Newsletter – March 15, 2023
AIR FREIGHT UPDATES
Airbus Executive: Current Sustainable Aviation Fuel Supply Is “Peanuts”
Members of the European Parliament are currently busy passing regulations tied to the EU’s Green Deal – a set of policy initiatives that aim to make the bloc climate neutral by 2050. Part of this broader initiative is the Fit for 55 package, which has the goal of reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. Read more here.
Atlas Air expects takeover to complete in days
The takeover of freighter operator Atlas Air Worldwide Holdings is expected to complete in the coming days after the company gained the necessary approvals.
In a stock exchange filing, the New York-headquartered firm said that as of March 14 “all regulatory conditions to closing set forth in the merger agreement were satisfied”. Read more here.
OCEAN FREIGHT UPDATES
More bad news for carriers hoping rates decline has bottomed-out
Ocean carriers are writing-off the first six months of this year, banking on a restocking demand boost in H2 to meet hugely downgraded full-year profit forecasts.
The spectacular financial results of carriers of the past two years have come to an abrupt end, with earnings for this year the subject of a harsh reality check. Read more here (login required).
ONE orders 10 more boxships
Japanese containerline Ocean Network Express (ONE) has ordered ten 13,700 teu boxships to be delivered in 2025 and 2026, the company announced today without revealing prices and at which yard.
This new order follows the 10 vessels ordered in May last year. The 10 new vessels will be ready for methanol and ammonia and equipped with a bow shield and other energy saving technologies. Read more here.
24,346 teu: MSC sets new boxship record
The newbuild containership avalanche is now in full swing, and with it size records are being smashed on a monthly basis.
The delivery of the 399.99 m long MSC Irina from Yangzijiang Shipbuilding has set a new world record in the escalating megamax race among global carriers. Read more here.
Zim Q4 results surprise to upside but 2023 ‘extremely challenging’
Zim, the world’s 10th-largest ocean carrier, announced a big earnings beat for the fourth quarter and paid out a higher-than-expected dividend. However, it faces a tough year ahead, with a chance of at least some quarters in the red.
The company’s shares (NYSE: ZIM) surged Monday on news of the earnings beat, jumping as much as 25% in morning trading. Shares gave back most of their gains by the end of the day, closing up 6.6%. Trading was heavy, at more than four times average volume. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Cash burn saddles digital market Freightos as shipping market sinks
Annual losses at newly listed international freight booking and payment platform Freightos increased again in 2022 as the decade-old enterprise tries to monetize its matchmaking technology for streamlining air and ocean transactions.
The company also lowered its 2023 projected revenue growth rate to 15% to 21% (about $22.5 million) from 87% last summer in the face of significant deterioration in air and ocean volumes and rates, which will translate to fewer bookings by logistics providers. Read more here.