Newsletter – February 3, 2023

AIR FREIGHT UPDATES

Korean Air feels impact of cargo demand drop

aircargonews.net
Seoul, South Korea-headquartered Korean Air is feeling the impact of the drop in global air cargo demand, as reflected in its financial results for the fourth quarter of last year.
The airline has reported ‘tentative’ (i.e. non-consolidated) results that show cargo revenue fell by 29% year-on-year to KRW1.5tn ($1.2bn). Read more here.

OCEAN FREIGHT UPDATES

Pressure on carriers drives cut-throat freight market for China’s exports

theloadstar.com
A parallel freight market is emerging for exports from China that undercuts the lowest container spot rates.
Asia-North Europe ocean carriers are proactively quoting small- and medium-volume shippers ‘special’ FAK rates below $1,000 per 40ft from China to the UK, as they scramble to fill their ships in the dismal market that has followed the Chinese New Year holiday. Read more here (login required).

Overcapacity could spark new rates war among liners, warns Evergreen chief

theloadstar.com
Evergreen chairman Chang Yen-i has warned that, with the large number of newbuild mega-box ship deliveries beginning this year,  liner operators could see a return of pre-pandemic rates wars, if consumption fails to keep up with the capacity growth. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Light at the end of the tunnel? Just a glimmer down the road for US trucking

theloadstar.com
On the heels of a disappointing Q4 that pushed it behind earnings targets, Knight-Swift, the largest of the US truckload carriers, intends to expand through an acquisition in the LTL sector, while expecting a challenging first half for its core segment.
Shipments by truck in the fourth quarter suffered their largest drop since the height of the pandemic, according to the US Bank Freight Payment Index. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

U.S. layoffs surged in January as tech slashed thousands of jobs – report

reuters.com
Feb 2 (Reuters) – Layoffs in the United States hit a more than two-year high in January as technology firms cut jobs at the second-highest pace on record to brace for a possible recession, a report showed on Thursday.
The layoffs impacted 102,943 workers, a more than two-fold jump from December and an over five-times surge from a year earlier, according to the report from employment firm Challenger, Gray & Christmas Inc. Read more here.