (LAX). In South America, Emirates will be introducing a fifth weekly flight to Sao Paulo from February 5, 2021.
• Qatar - Has started rerouting flights to pass through Saudi Arabia airspace after the two countries agreed to lift the border blockade. “This evening, Qatar Airways began to reroute some flights through Saudi airspace,” tweeted Qatar's national carrier. The first flight to fly over Saudi Arabia after the lifting of the blockade was Qatar Airways flight QR1365. The flight departed at 8:45 pm from Doha and arrived at 4:35 am in Johannesburg on January 8, 2021, according to FlightRadar24 data. The communication between the Qatar Airways pilots and the Saudi air traffic controllers is restored, and the airline will be able to save on fuel and flight time. Iranian media reported that Qatar has been paying around $100 million per year to use Tehran’s airspace to bypass Saudi Arabia. Restored air links will be also important for Qatar’s hosting of the 2022 World Cup. On January 4, 2021, Saudi Arabia and Qatar agreed to reopen airspace, sea, and land borders for the first time after three years. The sanctions on Qatari aviation, known as the Gulf Blockade, were imposed after Qatar was accused of supporting terrorism by Saudi Arabia, United Arab Emirates, Bahrain as well as Egypt. In July 2020, Qatar Airways announced it was seeking at least $5 billion in compensation from Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain for blocking it from their airspace. The airline claimed the measures specifically targeted its operations and caused damage to its investments. Qatar is said to have agreed to drop lawsuits seeking compensation.
• Lufthansa Cargo - Has imposed security charges for all cargo departing the UK on-road feeder services (RFS) for onward flights out of its European hubs. Following Brexit, EU law no longer recognizes trucked cargo from the UK as secure and requires such goods to undergo rescreening before onward flights. Lufthansa told customers their cargo departing the UK via RFS would be subject to ‘security charges for unknown cargo’ of £0.15/kg ($0.20), or a minimum of £17.25. The carrier said: “We are legally obliged to follow this new ruling,” adding it would be “voicing our concerns to the respective EU ministers”.
• Although Lufthansa and thus far Cargolux appears to be the first carriers to publish details of additional charges, there are expectations more carriers will. The Loadstar approached Air France-KLM Cargo to ask if it would impose similar surcharges, but the carrier did not respond before publication.
• Brexit aftermath - As Britain officially leaves the European Union bloc and the UK citizens become third-country nationals, confusion arises in the airports around Europe. Spain denies entry UK citizens flying to their homes in Spain have been stopped from boarding a joint British Airways-Iberia flight to Madrid as the carrier claimed their pre-Brexit residency papers were no longer valid. In an effort to contain the new COVID-19 mutation, Spain has banned all but Spanish nationals and residents flying from the UK to Spain on December 22, 2020. Even if the UK passengers had the green card as proof of residency, some were still denied boarding the flight. “This should not be happening, the Spanish authorities have reconfirmed again this evening that the green residency document will be valid for travel to return to Spain as stated in our travel advice,” British Embassy in Madrid wrote in a tweet. Iberia issued a statement explaining that on January 1, 2021, it had received an email from border police ordering it to not recognize the proof of legal residency in Spain as a British national. However, the next day it received another one, confirming that documents could in fact be used if they are not expired. Around 300,000 British citizens are registered as permanent residents in Spain.
• Other EU countries follow on January 1, 2021, thirteen British nationals were stranded at Amsterdam Schiphol Airport (AMS) as they were subject to the third-country coronavirus regulations and their trips were not essential, according to a Dutch border force spokesman Robert van Kapel. People from safe countries are allowed to pass, but the UK is certainly not a safe country right now,” Van Kapel said. He added that some travelers were going on a visit to Amsterdam or for a skiing holiday. “That’s just not the intention now,” Van Kapel said. Germany banned the flights from the UK on December 20, 2020, and extended it to January 6, 2021. Travelers from the UK with proof of residency in Germany could enter the country from January 1, 2021. However, a number of British citizens were banned from entry into Germany, as Lufthansa (LHAB) (LHA) did not accept their residency permits. A spokesperson from Lufthansa (LHAB) (LHA) said that apart from a few difficulties “the vast majority of travel by air from and to the UK is still running smoothly “Travelers on the Ryanair flight to Pisa, Italy, also reported similar issues. The exact number of flights and passengers affected has not been released by the UK Foreign Office, reported the BBC News.
• Post-Brexit changes - Since the end of the Brexit transition period on January 1, 2021, Britons can travel to the EU only with a valid reason and if they have at least six months left on their passport. They are also no longer eligible to use the EU fast-track passport control. A passenger must be ready to present the return ticket and proof of their sufficient finances while staying in the EU country. On December 24, 2020, the EU and the UK came to a last-minute agreement on trading relationships, avoiding the no-deal scenario. The new Brexit trading rules, which are supposed to ensure direct air connectivity between the two parties, came into force on January 1, 2021.

