NEWSLETTER – OCTOBER 26, 2022

AIR FREIGHT UPDATES

Swissport adds new Japan air cargo facility

aircargonews.net
Swissport will open a new air cargo centre at Chubu Centrair International Airport as it looks to meet growth in Japan’s Tokai region.
The new facility is on the north side of International Cargo Warehouse 1 at the airport and will open on November 1.
It measures 2,500 sq m and has further potential to expand. Read more here.

‘Sudden slump in demand’ leaves Asia Pacific air cargo carriers ‘in limbo’

theloadstar.com
Asia Pacific airlines saw a double-digit drop in air cargo volumes last month, and forwarders expect only a modest uptick in Q4.
According to the Association of Asia Pacific Airlines (AAPA), year-on-year international air cargo demand dropped 10.4% in September, measured in freight tonne km (FTK), while cargo capacity expanded 5.9%. As a result, the average load factor was down 11.4 percentage points, to 64%.  Read more here.

OCEAN FREIGHT UPDATES

LA Port chief says “Labor Deal” still likely but months away

ajot.com
A labor deal between 22,000 dockworkers at US West Coast ports and their employers may take several months to reach, but service disruptions while negotiations continue are unlikely, according to the chief of the Port of Los Angeles.
“It’s not going to get solved in the next few weeks — it will probably take some several months and there is no hard deadline on this,” Executive Director Gene Seroka, whose port is the nation’s busiest, said in an interview at Bloomberg’s New York headquarters Monday. He added that his view doesn’t represent those of employers or the union negotiating on behalf of the workers. Read more here.

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? Read more here.

Carriers under pressure to take more decisive action to stem declines

splash247.com
It’s the topic that has sparked the most debate in the container sector all month – just where is the floor for rates?
Analysts seem divided on how much lower rates will head before settling at a new normal level. Read more here.

Splash Extra: Newbuild prices show first signs of decline

splash247.com
The October issue of Splash Extra leads with data showing that newbuild prices have peaked, news that will be studied carefully by shipowners around the world who have been holding back from ordering over the past couple of years.
Clarksons Research data shows prices peaked two weeks ago, while rival broker Arrow suggests the downward correction started last month. Read more here.

Shipping’s China syndrome: Demand sinks across multiple cargo markets

freightwaves.com
In the mid-2000s, when shipping stocks first became popular on Wall Street, the shares were commonly bought as a play on China’s economy. China is pivotal to ocean shipping, whether it’s container ships, oil tankers, bulkers or gas carriers.
“There’s a saying that everything that moves out of China in containers has to come into China as raw materials,” noted Oeyvind Lindeman, chief commercial officer of Navigator Gas (NYSE: NVGS), on his company’s latest conference call. Read more here.