Newsletter: May 3, 2022

AIR FREIGHT UPDATES

IATA: Air cargo demand drops in March amid “growing challenges”

aircargonews.net
Covid, the Ukraine war and oil prices all contributed to a drop in demand in global air cargo markets in March, according to data from the International Air Transport Association (IATA).
Cargo demand is tracking below pre-Covid-19 levels, and like February, capacity remained constrained. Read more here. 

China’s Recovery Pushes Global Capacity To Highest Level In 2022 So Far

simpleflying.com
Growth in China accounted for half of the 2.5 million seats added. The number of seats on offer in China is expected to continuously increase and reach the pre-outbreak level (17 million per week) around mid-June, according to an OAG analysis report. Read more here. 

Boeing Plans To Ramp 737 MAX Output To 31 Planes A Month

simpleflying.com
The Boeing 737 MAX program is gradually getting back on track, with the company predicting an increase in output in the coming months. The two tragic MAX crashes in 2018 and 2019 within months of each other led to a 20-month grounding of the type. But with airlines becoming comfortable with the type again, Boeing foresees an uptick in the MAX output to meet the demand. Read more here. 

Airfreight rates begin to rise in April

aircargonews.net
Airfreight rates on major east-west trades began to creep back up in April following the previous month’s decline, as demand began to rise in line with seasonal trends.
The latest figures from the Baltic Exchange Airfreight Index (BAI) show that in April the average rate from Hong Kong to North America reached $9.57 per kg, which is 12.9% up on a year earlier and an increase on the $8.18 per kg registered in March. Read more here. 

OCEAN FREIGHT UPDATES

Challenger carriers and retailer-chartered services hit by China lockdowns

theloadstar.com
The combination of Covid lockdown cargo delays in China and congestion at US east coast ports has prompted alliance carriers to announce blank sailings on the transpacific – and the independent lines are also feeling the heat.
The Asia-US cancellations follow news of a number of skipped sailings to North Europe and the Mediterranean last week. as carriers juggled their networks to mitigate the impact of more than a month of a strictly enforced Covid lockdowns in Shanghai. Read more here (login required).

IMF: Rising ocean shipping costs to bring wave of higher prices

freightwaves.com
Research from the International Monetary Fund substantiates the correlation between “volatile” global shipping costs and inflation.
Read more here.

GROUND AND RAIL FREIGHT UPDATES

New CEO spells out priorities for Canadian National

trains.com
MONTREAL — New CEO Tracy Robinson likes what she sees at Canadian National.
“As I sit here, 60 days in … I can tell you that I’m more excited about our prospects than when I first arrived,” Robinson told investors and analysts on the railway’s earnings call this week. “At CN, we have an incredible tricoastal network, the best on the continent, with the benefit of a diverse customer base across commodities and geographies, and a pipeline of growth opportunities across most sectors.” Read more here. 

Intermodal struggles to be alternative mode for US container transport

theloadstar.com
With the trucking sector losing steam and soaring fuel prices pushing shippers to rein in costs, intermodal traffic should be on the ascent in the US, but the latest numbers show a continuing downward trend.
According to the Intermodal Association of North America (IANA), intermodal volumes dropped 6.6% in the first quarter, year on year. International registered the steepest drop, falling 15.5%, while IANA’s intermodal trailer count was down 12.8%. Read more here (login required).