NEWSLETTER – OCTOBER 5, 2022

AIR FREIGHT UPDATES

Top 25 air cargo carriers rise to supply chain challenge

aircargonews.net
IATA World Air Transport Statistics (WATS) data shows the top 25 cargo airlines last year succeeded in delivering on an appetite for air cargo, despite limited capacity, staff shortages and pandemic-related congestion and constraints throughout the supply chain.
Traffic in scheduled cargo tonne km (CTK) terms increased by 18.7% year on year in 2021, a drastic improvement on 2020’s decline of 10.6%. This was also up 6.9% on the pre-Covid year of 2019. Read more here.

‘Parcelisation’ the next big thing as B2B e-commerce sparks change in air cargo

theloadstar.com
‘Parcelisation’ is one of the key trends which will impact air cargo as business-to-business e-commerce grows.
A report last month reveals that the global B2B e-commerce market is estimated to rise, with a 21.07% CAGR, between 2022 and 2030, while data from Astute Analytica yesterday estimates this market will grow from $8.5bn last year to be worth $18.7bn by 2027. Read more here.

OCEAN FREIGHT UPDATES

Container Carrier Schedule Reliability Reaches 20-Month High

maritime-executive.com
After more than a year and a half when only a third of containerships were reliably on schedule, the industry is showing strong improvements reaching schedule reliability levels not seen in 20 months. Nearly half of containerships were reliably on schedule in August 2022 and the average delay also continues to dramatically improve as the industry reports declines in volumes and a retreat from the surge experienced in 2021. Read more here.

Maersk orders six more methanol-fuelled boxships

splash247.com
Maersk has ordered a further six large ocean-going vessels that can sail on green methanol and has said prices for this new form of propulsion are coming down. The six vessels will be built by Hyundai Heavy Industries (HHI) and have a nominal capacity of approximately 17,000 teu and are set to replace existing capacity in the Maersk fleet. Read more here.

Trees for teus: CMA CGM’s creative bid to get early container returns in the US

splash247.com
Trees for teus is French liner CMA CGM’s snappy new way to improve supply chain fluidity in a green fashion.
The Rodolphe Saade-led firm has just unveiled its new TEUs to Trees Early Container Return Incentive Program, which will provide customers 2.5 tons of carbon credit per container in a program due to run through to the end of the year. Read more here.

GROUND FREIGHT UPDATES

Transportation market loosened as September progressed

freightwaves.com
Transportation capacity increased for a sixth consecutive month in September with prices falling for a third straight time, according to data released Tuesday.
The Logistics Managers’ Index (LMI), which is produced using responses from a monthly survey measuring supply chain activity, showed the transportation capacity subindex jumped 7.5 percentage points to 71.8 in the recent month. This was the second-highest level recorded in the six-year history of the data set and 48 points higher than the mark recorded two years ago when the economy was emerging from COVID lockdowns. Read more here.

Dramatic cuts to services as lines battle to hang onto ‘super-cycle’ profits

theloadstar.com
Ocean carriers are preparing to implement the severest cuts to liner services since the beginning of the pandemic, as demand levels plummet across global tradelanes.
Indeed, The Loadstar understands that, following the recent culling of services on the transpacific, the three vessel-sharing alliances are considering the temporary suspension or merging of some Asia-North Europe loops to mitigate the impact of a dramatic slump in bookings and to slow the erosion of freight rates. Read more here.

GROUND FREIGHT UPDATES

Retailers Including Target, Walmart Get Tough on Suppliers With Fines for Late Orders

bnnbloomberg.ca
(Bloomberg) — Large retailers grappling with supply-chain snarls, inflation and increased automation are cracking down on orders from their vendors.
Stores such as Walmart Inc. and Target Corp. have long fined suppliers that fail to deliver products on time, in the right amount or with the correct specifications. But after the pandemic allowed for some leeway, US retailers are now coming back with tougher standards and tightening expectations on how goods are received. Read more here.

Alert for cargo even as Vietnam becomes SE Asia’s fastest-growing economy

theloadstar.com
Backed by booming exports, Vietnam is on track to become South-east Asia’s fastest-growing economy this year – but there may be choppy waters ahead for cargo.
In stark contrast with China, Vietnam’s GDP grew at the fastest rate in 12 years during the first nine months of the year, and is set to post 8.5% growth for 2022, according to estimates. Read more here (login required).