Newsletter – January 16, 2024

AIR FREIGHT UPDATES

CMA CGM ends cargo alliance with Air France-KLM
splash247.com
French carrier CMA CGM and Air France-KLM have agreed to cease their air cargo partnership, citing regulatory restrictions.
The partnership announced in May 2022, with CMA CGM becoming a shareholder of Air France-KLM, was part of the Rodolphe Saadé-led company’s expansion move beyond its liner base during container shipping’s greatest bull run. Read more here.

Cargojet reverses course on 777 freighter ambitions
freightwaves.com
Canada-based Cargojet announced Monday it has abandoned plans to add four Boeing 777 converted freighters because of lackluster demand for international shipping service so it can concentrate on using profits to reward shareholders and strengthen its balance sheet.
A statement by the Toronto-based airline suggesting it is canceling the order appeared at odds with the interpretation of Mammoth Freighters, the remodeler, which says Cargojet plans to fulfill its contract and subsequently dispose of the aircraft. Read more here.

OCEAN FREIGHT UPDATES

Container Shortage Starts to Bite, Adding to Pressure on Costs
theloadstar.com
The predicted container shortages are beginning to bite amid the chaos thrown up in the Red Sea and a flurry of reroutings, delays and cancellations.
“It is getting increasingly difficult to get 40ft high-cube boxes, and also 20ft general purpose boxes, across the main ports in China,” said Hans-Henrik Nielsen, global development director at CargoGulf. “We are empty-repositioning as fast as we can, and we have also taken on the very last batches of new-lease containers, but from today, there are no more … there are ‘out of stock’ signs on the doors of leasing companies.” Read more here (login required).

Container lines ‘scramble’ to rent more ships amid Red Sea crisis
freightwaves.com
Red Sea diversions mean container lines need more ships to carry the same amount of cargo. The security situation — which is even more precarious in the near term due to coalition air strikes in Yemen — has already driven spot container freight rates much higher. Now it is starting to push up the price container lines pay to rent ships.
“This week saw a scramble for prompt tonnage,” said MB Shipbrokers (formerly Maersk Broker) in a market report on Friday, referring to ships that can be chartered immediately. Read more here.

FMC Asks Shippers to Share Info on Red Sea Disruption and Charges
theloadstar.com
The U.S. Federal Maritime Commission (FMC) has announced a public hearing for supply chain stakeholders to discuss how shipping conditions in the Red Sea, such as ‘unjust’ and ‘extortionate’ carrier surcharges, are impacting them.
The FMC said it would offer a chance to discuss how their operations have been disrupted by the attacks from Yemen, steps taken in response and the resulting effects. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Toronto Roads Ranked Third Slowest in the World
trucknews.com
Toronto is ranked the third slowest city in the world, according to the 2023 TomTom Traffic Index.
The survey included 387 cities in 55 countries, which were ranked based on the average time it takes to drive 10 km in the city.
According to the report, drivers spend around 29 minutes for a 10-kilometre drive. Read more here.

CPKC Intermodal Network Update – Week of January 15
cpkcr.com
Service highlights this week
As the week progresses, CPKC anticipates a return to more-seasonal temperatures in the Canadian Prairie region (Alberta, Saskatchewan, Manitoba), Northern Ontario and through the U.S. Midwest, moving away from the extreme cold conditions of the past several days. CPKC will implement a safe and measured return to normal seasonal operating guidelines as temperatures improve.
During the winter season, it is imperative to keep walking areas, parking locations and dock facilities safe and free of debris. Containers also must be cleared of snow and ice when ready for pickup. Sanding or cleaning away snow or ice is one of the ways that poor winter weather effects can be mitigated.

Flatbed and refrigerated trucking poised to tighten in 2024
freightwaves.com
Tender rejection rates for the three main trailer types all spiked as they seasonally do around Christmas. The aggregate read is that the market remains oversupplied with capacity, but that statement does not apply evenly.
Let’s take a look at the less-served equipment types of flatbed and refrigerated (reefer) and read the data to see what 2024 may hold for each. Read more here.