Newsletter – April 10, 2024

AIR FREIGHT UPDATES

Chinese airlines to increase transpacific bellyhold capacity
aircargonews.net
Chinese airlines will in April increase the amount of bellyhold capacity they operate on flights to the US following approval to expand operations.
The US Department of Transportation has from April authorised China-based airlines to increase the number of weekly flights they carry out between the US and China from 35 to 50.  Read more here.

Forwarder anger as scanner malfunctions hit Bangladesh air exports again
theloadstar.com
Air cargo flows through Bangladesh’s Dhaka Airport are again facing severe challenges, due to the malfunction of explosive-detection scanners (EDSs).
Only one of the airport’s EDS machines is working, as air cargo demand and rates out of the country have significantly increased this year. Read more here (login required).

OCEAN FREIGHT UPDATES

Transpacific container contracts ‘substantially below’ initial asking rates
splash247.com
The first batch of transpacific contracts are concluding for the May 2024-April 2025 period with analysts at Jefferies reporting Asia-US west coast rates are understood to be in the $1,400 to $1,500 per feu range, up from $1,200 per feu to $1,300 per feu last year. These agreements compare to current spot rates above $3,000 per feu.
“While the latest contracts are a bump from last year’s levels, they remain close to break-even levels, highlighting liners’ inability to capture stronger long-term rates given the supply outlook even against a stronger than expected market this year,” stated a shipping markets update from Jefferies yesterday. Read more here.

East Coast Container Rates Are Getting Cheaper Despite Baltimore Shutdown
maritime-executive.com
As predicted by many shipping analysts, the shutdown of the Port of Baltimore has not significantly affected container rates to the U.S. East Coast, and other nearby seaports have had adequate handling capacity to pick up the slack. Far from a pandemic-like price spike, the rates on core Asia-USEC routes have actually declined since Baltimore’s inner harbor shut down, according to freight intelligence firm Xeneta.
On March 26, the boxship Dali struck a pier on the Francis Scott Key Bridge, collapsing the through-truss span and killing six road workers. The wreckage closed the harbor to deep-draft traffic, including container ships. All terminals are shut to water-side commerce, with the exception of Tradepoint Atlantic, a ro/ro and breakbulk port located seaward of the bridge. Read more here.

Three reasons why shipping transactions have not yet been digitalised
splash247.com
In an era where digital transformation has revolutionised many industries such as banking and real estate, the maritime sector stands as a notable exception. Like an old man stubbornly refusing to use a smartphone, transactions in the maritime industry continue to rely heavily on manual, unstructured and paper-intensive processes. Why is it that shipping transactions have not undergone a comprehensive digital makeover? Here’s three important reasons I see for the current state of affairs. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Global Economy Set for Weakest Half-Decade Performance in 30 Years
globaltrademag.com
The latest World Bank Global Economic Prospects report paints a sobering picture of the global economy, revealing the slowest half-decade of GDP growth in three decades. Despite the receding risk of a global recession, exacerbated by a robust U.S. economy, mounting geopolitical tensions and sluggish global trade pose fresh challenges. Developing economies, in particular, face a daunting outlook with slowing growth, tight financial conditions, and subdued global trade growth. Read more here.