Global Shipping & Logistics Market Update – April 2023

Slowdown Visible in Fourth Quarter of 2022 – Carrier Financial Results

The year 2022 was considered to be a record year for container carriers, however, the last quarter showed another story. Therefore, when the carriers showed their record results, they also alerted us that the current year will be very different.

In 2023, Hapag Lloyd expects a big decline in their earnings. Furthermore, they estimated that the EBITDA will be in the range of USD 4.3-6.5 bn in comparison to the USD 20.8 bn in the previous year.
Maersk Line has predicted an EBIT of 2.0-5.0 bn, which was USD 33bn in 2022. This forecast was made on the expectation of very low profitability of Ocean shipping division in the last 2 quarters of 2023.
Similarly, CMA CGM also expects a market slowdown in the last quarter of 2022 to continue in 2023.

Ocean Freight Market Updates - April 2023

Key
++	Strong Increase
+	Moderate Increase
=	No Change
–	Moderate Decline
—	Strong Decline

Outbound

Middle East – North America

Space out of the Gulf is tight that is causing the rates to increase. More so, the capacity is increasing month over month.

Capacity — (+)

Rate — (+)

Note: Spot rates are flat all through this month.

Middle East – Asia

The Gulf services in the Asian region continue the rate rebound after the Chinese New Year. The capacity available for this trade lane is expected to remain flat month after month.

Capacity — (=)

Rate — (+)

Note: Spot rates are flat for this month.

Middle East – Europe

The rates out of the Gulf are now more stable. Even though space is available, the capacity is expected to remain flat month after month.

Capacity — (=)

Rate — (=)

Note: Spot rates are flat for this month.

Middle East – Latin America

Rates out of Gulf are flat; however, the space is available. The situation of space is improving as the carriers are less active on this trade lane.

Capacity — (=)

Rate — (=)

Note: Spot rates are flat for this month.

Inbound Updates

Asia – Middle East

The Middle East and Red Sea Market has an impact of Ramadan, which is causing the rates to decline. However, if not for huge-scale blank sailings, there is a risk that pre-Covid rates will appear again.

Capacity — (-)

Rate — (-)

Note: In general, equipment is healthy across Asia.

North America – Middle East

There are signs of aggressive positioning in the Mideast market for some carriers. This is due to the continuous decrease in the rates.

Capacity — (+)

Rate — (-)

Note: More concessions are available on side conditions.

Latin America – Middle East

Due to the current market conditions, the exports in Central America are softening. The exports of Mexico to Med and Mideast are softening as well. Whereas the SAEC market in these contracting conditions continues its quick downward trend, which has caused the rates to go back to pre-Covid levels.

Capacity — (=)

Rate — (-)

Note: Vessels are open.

Europe – Middle East

Capacity in the East Med is available, and rates continue to soften for both short and long-term contracts. The space is also available.

Capacity — (=)

Rate — (=/-)

Note: No equipment issues.

Air Freight Overview – April 2023

Demand: The PMI index has improved for the emerging markets with higher export orders. With the increasing interest rates and Ukraine crisis, the world economy is adversely affected. However, with the opening of ASPA market again, there is likely to be a quick global economic recovery.

Capacity: There is a continuous improvement in the capacity. The belly capacity is also following the same increasing trend as passenger travel capacity. There are no bottlenecks expected in the coming months; however, the current labor disputes can have operational impact.

Rates: There Is a competitive spot market in many of the trade lanes with a slight increase in charter and ad hoc rates. As we move along 2023, there will be more stability in the long-term rates; while tonnage growth trend will play a vital trend.

The Middle East and Air Carriers

The pace of recovery in the Middle East aviation has improved over 2022 and is expected to only get better in the next decade with its share in the global fleet to increase. Based on the report, the fleet share of Middle East will increase from 4.9% in 2022 to 6% in 2023.

Asia

There has been a slight uptick in the demand after Chinese New Year, which will be expected to further increase in the coming months. The available capacity is sufficient to support the soft demand and the rates will stay competitive in the market.