Ground Operations

United States

• The industry is bracing for new environmental regulations and initiatives to be enacted under the new administration. Many of these will be tied to cleaner trucks. President-elect Joe Biden has made it a point that his administration will focus on creating a pathway to achieve net-zero emissions no later than 2050. The new Secretary of Transportation, Pete Buttigieg, has been a staunch supporter of cutting fossil fuels. The California Air Resources Board (CARB) has also been aggressive in reducing transportation emissions and adopted a new standard, calling for heavy-duty tractors to be 100% zero emissions by 2045. Most tractor manufacturers are accelerating their electrification strategies.
• Carriers are seeing a strong rate environment at the start of 2021 and anticipate this for much of the year. Spending on consumable goods leads to strong demand in 2020. When the pandemic is over there is a possibility that spending will shift back to services, travel, etc. but it is anticipated that demand will remain strong for goods and manufacturing pick up, which will offset any shift. According to Freight Waves, The Manufacturing Purchasing Managers’ Index (PMI) jumped to 60.7% in December, up 3.2 percentage points from November and the seventh straight month of expansion. A reading above 50% indicates expansion in the U.S. manufacturing sector.
• Demand continues to outpace supply. The driver shortage is the biggest impact on capacity, and even with higher driver pay, will not get back to equilibrium until the pandemic is resolved. 2020 saw a spike in spot market activity compared to contractual tenders. Spot market typically accounts for 12%-15% of activity, for 2020 this was over 23%.
• Seasonally adjusted freight activity surged about 35% to a new post-pandemic high last week. The index is more than 5% above the previous high during the week ending December 4.  The Dry Van segment rose about 26% in the latest week to a new post-pandemic high. The latest index reading is more than 3% higher than the previous high set during the week ending November 6.  On rates, dry van and flatbed hit multi-year highs. Dry van loads averaged $2.64 a mile in December in Truckstop.com’s system — a 2-cent increase from November and an 80-cent jump from May. It was van’s strongest showing in two and a half years, since July 2018. LTL carriers continue to see a strong rate environment based on increased demand and cost inflation (driver pay).
• December volumes for the LTL industry remained high and grew year over year. The seasonal spike was in line on a sequential basis from November, but of a much stronger base than in 2019.  For Truckload, last week saw an uptick in Outbound Tender Volume of 13% year over year.  Overall tender rejections were at 23% for the week, and although much higher from last year at this time, there was a sequential decline.
• The first full week of 2021 saw the nationwide price of diesel continue as it had for the last weeks of 2020, with trucking’s main fuel notching a 3-cent increase, according to the Energy Information Administration’s weekly data released Jan. 11. Diesel now costs $2.67 nationwide.

Regional Updates

APAC

• Beijing Shunyi District:  Due to the severe epidemic in Shunyi District of Beijing, The Epidemic Prevention Headquarters ordered the villages within the district to shut down from Jan 10- Jan 12, same applies to the office buildings in Shunyi District. The officers are back in operation but the import and export operation timelines were effective and there will be delays.
• Dalian: Dalian port is closed for three days ( from 21st Dec to 24th Dec) due to the new locally transmitted coronavirus cases, but now it is back to normal gradually although vsl call Dalian port still suffer delay.
• Shijiazhuang is now off-limits following a spike in COVID cases. People from this area are banned from leaving the city. Suppliers in Shijiazhuang are delaying departure dates until early February based on government notices.

