NEWSLETTER DECEMBER 19, 2022

OCEAN FREIGHT UPDATES

Sea-Intelligence Forecasts Atlantic Spot Rates Are About to Collapse

maritime-executive.com
Sport freight rates have been on the decline for many of the world’s shipping routes through much of the second half of 2022. As volumes declined, especially on the trans-Pacific routes, carriers reported that rates were dropping. On the Atlantic routes where demand remained stronger, carriers were able to maintain higher rates. Read more here.

China Sees Domestic Flights Double As COVID Cases Rise

simpleflying.com
The domestic civil aviation market recovered rapidly and significantly after the Chinese government issued new COVID prevention policies (the new ten articles) on December 7th.
China Eastern Airlines operated 42 international flights and 1,379 domestic flights on December 12th, an increase of more than 150% compared to 543 domestic flights on December 1st. Read more here.

Tonnages continue to slide while rates remain stable

aircargoweek.com
Global air cargo tonnages have continued to slide downwards in the first full week of December, while the overall average rate remained stable, ahead of the end-of-year holiday season.
Figures for week 49 (5 to 11 December) are consistent with the slow progressive slide in air cargo demand throughout the second half of this year. They show an overall drop of -3% in worldwide flown tonnages compared with the previous week, and average prices remained stable.  Read more here.

Ocean carriers plan to blank half their sailings from Asia, post-CNY

theloadstasr.com
Against a background of extremely weak demand forecasts, ocean carriers are preparing to blank around half their advertised sailings from Asia to North Europe and the US after Chinese New Year on 22 January.
High inventory levels in Europe and the US, coupled with uncertainty surrounding future consumer demand, has seen orders cancelled or postponed, resulting in Chinese factories preparing to shut down well ahead of the CNY holiday. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Unifor files for conciliation

insidelogistics.ca
Unifor has requested conciliation in its contract talks with CN.
The union and railway started bargaining on October 19, 2022, with week-long sessions in Montreal November 15-18, November 29-December 2 and December 12-15, 2022. Read more here.

Contract becomes the new spot freight

freightwaves.com
Carriers are covering everything they can under contracted rate agreements, leaving the spot market a barren wasteland for freight.

The national Outbound Tender Reject Index (OTRI) barely responded to Thanksgiving this year, increasing from 3.99% to 4.46% in the week leading into the holiday before falling to its lowest value of the year of 3.83% on Dec, 12. Last year, rejection rates increased from 19.3% to 20.6% over the same period. In 2019, a pre-COVID-19 year, OTRI jumped from 5% to over 8%.  Read more here.