Logistics Industry Insights – August 2023
Highlight: Economic Trends Impact CMA CGM's Q2 2023 Revenue and Logistics
In Q2 2023, the Group reported USD 8.4 billion revenue from shipping, down 47.9% YoY. EBITDA reached USD 2.2 billion, down 76%, with a 26.2% EBITDA margin (30.7-point drop). Average TEU revenue was USD 1,491, down 10.3%. Despite a 0.3% QoQ dip, 5.60 million TEUs were transported, up 11.5% from Q1. Logistics Q2 revenue: USD 3.8 billion, EBITDA: USD 356 million (up 4.7%). Acquisitions boosted stability, while Europe’s contract logistics recovered, U.S. e-commerce faced weakness, and Finished Vehicle Logistics thrived. CMA CGM proposed Bolloré’s freight and logistics acquisition.
Updates on Ocean Freight – August 2023
Key | |
++ | Strong Increase |
+ | Moderate Increase |
= | No Change |
– | Moderate Decline |
— | Strong Decline |
Outbound
Middle East – North America
Space availability in the Gulf is tight, leading to higher volatility in rates for this trade lane.
Capacity — (=)
Rate — (+)
Middle East – Asia
Spot rates for this trade lane show a downward trend month over month, resulting in generally flat to decreasing rates.
Capacity — (=)
Rate — (=/-)
Middle East – Europe
Rates from the Gulf remain unchanged, although spot rates demonstrate an increasing trend month over month. Capacity will remain constant, with available space.
Capacity — (=)
Rate — (=)
Middle East – Latin America
Rates from the Gulf remain steady, and space availability can vary weekly, while spot rates are expected to remain consistent.
Capacity — (=)
Rate — (=)
Inbound Updates
Asia – Middle East
Capacity and spot rates will remain stable month after month for this trade lane. Tight space conditions will contribute to rate stability.
Capacity — (=)
Rate — (=)
Latin America – Middle East
Both capacity and spot rates show consistency month over month for this trade lane. However, a steady demand is anticipated after the Eid-ul-Adha holiday.
Capacity — (=)
Rate — (=)
Europe – Middle East
Capacity and spot rates are expected to remain steady month after month. Overall, this trade lane is stable, and space availability is relatively open.
Capacity — (=)
Rate — (=)
North America – Middle East
Regular blank sailings occur in the South Atlantic ports, while tight space conditions persist with more options available from the Northeast Coast. Capacity is improving from the U.S West and Gulf coasts, although space remains constrained.
Capacity — (=)
Rate — (=)
Updates on Air Freight – August 2023
Demand: Volume growth remains low for the month. However, a conservative increase in volume is expected in the coming peak season. High inventories and decreasing purchasing power contribute to low demand.
Capacity: Current capacity is sufficient for volume levels. Belly capacity shows improvement due to high travel demand. No serious backlogs, and global capacity is now 11% higher than last year.
Rates: Slight rate increase in some trade lanes, but market remains competitive. Stability expected in long-term rates in H2 2023.
The Middle East and Air Carriers
Middle East airlines increased international capacity by 15.7% YoY. Despite the global decline in Cargo Tonne-Kilometers (CTKs), Middle East carriers improved their annual decline from 6.7% in April to 3.1% in May.
Asia
Q2 2023 shows improved volumes compared to Q1. Soft demand due to the traditional slack season, expected to continue before predicted improvement by the end of Q3. No capacity issues; passenger flight capacity increased to support summer travel. Rates expected to stay stable with improvements in August.
There are no issues related to capacity as the passenger flight capacity has been increased as a support to the summer travel demand. Furthermore, after a gradual uptick, the rates are expected to stay stable along with anticipated improvements at the end of August.
America
Latin America has available capacity for key trade lanes. Aggressive spot rates are due to lower demand, while contract rates remain stable. Low season for perishable volumes across the region. North America sees manageable air freight demand between USA and China; additional capacity may impact air rates.
On the other hand, the Felipe Angeles International Airport (AIFA) in Mexican City is now operating international cargo arrivals as well along with the domestic flights. It is expected to deal with cargo departures as well.
Europe
Air freight demand reduces worldwide, except for peak commerce volume, notably in South China. Hong Kong sees a 2.1% rate increase for shipments to Europe. Talks of a strike among air control managers in mainland Europe, potentially disrupting summer vacation flights.
