Ocean & Air Monlty Market Update l July 2023

Ocean and Air Freight Market Update – July 2023

Trading Giants Unveiled - Main Carriers' Specializations and Global Dominance Revealed

Leading carriers in the shipping industry have distinct trading profiles, as revealed by Alphaliner’s analysis. Market leader MSC has a significant presence in the Middle East/Indian Subcontinent and Africa-related loops. Hapag-Lloyd takes the lead in Latin American trades, while Cosco and Evergreen specialize in intra-Asia routes. CMA CGM and Cosco deploy the majority of their fleet on Asia outbound lanes to Europe and North America. HMM focuses on Far East-Europe trading, while Yang Ming prioritizes the Transpacific trade. Although Zim still dominates the Transpacific route, it has also expanded its operations on the Asia-Europe route independently after terminating its cooperation with 2M.

It’s important to note that these profiles are based on ship capacity and may differ when considering actual carryings or operating income. Additionally, trades with longer sailing distances require more tonnage and can influence the allocation of resources.

Ocean Freight Updates – July 2023

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

Outbound

Middle East – North America

The space is available on the USEC and USWC. The only direct services to USEC will be available when IN2 will call JED. The FAK rates remains above the pre-Covid levels.

Capacity — (+)

Rate — (+)

Note: The carriers are aggressively pricing the NAC deals.

Middle East – Asia

The carriers are offering open allocations and special spot rates for this trade lane; whereas the rates continue to drop.

Capacity — (=)

Rate — (-)

Middle East – Europe

The space is fairly available for this trade lane and the freight rates are still competitive.

Capacity — (=)

Rate — (=)

Middle East – Latin America

Most of the carriers have opened the space and with advance forecasting, the bookings can be managed.

Capacity — (=)

Rate — (=)

Inbound Updates

Asia – Middle East

As the demand for white goods resurged, the volume remains strong in the Middle East. Some of the carriers have deployed the extra loaders silently.

Capacity — (-)

Rate — (+)

Note: Space is predicted to be full for the month of July.

North America – Middle East

The overall market is competitive; however, the signs are indicating a step toward stabilization.

Capacity — (=)

Rate — (-)

Latin America – Middle East

The overall export rates of Latin America are decreasing; however, the market rates remain stable for the Mideast.

Capacity — (=)

Rate — (-)

Europe – Middle East

Few departures with the Ocean Alliance are fairly utilized and shipping rolling notification is received. The rate level in July is expected to be softer in comparison to June.

Capacity — (=)

Rate — (=/-)

Note: 2M and The Alliance are open for bookings.

Air Freight Updates – July 2023

Demand: Volumes remain low; however, there is an increase observed in MoM. The increase in inflation is still influencing the world economy, which has led to high inventories and low purchasing powers, leading to lower demand.

Capacity: There is fair capacity available for the current levels of volume. The belly capacity has improved as passenger travel has increased.

Rates: There are competitive spot rates across most trade lanes, with a slight increase observed in specific trade lanes. The predictions have indicated stability in long-term rates toward H2 2023.

The Middle East and Air Carriers

In May 2023, Middle Eastern carriers witnessed a 3.1% decrease in cargo volumes compared to the same month in the previous year. However, this represented a slight improvement in performance compared to the previous month, where they experienced a decline of 6.7%. Additionally, capacity in the region increased significantly, rising by 15.6% compared to May 2022.

Asia

With the upcoming Northern Hemisphere holidays, the air freight capacity is now recovering and improving. Furthermore, the ecommerce cargo is experiencing stable demand; whereas the demand for general cargo remains weak. On the other hand, the rates are still holding and are stable.

America

In May 2023, North American carriers experienced a decline in cargo volumes for the third consecutive month. However, the decrease of 8.1% was slightly better than the previous month’s performance, which saw a decline of 12.4%. Notably, the North America-Europe trade lane witnessed a contraction in volumes for the third month in a row, with a decline of 10.3%. On the other hand, capacity in the region increased by 1.2% compared to May 2022.

In contrast, Latin American carriers had a positive performance in May 2023, with a 3.6% increase in cargo volumes compared to the same month in the previous year. This improvement in performance was a turnaround from April, where they saw a slight decline of 1.6%. Additionally, capacity in Latin America experienced significant growth, rising by 14.7% compared to May 2022.

