ECX Newsletter: Volume 45, June 30, 2021
Vietnamese all-cargo airline ready for take-off
We are extremely excited that IPP Air Cargo is planning to launch with a domestic air cargo service connecting more Vietnamese markets. The airline plans to start with five freighters in year one and hopes to be to 10 by year 3. With foreign airlines controlling 88% of Vietnam’s air freight market, there is an opportunity for them to increase connectivity beyond the two major international points of Hanoi and Ho Chi Minh City.
The rich just keep getting richer
That’s the story with ocean carriers – and they’re doing so on the backs of shippers everywhere on the planet at this point. With an aggregate first quarter performance that exceeded their previous ten years combined, carriers are growing their order books – and enriching themselves and their shareholders, on the backs of their customers. Make no mistake about it, it’s not just the freight rates, but the demurrage and detention penalties as well.
DEMURRAGE AND DETENTION AS PROFIT CENTERS
We are watching the situation in Canada as the Canada Border Services Agency are voting on whether to authorize a strike. Canada’s major ports of Vancouver, Halifax and Montreal, coupled with commercial border crossings could be most affected.
It only took 20 years!
But in New York, JFK International Airport is planning the first new international cargo facility at a time when the airport has lost traffic to Newark and other airports throughout the Midwest and northeastern United States. We’re extremely happy for them.
In Chicago, we are challenged by backlogs at the railroads with hundreds of containers yet to be unloaded and at the airport as well. Unfortunately the best story about the ocean freight problems is behind a paywall at the JOC, but you can read the story about the situation at O’Hare on FreightWaves for free.
July 4th Holiday Observance
Our American offices will be closed next Monday, July 5th. We request that any pre-departure or pre-arrival filings for cargo moving over the weekend be sent to our office as early as possible this week.