For the Asia to Europe route, the demand remains soft, causing the rates to decrease and capacity to increase. Whereas, on the Asia-North America route, the providers are adding more flights; but an improvement isn’t expected till the 3rd quarter due to importers selling through the existing inventory.

America

In the United States, the capacity is open, but the rates are still trending downwards. Because of the increase in travel demand in the coming months, additional capacity in the market is expected. The capacity for the North American trade lanes is expected to remain flat month over month. Whereas the spot rates will remain flat for Africa, Latin America, and Middle East; and decrease in Asia, Europe, and Oceania.

In the Latin America market, the overall capacities are expected to remain flat, while the spot rates will increase for all the trade lanes.

Europe

Due to the ongoing return of regular schedule passenger flights out of Europe, the capacity continues to increase. For the trade lane of Asia, the demand will stay moderate this month, which will allow for easier capacity access. The Latin America market is overall stable; whereas, in North America, the capacity is expected to grow as the summer schedule will be effective from the second quarter.

The spot rates from Europe to Africa, Asia, Latin America, and Middle East will remain flat; and will decrease for North America.

Shipping Local News – United Arab Emirates – April 2023

CMA CGM is revising its BAF on the RORO services that connects France to Algeria, Tunisia, and Morocco. The new surcharges will be effective from 1st of April 2023. Read More

Maersk has announced a new update on Nhava Sheva Port. Due to the traffic and queues outside the port, there will be an overall surge in export demand. Read More

Ocean Network Express (ONE) has announced new surcharges that will be applicable across all trade lanes to/from UAE. The changes will be effective from 1st April 2023. Read More

Ocean Network Express (ONE) announced new demurrage and detention tariffs for UAE that will be effective from 1st April 2023. Read More

CMA CGM has announced the launch of BIGEX services that will connect Bangladesh to India and UAE. This is the only product that will connect Bangladesh to Jebel Ali and Khalifa. See More

Emirates Shipping Line LLC has implemented an Environmental Fuel Surcharge (EFS). This will be imposed based on Low Sulphur fuel price between USD650 to USD700 per ton, effective from 1st April 2023. Read More

Hapag Lloyd has updated the local charges for the Middle East, Indian Subcontinent, and Africa. Read Details

Hapag Lloyd will introduce West Africa Service (WA1) in May 2023 that will help factor in strong schedule reliability and extended port coverage in cargo planning. Read More

Cargo Gulf is re-launching Arabian Gulf Indian Subcontinent (AGISC). Read More

Ogefrem Head Office has released a Circular Letter regarding the shipments that will arrive in DRC without FERI. Read More

Global Factory Output – Overview

The Drewry World Container Index (WCI) decreased by 2% to reach $1,716.85 per 40ft container in the last week of March. The current PMI value is 36% lower than its 10-year average of $2,690, indicating that the prices are reaching their normal level.

United States of America (USA)

The manufacturing sector of the US is showing concerning trends during March. Although output has increased since last October, growth was still fractional supported by the ramping up of production. The timely delivery of input has allowed the firms to work through the backlogs. However, there is a scarce demand due to pressure on customer spending as a result of high interest rates and inflation.

United Kingdom (UK)

UK manufacturing production has fell back to contraction at the end of the first quarter because companies scaled back their production as a response to subdued market conditions. There is a fractional increase in the new orders, followed on from a nine-month sequence of contraction; while showing the overall order book levels remain low. The declining new export orders remain a drain on demand, balancing the signs of a revival in the domestic market.

China

After a solid increase in output and new orders in February, the Chinese manufacturers have reported soft gains at the end of first quarter of 2023. The sustained upturn in demand supported a further increase in purchasing; however, the inventory continued to fall as most firms kept their cautious approach to stock building.

United Arab Emirates (UAE)

The PMI index of UAE has reached the value of 54.3 in February from 54.1 in the previous month. For the first time in four months, the output grew because of the increasing sales and initiation of new projects. The new orders have increased as well; however, the expansion rate was the weakest since September last year.