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Shipping News – United Arab Emirates
The Government of Dubai has introduced Administrative Decision No. 2 of 2023 on the transparency of local sea container charges in the Dubai Directive. This aims to ensure transparency, accountability, and competitiveness across Dubai’s maritime sector, benefiting Beneficial Cargo Owners (BCOs). Read More
OOCL has announced the provision of the IQAX eBL for issuance, transfer, endorsement, and management of the Ocean Bill of Lading. This digital solution fulfills requirements for international trade, transportation, and financing settlements. Learn More
Starting from July 18th, 2023, Maersk is reintroducing ‘Online Payment Remittance’ to enhance customer experience, leading to faster payment receipt processing. Read More
The UAE GCC Dangerous Goods Certified Entities list was updated on July 20th, 2023, notifying entities of the renewal for Freight Forwarder DG Certification #351 of Fast Logistics Cargo FZCO, Dubai. Read More
CMA CGM announced evacuation plans for CC MEKONG and SEASPAN AMAZON due to congestion in Mersin.
Hapag Lloyd has updated the congestion surcharge, affecting cargo planning for shipments from Mersin, Turkey. Effective from July 17th, 2023, a new surcharge will apply to reefer and dry containers from the Far East, Middle East, and India Subcontinent. Read More
Global Factory Output – Overview August 2023
The Drewry’s World Container Index (WCI) has increased by 11.8% and reached a new value of $1,761.33 per 40-ft container in the first week of August.
United States of America (USA)
The PMI for USA services was recorded at 52.3, down from 54.4 in June. Despite the slight decrease, the service sector remains the primary driver of growth for the US economy. Business activity increased in July, albeit at the slowest rate since February. However, the rate of expansion is declining further from the peak in May due to a sharp decrease in new business growth.
United Kingdom (UK)
The PMI for the UK decreased from 53.7 in June to 51.5 in July 2023. This decline indicates that the UK’s economy will be negatively affected by higher borrowing costs impacting consumer spending and business confidence. The service sector also experienced the weakest rise in new work in six months.
China
China’s PMI increased to 54.1 in July from 53.9 in June 2023. This value signifies continuous expansion of business activity in China’s service economy for the seventh consecutive month. Another contributing factor to the increase was the overall growth in new business in July.
United Arab Emirates (UAE)
The UAE’s PMI decreased from 56.9 in June to 56.0 in July. This slight change in value reflects a moderation in the strength of the UAE’s non-oil economy. The growth of new businesses slowed from a four-year high in June, and output expansion also reduced slightly. However, the value of 56.0 indicates that the sector remains generally healthy, with improving market conditions and firms reporting robust rates for customer demand growth and job creation.
Global Interesting News – August 2023
Freight News
Air
Cargo-partner offers Western Europe, Asia consolidation services Read More
Global airfreight rates rise 2.9% Read More
DHL Express to invest $192M into CVG expansion Read More
Digital Pulse: Qatar Cargo offers real-time, personalized e-pricing Read More
IAG Cargo revenue down 28.5% YoY in H1 Read More
Maersk opens air cargo hub near ATL Read More
Avion Express expands fleet to 50 aircraft Read More
TAAG Angola to increase frequencies to Kinshasa Read More
Air Astana signs codeshare agreement with Azerbaijan Airlines Read More
cargo-partner introduces airfreight consols between W Europe and Asia Read More
Abu Dhabi International Airport welcomes back Air France Read More
Saudia Cargo expands European services Read More
Tailored animal transportation: From pets to conservation Read More
dnata’s flower handling expertise takes flight in Amsterdam Read More
Qatar Airways Cargo and Airlink play vital role in responding to humanitarian needs Read More
The Future of Ground Handling: Embracing Digitalisation and Automation for Success Read More
Qatar Aviation Services Cargo receives IATA’s smart facility operational capacity certification Read More
Qatar Airways Cargo takes fresh to the next level Read More
Hong Kong Air Cargo targets expansion Read More