EMEA

• COVID and UK/FRANCE Borders - The UK government has urged haulers bound for France via Dover to get their Covid-19 tests before they reach Kent. Under French regulations, drivers arriving in the country from the UK must present a negative Covid-19 test taken within the last 72 hours. Department for Transport under-secretary Rachel MacLean today wrote to haulage representatives to share concerns that cross-Channel freight delays could worsen if haulers did not get tested earlier in their journeys. “As things stand, the significant majority of haulers bound for France are still leaving it until they get to Kent to get a COVID test,” she said. “While the low traffic volumes we are currently seeing mean this is not causing significant issues, as traffic volumes increase over the coming days and weeks, haulers arriving untested will become an increasing problem. “To avoid unnecessary friction at the border, and the resultant queuing and traffic disruption, it is vital haulers seeking to cross into France arrive in Kent and other ports serving France, having already been tested and obtained a negative result,” she continued, adding that the government had set up 34 testing facilities at advice centers created for haulers in the run-up to Brexit.

• United Kingdom

  • Air - Mainland EU connections back to normal.
  • UK RA/KC Security status not currently recognized by EU so any freight transiting through Mainland EU treated as ‘Insecure.
  • Limited Capacity to India, Australia & the US.
  • Ocean - UK Container and truck haulage now stable but very busy (expect up to 4 days for collections/deliveries).
  • Ports less congested but still delays. Most SSL now implementing UK port congestion surcharges.
  • Vessels delayed inbound and outbound by up to 7 days. Some vessels still omitting UK ports. Vessel space for exports on most lanes/lines.

• Germany

  • Air - Relaxing demand for capacities – North America rate levels at € 3,00 to € 4,85/kg – short term space is at € 6,50/kg, also. The handling agent situation at FRA airport is relaxing because of the reduced demands.
  • Ocean - Container space out of China is critical into Germany, also rail and truck capacities are low! Also, vessels out of Germany into China and the US are currently overbooked, current space bookable is 4 weeks. Currently offering the clients option to book it LCL as co-loaders seems to have space open.

• Italy

  • Air - Air export to the US has reduced significantly compared with peak rates at end of December. Rates to AP back down to pre-COVID levels, except for Australia. Import from AP still at a premium, pre-Chinese New Year.
  • Ocean - Equipment problems have eased but still space restraints on both EB and WB export lanes. LATAM rates increased after many years. Heavy cargo not being loaded onto a vessel. Import from FE, not takings bookings locally, customers looking for space (the rate hikes have been accepted on the market).

• Netherlands & Belgium

  • Air - Space capacity constraints still continues. The booking confirmation is subject to airline approval; booking required well in advance. Pricing flattening however still on high levels. Flight schedule subject to change without further notice and transit delays.
  • Ocean - Space very still tight EU- Middle East & EU-Far East, Far East – EU.
  • Container shortages resulting in additional fees implemented by carriers such as the Equipment Imbalance fee.
  • Rates Far East – EU at all record high level, expectations this will continue until the Chinese New Year and the weeks after Chinese New Year.
  • Congestion in the US Port such as New York and Los Angeles as well as inland Rail terminals in the USA.
  • Timely booking, correct and long-term accurate forecast are key to ship in time.
  • HL: Area Germany & Central Europe – Equipment Shortage 40´GP & HC – Temporary Booking Stop.
  • HL: Equipment Imbalance Surcharge - Exports from North Europe (excl. UK and Ireland).

• Ireland

  • Air - Cargolux has now been advised by the relevant EU department due to Brexit cargo transiting the UK via RFS to LUX is no longer part of the EU Security Regime. For this reason, it must be screened again at Luxembourg. LUX security will apply for this as follows.
    • Primary Screening 0.15 / Kg Min 20.00.
    • Secondary Screening 0.25 / Kg Min 115.00 (inclusive of Primary Screening).
      • Clients are responsible for covering these charges.
  • Ocean - Stena doubling Rosslare-Cherbourg sailings due to post-Brexit demand. Rosslare Europort, which is operated by Iarnród Eireann, will have up to 30 direct services to and from Europe next year. We are seeing a huge shift away from the UK Landbridge into mainland Europe.

• Qatar

  • Air - Received circular from QA on resuming service to Damma, Riyadh, and Jeddah by next week. Awaiting circular on the other countries too.
  • Ocean - Milaha issued a circular on resuming service. But not yet started booking. Few NVOCC operators service between Jebel Ali and Doha to date was not authorized. They used to switch BL in Oman. In the present circumstances, they are able to issue Direct BLs.  All other lines like MSL, CMA, HLL, MSC awaiting approval from the line desk for discharge/loading in Jebel Ali port.
  • Land Freight struck following COVID-19 protocol by the drivers that are to have hotel quarantine for one week which is not a viable option. But there a discussion going on in the Ministry of Transport to remove this hassle by forming an isolation camp near the Abu Samra border for the drivers arriving from Saudi Arabia.

