Newsletter – November 13, 2023

AIR FREIGHT UPDATES

Cargojet to sell off new B757 freighters, pause 767 conversions

freightwaves.com
Cargojet, which operates a nationwide air cargo network in Canada for e-commerce express companies plus international services, is moving more aggressively to cap fleet growth and preserve strong cash flows in response to the continued slowdown in shipping demand. Read more here.

OCEAN FREIGHT UPDATES

CMA CGM Q3 profit plunges, and liners paint a grim picture of life in 2024

theloadstar.com
CMA CGM saw group revenue contract 43% in the third quarter, compared with the same period of last year, resulting in net income plunging to $388m, contrasting with the huge $7bn profit posted for Q3 22. Read more here (login required).
“The industry continued to normalise in the third quarter, with a return to pre-pandemic market conditions,” said chairman and CEO Rodolphe Saadé.  Read more here (login required).

“Cybersecurity Incident” Prompts Shutdown of DP World Australia Terminals

maritime-executive.com
DP World, which is one of the largest terminal operators in Australia, reported Friday evening, November 10, that the company had suspended all port terminal operations due to what it is calling a “cybersecurity incident.”  Operations were being suspended the company said for the safety of its customers and employees. Read more here.

CMA CGM Air Cargo ‘losing money’ in a high-capacity weak-demand market

theloadstar.com
CMA CGM Group was typically opaque in reporting its third-quarter financial results, which wrap its air cargo arm into “other activities” – which includes port terminals.
While revenues from the ‘other’ division rose 5.3%, to $526m, ebitda dropped more than 58%, to $56m. Read more here (login required).

Box lines announce new efforts to hike rates on India-US trades

theloadstar.com
Container lines serving the India-US trade seem to have realised that pushing through hefty general rate increases (GRIs) or peak season surcharges (PSSs) is a hard game, unless cargo volumes tick up in a sustainable way.
Accordingly, major carriers, including Hapag-Lloyd, CMA CGM and Maersk, have reworked their pricing strategies. Read more here (login required).