Advisories

Supply chains are playing with spare capacity for the first time since June 2020. GEP’s global supply chain volatility index—tracking demand conditions, shortages, transportation costs, inventories, and backlogs—fell to -0.4 in April, the first negative reading since mid-2020.

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There will be a huge influx of belly capacity hitting the air freight market soon, which is expected to drive rates down further as carriers scramble to fill their aircraft with cargo.  

• American Airlines will add 400+ widebody flights a month to its network this summer, much of it on the transatlantic.  
• United Airlines will add 20+ international routes, boosting the overall network by 25%. 
• Delta will increase transatlantic flights out of its New York and Atlanta gateways and has added Geneva, Switzerland, and Nice, France, to its European destinations. The airline is running 1,750 flights a week to 85 global destinations in total.  

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The European Parliament and EU member states have agreed on the ReFuelEU aviation initiative, which will require fuel suppliers to blend sustainable aviation fuels (SAFs) into paraffin in increasing amounts over time.

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Canadian Pacific (CP) and Kansas City Southern (KCS) recently combined to create Canadian Pacific Kansas City (CPKC), the first and only single-line railway network connecting Canada, the U.S., and Mexico. The combined railroad has its company headquarters in Calgary, Alberta, and its U.S. headquarters in Kansas City, MO. The merger became effective on 14 April 2023.

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On 18 March 2023, CBP deployed the Uyghur Forced Labor Prevention Act (UFLPA) Region Alert enhancement to the Automated Commercial Environment (ACE). This provides an early notification to importers and their representatives of goods that may have been produced in the Xinjiang Uyghur Autonomous Region (Xinjiang or XUAR) and may be excluded from importation into the United States. This enhancement includes electronic data interchange (EDI) as well. U.S. Customs & Border Protection (CBP) has published a dashboard providing statistics on shipments subjected to UFLPA reviews and enforcement actions.

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After a three-year wait, China has reopened its borders as all types of visa applications have resumed, and visa-free policies have been reinstated. You only need a valid visa, passport, and a PCR or antigen self-test to enter China. 

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