Newsletter – November 29, 2023

AIR FREIGHT UPDATES

General airfreight in the doldrums – but charters are soaring
theloadstar.com
While scheduled airfreight operations continue to be buffeted by economic headwinds, the going has been smoother for the charter segment this year – and it is currently experiencing very strong rates.
The Loadstar has heard unconfirmed reports of pricing hitting $1.3m for a long-haul charter, with charter operators sold-out of capacity for the rest of the year. Read more here.

OCEAN FREIGHT UPDATES

More box ships diverting to Suez Canal routes as Panama restrictions tighten
theloadstar.com
Hapag-Lloyd and Cosco have become the latest carriers to impose a Panama Canal surcharge (PCC), as the worst drought in more than 50 years continues to restrict capacity at the waterway.
Garman carrier Hapag-Lloyd said it would introduce a $130 per teu PCC on 1 January, when Cosco is set to introduce what it termed a Panama Canal Low Water Surcharge (PLW) of $255 per teu – nearly double Hapag-Lloyd’s, but less than the $297 per teu MSC has plans to … Read more here (login required).

E-commerce-driven peak season may have ‘the legs’ to last till CNY
theloadstar.com
“We are definitely in a peak season now,” said DHL Global Forwarding SVP airfreight, Steffen Treiber, “and this could “have legs” to stand until Chinese New Year, added Neil Wilson, editor at TAC Index.
On the latest episode of The Loadstar Podcast, Mr Treiber said he was recognising “an increase in demand for air cargo”, which he attributed partly to new product launches after the Golden Week holiday in China, but said it was “mainly driven by e-commerce demand out … Read more here (login required).

Covid confusion for shippers unveiled in BBBY complaint against MSC
theloadstar.com
The 38-page complaint against MSC, which bankrupt Bed Bath & Beyond (BBBY) has filed with the FMC, reveals in full the intricate details and frustrations felt by shippers during the pandemic.
It’s hard not to feel a bit sorry for the poor employees at BBBY and forwarder Yusen, they had to face MSC’s internal wranglings and, apparently poor internal communication, as rates went up, and up and up. As did surcharges, and D&D fees. Read more here (login required).

Fleet-heavy ocean carriers also stuck with too many containers
theloadstar.com
Not only do ocean carriers have too many ships, they also have too many containers to fill vessels that are being deployed.
In its latest Container Equipment Forecaster report, Drewry says it expects the global pool of shipping containers to contract, both this year and next. Read more here (login required).

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Holiday inventories remain balanced as shoppers show strength, NRF says
freightwaves.com
Holiday inventories remain in good shape and show no signs of being depleted even as U.S. consumers broke shopping records for the five-day Thanksgiving period, the National Retail Federation said Tuesday.
For the most part, inventory levels are balanced, NRF President and CEO Matthew Shay told reporters. Shay’s comments seemed to rule out widespread overstocked conditions, as well as concerns over product stockouts that might trigger a late-cycle inventory replenishment push.  Read more here.