Newsletter – April 27, 2023

AIR FREIGHT UPDATES

Cathay Cargo sees increase in BSA tonnages and more diverse array of customers

aircargonews.net
Cathay Cargo has seen an increase in tonnage commitments and a “more diverse array” of customers in its annual block space agreements (BSAs) while confirming its summer freighter aircraft network.
Chris Bowden, Head of Cargo Global Partnerships at the Hong Kong based airfreight arm of the Cathay Pacific Group, also sees a trend of economic recovery on the Chinese Mainland, while some inflationary pressures in Europe seem to be easing. Read more here.

Walsh: Airlines maintain focus on air cargo

aircargonews.net
Airlines are maintaining the focus on air cargo that they gained during the Covid-19 pandemic, according to IATA director general Willie Walsh.
Walsh, speaking to Air Cargo News at the IATA World Cargo Symposium, said that it was natural that airline management would focus on passenger operations as carriers continued to roll out networks following the pandemic. Read more here.

Ageing freighters face fallout from reduced air cargo demand

aircargonews.net
Older freighters are being grounded as a result of ongoing reduced demand and increased capacity.
Sander Schuringa, manager market intelligence, Seabury Cargo said that as a result of falling demand and increased capacity, yields and freighter utilisation have dropped.
Older freighters tend to be more expensive to operate and are therefore taken out of operation first when margins are squeezed by lower market rates. Read more here.

OCEAN FREIGHT UPDATES

Slow steaming can partially offset newbuilding surge, says consultant

theloadstar.com
Any recovery in the container shipping market will be overwhelmed by the flood of new vessels entering the market, according to maritime consultancy Maritime Strategies International (MSI).
According to MSI’s April market report, released yesterday, data from the early months of this year have been “dismal”, but there is an expectation that the industry will see some modest annual trade growth at least, starting from the middle of this year. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

So this is what the bottom of the freight market feels like?

freightwaves.com
Freight pundits have spent plenty of time over the last few months wondering when conditions would improve. In the first quarter, despite that initial glimmer of hope in the beginning, capacity remained too high for demand. That pushed rates further downward and contributing to big-ticket acquisition and bankruptcy news within trucking. It did not help to boost freight sentiment. Read more here.