Newsletter – May 5, 2021

AIR FREIGHT UPDATES

IATA: Cargo demand at “all time high” but capacity is yet to recover

aircargonews.net
Air cargo volumes in March reached an all-time high for the month, according to IATA in its latest air cargo analysis.
The association said that global air cargo demand, measured in cargo-tonne kilometres (CTKs) was 4.4% higher in March 2021 than in March 2019, which was used for comparison to avoid the “distorted” results in 2020 that reflect the unprecedented impact of Covid-19.  Compared with a year ago, demand is up by 22.1%. Read more here.

Aircraft flying full as volumes – and air freight rates – go up another gear

theloadstar.com
Aircraft are much fuller than they used to be – that’s the main takeaway from the most recent air cargo industry data.
This has revealed higher demand in April after a dip in March and, alongside the drop in capacity, air freight is under “significant strain”, according to Clive Data Services.
With a severely muted summer schedule, capacity remains tight. Volumes in April were 1% higher than in April 2019 – but capacity was 18% lower. The dynamic load factor for April was 71% – 10 percentage points higher than in 2019, and 4 percentage points higher than last year. Read more here.

OCEAN FREIGHT UPDATES

Caution urged as boxship charter bonanza rolls on

splash247.com
There’s no let-up in the booming boxship charter scene with vessels breaking further records not just in prices paid, but also durations. Nevertheless, some analysts are beginning to question how much longer the red-hot conditions can last.
The crunch of supply keeps affecting all sizes of ships while demand shows no sign of weakening. Read more here.

Share prices of global liners leap 400% during the pandemic

splash247.com
Investors have piled into the red-hot container shipping market, sending share prices for top liners skywards.
Alphaliner has run the numbers for the largest, listed global carriers, revealing their share prices have leapt by an average 400% from pre-Covid-19 levels, far in excess of the gains seen across stock markets around the world over the past 16 months.  Read more here.

Egyptian court blocks Ever Given’s departure

splash247.com
An Egyptian court ruled yesterday that the 20,388 teu Ever Given containership which blocked the Suez Canal in March will continue to be held in the waterway, rejecting an appeal by its Japanese owner, Shoei Kisen Kaisha, against its detention.
The Suez Canal Authority has been demanding $916m in damages from the six-day blockage that the huge 400 m long ship created on the waterway. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Canadian factory activity holds near record-setting pace in April

reuters.com
TORONTO, May 3 (Reuters) – Canadian manufacturing activity grew for the 10th straight month in April as production and new orders climbed, with the pace easing only slightly from the previous month’s record level, data showed on Monday.
The IHS Markit Canada Manufacturing Purchasing Managers’ index (PMI) dipped to a seasonally adjusted 57.2 in April from 58.5 in March. It was the third highest reading in the 10-1/2-year history of the survey. March’s level was the highest. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Indirect Sales Create Unique Supply Chain Issues

forbes.com
Indirect sales, brand owner sales through sites like Walmart.com or Amazon AMZN +1.2%, are an increasingly large portion of sales for many companies. In 2020, ecommerce sales accounted for 14 percent of total retail sales in the US. But of ecommerce sales, 86% come from indirect channels, rather than a company’s own website, according to CommerceIQ. For some brands, it is how most of their products are sold. Read more here.

Global Supply Chains Struggling to Keep Pace with Spiking Orders Volumes

scmr.com
Business-to-business trade activity grew by 10% in the first quarter of 2021, but a recent surge in order volumes is creating fresh challenges for suppliers after a year of intense disruption, new transaction data from Tradeshift can reveal.
Tradeshift is a digital supply chain invoicing and payment company based in San Francisco. Read more here.

Demand for PPE slowing as pandemic wanes

freightwaves.com
As the pandemic wanes, manufacturers and suppliers are predicting the demand for personal protective equipment will slow as well.
“Demand, as COVID becomes a bit more stabilized, is coming down, although I will say it depends on region and geography,” Craig McKasson, CFO for Premiere, which operates a large group purchasing organization, said on a conference call Tuesday morning.
For the moment, worldwide demand for N95 respirators still exceeds manufacturers’ ability to produce them, according to a recent quarterly report from 3M. Read more here.