• Saudi Arabia

  • Qatar's embargo is lifted, and operations have resumed for air and ocean. Border clearance is likely to resume next week.
  • Air - Booking confirmation is subject to the airline’s approval. Flight schedule subject to change without prior notice and transit delays.
  • Ocean - Space constraints continue with many challenges. Most of the carriers are implementing a new tariff per cntr (inspection charges @ depo) There is an increase in THC by Mawani by 8-10% on STD + 25% on DG.

• United Arab Emirates

  • Qatar embargo is lifted and operations have resumed for air and ocean.
  • Air - Booking confirmation is subject to airline approval. Flight schedule subject to change without further notice and transit delays.
  • Ocean - Space constraints continue with many challenges. Most of the carriers are implementing rates per voyage with no validity.

• South Africa

  • Air - Market rates are still on a per shipment basis, and some airlines are now applying their gold/express rates. Space availability is subject to the time of booking and last minute off-loads can be expected due to space availability.
  • Ocean - Co-Loaders are constantly sending through GRI increases during the month for the Far East trade lane. Some Co-loader rates are being revised BI-monthly.
  • Constant Space and Price issues from the Far East for FCL.
  • Currently, the rates are extremely high, eg: Rate end of November for a 40ft (Ningbo-Durban): USD 3500.00, currently the rates are USD 6250.00.
  • Delays for Inland movement from Durban to Johannesburg via Rail due to cable Theft.
  • Sailings into Cape Town, from the Far East, are difficult to secure space, and rates are much higher.

Week 02 (January 03 - 09)

Ocean Operations

The Top 10 Ocean Carriers had 84% of the 24.2 million TEUs shipped worldwide in 2020.  Maersk lead with 4.1 million, followed by MSC at 3.9M, Cosco at 3.03M, and CMA-CGM at 3.01M.

Larger vessels are expected to come in 2021.  If the demand does not return to 2019 levels, there could be more surges and bottlenecks with fewer arrivals but larger vessels that may not be handled well by destination ports in Europe and North America.

• Evergreen vessel (Ever Liberal) loses 36 containers.
  • Evergreen Marine has announced that 36 containers have fallen off its 2014-built post-Panamax vessel Ever Liberal due to rough sea conditions.
  • The incident happened while the ship was en-route to Los Angeles after leaving the Port of Busan.
  • According to the company, the 8,452 TEU ship encountered strong winds off the south of Kyushu, Japan, causing the collapse of container stacks on the vessel. Twenty-one containers fell onto the deck, while 36 fell into the sea.
  • The company said no person was injured in the incident, and none of the containers contained hazardous cargo. The ship notified Japan Coast Guard about the incident immediately.
  • Following the incident, the ship changed its course to Taipei for inspections, and Evergreen said everything possible is being done to retrieve the lost containers. 
  • At this time, we are unaware of the unit number affected by this incident. We will continue monitoring the situation and advise with further updates.
• Port Congestion/Chassis Shortage in the USA
  • There is currently a historically high demand for chassis throughout the country with the recent unprecedented Import volumes. To minimize any negative impact on supply chains, customers are asked to take immediate steps to reduce container and chassis off terminal dwell time. This includes all inland terminals as well as port terminals. Without a significant reduction in the dwell times, truckers may face serious challenges and delays in securing good order chassis as long as this surge in imports continues.
• Rail Update in the USA
  • BNSF Network fluid.
  • CN We continue to see a smaller receiving window due to CN working to support the congested Toronto ramp and potential concern with congestion at the Port of Montreal. Customers should be reaching out to CN’s RV team for assistance by calling Tel: 866-851-7837 or imx-osm@cn.ca.
  • CP Network fluid.
  • CSX Network remains fluid.
  • RVs a struggle in Chicago (Bedford) to Newark and Philadelphia. These lanes are extremely tight right now. Tampa – CSX is not moving containers into Tampa due to congestion.
  • FEC Network fluid.
  • KCS Network fluid.
  • NS Network fluid.
• Maersk line update
  • As of January 01, 2021, Safmarine and Damco are integrated fully into the Maersk brand. Please ensure you use the Maersk line for any new or pending business that moved with Safmarine.
    • Hamburg Süd and Aliança will remain independent brands with differentiated service models.
    • Sealand- A Maersk Company will remain as a separate brand under A.P. Moller - Maersk, serving as the strong intra-regional service provider it is today.
• WAVE (Weekly Advance Volume Estimate) from the port of Long Beach

