Market Updates (28 Sep - 5 Oct)

U.S. East Coast ports to start operations, ILA calls off strike

The three-day strike across U.S. East Coast ports was called off after a tentative agreement was reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The Georgia Ports Authority has issued a customer advisory, saying "operations will resume Friday morning, October 4, with truck gates at 0600 hrs at Garden City Terminal and 0800 hrs Ocean Terminal. In addition to gates, vessel operations will begin between 0800 – 1300 hrs and rail operations start at 0700 hrs."

Air cargo demand up over 11% in Aug, 9th month of double-digit growth

This is the ninth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021, says an official release from the International Air Transport Association (IATA). Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 6.2 percent compared to August 2023 (8.2 percent for international operations). This was largely related to the growth in international belly capacity, which rose 10.9 percent on the strength of passenger markets. Industry-wide capacity has reached an all-time high, the release added.

Challenge Group launches flights to Delhi, expands India operations

Challenge Group announced the expansion of its operations in India by introducing two weekly flights to Delhi, starting October 3, 2024. According to an official release, this brings the Group’s total to five weekly flights into India, including three into Mumbai. The release added that Delhi’s strategic importance in connecting northern India’s industries such as pharmaceuticals, automotive, and textiles with global markets underscores the Group’s focus on strengthening international trade routes.

SATS expands agreement with IATA for DG AutoCheck

The expanded agreement will facilitate the adoption of DG AutoCheck at both existing and new stations across the combined SATS and WFS network, which now operates over 215 stations in 27 countries, according to an official release. "This extensive network handles trade routes responsible for over 50 percent of global air cargo volume, enabling SATS to play a crucial role in ensuring the safe transportation of dangerous goods."

Streamlined digital warehouse module launched by CBIC on ICEGATE

The Warehouse Module facilitates three primary functions:

1. Online Application for Warehouse Licensing– Applicants can now digitally apply for Customs Bonded Warehouse licenses, eliminating the need for physical paperwork.

2. Online Transfer of Warehoused Goods– The new module simplifies the transfer of goods between warehouses, accommodating changes in ownership or warehouse locations.

3. Uploading Monthly Returns– Licensees are required to submit monthly returns in two formats: Form A, detailing goods received, stored, and removed, and Form B, listing goods nearing the end of their warehousing period.

DGCA approves merger of AIX Connect into Air India Express

The Directorate General of Civil Aviation (DGCA) has granted regulatory approval for the merger of AIX Connect, formerly known as AirAsia, into Air India Express. This move is a part of the broader Air India Group’s restructuring efforts, which aims to merge four airlines into two. The newly merged entity will operate under the ‘Air India Express’ brand with a unified airline code, IX. Alongside the ongoing merger of Vistara with Air India, these efforts aim to streamline operations and create a world-class airline capable of competing globally. The new fleet is projected to exceed 100 aircraft by the end of the financial year.

Container freight rates take a dip amid sluggish exports from India in Sept

On the westbound India-Europe trade, average spot rates for loads from West India [Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port] to Felixstowe/London Gateway (UK) or Rotterdam in April have decreased to $4,100 per 20-foot container and US$4,300 per 40-foot container, from US$4,800 and US$5,000, respectively, at the end of August. For West India-Genoa (the West Mediterranean) bookings, TEU rates have dropped to US$4,000/TEU, from US$4,800, and US$4,200/FEU rates, from US$4,600/FEU, the analysis shows. However, eastbound cargo (imports into India) rates for these port pairings have ticked up month on month. Spot rates for bookings from Felixstowe/London Gateway or Rotterdam to West India have stood at US$1,200/TEU and US$1,500/FEU, from US$1,100 and US$1,350 /FEU, respectively, reported at the end of August.

Low demand, costly logistics, China’s deflation hurting India’s goods exports. Services may give cushion

India’s goods exports contracted by 9.3 percent to USD 34.71 billion in August, while the import bill rose by 3.3 percent to USD 64.36 billion, fuelled by a record surge in gold imports. the substantial decline in China’s export prices, driven by overcapacity and tepid domestic demand, is reshaping global trade dynamics. This could have a negative impact on manufacturers in other countries, including India. Sectors, such as steel and textile, are being hit due to the export of deflation by China.

Airlines scramble to avoid Middle East airspace as missiles fly

Israeli officials reported that Iran launched some 200 ballistic missiles at the country last night, following days of attacks on Hezbollah targets in Beirut, Lebanon. Lufthansa Cargo told its customers Israeli airspace would be avoided, regardless of its short-term flight schedule adjustment that would run until 31 October. Flights to Tel Aviv and Beirut will be suspended until 31 October and 30 November, respectively. Multiple airlines have been forced to divert flights or make emergency landings, including Swiss, Emirates, British Airways, Royal Jordanian Airlines, and El Al.

?Amazon offers capacity on Prime Air – including charters

“Amazon Air Cargo is now open for business serving domestic networks across North America, AMEA and Asia. We’re ready to handle, transport and deliver your goods safely, securely and efficiently – on time, every day,” announced the e-commerce giant’s air cargo division. Within its three regional air transport networks, Amazon offers one-day service, utilising the amalgamated fleets of its air carrier partners of more than 100 aircraft on more than 250 flights a day.

?Airlines begin to circle 'cargo game-changing' Navi Mumbai Airport

Navi Mumbai International Airport (NMIA) is scheduled to begin commercial operations next spring, with 31 March its official launch date. Domestic carriers IndiGo and Air India, earlier reluctant to shift or reshuffle their Mumbai schedules, are now said to be in the queue to jump on the bandwagon. SpiceJet is the other home-grown player preparing to land at NMIA, while Sri Lankan Airlines and Thai Lion Air are also known to have already filed “firm” interest deals with Adani.