Newsletter – December 14, 2023

AIR FREIGHT UPDATES

Latin America: Yields under pressure as capacity outstrips demand
aircargonews.net
The recovery of passenger flights has resulted in an influx of cargo capacity for many countries in Latin America while export demand from the region remains strong.
For much of this year, IATA’s monthly cargo statistics have shown Latin America as the region with the strongest growth in cargo traffic. Read more here.

‘De-risking’ supply chains now the priority for air cargo, says IATA
theloadstar.com
IATA flagged digitalisation, sustainability, safety and security as key focus areas for air cargo next year, during a media presentation at its head office in Geneva last week.
Although air cargo demand was up 3.8% in October, challenges persist. Economic volatility has brought inflation, a weaker trading environment, shifting currency rates and slower GDP growth. And concerns are growing on how China’s global supply chains will play out. Read more here (login required).

OCEAN FREIGHT UPDATES

US west coast ports heading for the ‘congestion zone’ again next year
theloadstar.com
Shippers and the wider supply chain need to be concerned about the resurgence of major US west coast port congestion next year, rather than writing it off as an historical anomaly.
The warning came from TradeTech president Bryn Heimbeck, who said it was “clear” the ports were not prepared to handle the mounting demand. Read more here.

Route diversions: ship captains ‘don’t know whether they’re coming or going’
theloadstar.com
Panama Canal draught restrictions on one side of the world and Yemen-based Houthi rebels attacking shipping transiting the Red Sea enroute to the Suez Canal on the other side, are giving ocean carrier ship managers sleepless nights.
According to Destine Ozuygur, head of operations at maritime and supply chain intelligence firm eeSea, diversions of carrier proforma loops are being scaled up as more services avoid the two waterways. Read more here.

CMA CGM imposes temporary restriction on Hong Kong reefer transhipment
theloadstar.com
Container line CMA CGM has placed temporary restrictions on certain reefer or time-sensitive cargo to be transhipped over Hong Kong.
Its bookings for early next year have been suspended due to the expiration of local permissions, under what it called the Hong Kong Transhipment Cargo Exemption Scheme.  Read more here.