NEWSLETTER NOVEMBER 17, 2022

OCEAN FREIGHT UPDATES

Zim will focus on niche markets as it prepares for the ‘new normal’

theloadstar.com
Israeli ocean carrier Zim said yesterday it expected freight rates to keep falling and was preparing for the ‘new normal’ by focusing on profitable niche markets for its container services and expanding its car-carrier business. Read more here (login required). Read more here.

Improved shipping reliability adds to retailer woes as more stock pours in

theloadstar.com
Less congestion on the high seas has put additional pressure on some retailers, already struggling with too much stock.
Wary of missing deadlines for their Q4 sales, they increased lead times, but now some are having to pay extra to hold back new stock as their warehouses are already full. Read more here (login required).

Europe’s feeder operators feel the pressure as volumes from Asia decline

theloadstar.com
The knock-on effect from blanked sailings from Asia has significantly reduced the need for feeder services across North Europe.
The skipped main line calls, with a sharp decline in transhipment volumes, are obliging feeder operators to combine service loops or suspend them and, where they can, return ships to owners when charter periods expire. Read more here (login required).

GROUND AND RAIL FREIGHT UPDATES

LTL carriers point to shrinking tonnage in November

freightwaves.com
Some of the nation’s largest less-than-truckload carriers are seeing demand continue to retreat from the all-time highs recently established.
Following third-quarter reports, which showed year-over-year (y/y) tonnage declines at most LTL shops during September and October, the trend appears to have hastened so far in November. Read more here.

Why trucking fleets are expanding amid a freight slowdown

freightwaves.com
Shain Ferriss started his trucking company in 2013 with one truck. Today, Ferriss’ fleet, called Greenmiles, has about 25 power units. As a freight recession looms, it’s not the best market for a small fleet like Greenmiles, which mostly hauls frozen or refrigerated meat.
Ferriss wants to get to 40 trucks by next year. There’s just one limitation: Everyone else wants more big rigs too. Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Star Walmart shifts gear, exploits ‘changing business model’

theloadstar.com
Talking points from retail behemoth Walmart (WMT) this week are plentiful in the wake of interim results that greatly surprised on the upside yesterday.
If you recall management’s previous remarks during the second-quarter fiscal 2023* conference call with analysts (’Some of the best days are in front of us’), they ought to feel vindicated. Read more here.

DP World highlights biggest concerns for freight forwarders

freightweek.org
Inflation and geopolitical tensions are set to dominate concerns for the global supply chain over the next five years, according to a DP World study released today.
DP World surveyed dozens of freight forwarders in October. The study paints a stark picture of an industry in turbulence, with climate change and access to talent weighing heavily on business resilience and the ability to create seamless supply chains. Read more here.