The latest news in the logistics industry 11/02/2023

This newsletter's summary

Figure of the week

10%

For the Air freight market, there has been a remarkable growth of 10% in global capacity, as the current capacity is enough to meet volume demands. However, there are some backlogs in the Asia/Intra-Asia outbound routes.

Quote of the week

“The line between disorder and order lies in logistics.”

-Sun Tzu

Prolonged Drought Challenges: Panama Canal Adapts

The Panama Canal Authority is dealing with a prolonged drought, forcing a series?of emergency measures to address the situation. The canal's water levels are severely low, notably in the Gatun Lake system, affecting?transits.

They aim to reduce the number of daily transits for big boats, especially those passing via Neopanamax locks, and?maintain?the 44-foot draft restriction. These adjustments will take effect starting November 1st, with the goal of addressing a backlog of vessels waiting to transit.

The Panama Canal Authority is adapting to the drought restrictions by limiting reservations to 30 slots per day. They are actively addressing a backlog of 93 vessels, aiming to provide transits within reasonable timeframes.

Despite challenges, the canal remains vital for global trade, and the authority is working on both short-term and long-term water management solutions to address climate change impacts, along with reducing the fresh water surcharge for financial relief.

Air Freight Rates Rise As Peak Season starts

In October, airfreight rates on key east-west routes saw an uptick as the industry entered its typical peak season. According to the Baltic Exchange Airfreight Index (BAI), rates from Hong Kong to North America rose by 18.4% compared to September, reaching $5.80 per kg.

Although prices are 13.9% lower compared to the previous year, the gap between the two years has been steadily narrowing. Rates from Hong Kong to Europe also rose by 14.5% in October compared to September, reaching $4.26 per kg, but remained 26.3% below last year's prices.

These rate increases reflect a genuine modest peak season bounce, with gains observed in rates from major outbound locations worldwide, as noted by TAC Index.

Weekly logistics trivia

Sir Christopher Wren was known for his instrumental role in the construction of St. Paul's Cathedral in London after the Great Fire of 1666. Wren's work as an architect and project manager showcased his remarkable organizational and logistical skills in handling the vast construction project. Even today, Wren's legacy remains a symbol of meticulous planning and execution.

Sir Christopher Wren had several logistics strategies and characteristics, such as:

• Planning and Organization: Wren's ability to design and oversee the construction showcased his exceptional planning and organizational skills as he effectively coordinated the efforts of various teams and ensured that resources, including building materials and labor, were available when needed.
• Time Management: Completing a project as complex as St. Paul's Cathedral requires precise time management. Wren's ability to create and stick to schedules is an essential logistics trait to ensure that all tasks are completed on time.
• Problem-Solving: When faced with architectural and logistical challenges during the cathedral's construction, Wren displayed strong problem-solving skills.
• Effective Communication: Wren needed to communicate effectively with various teams, craftsmen, and suppliers. Therefore, his ability to convey instructions and expectations contributed to the successful completion of the project.

Sir Christopher Wren's management of the St. Paul's Cathedral project demonstrated qualities commonly associated with logistics, emphasizing the importance of meticulous planning and resource management in any large-scale undertaking.

GB Railfreight's IoT Trial Enhances Train Safety

GB Railfreight (GBRf) has completed a successful four-week trial of a groundbreaking system designed to monitor wheel and brake issues on freight trains.

Developed in collaboration with Icomera, DG8, and SENSEi, this system utilizes battery-powered sensors to remotely transmit status and out-of-tolerance alerts to drivers and control centers during vehicle pre-checks.

This IoT technology aims to enhance rail safety and efficiency by reducing incidents related to wheel and brake faults, and allowing train drivers to receive real-time sensor data on tablets in their cabs, enabling immediate response to potential risks.

Customs & Regulations

The World Customs Organization (WCO) and the International Association of Ports and Harbors (IAPH) have jointly released guidelines at the IAPH 2023 World Ports Conference in Abu Dhabi.

These guidelines aim to establish cooperation between customs and port authorities, focusing on digitalizing data flows, enhancing efficiency, and ensuring adherence to international standards. They highlight the importance of interoperability between customs and port systems and recommend a single submission of logistic and operational data sets.

The WCO and IAPH encourage customs administrations and port authorities to embrace digitalization to streamline customs processes and improve trade facilitation.

???Until Next Week

DocShipper Team

SOURCES

SOURCES

Prolonged Drought Challenges: Panama Canal Adapts

Air Freight Rates Rise As Peak Season Commences

B Rail freight's IoT Trial Enhances Train Safety

Guidelines for Customs-Port Cooperation