Los Angeles Airport takes on cargo project Read More
Hawaiian Airlines receives first Amazon A330 freighter Read More
Challenge Group remains committed to its Liège hub Read More
Ocean
Seafrigo acquires PML, expands operations Read More
Transatlantic carriers must change course and rethink expansion plans Read More
EU initiative will ‘kick-start’ large-scale production of sustainable maritime fuels’ Read More
Box terminal operators feel the pain as peak season disappoints Read More
Carriers blank voyages and look for port call inducements as demand slows Read More
Box lines slam on the brakes in a charter market feeling the pain Read More
Maersk’s bottom line saved by fuel savings Read More
New fuel regulation could cost as much as 12,000 dollars a day per tanker Read More
Tanker scrapping is expected to increase again from 2024 Read More
Longshore labor unrest a new daily fact of life for North American shippers Read More
‘REGLOBALISATION’ Trends Emerge in Port Call Data Read More
One Hundred Ports: Container shipping bids farewell to the boom times Read More
Saudi Arabia’s Neom port ‘won’t compete’ with regional box terminals Read More
Ocean carriers warn FMC against regulating prices Read More
All-time high: Shares of container company Textainer still rising Read More
Iranian Oil Remains Stuck Off US Coast Read More
Russia Blocks Cargo Vessel Transits Through the Kerch Strait Read More
Tow-away regulations in Rotterdam for incorrectly moored barges Read More
Valenciaport calls for tenders for the air quality network control service Read More
CMA CGM enhances FAL 1 service Read More
Hapag Lloyd increases rates from Asia to US East Coast Read More
CMA CGM increases FAK rates from Asia to North Europe Read More
CMA CGM revises overweight surcharge from Asia to East Africa Read More
CMA CGM implements port congestion surcharge for reefer cargo in Cameroon Read More
CMA CGM introduces container scanning fee in Congo Read More
Maersk increases rates from Far East to Med ports Read More
Adani to boost Mundra port capacity by 800,000 TEUs amid steady volume growth Read More
COSCO, CMA CGM add La Spezia Container Terminal to MedGulf service Read More
RTA’s marine transport services between Dubai and Sharjah to resume from August Read More
Mawani, Antwerp Port sign landmark agreement to strengthen trade relations Read More
Saudi Spark, Hutchison ink agreement for dryport concession Read More
King Abdullah Port: Boosting Saudi Arabia’s economic shift Read More
Mawani: Saudi Ports register 6.79% growth in June container volumes Read More
Ground
Ukraine conflict prompts rerouting of China-Europe rail freight to bypass Russia Read More
Nikola surpassess 200 orders for hydrogen fuel cell trucks Read More
Tenstreet provides smoother connection between drivers, carriers through continued acquisitions Read More
Railroads reach deals with unions on sick leave, conductor training Read More
Railroads, car haulers scramble to meet auto delivery demands Read More
Tracking the speed, dwell and cars of Class I railroads Read More
Autonomous Trucks – Improving Cost, Speed, And Efficiency for Logistics Companies Read More
The Average Price of Truck Cranes in Mexico Drops by 24% to $13,510 per Unit Read More
Cargo-partner launches new trucking solution between China and Europe Read More
UKEF backs latest deal for high-speed rail in Turkey Read More
Less-Than-truckload: A True Shipping Advantage Read More
Rail freight from Canada to U.S. continues to drop after ports strike Read More
Oman and Etihad Rail Company inks logistics agreement with integrated steel company Jindal Read More
Development Road: Iraq launches unit to oversee $17 billion rail link with Turkey Read More
Dubai completes major road development project, slashes journey times Read More
GCC Railway: New rail network to connect Saudi Arabia, Bahrain, and GCC Read More
Yellow’s Competitors Likely to Seek Carrier’s LTL Business Read More
June Truck Tonnage Ticks Down 0.8% on Annual Basis Read More
Other
DHL Group reports 16.4% revenue drop Read More
AIT invests in pharma shipping Read More
Lufthansa Cargo and Kuehne+Nagel partner on paperless lanes Read More
Overconfidence drives digital forwarder layoffs Read More
Raft to use $30M in funding for AI solutions Read More
Optimizing cargo loading with quantum computing Read More
DHL takes green logistics to the next level Read More
Hapag-Lloyd completes Americas terminals acquisition Read More
