Warning for shippers: overland rates in North America look set to rocket next year
Forwarders have warned shippers that rates for overland services in North America are expected to “sky rocket” next year as capacity tightens further.
Speaking at the FIATA World Congress in Istanbul last week, US and Canadian forwarder associations outlined several significant trends that would force up prices.
“We have seen a 10-12% increase in rates this year, and I wouldn’t be surprised to see another 10-15% rise next year,” said one delegate …
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Hong Kong shippers react with fury to box carriers’ port congestion surcharge
Hong Kong shippers have demanded that intra-Asian shipping lines cancel a port congestion charge imposed this week on containers moving in and out of the hub port.
In a strongly worded statement, the Hong Kong Shippers’ Council (HKSC) said it “fails ...
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Seoul show: TIACA’s Air Cargo Forum in pictures
Happy Wednesday peeps! Here’s something to put a smile on your face, a selection of the best photos from the TIACA Air Cargo Forum.
Let’s get started:
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Five-year forecast shows improved outlook for air cargo
IATA has issued a five-year forecast for air cargo which shows a compound annual growth rate (CAGR) of 4.1% up to 2018. But, warns the association, there remain several risks to the industry, not least trade protectionism. It also notes that volume imbalances will continue, but – strangely – omits any mention of overcapacity. There are several points of interest: the UAE will overtake Germany as the third-largest market, India will see a 6.8% CAGR, taking it to 622,000 additional tonnes and giving it a place in the top ten largest markets, while Europe and North America will grow at 3% CAGR and 2.8% respectively.Read more...
Why the German economy is in a rut
Germany has been Europe’s last bastion of economic health. But, as it approaches a technical recession, in which its economy is expected to contract for the third consecutive quarter, The Economist asks why. There are some surprising facts along with the better known problems that German exporters are facing in selling to weakened economies in the Eurozone, China and Russia. But its energy prices, already among the highest in Europe, have risen further still, triggering some manufacturers to relocate – including BMW, which moved to the US where energy prices are 80% lower. In nearby Hungary, industry is booming, while German industrial production in August fell by 4%. And the future? The economy may not grow until the middle of next year.Read more...
National Air Cargo files for Chapter 11 protection
The freight forwarding arm of National Air Cargo Holdings yesterday filed for relief under Chapter 11 bankruptcy protection. While speculation has been circulating in the market for a while, this announcement reveals that it is just one part of a multi-faceted group and the airline is not connected to the proceedings.
The announcement follows a judgment against NAC Inc, in a case filed by Global BTG, which provides leasing and financing for aircraft, which alleged that NAC Inc had breached a letter of intent by failing to finance aircraft leases through Global. NAC is appealing the judgment but the Chapter 11 proceedings will allow it to continue business as normal in the meantime.Read more...
Bulc walks on fire… and survives
It would appear that Slovenian telecoms entrepreneur Violeta Bulc is on the verge of being named as the new EC transport commissioner, after yesterday giving evidence to Euro MPs demonstrating how much transport knowledge she managed to cram in the space of just four days. She turned in an impressive appearance according to observers – an impression hard to escape if you watch the summing up speech embedded in the article. The last step remains ratification by the European Parliament, in what is likely to be the final act of the inauguration of Jean-Claude Juncker’s new commission, and is expected to take place tomorrow.Read more...
Forwarder relief as CP and CSX end rail merger talks
Forwarders in north America are breathing a sigh of relief after exploratory merger talks between Canadian Pacific Railway and CSX were called off. Speaking at the FIATA World Congress last week, forwarders expressed concern that such a merger would reduce the number of services and could even lead to “another round of mega mergers”. While one forwarder correctly predicted that the deal was unlikely to happen, he added: “It is something to watch out for.” This article indicates that while talks between those two players are off, congestion problems have not been addressed. CP is said to be continuing to look for merger partners, which analysts believe could include Norfolk Southern or BNSF.Read more...
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