Newsletter – December 20, 2021
AIR FREIGHT UPDATES
Air freight rates soar to new record highs
Ex-Asia air freight rates have soared again to new record highs, especially on the transpacific where average Shanghai to North America spot prices reached almost $16 per kilo this week amid “unprecedented market momentum”. Read more here.
Strike Planned At Brussels Airlines For Monday
Passengers flying with Brussels Airlines are set to face disruption tomorrow due to a strike at the Belgian flag carrier. The strike is planned to commence at 05:00 local time, and last for 24 hours. Over 100 flights have already been canceled at one of the busiest times of the year. Read more here.
CMA CGM firms up A350F order
France-based shipping group CMA CGM has firmed up an order for four A350F aircraft in what has been a busy week for the recently launched freighter programme.
Last month, CMA CGM signed a memorandum of understanding covering the purchase of four of the type but the deal has now been completed. Read more here.
Zero-emission hydrogen bid for United
Up to 100 zero-emission, 100% hydrogen-electric engines could be used on United Express regional aircraft by 2028.
United has taken an equity stake in hydrogen-electric engine developer ZeroAvia that gives it the ability to purchase the ZA2000-RJ engines and, according to United, will make it the largest airline to invest in zero-emission, hydrogen-electric engines for regional aircraft with bellyhold capacity. Read more here.
OCEAN FREIGHT UPDATES
Liners hammer home their advantage, seeking hugely inflated long-term contacts
Containerlines are on track to hammer home their advantage next year with long term contracts expected to be sealed with clients for record figures.
As the first round of tender data has started to roll in, Xeneta data indicates that most of the 2022 contracts will be at record-high levels. Carriers are asking clients to pay up for secured, long term deals or risk being hit by the vagaries of the spot market. Read more here.
World’s busiest port in middle of China lockdown crisis
Reports emerging from China say Covid lockdowns in the economically vital Zhejiang province have resulted in multiple factory closures, and that restrictions have been placed on trucking.
Zhejiang contains the Port of Ningbo-Zhoushan, the busiest in the world in terms of cargo tonnage. It sits on the southeast end of Hangzhou Bay, across which lies the equally important port of Shanghai. Read more here.
Tough contract talks loom for shippers ‘gobsmacked’ by rate increases
With capacity remaining extremely tight ahead of Chinese New Year, shippers are bracing for a further wave of rate increases on container trades out of Asia.
The spot rate indices this week were virtually unchanged – the Freightos Baltic Index (FBX) Asia-North Europe component stable at $14,496 per 40ft, and its US west coast and east coast readings at $14,924 and $16,865 per 40ft, respectively. Read more here (lgoin required).