Global Interesting News – April 2023

Freight News

Air

Narita Airport to build $2.7B cargo logistics facility Read More

Another warning strike brings Germany’s main airports to a halt again Read More

YEG to pilot hydrogen technologies to advance air cargo Read More

Air cargo seeing little impact from French general strike Read More

Deadline looms for freighter operations to change airports in Mexico City Read More

Etihad Cargo streamlines dangerous goods, pet bookings online Read More

IATA: Soft start to 2023 for air cargo industry Read More

LATAM Cargo announces the addition of a new Boeing 767 BCF Read More

DHL Global Forwarding reports record airfreight revenues Read More

FedEx to transfer LAX airport maintenance to Indianapolis Read More

Maersk’s new air freight service to connect Denmark with China Read More

Changi team up with Brussels airport on cargo Read More

CargoAI takes in more airline partners Read More

DACHSER offers daily air freight service from China and Hong Kong to Frankfurt Read More

Saudia Cargo awards multi-station contract to WFS Read More

Air Cargo closes 2022 near Pre-Pandemic Levels Read More

LATAM Cargo connects South America with Brussels Airport Read More

Messe München brings first logistics multimodal trade fair to Singapore Read More

UPS expands hub at Changi Airport, nearly doubling capacity Read More

Ocean

New EU law ‘marks the beginning of the end of dirty fuels in shipping’ Read More

Retail giants launch new alliance for green sea freight Read More

Labor shortage puts pressure on deliveries of new ships from South Korea Read More

Maersk Supply Service wins three-year contract on three L-class ships Read More

Maersk enters methanol collaboration with world’s largest port Read More

Freight thieves in US ports target food products Read More

Major US port enters deal about green corridor to Japan Read More

DP World to invest USD 35m in Brazilian port Read More

Maersk opens first freight route to Ukraine since war began Read More

House panel eyes ending ocean carriers’ antitrust exemption Read More

Trans-Atlantic container rates still double pre-COVID levels Read More

Norway’s leading car port seeks expansion to meet growing EV imports Read More

Russia-bound Containers Stuck at Antwerp Port for Year Read More

See-Saw effect in ocean freight rates affecting supply and demand equilibrium Read More

CMA CGM applies new overweight surcharge from Saudi Arabia to North Africa and Morocco Read More

Jeddah Islamic Port enhances decarbonisation activities Read More

DP World adds inland container depot at India’s Hazira Port Read More

Record container throughput for King Abdulaziz Port Read More

YILPORT integrates Navis TOS into Portuguese box terminal Read More

Port of Rotterdam supports green hydrogen project at Maasvlakte Read More

DP World to build new edible oil terminal in Berbera Port Read More

Maersk Supply Service extends long-term contract in Taiwan with Seaway7 Read More

Chittagong port to receive larger vessels Read More

The Suez Canal breaks record for single-day vessel registration Read More

COSCO and China Merchants tipped to bid for stake in Hutchison Ports Read More

CMA CGM, COSCO and Hapag-Lloyd line up further orders Read More

Strikes at UK Airports and Ports – Cargo operations may be impacted Read More

Ground

Beijing and Moscow develop rail trade with new route and river bridge Read More

Lawmakers introduce ‘clear path’ to more truck parking Read More

Transport prices in France see a timid rise in February Read More

EAEU mulls over transport hub in United Arab Emirates Read More

Russia’s Transport Industry Adapts to a New Way of Life Read More

The Ministry of Transport of Uzbekistan is negotiating the transportation of goods to Europe through Lithuania Read More

Kazakh deputy minister talks Middle Corridor’s benefits for global trade dev’t Read More

Other

Intra-Asia trade could surpass $13T by 2030 Read More

European Commission proposes Net Zero Industry Act Read More

IAG Cargo sets sights on digitalization, new routes Read More

Qatar Airways Cargo to use AI to optimize overbooking Read More

IAG Cargo adds Aruba and Guyana to its network Read More

86% of pharma and biotech companies plan to invest in ‘digitally agile’ supply chains in the next 12 months Read More

