NEWSLETTER – OCTOBER 07, 2022

AIR FREIGHT UPDATES

Air cargo peak season evaporates on low demand, high capacity

freightwaves.com
It’s the time of year when retailers typically make their final push to ship goods from abroad in time for holiday shopping and freight rates are highest, but so far signs of peak season in air cargo are difficult to find. Instead, rates continue to slide as global economic clouds dampen demand and airlift supply rises with the recovery of passenger travel.
Air freight spot rates tumbled 9% year over year in September to below the 2021 level for the first time this year, Xeneta, an ocean and air freight rate benchmarking and data analytics firm, reported Wednesday. Read more here.

Air Canada expands freighter operations into the US

aircargonews.net
Air Canada Cargo will add freighter flights to the US, while also expanding its network to Latin America.
The carrier said that starting in November it will add B767 freighter flights to Dallas and Atlanta.
Air Canada Cargo is also expanding its presence in Latin America with a service to Bogota. Read more here.

Air Canada Cargo launches B767 freighters from St. John’s to Europe

aircargonews.net
Air Canada Cargo is launching a five times a week B767 freighter service from St. John’s (YYT) to Frankfurt and Madrid.
Effective October 1, there will be two non-stop flights per week to Frankfurt and three non-stop weekly flights to Madrid. Read more here.

OCEAN FREIGHT UPDATES

Tidal wave of new container ships: 2023-24 deliveries to break record

freightwaves.com
Shipping adheres to a time-honored tradition: When shipowners make exceptionally high profits, they order a lot of new vessels. When those newbuilds are delivered by the yards, it kills shipowners’ profits.
Such boom-and-bust behavior has been de rigueur for over a century. As London shipbroker J.C. Gould, Angier & Co. wrote in 1894: “The philanthropy of the shipowners is evidently inexhaustible. The amount of tonnage on order guarantees a long continuance of low freight rates.” Read more here.

New California law designed to rein in detention and demurrage charges

freightwaves.com
The California trucking community is celebrating the approval of a new state law that it believes will reduce detention and demurrage charges for containers that are not picked up or returned to ports in a timely manner.
Gov. Gavin Newsom last week signed Assembly Bill 2406, which prohibits intermodal equipment providers and marine terminal operators from imposing per diem detention or demurrage charges except in certain cases. Read more here.

Spot rate carnage could result in more ships laid up, ‘with worse to come’

theloadstar.com
Ocean carriers could be forced to mothball more eastbound transpacific US west coast loops, and the vessels that operate them, to stop the extraordinary haemorrhaging of container spot rates which have halved in value in the past four weeks.
According to today’s reading of the China-US west coast component of the Freightos Baltic Index (FBX), the spot price for a 40ft plunged 20% this week, to $2,361, compared with a typical premium rate a year ago of $20,000, a two-thirds decline … Read more here (login required).

Car carriers race to new rate highs

splash247.com
This year has seen record rates for many ship types with containers and LNG grabbing most headlines. Also cruising to new highs are car carriers, with analysis suggesting this niche trade is set for a very solid 2023 too.
The car carrier market went into overdrive in mid-August, after Nissan extended its $100,000 a day rate on the 6,178 ceu Lake Geneva just four weeks into the deal, something VesselsValue analyst Dan Nash has described as: “A record breaking fixture setting a higher high in a raging bull market, paralysed by short PCTC supply following years of underinvestment.”  Read more here.