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MSC box ship sinking after attempt to escape typhoon

An MSC containership is sinking in Zhoushan port after stormy weather disrupted repairs on the vessel. Vessel-tracking data shows that the 2006-built 8,401 teu MSC Silvana VIII, which MSC deployed on a Far East-South America service, had arrived at the Guojiayou Island shipyard district in Zhoushan on 22 June for repairs. When Typhoon Bavi hit on 11 July, MSC Silvana VIII left the dock and moved to the other side of the channel ,off Daishan, but appeared to have grounded on some rocks. The engine room and several cargo holds were flooded, while the vessel's stern became submerged. Around 3,000 tonnes of bunker fuel were reportedly pumped out to lighten the vessel and prevent leaks, but as MSC Silvana VIII sank deeper, salvage operations became increasingly challenging. Vessel traffic in the busy Zhoushan area complicated the salvage efforts, which weredelayed again when Typhoon Dolphin made landfall yesterday. The cause of the grounding, the extent of structural damage below the waterline, and the next stage of the salvage operation remained unconfirmed. The incident has raised concerns over the vessel's maintenance and survey compliance, in view of its age, with questions concerning its survey history and class status. MSC has not issued a public statement. Maritime authorities and salvage experts were expected to assess the condition of MSC Silvana VIII, along with the environmental impact and potential oil spill risks, before determining further recovery measures.

European air cargo demand continues to fall following EU's stricter import rules

Air cargo demand from China and Europe continued to fall last week partly as a result of the Euorpean Union's new rules around the import of e-commerce goods. The latest figures from data provider WorldACD show that in the week ending 2 August (week 31), volumes from China to Europe were down 5% compared with a week earlier, while from Hong Kong there was a 3% decline. The data firm said that for July as a whole, volumes from "e-commerce-driven" Hong Kong to are down 19% compared with June and 24% year on year. From China to Europe, volumes in July were less affected than Hong Kong drop-off but are still down 3% compared with June and 6% behind last year's levels. The drop-off comes after the EU ended its tariff-free exemptions on goods valued less than €150 by adding a €3 charge per item. "Spot rates from both China and Hong Kong to Europe during that same six-week period have also been in persistent decline," WorldACD added in a market review. The lower volumes are also affecting pricing, with average spot rates from Hong Kong to Europe falling from US$5.80 per kg in mid to late June to $4.96 per kg in week 31. From China rates are down from $5.43 per kg in week 25 to $3.86 per kg in week 31. Rates from both origins to Europe are higher than last year in week 31 - up 2% from China dn 7% from Hong Kong - but this is down on the 25% difference of the previous three months. Elsewhere, "spot rates from many parts of Asia Pacific to Europe remain at highly inflated levels compared with this time last year, including from Taiwan (33% year on year), Vietnam (39% year on year) and Thailand (32% year on year)", WorldACD said. "But the fall in spot rates to Europe from China and Hong Kong in recent weeks has narrowed the overall increase versus last year for Asia Pacific to Europe spot rates from 39% in week 25 to just 17% in week 31," it added.

Cargojet's Q2 revenues and profits rise while pilot deal reached

Freighter operator Cargojet saw both its revenues and profits grow in the second quarter of the year as higher fuel prices, contractual price increases and new charter opportunities affected performance. The company saw second-quarter revenues increase 15.8% year on year to C$275.8M, adjusted ebitda was up 8.9% to C$87.3m and net earnings reached C$7m compared with a C$3.2m loss a year earlier. The increase in revenues was driven by a 45.9% increase in fuel costs year on year, which are passed through to customers through a fuel charge mechanism, albeit with a small time lag. Looking at divisional performance, the second-quarter revenue improvement was led by its all-in charter business, which registered an increase of 37.4% on last year to C$57.4m. "The increase in [charter] revenue was primarily due to new charter opportunities, partially offset by the reductions in year-over-year frequency of scheduled charter services between China and Canada," the company said. It also supported a customer, which previously operated MD-11F aircraft, which were last year temporarily grounded following the fatal UPS accident. Domestic network revenues for the period, meanwhile, increased by 8.1% on last year to C$110.6m as a result of consumer price index increases for contractual customers and higher fuel prices. Meanwhile, ACMI revenues for the quarter fell 12.6% against last year to $54.6m, a decrease primarily driven by redeployment of aircraft from long-distance routes of Asia and Europe to certain South American routes. "Our strong second quarter results reflect the resilience of our business model, the strength of our longterm customer partnerships, and our team's disciplined execution", said Pauline Dhillon, chief executive. "Our One Fleet strategy continues to differentiate Cargojet by enabling us to dynamically deploy our assets to the highest-return opportunities while improving fleet and flight-level asset utilisation. "Combined with our focus on revenue quality, disciplined cost management and operational excellence, we delivered another strong quarter while maintaining our industry-leading 99.2% on-time performance." The company also benefited from a new service from Liège to Tel Aviv, following the launch of operations to Liege last year. Meanwhile, the airline also confirmed it had reached an agreement with the Air Line Pilots Association (ALPA) on a new deal. Pilots will get a wage increase of 26%, followed by annual increases of 5% over each of the subsequent four years through June 30, 2031. Meanwhile, pilots will move from a baseline of 15 working days per month to 16 and the deal continues to inclued a no-strike, no-lockout provision.