DP DHL outlines criteria for any DB Schenker bid Read More

Supply chains ‘finally beginning to stabilise’, says Maersk Read More

For Shippers, Disruption Means Opportunity to Rethink Carrier Strategy Read More

Guidelines for shipment of Lithium-Ion Batteries by sea published Read More

Are there really any limits to artificial intelligence in shipping? Read More

A.P. Moller Capital to acquire South African frozen logistics operator Read More

AD Ports Group commences new Ro-Ro service between UAE and Kuwait Read More

CMA CGM to launch BIGEX, a new service connecting Bangladesh and India with the Gulf Read More

DHL forms joint venture with Saudis Aramco Read More

Saudis’ newest carrier to fly with all-Boeing fleet Read More

Dachser expands in Oceania with acquisition Read More

DHL Express launches GoGreen Plus Read More

DB Schenker uses ultra-thin high-tech labels for shipment tracking Read More

Global trade growth powered by green products, UNCTAD finds Read More

Navigating the 2023 Supply Chain: Opportunities and Challenges Ahead Read More

Freight Forward: Volumes slowly growing Read More

Cargo theft, led by food and beverage, is surging across the U.S. Read More

3PL News

UPS Healthcare opens first dedicated pharma facility in Germany Read More

DP World announces $200M cargo hub in Dominican Republic Read More

Delta Cargo’s unveils largest cooler facility at JFK Read More

Milwaukee Mitchell International Airport plans new cargo facility Read More

Optimizing inventory key for SMBs to beat shrinking warehouse landscape Read More

APM Terminals to partner on new Vietnam facility Read More

DP World opens reefer container facility in Sydney Read More

DHL global forwarding opens Brisbane facility Read More

Locus launches ShipFlex for flexible third-party delivery Read More

MET taps 15 lenders for €1.23bn facilities Read More

Freight Forward – Slowdowns but opportunities increase Read More

Home Delivery Performance: Ticking Time Bomb Or Market Opportunity? Read More

Scalable automation that optimizes core warehouse functions Read More

GemOne: how telematics is helping warehouse businesses become safer, more efficient, and digitally mature Read More

Barcelona to tax logistics companies Read More

Trade and Customs News

China’s exports continue to slide – adding pressure to economy Read More

Electronic bill of lading provider leverages Singapore legal reform to rip up the rulebook Read More

Letter of credit payments permitted despite Russia sanctions, UK court rules Read More

Ukraine grain deal faces fresh uncertainty as Russia struggles with agri exports Read More

WTO stays glum on trade prospects Read More

REVISED COVID-19 Point Of Entry Guidelines (Zambia, 2023) Read More

Industry bodies unite in producing Guidelines for safe transport of Lithium-ion batteries in containers Read More

Single window for ship data exchange to become mandatory Read More

UNCTAD and World Customs Organization enhance cooperation Read More

Israel-UAE free trade deal takes force as customs agreement inked in Jerusalem Read More

Ecommerce Logistics News

DB Schenker opens automated e-commerce logistics hub in Spain Read More

Is inflation crushing e-commerce volume growth? Read More

Ethiopian Airlines and MailAmericas launch E-commerce Logistics Services Read More

Slowdown in E-Commerce Hitting Logistics Companies’ Payrolls, Experts Say Read More

Global e-Commerce Logistics Market Report 2023: Market to Grow 7.9% in 2023 to Reach a Value of €451+ Billion – Forecasts to 2027 Read More

Preparing for the peak: how retail, FMCG and lifestyle brands can build an agile e-commerce strategy Read More

5 trends Indian Ecommerce industry can expect to see in 2023-24 and how to prepare Read More

U-Freight gains recognition for e-commerce logistics product Read More

E-Commerce Giant Alibaba Will Become 6 Different Entities Read More