Newsletter – October 10, 2023
AIR FREIGHT UPDATES
Airspace Safety Body Calls For Airlines To Avoid Tel Aviv Flights
On the heels of the conflict in Israel that has arisen in the past few days, many have begun to question the safety of still having international flights arriving in what is now an active war zone. The airspace is currently categorized as the highest level of unsafe, and for many, chilling images of Malaysia Airlines Flight 17—which was shot down over a conflict zone in Ukraine—have come to mind. Read more here.
Airfreight rates continue to rise in September
Airfreight rates finally showed signs of improvement in September (see dashboard at end of article) and further increases have been recorded in the first week of October.
The latest figures from the Baltic Exchange Airfreight Index (BAI) show that average rates – spot and contract – paid by forwarders from Hong Kong to Europe and North America increased last month for the second month in a row. Read more here.
OCEAN FREIGHT UPDATES
Evergreen chief admits carrier may have gone overboard on newbuildings
Evergreen Marine Corp president Eric Hsieh has acknowledged that the company’s recent order for two dozen 16,000 teu methanol-fuelled ships may “be too much”, as the Covid-fuelled boom is over and liner operators are no longer making money every day. Read more here (login required).
CMA CGM axes Chittagong call due to lower demand and port restrictions
CMA CGM has halted a direct call out of Bangladesh’s Chittagong port which it began in April – the latest sign of continuing carrier network changes in a bid to stay aligned with current market conditions.
The French liner launched BIGEX [Bangladesh-India-Gulf Express] as the fastest connection from Chittagong to the Gulf market (Jebel Ali and Khalifa Port), betting on significant growth potential. Read more here (login required).
Shipping costs in the 2020s proving expensive for cargo owners
Cargo owners are having to fork out far more to ship their goods this decade, new analysis from Clarksons Research shows.
Freight markets have seen “huge volatility” in the 2020s, Clarksons noted in its most recent weekly report, primarily driven by the consecutive “disruption events” of covid and the Ukraine conflict. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
2023 FIATA Electoral General Meeting
The 2023 FIATA Electoral General Meeting took place last week in Brussels as part of the FIATA World Congress.
More than 200 participants attended the meeting.
Within the presidency leadership, the following were confirmed:
• President: Mr. Turgut Erkeskin, UTIKAD, Türkiye
• Senior Vice Presidents:
o Mr. Thomas Sim, SLA, Singapore
o Mr. Jens Roemer, Forward Belgium, Belgium
o Mr. Marc Bibeau, CIFFA, Canada
• Secretary General: Mr. Robert Keen, BIFFA, United Kingdom
• Treasurer: Mr. Neil Taylor, ALOG, Chile
• Immediate Past President: Dr. Ivan Petrov, NSBS, Bulgaria