DHL raises guidance despite weak market Read More
Canada’s strike is over, but supply chains could take weeks to recover Read More
CMA CGM Braced for Weaker Profit Before Demand Picks up in 2024 Read More
Walmart aims for sustainable clothing in its supply chain Read More
Fashion brands still have work to do on supply chain transparency: report Read More
Bolloré Logistics in the ranking of the 75 leading Green Supply Chain Partners carried out by Inbound Logistics Read More
Freight Companies are not Expecting a Robust Peak Shipping Season Come Fall 2023 Read More
Pallet Prices Are Still Soaring as Shortages Hurt U.S. Producers Read More
UK Green Subsidies Need Revamp to Meet Net Zero, SSE CEO Says Read More
C.H. Robinson Profit Tumbles on Weak Freight Market Read More
DHL Group to acquire MNG Kargo Read More
Businesses see biggest value in transport visibility Read More
The ‘peak’ of peak season is here Read More
Logistics technology market grappling with pandemic period overhiring Read More
Saudi Arabia climbs eight places in Lloyd’s list 2023 rankings Read More
Saudi Arabia to establish 59 logistics zones by 2030 Read More
AD Ports Group, China’s CMEC GROUP ink agreement for global infrastructure development Read More
Schneider Acquires M&M Transport Read More
3PL News
Cainiao opens 6-warehouse logistics park in Jakarta Read More
DHL to acquire Turkish parcel delivery provider MNG Kargo Read More
Maersk builds new distribution centre in Singapore to support regional logistics Read More
Warehouse automation expected to pick up after hitting ‘rock bottom’ Read More
Last-Mile Innovations: Exploring Alternative Delivery Methods Beyond Traditional Couriers Read More
Efficient Warehouses Fit Sustainable Operations Read More
DHL Group strengthens its presence in Turkey with parcel delivery firm acquisition Read More
On the Heels of the Nearshoring Boom, Logistics Startup Nuvocargo Raises $36.5M to Modernize US-Mexico Trade, Expands to all major US-MX border crossings Read More
Prozo Planning to Add 5M Square Feet of Warehousing Space by 2026 Read More
Maersk plans SG facility for omnichannel fulfilment Read More
How Are Companies Engaging With Customers Around Deliveries In 2023? Read More
Understanding First-Mile vs. Middle-Mile vs. Last-Mile Delivery Read More
The Vital Role of PPE in Warehousing Operations Read More
Launch of Robots and Human Co-workers Collaboration Read More
Viewpoint: Another nail in the consumer spending coffin Read More
E-fulfillment prepared for hectic? – read the free online magazine Read More
Retailers struggle with returns, while there is profit to be made with good organization of the process Read More
The micro-fulfilment revolution Read More
Maersk inaugurates first cold store facility in UAE, strengthens integrated logistics solutions offering Read More
Georgia Distribution Center to Team NFI, Bradshaw Home Read More
DHL Express Opens Atlanta Cargo Facility Read More
Trade and Customs
Russian drones strike Danube grain export port Read More
Typhoons and downpours clog China’s logistics flows and port traffic Read More
US lawmakers look to end sale and import of commercial kangaroo skin products Read More
Export of U.S. Aircraft Launching Gear Sees Mild Dip to $9.2M in May 2023 Read More
Trade Management Market Size to Surpass US$ 2 Bn by 2032 Read More
It is Official – UK Electronic Trade Document Bill becomes Law Read More
War-Weary Ukraine Farmers Curb Plantings in Blow for Food Supply Read More
UK export minister kicks off Barclays-ICC UK trade digitisation taskforce Read More
The Dutch are Europe’s biggest online fashion shoppers Read More
Weathering Drought in the Panama Canal Read More
Ecommerce Logistics News (H3)
UPS, Teamsters reach tentative labor deal avoiding strike Read More
BigCommerce Launches Google Cloud Ecommerce Features Read More
How eCommerce Professionals can Use Supply Chain Visibility to Delight Customers Read More
E-commerce managers Swinkels: ‘E-fulfilment is spearhead in customer experience’ Read More
Amazon Fresh Offers Grocery Delivery to Non-Prime Members Read More
Amazon to Double Number of Same-Day Delivery Facilities Read More
FedEx Pilots Reject Proposed Multiyear Contract Read More
Amazon Prime Day Drives All Online Sales Up 6.1% Read More
Amazon Fleet Electrification Sees 5,000 Rivian Vans on Roads Read More
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