Newsletter – September 8, 2023

AIR FREIGHT UPDATES

Cross-border e-commerce props up soft Chinese air cargo demand

theloadstar.com
Sagging economic growth in China is having an adverse knock-on effect on its air cargo exports and imports – but this is partially offset by the buoyancy of cross-border e-commerce, senior market players told The Loadstar.
Cargolux CEO Richard Forson alluded to two ‘slowdowns’ in play: a stalling internal Chinese economy, which is impacting imports; and  the global economic downturn, which reduces demand for Chinese exports. Read more here (login required).

An airfreight rate rise here and there won’t add up to a peak

theloadstar.com
Airfreight rates have fallen to their lowest level since the pandemic began, according to the latest figures from both Xeneta and Tac Index. And signs of a peak have all but vanished, according to Clive Data Services. Read more here (loing required).

OCEAN FREIGHT UPDATES

Expect more blankings on the ‘difficult’ and ‘sensitive’ transatlantic trades

theloadstar.com
Shippers and forwarders on the transatlantic trades have been warned to expect more blanked sailings – and possibly even cancelled services – unless there is an urgent reversal in the recent freight rate declines.
The trade appears caught in a classic pincer trap: healthy demand and strong rates led carriers to inject more capacity onto a trade that was performing better than the transpacific and Asia-Europe… Read more here (login required).

CMA CGM completes acquisition of GCT Bayonne and New York box terminals

container-news.com
CMA CGM Group has completed the acquisition of Global Container Terminals (GCT) Bayonne and New York terminals, aiming to strengthen its position as a global port terminal operator.
The French shipping company is now the shareholder of GCT Bayonne and New York terminals, finalising the agreement announced on 7 December 2022. Read more here.

Combative MSC says shippers must look forward

container-news.com
Shippers do not know the real cost of moving a container, cargo owners must pay the right price for moving containers, most shippers want to “screw” the lines said MSC.
In a battling performance on the JOC’s Transatlantic trade webinar, the Swiss-based carrier’s senior VP and head of Europe to North America trade Pasquale Formisano said that “99% of shippers want to screw us and get the most out of us.” Read more here.

Panama Canal’s low water delays could last 10 months impacting U.S. Gulf/East Coast port

ajot.com
The Panama Canal’s drought induced low water problems are causing vessel traffic jams that could last for the next ten months according to the Athens-based shipbroker Intermodal.
In an exclusive interview with AJOT, Intermodal’s Research Analyst, Chara Georgousi reported that: “According to the Panama Canal Authority’s latest update, water-saving measures will be in place for the next 10 months. The effects on supply chains could be further pronounced as the disruption will coincide with the peak holiday season when retailers increase shipping activities to accommodate the upcoming holiday consumer demand.”  Read more here.

INTERNATIONAL BUSINESS – GOVERNMENT UPDATES

Who will pay to decarbonize the supply chain?

supplychaindive.com
o decarbonize the world, the world must decarbonize the supply chain, and quickly.
Some 75% of all greenhouse gas emissions fall under Scope 3 emissions, which includes the upstream supply chain as well as the end use of a company’s goods and services.
To cut those emissions enough to avoid catastrophic climate change will take technology, infrastructure, operational changes — and money.  Read more here.