Newsletter – July 28, 2023

AIR FREIGHT UPDATES

Asia Pacific air cargo demand hit by consumer spending shift and higher prices

aircargonews.net
A shift in consumer spending from goods to services and higher prices were partly to blame for an air cargo demand decline amongst Asia Pacific airlines in June.
Preliminary June 2023 traffic figures released by the Association of Asia Pacific Airlines (AAPA) found air cargo demand, as measured in freight tonne kilometres (FTK), declined by 8.1% year on year. Read more here.

OCEAN FREIGHT UPDATES

Improved data-sharing can avoid container bottlenecks at US ports

theloadstar.com
America’s Federal Maritime Commission (FMC) this week unveiled plans for a major shake-up in the collection and return of containers in a bid to alleviate future bottlenecks.
Following a decade of fact-finding missions, aided by industry groups and the FMC’s supply chain innovations team, commissioner Rebecca Dye published proposals that would affect Los Angeles and New York ports, calling for shipping community feedback by 15 September. Read more here.

Box rates on the transpacific soar amid strict capacity discipline

splash247.com
Barring the pandemic bonanza years, box rates on the transpacific are soaring to highs not seen since 2012 for this time of year, a testament to carriers’ tight capacity discipline amid what some are labelling as a disappointing peak season.
Drewry’s latest spot rates on the Shanghai – Los Angeles route soared by 6% yesterday to $2,087 per feu, a fourth consecutive week of gains. Read more here.

Burning car carrier too hot to board, another attempt set for later today

splash247.com
A salvage team was unable to enter the Fremantle Highway car carrier which has been on fire since Tuesday evening as the ship was still too hot.
Around midnight on July 25, the Dutch coastguard received a report that a major fire broke out on the vessel. One crewmember died, while the remaining 22 were rescued by boat and helicopter. The injured crewmembers were taken by ambulance to nearby hospitals with breathing problems, burns, and broken bones. No injuries were life-threatening. Read more here.

GROUND AND RAIL FREIGHT UPDATES

US rail profits pinched by rising labor costs, declining cargo

ajot.com
US railroad earnings are being squeezed by higher labor costs and weaker sales as a lingering freight recession shows few signs of letting up.
Operating profits at Union Pacific Corp., CSX Corp. and Norfolk Southern Corp. dropped at least 12% in the second quarter compared to a year ago. Those declines likely have peaked, but will continue during the second half, according to analyst estimates compiled by Bloomberg. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Bankruptcy looms as Yellow burns cash and tries to offload its 3PL

theloadstar.com
Struggling Yellow is slipping closer to the end of the road, with signs that bankruptcy could come as early as Monday.
Yellow is the third-largest less-than-truckload (LTL) carrier in the US, with 30,000 employees and operating revenues last year of $5.24bn. Read more here (login required).