NEWSLETTER DECEMBER 16, 2022

AIR FREIGHT UPDATES

All is not well at CMA CGM Air Cargo

theloadstar.com
Great story from Eric Kulisch at Freightwaves, on CMA CGM Air Cargo pulling its own US services to lease its aircraft to other carriers as the market sinks: it is no longer selling space between Europe and Chicago and Atlanta. Is it lack of experience and fear of the downturn? CMA has picked executives from its maritime side to run the airline, which it has insisted to The Loadstar, is managed by the shipping line group, and not Air France-KLM, … Read more here (login required).

Air freight rates nosedive with shippers flocking to ocean

supplychaindive.com
Dive Brief:
Air cargo rates dropped for the third consecutive month in November as demand slows and shippers flock to an improved ocean landscape, according to a Dec. 7 update from Xeneta’s Clive Data Services.
In November, rates on the China-North America trade lane fell more than 40% YoY, Freightos reported last week. Spot rates on the general TransPacific lane were down 32% YoY, though still higher than pre-pandemic levels, according to Clive Data Services. Read more here.

OCEAN FREIGHT UPDATES

FMC probing shipping lines’ anti-retaliation compliance

ajot.com
The Federal Maritime Commission is asking the top 20 shipping lines calling the United States to provide information on how they are complying with the new prohibitions on retaliation established by the Ocean Shipping Reform Act of 2022 (OSRA).
The added protections against retaliation were created by Section 5 of OSRA and became effective immediately upon the law’s enactment in June. The prohibitions apply to common carriers, marine terminal operators (MTO), and ocean transportation intermediaries. Read more here.

Australia to investigate soaring profits of container terminal operators

theloadstar.com
Container terminal companies’ profit margins have soared since the start of the Covid-19 pandemic to levels not seen for around a decade, according to the Australian Competition & Consumer Commission (ACCC).
Its Container Stevedoring Monitoring Report 2021-22 reveals margins have surged by 14%, reaching levels last seen during the DP World/Patrick Terminals duopoly of a decade ago, and substantially higher than the 10% achieved in 2019-20. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Truckload: Easing Back to Normal?

logisticsmgmt.com
Top U.S. trucking executives and analysts say that the $332 billon full-truckload (TL) market is showing signs of returning to normal levels of “seasonality” after three years of being whipsawed by COVID-affected demand levels.
“The truckload market is easing back to normal levels of growth,” says Avery Vise, vice president of trucking for Indianapolis-based research firm FTR. “We’re not seeing a glut of capacity. We’re heading back to stability, but stability at a level where shippers are happy about it.” Read more here.

BUSINESS – GOVERNMENT UDATES

2022: The year shipping made do without China

splash247.com
Shipping is never dull, and the moment you feel it might be is probably the time to seek a different career. Being in this industry gives those curious enough an advanced view from the bridge of geopolitical and economic forces shaping the world.
Unquestionably the biggest news story of the year – the one that reframed most other developments – has been the Russian invasion of Ukraine and the subsequent reshaping of the global seaborne energy map. Read more here.