NEWSLETTER – OCTOBER 25, 2022

AIR FREIGHT UPDATES

Hong Kong Airport Fully Implements Its Flight Token Scheme: But What Is It?

simpleflying.com
Hong Kong International Airport has rolled out its new ‘Flight Token’ initiative, a self-service biometric identification system that enables passengers to self-complete the entire departures process. Let’s take a closer look at HKG’s Flight Token scheme below. Read more here.

OCEAN FREIGHT UPDATES

Did US slash imports too much, setting stage for shipping rebound?

freightwaves.com
The U.S. supply chain is in the throes of a so-called “bullwhip effect.” Importers overreacted to last year’s congestion and heightened consumer demand, brought in too much cargo too early, and are now stuck with excess inventory. Could there be a bullwhip effect in the opposite direction next year?
It could happen, says Rolf Habben Jansen, CEO of ocean carrier Hapag-Lloyd. He addressed this scenario — as well as his views on future rates, capacity levels and trade patterns — during an online panel discussion Monday. Read more here.  

Liner sector slump may bottom out soon, but carriers must carry on blanking

theloadstar.com
Container markets are experiencing a steep correction, but one analyst has suggested that the bottom of the liner business cycle may be near.
Short-term freight rates from Asia to North Europe have halved since June, to about $4,300 per 40ft, whereas for the US west coast they have slumped by over 70% since the summer, to less than $2,500 per 40ft. Read more here (login here).

DP World surpasses 59 million TEUs in 9M2022

container-news.com
DP World handled 59.6 million TEUs across its container terminals worldwide in the first nine months of the year, representing an increase of 2% year-on-year.
The UAE-based port operator reported 20.1 million TEUs in the third quarter of 2022, which translates to a 1.5% year-on-year growth. The box volumes in the third quarter were mainly driven by Asia Pacific, Middle East & Africa, Americas, and Australia, according to DP World, which said that its flagship terminal in Jebel Ali, UAE handled 3.5 million TEUs in that period. Read more here.

Taipei allays concerns over COSCO’s influence in Kaohsiung port

container-news.com
Taiwan’s Ministry of Economic Affairs (MOEA) has assured that there is a low risk of mainland Chinese influence in the country’s ports after opposition lawmaker Hwang Kuo-chang brought the ministry to the attention of an article in French publication Le Point.
The article alleged that the Chinese government, through the Chinese state-owned shipping group COSCO, has a 30% stake in Kao Ming Container Terminal Corp., which has a 50-year concession to operate Terminal No. 6 in Kaohsiung port. COSCO’s stake is held via a Taiwan-incorporated entity whose Chinese name is literally translated as Cheng Lung Investment. The article also pointed out that OOCL, which leases berths 65 and 66 in Kaohsiung, is a COSCO subsidiary. Read more here.

GROUD AND RAIL FREIGHT UPDATES

CN analysis: Freight rates on Indian trades continue to trend down amid falling demand

container-news.com
Container lines operating to/from India continue to see the pressure on freight rates build up as volumes trend down, according to the latest market analysis by Container News.
On the westbound India-Europe trade, contract prices from West India [Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port] to Felixstowe/London Gateway (UK) or Rotterdam (the Netherlands) have now slipped to US$3,500/20-foot container and US$4,000/40-foot container, down from US$4,400 and $4,800, respectively, at the end of September. Read more here.