Newsletter – July 24, 2023

AIR FREIGHT UPDATES

Airlines’ cargo revenue is slumping. That’s a sign of good news for travel recovery

cnbc.com
Delta, United and American this month each reported year-over-year declines of about 40% in their second-quarter cargo revenue.
For the first half of 2023, Delta’s cargo business generated $381 million, down from $561 million in the first half of 2022, while American’s cargo unit brought in $420 million compared with $692 million in the first six months of last year. United brought in $760 million from cargo so far this year, down from $1.2 billion a year earlier. Read more here.

OCEAN FREIGHT UPDATES

Older freighters starting to leave the market

aircargonews.net
Older freighters are being taken out of the transpacific market as they become increasingly uneconomical due to lower rates, according to Flexport.
Speaking during a webinar, Flexport president ocean and air Sanne Manders said that the current market was characterised by low demand but added that carriers are starting to “rightsize” capacity. Read more here.

Coming ‘explosion’ of new tonnage threatens box ship charter market

theloadstar.com
Until recently the mid-size and large containership charter market has been relatively sheltered from the downturn in liner shipping, but a maritime consultancy says it believes a “material decline in charter rates is on the cards”.
In its July Horizon report, Maritime Strategies International (MSI) says it expects the erosion of daily hire rates and reductions in time periods that has already impacted charter party agreements for small containerships is about to spread to bigger vessel fixtures. Read more here (login required).

Mundra Port still struggling to clear cyclone-induced container logjam

theloadstar.com
Mundra Port, India’s top container handler, continues to grapple with cargo backlogs created during cyclone-related supply chain disruption that began last month.
According to industry sources, a major portion of the import containers that arrived at the height of the logjam have not been retrieved for last-mile delivery. Read more here (login required).

ILWU to vote on Canada’s west coast ports deal tomorrow

theloadstar.com
Tomorrow, the fate of Canada’s west coast ports will be decided, as the ILWU Canada takes a vote on the proposed ‘tentative deal’.
The vote will mean work will stop between 8am and 4pm Pacific Time on Tuesday across all relevant ports. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

CN Customer News: Eastern Washouts

ciffa.com
CN advises that heavy rainfall in Nova Scotia has resulted in delays across the Atlantic region. Damages from the rainstorm on the railway’s Bedford and Dartmouth subdivisions are impacting service to/from the Port of Halifax.
Once the rain event has passed, CN’s focus will be to enable crews to clean any debris, assess any damages and prepare for any repairs that may be required.
Affected customers will be contacted by their CN Customer Service Representative.