Newsletter – January 31, 2023
AIR FREIGHT UPDATES
End of production era, but 747 freighters will fly for decades
Boeing will hand over the last 747 ever made to Atlas Air on Tuesday, marking the end of an era for an iconic aircraft that transformed air travel and made it accessible to the average person. From the 747-100 to the 747-400, and then the modern 747-8, Boeing built both passenger and freighter versions. And many used 747 passenger jets were eventually converted to freighters by third-party engineering firms. Read more here.
OCEAN FREIGHT UPDATES
Good times still rollin’ for shipping lines in trans-Atlantic trade
The rise of East Coast ports has been largely credited to the fall of West Coast ports — to shippers switching routes following the expiration of the West Coast port labor contract in July. But that’s only part of the story.
Double-digit growth in imports from Europe has been another big driver of East Coast strength. Read more here.
More blank sailings and detours as ONE’s volumes, earnings, fall
ONE said today it would blank more sailings and detour more ships round the Cape of Good Hope, following falling cargo volumes and earnings from April to December last year.
Net profit for the September-December 2022 period alone had fallen 43% year on year, to $2.77bn. For the full year, ONE forecasts a net profit of $14.73bn, down 4% year on year. Read more here (login required).
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
France braces for more transport chaos as reforms prompt strikes
France is bracing for another wave of strikes that will affect flights, trains and public transport as labor unions continue their protests against the government’s proposed pension reform.
Air France-KLM’s French arm will be forced to cancel one in every 10 short- and medium-haul flights on Tuesday because of the strikes, while the SNCF railway operator warned of potential disruption across its networks and urban transport systems, including in particular Paris. Read more here.
Cardboard box demand plunging at rates unseen since the Great Recession
Demand and output for cardboard boxes and other packaging material fell sharply in the fourth quarter of 2022, according to data released by the American Forest & Paper Association and Fibre Box Association on Friday.
It’s the latest indicator that consumer demand is eroding following the pandemic. Dwindling savings, inflation, rising interest rates and fears of a recession may all be swaying consumers to spend less. Read more here.