Europe

In May 2023, European carriers experienced a decrease in cargo volumes, with a decline of 6.7% compared to the same month in the previous year. However, this performance was better than the previous month’s decline of 7.7%. One factor contributing to this improvement was the smaller annual contraction in international Cargo Tonne-kilometers (CTKs) on the Europe-Middle East trade lane, which decreased from -4.7% in April to -2.9% in May. The decline in international cargo traffic within Europe also showed improvement, decreasing from -16.2% in April to -7.8% in May (seasonally adjusted). Additionally, capacity in the region increased by 5.6% compared to May 2022.

Shipping News – United Arab Emirates – July 2023

UAE GCAA has published the list of Dangerous Goods Certified Entities as of 5th June 2023. Read More

Effective from 15th June 2023, it will be mandatory to get ECTN for all the shipments heading to Djibouti. The shippers, freight forwarders, and exporters can obtain it from the port of loading. Read More

One has launched a bank direct debit/credit card payment feature in their online payment services. The customers can now submit the payment online for requesting a Delivery Order (DO) using Dubai Trade Portal. Read More

Dubai Trade is now facilitating the importers and the agents to request for Delivery Order electronically, make online payments, and exchange documents using a secure login. Visit the website for details.

CMA CGM has revised the Late BL fees. This will be applicable to export shipments of all sectors. Read More

CMA CGM is implementing empty container drop off fee on all the cargo bound for Zanzibar, with DAR es Salaam of Mombasa as ports of discharge on the BL. Read More

Shipping News – United Arab Emirates – July 2023

The Drewry’s World Composite Index (WCI) has reduced by 1.3% and reached $1,474.32per 40-ft container in the first week of July 2023.

United States of America (USA)

The Drewry’s World Composite Index (WCI) has reduced by 1.3% and reached $1,474.32per 40-ft container in the first week of July 2023.

United Kingdom (UK)

The manufacturing PMI of the UK has increased to 46.5 in June 2023. However, the latest value is the lowest noted in the 6 months. It is due to a contraction for the last 11 consecutive months. The output has been contracting for the last 4 months, but the pace of reduction is slower this month.

China

United Arab Emirates (UAE)

The PMI value of the UAE has increased to 56.9 in June 2023 from 55.5 in the previous month. This shows a significant improvement in the business conditions. Furthermore, stronger customer demand has led to an increase in the new orders and the promotional activities have caused the expansion in the output.

Global Interesting News – July 2023

Freight News

Air

Digital Pulse: Air cargo industry migrates to e-booking Read More

Air India affiliate bolsters local fresh produce shipments Read More

Europe’s airports return to profitability Read More

Air cargo market to rebound slightly in 2024 Read More

Drones to deliver dangerous goods in Canada Read More

DHL Group plans fully automated Helsinki facility Read More

Maersk bolsters intercontinental airfreight network Read More

IAG Cargo adds Heathrow to Cincinnati route for e-commerce Read More

IATA looks to bolster African air safety Read More

Renovated warehouse opens at ORD Read More

Robot in 1st test run at Munich Airport cargo terminal Read More

Flat air cargo market continuous through June Read More

MSC Air Cargo partners with IBS Software to power its global air cargo business Read More

Etihad Cargo boosts pharmalife product efficiency Read More

Lufthansa Cargo adds third A321 freighter Read More

EL AL interlines with Bamboo Airways and Astral on cargo Read More

Air China Cargo extends partnership with Lufthansa Cargo in Chengdu Read More

EV Cargo expands in Southeast Asia Read More

Qatar Airways Cargo to host IATA Cargo Hackathon Read More

Cargo handler CHI completes TIACA sustainability programme Read More

Swissport adds new Dublin Airport pharma facility Read More

Boeing delivers Iraqi Airways’ first 787-8 Dreamliner Read More

Qatar Airways Cargo is the First Airline Globally to Complete the Suite of IATA CEIV Certifications Read More

Etihad Cargo expands European Road Feeder Services to 90 Airports across 27 Countries Read More

