Canadian Airlines Add Cargo Capacity to Meet Increasing Demand

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Canadian airlines WestJet and Cargojet are both adding freighter capacity in 2022. The explosion of air cargo demand since the start of the pandemic coupled with the lack of freighter capacity has led to Canadian airlines investing in new aircraft.

State of Georgia Declares Supply Chain State of Emergency

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The governor of Georgia declared a supply chain state of emergency starting April 16. The executive order, which runs until May 16, was in response to the state’s supply chain challenges. The order bans price gouging on diesel fuel and gasoline and increases the maximum allowed gross vehicle weight and width on Georgia’s state and local roads.

50% Chance that US West Coast Ports will Strike

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The contract for 15,000 port workers in Washington, Oregon, and California will expire on July 1, 2022. Negotiations are scheduled to begin for the 29 ports on May 12, but sources say that anything is possible – from a contract getting signed with no disruption to a strike lasting month or anything in between.

How will Shanghai’s Pandemic Lockdown Impact Supply Chain?

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The city of Shanghai and its 25 million people are under an indefinite lockdown as China deals with its largest Covid-19 outbreak since the pandemic started. The good news is that China has kept the ports open. The bad news is that the critical shortage of truck drivers is impacting shipping volume, with one source estimated a 26% decrease in …

BREAKING: CP Rail Back to Work Today (Mar 22)

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BREAKING NEWS: Canadian Pacific Railway (CP) employees are back to work at 12 noon local time on March 22, 2022. The Teamsters Canada Rail Conference (TCRC) and CP Rail have agreed to enter into binding arbitration, which ends the strike action that began this weekend.

China’s Ports and Airports are Impacted by COVID Outbreaks and Restrictions

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Congestion at Chinese ports is building up as China experiences its biggest spike in COVID-19 cases since early 2020. The highly-infectious Omicron variant is spreading quickly and many port workers, truckers, and factory workers are ordered to stay at home. Container loading capacity has decreased significantly as a result.

Upcoming Environmental Regulations Will Slow Ocean Rate Declines

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Consumer good demand in the North America will decline in 2022 as federal stimulus payments have been mostly spent and people shift their spending to vacations and restaurants following pandemic restrictions ending. But ocean freight rates might not decline as quickly as some have hoped because of global environmental regulations that will start in 2023.

CP Strike Starts but Government wants Quick Resolution

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CP Rail shut down their operations in Canada on Sunday, March 20th, after 3,000 CP workers started picketing. The work stoppage comes at a terrible time for Canadians who are facing the negative impacts of the pandemic, record-high inflation, supply-chain congestion, and the war in Ukraine. Federal representatives want CP Rail and the union to reach a deal to end …

Modernizing IT is a Key to Improving Your Supply Chain

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When I first took over the business from my father almost 20 years ago, our team was sharing one giant Excel spreadsheet to do our supply chain planning. The spreadsheet could only be updated by one person at a time, causing obvious limitations to our team’s efficiency. One of my first initiatives was to implement an ERP software, which we …

CP Votes to Strike as Early as March 16

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Canadian Pacific Railway (CP) employees have voted in favour of a strike that may start as early as March 16th. This labour dispute looms as CP works on a merger with Kansas City Southern (KCS). Teamsters Canadian Rail Conference (TCRC) which represents 3,000 conductors, engineers, train personnel, and yard personnel, has an ongoing dispute with CP about salary, benefits, and …

COVID-19 Vaccines to be Manufactured in Mobile Shipping Container Factories

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The factories the manufacture BioNTech-Pfizer’s COVID-19 vaccines take up multiple stories and almost 20,000 square feet, which make it difficult for developing nations to set up their own manufacturing facilities. But BioNTech has a new design for a mobile vaccine factory that can be built inside 12 shipping container-size units. This modular factory can be built in Germany and filled …

Do You Need Cargo Insurance? Shipping Accidents Increase in Past 18 Months

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Last week a cargo ship carrying thousands of Porches, Audis, and Lamborghinis caught fire in the Atlantic Ocean.1 In December, a container ship crashed into a wharf at Taichung Port and sustained serious damage.2 In October, a fire started on a cargo ship off the coast of Vancouver Island.3 Statistics show that ship accidents have increased over the past 18 …

Following Record Revenues, Air Canada Adds First Dedicated B767 Freighter

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Air Canada’s cargo arm recorded an all-time high of almost CAD $1.5 billion in revenue for 2021, compared to CAD $920 million in 2020. In December 2021, Air Canada added its first B767 dedicated freighter to its operating fleet and expects to add three more by the end of 2022. This move allows the airline to expand its services and …

LA-LB Port Flow Improves, but Congestion Persists

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The situation at the ports of Los Angeles and Long Beach has improved in recent weeks. The ports have been able to reduce vessel backlog from its peak of 109 on January 9th to 74 on February 16th. Part of this success is due to an increase of labour availability and progress clearing out empty containers from docks that were …

Trucking Rates Continue to Rise from Weather, COVID-19, and Protests

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Trucking rates increased for the eighth straight month with average van rates increasing 11% and reefer rates increasing 3% from December 2021 to January 2022.1 These stats are reported from DAT Freight & Analytics and based on $116 billion in annualized freight transactions. Industry experts say this is the result of tight capacity due disruptions from winter weather, COVID-19, and …

8-9 Months for Container Shipping Reliability to Recover

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COVID-19 appears to be moving from a pandemic to endemic phase, and we are all wondering how soon supply chain issues will resolve. According to Denmark-based research analytics firm Sea-Intelligence, it will take 8-9 months before a return to normal reliability of container shipping.1

Celebrating 40 Years of Business

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Canaan Group celebrated 40 years in business last year. With all the volatility in the transportation industry in 2021, I haven’t had any time to reflect on this milestone until now. As I think back over the past 40 years, the most important figure was my late father who started this business. It also happens to be 20 years since …

Outlook for Air Cargo Looking Bleak

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Last Friday, the Biden administration suspended 44 flights from US to China in retaliation for China imposing similar restrictions on American flights in recent weeks. The Chinese government cancelled flights after passengers tested positive for COVID-19 after arriving in China, even though those passengers tested negative before getting on the planes.