Rail Update

Click here to view a recap of 2020 and the forecast for 2021

Air Freight Update

• AirBridge Cargo - Airbridge Cargo (ABC) has deployed its first 777 freighters, putting it on the Trans-Siberian route with a payload of 106 tons. “2020 has put air cargo at the front,” said Igor Borisov, director of Moscow’s Domodedovo Airport, “delivering much-needed medical cargo – PPE, vaccines, medicines, medical equipment, and other items to combat Covid-19 spread. “We are positive that the new freighter type within Airbridge Cargo’s fleet will open new opportunities for other carriers operating to/from Domodedovo.” Customer Natalia Butrova, logistics leader Russia & CIS at GE Healthcare, added: “Timely delivery of sophisticated medical equipment stays one of the top tasks during these difficult times. Time-wise, airfreight is the most preferred mode, which, coupled with safety and security, is very important for us.”
• American Airlines - Resumed flights to/from Florence, South Carolina, and Charlotte, North Carolina, on January 5, 2021.
• British Airways, EasyJet - Review flying plans in response to new national COVID-19 lockdowns.
• Caribbean Airlines suspends flights to Havana because of COVID-19 restrictions.
• Cathay Pacific - Cathay Pacific Cargo has announced a new scheduled freighter service between Hong Kong and Riyadh, starting tomorrow, with a 747-400ERF operating every Tuesday via Dubai. The airline said it had “seen a growing demand for air cargo flights between Saudi Arabia and Hong Kong. These new flights will meet the strong demand for shipments of e-commerce and other general cargo such as garments.”
• Qantas - Resumes bookings for all international flights from July 2021.
• Qatar - Qatar Airways Cargo took three 777 freighters on 1 January, bringing its freighter fleet to 30, of which 24 are 777Fs, four are A330Fs, and two 747Fs. The airline said the new aircraft would be put on long-haul scheduled routes and be open for cargo charters. “We are injecting much-needed capacity in the market, helping support global supply chains at a critical time during the pandemic,” said group chief executive Akbar Al Baker. “The added capacity will enable us to support logistics around the Covid-19 vaccination, which is projected to be one of the greatest logistical challenges for the industry. “Qatar noted that it had also temporarily converted six of its 777-300ER aircraft to operate cargo-only flights, introducing an additional 137 cubic meters of cargo volume per flight over the lower deck cargo capacity of 156 cubic meters.
• Volga-Dnepr - Began bringing its AN-124s back into the market after grounding the fleet in November, following an engine failure, with one back in operation at the end of December, following the completion of technical checks and service directives. Two aircraft are currently flying, with additional aircraft coming back at a pace of 7 to 10 days per aircraft, said Konstantin Vekshin, chief commercial director of Volga-Dnepr Group. “We have two An-124s back in service as of today. The ultimate return will be incremental, and we will take our time to follow the guidelines reflected in the service directives. “The carrier said it would discuss the return of its fleet with customers individually and would keep them informed of progress. Mr. Vekshin added: “We are in the process of the diligent execution of the service directives. Everything is on the right track.”
• Dubai - EY – Continues with temporary flight cancellations to KWI/ MCT/ Saudi Arabia.
• Vietnam - Authorities expected to suspend or limit incoming flights from at least 34 countries and territories with the new COVID-19 variant.
• U.K. - Terminal closed at Cornwall Airport Newquay because of COVID-19; all commercial flights were suspended.
• South Africa, U.K., Vietnam - Vietnam suspends flights from South Africa, U.K. because of COVID-19 variants.
• Poland - Update: Poland's government extends the ban on passenger flights from the U.K. until 13 January because of the new strain of COVID-19.
• Ireland, U.K., South Africa - Irish government extends the ban on travel from South Africa, the U.K. by 48 hours because of COVID-19. Aer Lingus suspends flights from Great Britain to Ireland in the same period.

Ground Transportation Operations

United States

• 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 turnover levels 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.