JAL to start domestic freighter next year Read More

Maersk Air Cargo strengthens growing network Read More

Changi Airport outlines top priorities for cargo Read More

Emirates SkyCargo and Air Canada Enhance Cargo Interline Cooperation Read More

Emirates SkyCargo to Double its Capacity in Next Decade Read More

Omni Air International operates Asia-Europe routes for MIAT Read More

Ocean

Dubai’s DP World keeps London on container trade map Read More

Container spot market: up or down ahead of late peak season? Read More

Tentative US West Coast port contract deal reached, union and employers say Read More

Seafarer labour market tightest on record Read More

Canada dock strike continues as mediation resumes Read More

Blank sailings hit lowest level since the pandemic Read More

MSC continues purchase spree of secondhand ships Read More

Emerging from pandemic fog, global reefer market reverts to type Read More

Container volumes getting back to trend after pandemic surge: analyst Read More

Schedule reliability continues to improve Read More

Greece seen stalling on new EU sanctions package on Russia that targets dark fleet ships Read More

Critical level approaching for trans-Pacific spot rates Read More

Saudi Arabia Urges Improved Maritime Security in Gulf Read More

Mitsubishi Shipbuilding and NYK Line obtain approval for ammonia and LCO2 carrier Read More

Valencia port establishes hydrogen pathway for European ports Read More

Hapag Lloyd increases rates from Middle East / Indian Subcontinent to US East Coast Read More

CMA CGM revises peak season surcharge from Indian Subcontinent to US East Coast Read More

Port of Oakland gets “green light” and funding for green power project Read More

THE Alliance set to raise capacity on Asia-North Europe service Read More

Congestion at Mundra Port hits vessel productivity for carriers Read More

CMA CGM updates service connecting Med ports with Turkiye Read More

Vietnamese port launches container handling service Read More

HMM announces new service linking Far East, India and Mediterranean Read More

Little sign of congestion on day three of Canada’s port strikes Read More

Ascent, Descent and Crescent in the ocean freight industry – an independent analysis Read More

A.P. Moller – Maersk adds Sohar port call to the ‘Shaheen Express’ further strengthening its commitment to Oman Read More

DP World in talks to expand East African coverage to Tanzania Read More

Nations Haggle Over Targets to Cut Shipping’s Huge Emissions Read More

COSCO finalizes Hamburg terminal stake buy Read More

Ground

Contract rate decline puts capacity at risk Read More

Teamsters at ABF Freight ratify new labor deal Read More

United Road under new ownership in swap of debt for equity Read More

Trucking spot rates should be on the rise: ACT Research Read More

Batteries on freight trains could be tapped to support the power grid in emergencies: study Read More

Tracking the speed, dwell and cars of Class I railroads Read More

U.S. rail carload and intermodal volumes are down, for week ending June 24, reports AAR Read More

Rose Rocket, whose platform helps transportation companies communicate, raises $38M Read More

Trucksters shifts into high gear with €33 million series B funding Read More

Munich-based FERNRIDE raises €29 million to solve autonomous trucking with human-assisted approach Read More

Logistics Startup Next Trucking Tries to Sell Itself Read More

US to conduct safety review of all major railroads Read More

Trucking marketplace Convoy makes more layoffs, citing customer-service efficiency gains Read More

Electric Vehicles Continue to Race Ahead in Market Share: Study Read More

‘AI revolution’ set to drive into Felixstowe with robot truck fleet Read More

Other

Gebrüder Weiss strengthens German air and sea network with acquisition Read More

DSV is ready to deliver packages to ships and wind turbines with drones Read More

The negotiations for shipping’s new climate targets are gridlocked Read More

Bank points to capacity as the box market’s biggest challenge Read More

Valencia promotes hydrogen for green terminals Read More

Co-operation needed on lithium-ion battery carriage risks Read More

Borderlands: Texas vertical farms designed to disrupt fresh produce supply chains Read More

Consumer staples earnings reports bring yet more evidence of demand weakness Read More

