[FFW News] US threatens Houthis

Air cargo shifts due to Red Sea crisis

Author

Boxy
January 04, 2024

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📈 BY THE NUMBERS: Important numbers impacting freight and logistics

⛽ Diesel: $3.876 gal (🔽from $3.914 last week) - Source: EIA

✈️ Air Cargo Index (Nov ‘23): 169.3 (🔼from 166.4 in Oct ‘23) - Source: FRED

🚢 Global Container Index: $1,341.00 - Source: Freightos

Logistics News for Jan. 4, 2024

🛑US, allies warn against Houthi violence against cargo in the Red Sea

As the crisis in the Red Sea continues to escalate, U.S. President Joe Biden and the leadership of the country’s allies have issued a joint statement threatening the Houthi militants of Yemen. The statement promises very strong retaliation:

“Ongoing Houthi attacks in the Red Sea are illegal, unacceptable, and profoundly destabilizing. There is no lawful justification for intentionally targeting civilian shipping and naval vessels. Attacks on vessels, including commercial vessels, using unmanned aerial vehicles, small boats, and missiles, including the first use of anti-ship ballistic missiles against such vessels, are a direct threat to the freedom of navigation that serves as the bedrock of global trade in one of the world’s most critical waterways.” — Governments of the United States, Australia, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, Netherlands, New Zealand, Singapore, and the United Kingdom…more…

✈️Red Sea crisis leads to demand in global air cargo

Despite the rising pressure on the Houthi militants, the Red Sea crisis has led to a boost in air cargo demand. “The increased ocean transit times shall put pressure on inventories and have an immediate repercussion on airfreight capacities, with significant price hikes expected on major trades,” said Bolloré Logistics. Read…

💰Easing Panama Canal shipping traffic will cost billions of dollars

The Panama Canal Authority has indicated to news media that it will take several billions of dollars to address the canal’s water shortage and ease the shipping traffic. The project for expansion is estimated to cost over $2 billion and will take six years to complete. U.S. Army Corps of Engineers, which aided in the building of the canal, is said to be conducting a new feasibility study. Read more…

🚄Federal Railroad Administration’s train crew staffing rule advances

The Federal Railroad Administration’s train crew staffing rule has advanced and is set to be adopted fully in March 2024. As a safety measure, the rail regulator has adopted a rule requiring at least two staffed engineers during transit. Unions say this is a step in the right direction to boost safety. Class I operators and shortline want to be exempt or render the regulation inert says industry leaders. Here…

⚖️State AGs sue the Biden administration over federal emissions rules

A coalition of about 21 state attorneys general has sued President Joe Biden, Transportation Sec. Pete Buttigieg, and the Federal Highway Administration administrator Shailen Bhatt, saying they violated the law by establishing a set of GHG reduction targets and regulations to meet those targets. The lawsuit says that Congress is the only entity allowed to set GHG reduction targets. More…

☕Other stories to read with your coffee…☕

Compiled by Michael McGrady – news analyst and writer.

Do you have a tip? Feedback? Email him – [email protected]

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