Global Logistics - Weekly Recap

MSC is following rivals CMA CGM and Maersk into the air cargo arena – but with leased aircraft. MSC announced it had signed a long-term deal with Atlas Air for four new 777-200 freighters, with the first arriving before the end of the year. (The Loadstar)

Following a slowdown of growth in late August, container volume at eight major Chinese ports further declined 12.3% year-on-year in early September a period which is normally peak season for box volumes. Export container volume declined 14.6% while the domestic volume also dropped 5.3%. The ports of Dalian and Tianjin in north China posted a growth rate of 15.2% and 31.4% respectively. Cargo throughput at major coastal hub ports fell 9.9%. The international trade cargo throughput declined 15% while domestic volume fell 5.33%. (Seatrade Maritime News)

Drewry’s composite World Container Index decreased by 10% to $4,014.10 per 40ft container this week. The latest Drewry WCI composite index of $4,014 per 40-foot container is now 61% below the peak of $10,377 reached in September 2021, but it remains 8% higher than the 5-year average of $3,714. (Drewry)

In 2021, air cargo revenues reached a record US$204bn, more than double the figure for 2019. It accounted for around 40% of total airline revenues in 2021. This year demand is expected to exceed pre-pandemic levels by 13%, and generate $169bn in revenue. But IATA says the business environment is “challenging”, with inflation in June topping 10.3% in countries belonging to the Organisation for Economic Co-operation and Development. (IATA)

A new automated driving speed limit paves the way for heavy-duty vehicles. Most recently, the Forum amended UN Regulation No. 157, extending the speed limit for automated driving systems for passenger cars and light-duty vehicles to 130 kilometers per hour on motorways. It was previously limited to 60 kilometers per hour. The new measures, which also cover automated lane changes, will enter into force in January 2023. (IRU)

Singapore's SATS in $1.1 bln deal to become biggest air cargo handler. Singapore-based ground handling and catering provider SATS Ltd (SATS.SI) is acquiring Paris-based Worldwide Flight Services (WFS) for 1.19 billion euros ($1.14 billion) cash in its largest ever deal, to create the world's biggest global air cargo handler. The combined entity's network covers trade routes responsible for more than 50% of global air cargo volume, the companies said in a statement on Wednesday. (Reuters)

Labor negotiations at some of the US and Europe’s most important container ports are showing few signs of progress, adding to concerns that global supply chains may take a while longer to recover from pandemic disruptions. In the UK, dockers at the ports of Liverpool and Felixstowe are on strike this week, idling the movement of goods across wharves that handle about half of the country’s seaborne trade. On the US West Coast, the plot is thickening over the state of negotiations aimed at avoiding a strike and reaching a new contract between 22,000 dockworkers at 29 US West Coast ports and about 70 employers.?(BBG)

GERMAN Rail (DB) says it has launched the largest modernisation program for its vehicle fleet to date, claiming that by 2030 the group will invest more than €19bn in new locomotives and trains. DB made the announcement at the InnoTrans 2022 trade fair in Berlin, where the rail company also had exhibits of rolling stock showing what modern regional fleets and freight trains could soon look like. (IRJ)

Royal Mail workers will be taking strike action for 19 days over a pay dispute in the run-up to peak season. Walk-out dates include Black Friday on the 25th of November, and Cyber Monday on the 28th of November. The Communication Workers Union (CWU) said that the industrial action is set to take place over single days across the entire Royal Mail network, including the 13th, 20th, and 25th of October, as well as the 28th of November. (Logistics Manager)

Singapore's SATS in $1.1 bln deal to become biggest air cargo handler. Singapore-based ground handling and catering provider SATS Ltd (SATS.SI) is acquiring Paris-based Worldwide Flight Services (WFS) for 1.19 billion euros ($1.14 billion) cash in its largest ever deal, to create the world's biggest global air cargo handler. The combined entity's network covers trade routes responsible for more than 50% of global air cargo volume, the companies said in a statement on Wednesday. (Reuters)

DHL announced the start of construction on its new ￡230 million hub in SEGRO Park Coventry. The new facility will double DHL’s handling capacity and is expected to create over 600 new jobs for the area. Construction of the new 25,000m2 hub, located south of Coventry airport within Warwick District, is expected to be completed in summer 2024. (Post & Parcel)

The first-ever fully electric commuter plane, ‘Alice’ built by Eviation Aircraft, has completed its maiden flight as part of DHL Express’ program for 12 e-cargo aircraft to electrify its global aviation network. Alice lifted off yesterday from Grant County International Airport (MWH) in the US, flying for a total of eight minutes and reaching an altitude of 3,500 feet before landing at Moses Lake, Washington. (Aircargo News)

Kremlin: sabotage cannot be ruled out as the reason for Nord Stream damage. The Kremlin said on Tuesday that it did not rule out sabotage as a reason behind damage to the Russia-built network of Nord Stream pipelines which sprung unexplained leaks in the Baltic Sea. The pipelines, designed to bring gas from Western Siberia's Yamal Peninsula directly to Germany, Europe's biggest economy, have been the focus of the energy war between Russia and its traditional European clients over the conflict in Ukraine. (Reuters)