Market Updates (Oct 19-Oct 26)

Supply chains face new incendiary threat

Supply chains are facing disruption caused by the new threat of incendiary devices being placed on aircraft. Following the discovery of incendiary devices in European parcel networks, Airforwarders Association executive director Brandon Fried warned that this new threat has implications for global supply chains and international economies. He said that similar incidents could affect supply chains across the globe with end customers experiencing delays and cancellations in deliveries in the run-up to the holiday season. Anti-terror police are investigating the incidents in the UK and Germany. They are suspected of being part of a wider campaign by Russian spies across Europe this year.

Boeing delays 777-8F to 2028 and will end 767F production in 2027

Boeing will delay the entry to market of the 777-8 freighter until 2028 and conclude production of the 767 freighter in 2027 following industrial action that has disrupted its aircraft manufacturing work.

The US airframer has faced weeks of industrial action over pay from 33,000 workers belonging to the International Association of Machinists and Aerospace Workers trade union (IAM). The disruption has resulted in significant delays to production and schedules.

Announcing its preliminary third-quarter results, Boeing said: “The company now anticipates the first delivery of the 777-9 in 2026 and the 777-8 freighter in 2028, resulting in a pre-tax earnings charge of $2.6bn.

Maritime chokepoints expose supply chain vulnerability: UNCTAD

The latest report The Review of Maritime Transport 2024 from UN Trade and Development (UNCTAD) reveals that critical chokepoints - such as the Panama Canal (connecting the Pacific and Atlantic Oceans), the Red Sea and the Suez Canal (linking the Mediterranean Sea to the Indian Ocean via the Arabian Peninsula) and the Black Sea (an important hub for grain exports) - are under severe strain. "A combination of geopolitical tensions, climate impacts and conflicts have shaken global trade, threatening the functioning of maritime supply chains." Maritime trade, which grew by 2.4 percent in 2023 to reach 12,292 million tonnes, had begun to recover after a contraction in 2022, the report added.

SeaLead’s new Red Sea service connects Mediterranean from Jebel Ali

SeaLead has announced the launch of its new direct liner service, the Mediterranean Gulf Express (MGX) to enhance connectivity between the Middle East and the Mediterranean regions by facilitating direct access through the Red Sea. The MGX service will operate every week, providing dedicated shipping routes that connect Jebel Ali, Djibouti, Aliaga, and Damietta. Designed to boost regional trade efficiency, this new service will offer direct, reliable access to Mediterranean ports, significantly improving transit times for SeaLead customers. The inaugural vessel will depart on 24 October 2024.

CONCOR to launch double-stack container Train from Dadri to Varnama?

In the upcoming two months, the Container Corporation of India Limited (CONCOR) will begin running a double-stack container train from Dadri to Varnama (Vadodara district).

According to Container Corporation of India Limited (CONCOR) CMD Sanjay Swaroop, this will allow 180 containers (TEU) to be transported on a single train, resulting in a quicker and less expensive transfer of commodities.

At the FGI Business Center, Sanjay Swaroop spoke at a symposium on supply chain management issues and challenges for the Federation of Gujarat Industries (FGI). By December 2025, he said, the Dedicated Freight Corridor (DFC) between Varnama and Jawaharlal Nehru Port Trust (JNPT) will be finished.

Govt imposes anti-dumping duty on five Chinese products for 5 years

India has imposed anti-dumping duty on five Chinese goods, including glass mirror and cellophane transparent film, for five years to guard domestic players from cheap imports from the neighbouring country.

These duties were imposed as these products -- isopropyl alcohol, sulphur black, cellophane transparent film, thermoplastic polyurethane, unframed glass mirror -- were exported to India from China at below normal prices.

The government has imposed the $ 82 per tonne and $ 217 per tonne duty on different Chinese firms on isopropyl alcohol, which has medical and industrial uses. It is also used as an antiseptic for skin and instrumentation, and hand sanitiser.

Maersk implements Peak Season Surcharge for Far East to India, Pakistan, Sri Lanka, and Maldives?

In order to keep providing you with our global services, Maersk is implementing the Peak Season Surcharge (PSS). Kindly refer to the given link for detailed information -

Paradip Port mobilizes resources, prepares emergency plan due to impending cyclone

Anticipating cyclone Dana’s impact, Paradip Port Authority has mobilized resources, set up shelters, and prepared for emergency evacuations to safeguard lives and operations, an official statement said on Wednesday (October 23). Paradip Port Authority has implemented precautionary measures including supply of medicines, food, and safe relocation of ships to mitigate potential disruptions cyclone Dana is anticipated to affect Paradip Port on October 24 and 25, 2024.

According to the statement, the Paradip Port Authority has focused on accelerating all ongoing operations. Directives have been issued to expedite cargo transportation and complete all loading activities from the ships berthed at the port, it added.

Bihar’s first ICD inaugurated in Bihta

The first Dry Port & Inland Container Depot (ICD) in the state was officially opened by Bihar Industries Minister Nitish Mishra in Bihta, which lies outside of Patna. The facility’s multi-modal transportation, customs services, and warehousing are all intended to improve logistics. This facility is going to revolutionize our industrial sector. Customs clearance was previously required for Bihar importers and exporters in ports or other states thousands of kilometers from their home state. Since customs clearing facilities are available here, the opening of ICD Bihta will allow them to compete and establish themselves in international markets. The Ministry of Finance’s Revenue Department has authorized the ICD Bihta as an inland container depot.

Freight rates on major ocean trades out of India continue to slide

There seems to be no immediate halt to the freight rate slide on the larger tradelanes out of India, as head-haul volumes for container carriers remain increasingly tight, say industry observers.? Spot rates on the India-US east coast trade have plunged below $3,000 per teu from a high of more than $10,000 three months ago in July.? And rates on India-Europe routes have more than halved in two months, down to about $2,000 per teu from $5,000 in August.? These rate setbacks for carriers come despite steady capacity problems from sporadic sailing disruptions.?

Air cargo shifts capacity to where the money is as holiday season begins

Airlines are shifting capacity to Asia Pacific-North America as disruption from China’s forthcoming Golden Week holiday recedes, and the Christmas rush starts. According to the US National Retail Federation (NRF), consumer spending for the holidays is expected to grow between 2.5% and 3.5% on last year, while ecommerce is expected to grow by 8% to 9%, to up to $297.9bn.

Last week, capacity from Asia Pacific to North America rose 6% on the previous week, according to Rotate’s capacity database. To Europe, capacity was up 4%. The biggest rises were seen out of Shanghai to North America, where capacity rose 17.5% week on week, and from Hong Kong to North America, capacity rose 11.7%.

'Game-changer' may now be 'game-over', as India eyes cabotage u-turn

India’s government is under pressure to re-regulate its coastal shipping policies following major declines for local operators in the face of foreign-flagged container carriers. In a much-publicised policy reform in May 2018, the Indian government removed cabotage barriers that had prevented foreign tonnage participation in transportation of containers between Indian ports. The move was hailed as a game-changer for Indian containerised trade, opening a window for more capacity and direct port calls amid greater export growth signs.