Newsletter – March 25, 2024

AIR FREIGHT UPDATES

Breaking: Boeing CEO Resigns Amidst 737 MAX Crisis Top Management Shakeup
simpleflying.com
Boeing has announced that David Calhoun, the current President and chief executive officer (CEO) of the manufacturer, will step down at the end of 2024, with other company executives also retiring or not seeking re-election for their positions.
In a message to Boeing employees, which the manufacturer shared publicly, Calhoun said that the Alaska Airlines flight AS1282 incident, when a door plug blew out from a Boeing 737 MAX 9, was a watershed moment for the company. Read more here.

Air cargo demand still growing after LNY but rate of improvement slows
aircargonews.net
There had been much speculation in air cargo about whether the strong demand growth reported over the first two months of the year would continue past the Lunar New Year holiday but it appears the buoyant market conditions are so far continuing, although at a slightly lower level.
Figures released last week by data provider WorldACD appear to show that demand is continuing to improve in March, albeit at a lower level as the urgency to move cargo ahead of the Lunar holiday has eased. Read more here.

OCEAN FREIGHT UPDATES

Diversions from Red Sea proving a real ‘silver lining’ for carriers
theloadstar.com
The current equilibrium between supply and demand in container shipping depends on the duration of the Red Sea attacks, and the effect on available capacity, as ships take longer routes via the Cape of Good Hope.
Attacks on commercial shipping by Houthi rebels in the Red Sea have kept elderly tonnage, that would otherwise have been sold for scrap, gainfully employed at a premium for shipowners and, moreover, soaked up the huge number of newbuild vessels being delivered each month. Read more here.

Shock for CMA CGM as a deputy CEO decides to quit
theloadstar.com
Air logistics veteran Peter Penseel has quit as deputy CEO of CMA CGM Air Cargo, leaving the newly formed airline without the backing of an air freight specialist.
Mr Penseel is set to join Delta Cargo as SVP and president, following the February departure of Rob Walpole, and will be based in Atlanta, a source told Loadstar Premium, which broke the story. Read more here (login required).

Strike paralysing Finnish ports extended after talks collapse
theloadstar.com
The two-week strike by Finnish transport workers that has effectively shut down the country’s ports is set to enter a third week, after union members voted to extend the action until 1 April.
Around 7,000 workers across the transport, industrial and electrical sectors, and including the AKT transport workers union, have been on strike since 11 March in protest at proposed labour reforms by the Finnish government. Read more here (login required).

Maersk reacts to calmer market and restores standalone transpacific loop
theloadstar.com
Maersk and MSC are busy reviewing new standalone east-west service opportunities outside their 2M Alliance cooperation, with just 10 months of the vessel-sharing agreement left to run.
However, the Danish carrier’s decision making will be complicated by its partnership with Hapag-Lloyd in the Gemini Cooperation from next February, whereas for non-alliance participating MSC, its standalone offering will most likely remain as is. Read more here (login required).

Niche players continue to risk Red Sea transits with new services – at a price
theloadstar.com
Singapore-based NVOCC Summit Shipping has started its own liner operation, the latest opportunist to launch a service to the Red Sea.
Its JEA-ADE-JIB service links Aden, Djibouti and Jebel Ali, using the 713 teu chartered Ji Zhe 2. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

Cargo thefts spiked 68% in Q4, led by food and beverage freight
freightwaves.com
When trade operator Mary Sandoval recently sent a truck to pick up a load of avocados from a warehouse in Laredo, Texas, she was appalled when the load and tractor-trailer vanished without a trace almost immediately after leaving the facility.
“The truck showed up to the warehouse, gave the warehouse the load pick up number and then drove off and disappeared,” Sandoval said. “We never heard from them, and don’t know where the avocados went.” Read more here.