NEWSLETTER – OCTOBER 20, 2022

AIR FREIGHT UPDATES

Soft market conditions continue in air cargo

aircargonews.net
Soft market conditions continue in air cargo as trade worries, high inflation and new Covid lockdowns impact demand.
This week’s market round-ups from forwarders and analysts point to a weakening market in terms of demand, although rate declines have eased. Read more here.

Airlines fill less cargo space as consumer spending, trade sag

freightwaves.com
Prospects for a fourth-quarter bounce in air cargo business as retailers stock up for the holidays are dim, the culmination of a gradual slowdown in shipment traffic and costs since Russia’s invasion of Ukraine in March.
And worsening macroeconomic conditions suggest the air logistics sector could face a darker 12 to 18 months after peaking a year ago. Forty-five percent of customers polled last week during a webinar hosted by logistics specialist Flexport said they intend to ship less by air in 2023. Read more here.

OCEAN FREIGHT UPDATES

Inactive boxship levels hit two-year high

splash247.com
Inactive tonnage as a percentage of the overall container fleet is now at its highest level in two years, according to Alphaliner, the latest in a wide-ranging series of data points highlighting the sector’s swift change in fortunes.
The proportion of inactive tonnage still remains very low historically, Alphaliner pointed out in its latest weekly report, but has shown consecutive monthly growth since August. Read more here.

Container imports to Los Angeles and Long Beach are plummeting

freightwaves.com
September is usually a strong month for West Coast imports as U.S. companies bring in their year-end holiday goods. Not so in 2022.
On Wednesday, the Port of Los Angeles reported its lowest import total for September since 2009, amid the Great Recession. The day before, the neighboring Port of Long Beach posted its weakest import total for September since 2016. Read more here.
 

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Last mile isn’t enough anymore — it’s time to look at the last 100 feet

freightwaves.com
If you live in an apartment building, chances are you know the pain of your delivery driver being unable to find your unit. You may have even had a package stolen because the driver couldn’t get into the building, instead leaving it on the front step.
These are the issues that have gone largely unaddressed by last-mile delivery and mapping companies like Google Maps. Akash Agarwal, founder and chief business officer of delivery startup Beans.ai, calls it “the last 100 feet problem.”

California to invest $1.2bn in its ports and freight corridors

splash247.com
The California State Transportation Agency (CalSTA) has issued guidelines and a call for projects as the state makes available $1.2bn in one-time funding for port and freight infrastructure projects to build a more efficient, sustainable and resilient goods-movement system.
The funding program is intended to enable long-term upgrades that will increase the capacity to move goods throughout California while lessening environmental impacts on neighbouring communities. Read more here.