NEWSLETTER DECEMBER 7, 2022

AIR FREIGHT UPDATES

IATA Expects Aviation To Return To Profitability Next Year

simpleflying.com
The International Air Transport Association (IATA) has announced today that it expects the airline industry to return to profitability in 2023. The announcement comes as part of its Global Media Days in Geneva, where it outlined its expectations for the coming year. Let’s take a closer look at what this means for aviation. Read more here.

Rail Replacements: EU Approves France’s Ban On Domestic Flights

simpleflying.com
The European Commission has released its official decision regarding France’s ban on short-haul flights. The EU executive has confirmed the French ban to be legal. The confirmation is contingent on the ban lasting for only three years. Since the ban’s adoption last year, it has received heavy pushback from airlines, airports, and other aviation organizations.

OCEAN FREIGHT UPDATES

Evergreen, Yang Ming and CMA CGM ready further boxship orders

splash247.com
The record boxship orderbook is about to reach 1,000 vessels, with the container market clearly passed its peak, and yet discussions are ongoing for another raft of newbuilds.
Alphaliner is reporting that at least three of the top 10 carriers are close to announcing orders at Asian yards. Read more here.

New entrants exit the main box tradelanes

splash247.com
The new entrants on the main east-west container trades are hurting, hit hard by plummeting spot rates and sky-high charter rates.
CU Lines has given notice for the early termination of the charter of 12 panamax ships that it currently deploys on routes to the US and Europe. It follows the termination of the China-Europe service of UK-based operator Allseas Global Project Logisitcs which, according to Linerlytica filed for insolvency in October after failing to meet its commitments on the charter of six ships that it had deployed. Read more here.

CMA CGM buys New York/New Jersey terminal operations from GCT

freightwaves.com
Shipping lines have never amassed more cash than they have in the past two years — and they’re spending it freely on everything from new ships to airplanes to tech platforms to terminal operations.
France’s CMA CGM Group, which operates the world’s third-largest ocean carrier, unveiled its latest purchase Tuesday night. It confirmed it will buy the terminal assets of Global Container Terminals (GCT) in Staten Island, New York, and Bayonne, New Jersey. Read more here.
 

GROUND AND RAIL FREIGHT UPDATES

Transportation capacity up, prices see ‘sharpest rate of contraction’ in November

freightwaves.com
Transportation capacity continued to grow at a high rate during November with prices falling at the fastest rate on record, according to a monthly survey of supply chain executives released Tuesday.
The Logistics Managers’ Index (LMI) displayed a capacity reading of 71.4 in November, 1.7 percentage points lower than the all-time high established in October. The 12-month forward-looking expectation for the subindex is 65.7.