Global air cargo capacity to increase throughout 2023; Section 301 product exclusions extended through September
- Etihad Cargo is increasing its air cargo capacity in 2023 with additional flights to China as well as the United States.
- CBP announces that importers will be able to continue to utilize the Section 301 Product Exclusions through September 30, 2023.
- There was an unexpected drop in export container rates leaving Chinese ports. Usually, leading up to Chinese New Year, spot rates for containers would rise; however, this year the rates have fallen 50% compared to February 2022.
Air
- Despite an ease in inflationary pressures, US manufacturing PMI continued to decline in December. At 46.2, it registered the steepest decline since May 2020. Demand decreased further amid economic uncertainties.
- Miami International Airport is set to expand its cargo handling capacity. The five-year expansion project will add approximately 4.5 million tons of cargo capacity to the 3 million tons of already existing capacity.
Ocean
- The Port of Houston will implement a “Sustained Import Dwell Fee” that will go into effect on February 1st. This fee will be applied to containers who stay at the port for more than eight days. On the eighth day and beyond, every container will be charged $45 per day.
Air
- The Argentina state airline Aerolíneas Argentinas will lease two Boeing 737-800BCF freighters, which will increase its cargo capacity in 2023.
Ocean
- Acelen has contracted a Very Large Crude Carrier (VLCC) vessel to import 2 million barrels of oil from Africa to Brazil while operating with a zero-carbon footprint. The estimated 3,639 tons of carbon from the ship will be cancelled out using credits issued by the Battre Sustainable Valorization Unit, of the Solvi Group.
Air
- The Chinese manufacturing production continued to decline in December as Manufacturing PMI fell to 49.0. Demand and supply continued to shrink over 2022 which led to a further decline in new export orders.
Ocean
- There was an unexpected drop in export container rates leaving the Chinese ports. Usually, leading up to Chinese New Year, spot rates for containers would rise; however, this year the rates have fallen 50% compared to February 2022.
Air
- On December 26, Aero Italia launched the Florence-Heathrow route, connecting Florence to London Heathrow Airport, following the Bergamo-Heathrow connection. In 2023, London airports will have direct service to about 27 Italian airports, accounting for nearly 125 flights per day. It is predicted that London Gatwick will take the lead with the highest daily flight and route rate, followed by Stansted, Heathrow, Luton, and City.
- Turkish Airlines is expanding its Italian destinations for flights leaving from the Istanbul Airport. Starting May 5, Istanbul to Palermo flights will operate four days a week. Later in the summer, Turkish Airlines will expand its routes into Bari, Bologna, Catania, Milan, Naples, Rome, and Venice.
- Starting on April 23, Lufthansa will operate two daily operations connecting London Gatwick Airport to Frankfurt, Germany, which will increase its cargo capacity.
Ocean
- Ellerman City Liners has officially launched a bi-weekly trans-Atlantic container service to/from Antwerp (Belgium), Rotterdam (Netherlands), Tilbury (England) to New York (N.Y.), Wilmington (N.C.), and Jacksonville (F.L.). Transit time will be around 13 – 17 days, carrying various consumer goods, including auto parts, clothing, wine, and spirits.
Air
- Etihad Cargo is increasing its cargo capacity in 2023. In February, Etihad will add two additional flights from Abu Dhabi to Shanghai, China. In April, Etihad Cargo will add three additional weekly flights to JFK International Airport in New York, which will increase its cargo belly capacity from the US to more than 600 tons
Ocean
- Starting January 9, 2023, Pacific International Lines (PIL) will add a new service from Hamad port connecting China and Qatar in the Middle East, expanding its service through both east and westbound routes. The number of ships that will depart from China will increase to seven, while the average vessel size will vary between 4,000 and 5,200 TEUs.
- Mawani Port Authority in Saudi Arabia announced a new service that will connect Jubail Commercial Port to eleven global ports, including ones in Turkey, the Indian Subcontinent, Africa, and the Middle East, covering weekly sailings of five vessels. The vessels’ carrying capacity will be 8,000 TEUs.
- Burkina Faso has been removed from the African Growth & Opportunity Act (AGOA) free trade agreement, effective January 1.
- CBP announces that importers will be able to continue to utilize the Section 301 Product Exclusions through September 30, 2023.
- The National Marine Fisheries Service (NMFS) is proposing to add additional seafood species to the SIMP program. The proposed rule also modifies administrative entry filing procedures to require that the Importer of Record and the International Fisheries Trade Permit (IFTP) holder be the same entity
- Renewal of Safe Food for Canadians (SFC) licences
- SFC licence holders are reminded to renew their licences early before expiration January 15, 2023. An SFC licence is required for the import of certain foods, including meat products, fish and seafood, dairy products, shell eggs, processed egg products, fresh fruits and vegetables, processed fruits and vegetables, honey and maple products, as identified in the CFIA's Automated Import Reference System (AIRS).
- When renewing a licence, licence holders should ensure their Party Profile information is up-to-date and accurate. Shipment without a valid SFC licence may lead to delays, refusal of entry at the Canadian border and potential enforcement actions. For any questions, please reach out to your UPS customs brokerage representative.
EU Energy Update:
- On December 19, energy ministers reached an agreement to trigger a price cap on the Dutch Title Transfer Facility (TTF) gas hub’s front-month contract. If prices exceed €180 MWh/h for three days and TTF’s price would be €35 higher than a reference price for LNG. The price cap can go into effect starting February 15, 2023.
