Newsletter – June 1, 2023

AIR FREIGHT UPDATES

Relief for airlines as SAF supply could meet mandated demand

theloadstar.com
Uncertainty about investment has led to delays in increasing stocks of sustainable aviation fuel (SAF) – but new data shows there may be enough to meet targets.
The US could meet 100% of demand with its own SAF by 2050, as government starts to roll out tax incentives as part of its Inflation Reduction Act. Read more here (login required).

IATA Says Global Domestic Air Travel Is Now Exceeding 2019 Levels

simpleflying.com
The global aviation industry continues to see a welcoming increase in passenger demand for various markets and a similar increase in flights from airlines expanding their schedules and networks. Given how steady the growth has been in recent months, it’s no surprise that domestic traffic numbers have already fully recovered worldwide and surpassed pre-pandemic numbers. Read more here.

OCEAN FREIGHT UPDATES

Box contract rates plunge

splash247.com
The ocean freight industry saw a slump in global long-term rates of unprecedented proportions in May, as the contracted cost of shipping containers dived by 27.5%, according to the index developed by freight rate platform Xeneta.
The fall in the Xeneta Shipping Index (XSI) marks the ninth consecutive month of rate drops, and is the largest-ever monthly fall recorded on the five-year-old XSI. Read more here.

Long-term ocean freight rates collapse by almost 30% in a month as new US contracts reflect market reality – Xeneta

en.portnews.ru
Xeneta reports that the ocean freight industry saw a slump in global long-term rates of unprecedented proportions in May, as the contracted cost of shipping containers dived by 27.5%. The development, detailed by Xeneta’s Shipping Index (XSI®), marks the ninth consecutive month of rates drops, and is the largest ever monthly fall recorded on the XSI®. Read more here.

Yang Ming ends five-year newbuild hiatus with five-vessel order

theloadstar.com
Yang Ming ordered newbuildings today, for the first time in five years.
The Taiwanese liner operator signed a long-awaited order for five LNG dual-fuelled 15,000 teu ships from HD Hyundai Heavy Industries for delivery in 2026, a deal worth $850m to $975m.
Yang Ming said the newbuildings were part of its fleet renewal and recently said it company believed a viable supply chain now existed for LNG, compared with alternatives. Read more here (login required).