Improving operations and reducing costs through better facility data Read More

5 things shippers should know about real-time freight procurement Read More

FedEx to close sites in Texas, Georgia Read More

AD Ports Group completes Noatum acquisition Read More

Global shipping can halve emissions without impacting trade: New study Read More

MSC reports progress in sustainability initiatives Read More

Supply chain startup Baskit supports Indonesia’s middlemen Read More

Insight Partners backs Germany’s SPARETECH in €10M round: Know more Read More

Y Combinator-backed Rever aims to modernize refunds and returns Read More

Nigeria’s Haul247 raises funding to scale its logistics platform Read More

enabl sammelt 3.2 Millionen Euro in Pre-Seed Finanzierungsrunde ein Read More

Onebeat secures $10 million Series B for AI-enabled supply chain solutions Read More

Revolutionising freight forwarding: Cargofive snaps €1.8M to drive digital transformation Read More

All you need to know about Cold Treatment Sterilisation for shipment of fresh produce Read More

Retailers Are Shrinking Logistics Operations in a Changing Consumer Market Read More

Prologis To Acquire 14msf Blackstone Industrial Portfolio In $3.1 Billion Deal Read More

Kuehne+Nagel Acquires South African Freight Forwarder Morgan Cargo Read More

DoKaSch Temperature Solutions Announces Business Expansion in Asia-Pacific Read More

China Smartphone Shipments Back to Double-Digit Growth in May Read More

Flotilla of Saudi Oil Tankers Near the Suez Shrinks a Little Read More

Gebrüder Weiss acquires freight forwarder B+A Read More

DRY BULK QUARTERLY: Atlantic Supramax market adopts a cautious stance Read More

Kazakhstan Kashagan expansion projects progressing ‘well,’ amid legal battle Read More

GPT-4 is set to radically change supply chain network design Read More

AD Ports Group acquires Spanish logistics major Noatum for $720 million Read More

Trade and Customs News

Proposed US bill targets China, Russia imports Read More

Solid economic conditions for shippers remains intact, observes FTR’s SCI report Read More

ICC releases eUCP V2.1 (Uniform Customs and Practice for Documentary Credits) Read More

Enigio completes first end-to-end paperless digital trade document transaction Read More

China’s Share of U.S. Goods Imports Falls to Lowest Since 2006 Read More

U.S. Struggles to Turn Steel Imports ‘Green’ With Tariffs Read More

DHL Express Expands Export Service from Thailand to the United States for Non-Perishable Plants Read More

China’s Chip-Metals Producers Surge on Export Restrictions Read More

China’s Importing So Much Coal That Local Miners Are Suffering Read More

Wheat Climbs to Four-Month High as Traders Assess Russia Risks Read More

South Korea Early Exports Hint at Budding Global Recovery Read More

Germany Secures a Deal to Get Kazakh Oil for Crude-Starved Refinery Read More

Indonesia to Ban Copper Exports Once Freeport, Amman Plants Open Read More

Oil Tankers Avoid Nigeria After Multimillion-Dollar Tax Bill Read More

Africa gets single portal for trade services Read More

UK targets e-commerce exports boost with new trade commission Read More

Ukraine axes ban on ECA-backed loan repayments Read More

Digital trade set to propel intra-Commonwealth trade to US$2tn Read More

Facilitating trade and transit in developing countries Read More

India initiates safeguard investigation on metcoke imports Read More

Ukraine grains exporters turn to Danube ports, heating competition with iron ore, steel shipments Read More

Brazil’s record $91.8 bil funding to boost agriculture, support global food security Read More

France, Germany, Italy agree to strengthen cooperation on critical raw materials supply Read More

Iraq launches 6th licensing for gas exploration blocks to halt Iranian imports Read More

UN defends grain deal and progress on facilitating Russian agricultural products Read More

Ecommerce Logistics News

Consultant’s Insight: FedEx invests in Floship to expand cross-border e-commerce capabilities Read More

DHL rebrands corporate name, e-commerce division Read More

Philippine Ecommerce Marketplace Startup Shoppable Business Closes $1.15m Pre-seed Round Read More

ShipBob Taps Former Amazon Exec, Takes E-Commerce Services to Stores Read More

Amazon doubles storage capacity with new fulfilment centre in Riyadh Read More

FedEx, Floship Partner To Provide Enhanced Logistics Services To E-retailers Read More

Maersk guns for Indian e-commerce fulfillment pie Read More