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World’s Biggest Maker of Sneakers Asked to Halt Vietnam Operations
| April 12, 2020 | International Trade
China Still Implementing U.S. Trade Deal, Chinese Envoy Says
Australia Wants to Ensure There Are Two Airlines After Shutdown
| April 12, 2020 | Air Cargo | Airlines
The Australian government is in contact with Virgin Australia Holdings Ltd. management and wants to make sure there is a competitive airline industry when people are allowed to start traveling again after the coronavirus pandemic.
Some Airlines Aren’t Happy With the Terms of Mnuchin’s Aid
| April 11, 2020 | Air Cargo | Airlines
Sweden, Belgium Win EU Approval to Support Airlines, Airports
| April 11, 2020 | Air Cargo | Airlines
Air France-KLM in Talks for French State Cash Injection
| April 11, 2020 | Air Cargo | Airlines
FedEx Puts Parked Jets Back in Service to Meet Asia Cargo Surge
| April 10, 2020 | Air Cargo | Freighters | Logistics | Integrators
FedEx Corp. is redeploying aircraft it mothballed earlier this year and plans to add 150 flights over the next month to ferry masks, protective suits and other health-care supplies to the U.S. from Asia.
Southeastern Freight Lines promotes Walter Radny to Service Center Manager in Knoxville, Tennessee
| April 10, 2020 | Intermodal | Trucking
Southeastern Freight Lines, the leading provider of regional less-than-truckload (LTL) transportation services, today announced Walter Radny has been promoted to service center manager in Knoxville, Tennessee.
Port of Indiana-Mount Vernon Completes $2 Million Capital Improvement Project
BluJay and Loadsmart announce strategic partnership
| April 10, 2020 | Logistics | Shipping Technology
CMA CGM Group builds a logistical bridge to supply France with medical equipment
Port of Los Angeles Executive Director acknowledges supply chain stakeholders, USNS Mercy
| April 10, 2020 | Ports & Terminals | Ports
In his latest video message, Port of Los Angeles Executive Director Gene Seroka underscores that while Port operations are smooth, cargo volume has declined 30.9% in March and 18.5% during the first quarter of the year. Looking at the next quarter, production in China is ramping up slightly, but U.S. orders are not – the current demand has decreased.
Etihad expands passenger freighter coverage
| April 10, 2020 | Air Cargo | Freighters
Following its recent launch of passenger freighter flights to 10 destinations, complementing its Boeing 777 freighter operations, Etihad Cargo is pleased to announce five additional routes using Etihad Airways passenger aircraft to increase the flow of essential supplies into the United Arab Emirates and provide further east-west connectivity between major markets.
Seaboard Marine Says Keeping American Grocery Stores Stocked is a Team Effort
| April 10, 2020 | Maritime | Liner Shipping
Most of us, by now, have found while visiting or ordering from our local supermarkets that despite the COVID-19 pandemic, aisles remain stocked with fresh fruits and vegetables.
Rystad Energy’s final comment on Thursday’s OPEC deal
| April 10, 2020 | Energy | Conventional | By The Numbers
The proposed 10 million bpd cut by OPEC+ for May and June will keep the world from physically testing the limits of storage capacity and save prices from falling into a deep abyss, but it will still not restore the desired market balance. Just hours before delegates stepped into the (again virtual) closed meeting, Brent was fluttering in the mid-$30s, seemingly oblivious to the fact that even if a 10 million bpd cut is agreed upon, or even in the best-case scenario 15 million bpd if the US, Canada, Norway and Brazil join forces, an excess of supply of the magnitude of 5-10 million bpd will remain, and will need to be stored. image001.jpg Rystad Energy currently estimates that the demand-supply imbalance for April 2020 is 27.4 million bpd, an amount that is physically impossible for the oil market to absorb. So while the unprecedented gesture by OPEC+ is, without doubt, saving the market from the worst imaginable collapse by buying producers precious needed time to adjust and by removing strain from the storage infrastructure, one should not be overly optimistic. The proposed OPEC++ cuts alone cannot reverse the deep contango curve of Brent prices in a meaningful or lasting way as storage need to remain economical to handle the standing oversupply. We thus believe that the renewed market optimism will be short-lived. image002.jpg Although the proposal is nowhere close to restoring the 2Q20 balances, it does buy time. Rystad estimates that the difference between a “no deal” and 10-15 million bpd cut deal gives the oil market an additional 2-3 months before filling crude storage capacity “right to the top.” image003.jpg The supply cut will give demand time to improve as quarantines in parts of Europe are partially lifted, but more importantly, it gives E&P companies more time to prepare supply chains and activity plans, reduce costs and avoid an uncontrolled dismantling of parts of the industry. In this scenario, crude prices would still come under pressure, but we may bottom at $25 Brent for 2Q20 average, and see lower price spike risk down the road. Global storage is already close to being filled to the brim. The world has around 7.4 billion barrels crude and products in onshore storage, including 1.3 billion currently onboard tankers at sea. We estimate that on average 79% of the world’s oil storage capacity is already full. Therefore, we believe that the theoretical available storage capacity is limited to 1.5 billion barrels onshore for crude and products combined. The operational available capacity, unfortunately, is below the theoretical maximum as tanks cannot be filled 100% and not all market participants have equal access since most available capacity is concentrated in the US and China.. According to our bottom-up supply database, total liquids production in OPEC was 30.25 million bpd in March 2020, and without taking into account any future cuts, is on track to grow to 31.65 million bpd in April 2020, buoyed mostly by Saudi Arabia’s export spree. So on the conservative side if we estimate Russia takes on 2 million bpd of cuts, that means the share of cuts from OPEC members would translate into cutting 26% of total production. For comparison, at the last December 2019 meeting, a total 1.168 million bpd was pledged in cuts when OPEC crude production stood at 26.314 million bpd, so a less than 5% cut of total production. Ever since President Trump sent oil prices sky high with a single tweet about the potential OPEC+ production deal, the White House has been quite non-committal in joining along in these supply cuts, even though US shale is a clear target should oil market destruction escalate any further. Particular US companies, such as Pioneer Resources and Parsley have spoken up about 20-30% production cuts, but majors such as Chevron insist it should be left to market forces. Canada, which has already shuttered several oil sands projects as the oil price ticks lower, is now looking at nearly 1.1 million bpd of curtailments in 2Q20, and has expressed interest in joining a global oil market management program. A usual the devil is in the details and there are still many important questions that remain unanswered. Despite the many unknowns, one thing certain with this deal is that OPEC countries are once again coming to the rescue. We will know more once the “emergency” G-20 meeting takes place on 10 April 2020 and whether or not other non-OPEC producers are ready to take similar unprecedented action.
New Port Wilmington Delaware container terminal gathers momentum
| April 10, 2020 | Ports & Terminals | Terminals
Business and Community Leaders Urge FHWA to Keep Off-Highway Food Open for Truck Drivers
| April 10, 2020 | Intermodal | Trucking
MSC Seasonal Blank Sailing Programme for Transatlantic Network
| April 10, 2020 | Maritime | Liner Shipping
Port of Long Beach Receives $14.5 Million Grant for Rail Project
| April 10, 2020 | Ports & Terminals | Terminals
The Port of Long Beach has been awarded a $14.5 million grant from the U.S. Department of Transportation’s Maritime Administration to help fund the “Terminal Island Wye Track Realignment” railroad project, which will move trains in and out of the Port faster, reduce locomotive idling and improve safety.
HART Essential Employees Receive Hand Sanitizer Donation From Local Brewery
| April 10, 2020 | Intermodal | Trucking
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