The latest news in the logistics industry 07/20/2023
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This newsletter's summary
Figure of the week
+30%
The rebound of rail freight volumes between China and Europe in the first half, compared to 2022, according to China-Europe Railway Express, which handled more than 936,000 EVPs between January and June.
The Trans-Pacific is rebounding, but it may already be over
The activity is back in U.S. ports off the Pacific coast. Although the figures vary from source to source, Bloomberg says?the port of Los Angeles?achieved its best month in a year in June.
This is reflected in spot rates, rising on trade. The Shanghai-Los Angeles World Container Index rose?9%?last week, to?1,790 USD/FEU, when the Shanghai-New York index rose 5% (2715 USD/FEU). Experts?don't see any evidence of recession?in U.S. containerized imports, which appear even slightly above their pre-pandemic levels. According to Descartes, the volumes imported into U.S. ports were 6% higher than their June 2019 level.
Is the Trans-Pacific trade going through a peak season? According to FreightWaves analysis, a modest peak occurred in early July, but it would be already behind us.?A new hole?is expected for the second half of this year.
From the European side,?there is no peak season expected. This difference is largely due to the noticeable difference in terms of supply between the two trades. Linerlytica reveals this week that the total capacity on Asia-Europe trade?is increasing by 7.6%?in annual slide... while it decreases by 12% on the Trans-Pacific route.
In short. Warning of port congestion in Canada.?After 13 days of dockers’ strike, the Canadian ports of Prince Rupert and Vancouver are suffering from severe congestion. Observers estimate that a return to normal is not expected until September.
Heavy Increase Of FAK Rates From India
Faced with a significant erosion in freight rates between India, Pakistan and Europe, the main shipping companies operating on the axis have announced in recent days strong (non-temporary) tariff increases starting in August:
These FAK rate increases follow those announced a few days ago on the Asia-Europe trade. Shipping companies confirm their determination to stop the fall in tariffs. It remains to be seen whether the market will not contradict them, as happened in the spring on the Trans-Pacific.
Air freight: e-commerce boosts (a little bit) the sector, but the summer hole is here
There is reason for optimism for airlines. Cathay Pacific, a major player in air freight from Hong Kong, mentioned “respectful volumes” in recent weeks from Asia, thanks in particular to a good e-commerce activity. “We remain?cautiously optimistic?about an improvement in demand in the third and fourth quarters,” the freight chief said.
领英推荐
Global average spot rates (2.33 USD/kg) are?currently 38% below their 2022 levels, according to the latest WorldACD figures, but still 30% higher than they were in July 2019. To note, according to the data of TAC Index, a tariff rebound of 6% on the Trans-Pacific road last week, to be nuanced yet by the level of capacity on this axis, considered by Seabury (Accenture) as as low as during the Covid.
WorldACD notes that global tonnages and tariffs continued?to?decline over the long term?during the first week of July and that the rate of decline in transported tonnage has even accelerated after slowing down briefly in June. However, this can be attributed to the usual summer hole in air freight.
In short. Night flights soon banned in Brussels??A draft decree banning flights to Brussels Airport (BRU) between 23:00 and 6:00, to limit the annoyances, was presented by the Belgian Minister of Transport. This would primarily affect air transportation. The delay would then benefit Liège. to follow.
???Until Next Week
DocShipper Team
Sources
https://www.drewry.co.uk/supply-chain-advisors/world-container-index-weekly-update/world-container-index-assessed-by-drewry
https://theloadstar.com/china-europe-h1-rail-freight-rebounds-after-losing-volumes-to-ocean/
https://www.freightwaves.com/news/us-containerized-imports-still-outpacing-pre-covid-levels
https://www.freightwaves.com/news/the-peak-of-peak-season-is-already-here
https://www.joc.com/article/post-strike-recovery-western-canadian-ports-measured-weeks-not-days-sources_20230714.html?mod=djemlogistics_h
https://www.bollore-logistics.com/en/market-update/
https://www.linerlytica.com/post/market-pulse-2023-week-29/
https://theloadstar.com/carriers-blank-voyages-and-look-for-port-call-inducements-as-demand-slows/
https://theloadstar.com/air-cargo-market-still-weakening-but-there-is-cautious-optimism/
https://www.ajot.com/news/worldacd-weekly-air-cargo-trends-week-27
https://www.hapag-lloyd.com/en/services-information/news/2023/07/jul12-price-announcement-pakistan-india-bangladesh-north-south-e.html
https://www.msc.com/en/newsroom/customer-advisories/2023/july/eu-price-announcement-trade-from-india-and-pakistan-to-europe
https://theloadstar.com/steep-rate-hikes-on-the-way-for-indian-shippers-to-europe/
https://theloadstar.com/thousands-of-jobs-threatened-by-bid-to-ban-night-flights-at-brussels-airport/