WEEKLY MARKET UPDATE 08/29/2024

This Newsletter's Summary

Figure of the week

1.26 trillion dollars?expected by 2029 for the European freight and logistics market !

Quote of the week

"Efficiency in freight logistics is not just about moving goods; it’s about creating value at every step of the supply chain."

"Peter Drucker"

?EPS Sets Sail with Record-Breaking Ethane Carriers from Jiangnan Shipyard

Jiangnan Shipyard?has signed a contract to build?six 150,000 cubic meter ultra large ethane carriers (ULECs)?for Eastern Pacific Shipping (EPS). This marks the third newbuilding contract announced by the Chinese shipbuilder within a week. Jiangnan Shipyard is now the world’s first shipyard to build such large ethane carriers, further expanding its product range.

The new ULECs, scheduled for delivery in 2027, are independently developed and designed by Jiangnan Shipyard. They will feature the Mark III membrane containment system from GTT and will be classified by the American Bureau of Shipping (ABS).

These vessels will be capable of carrying ethane, ethylene, liquefied petroleum gas (LPG), and will also be LNG-ready.?Additionally, they will be equipped with scrubbers, SCR systems, and ethane-dual fueled engines to optimize the economic efficiency of ethane as a fuel.

CMA CGM Air Cargo Expands Horizons with New 777F Transpacific Service

CMA CGM Air Cargo?has started a new route between Hong Kong International Airport (HKG) and Chicago O’Hare International Airport (ORD).?The first flight on this route took place on August 25, 2024, with a technical stop at Ted Stevens Anchorage International Airport (ANC) on the eastbound leg. The westbound leg includes a stop at Incheon International Airport (ICN) in Seoul.

The airline has recently added its third Boeing 777-200 freighter to its fleet, operated by Atlas Air. Two more 777-200Fs are expected to be delivered within the next year.

The second aircraft will arrive in the fourth quarter of 2024 and will also be used on a transpacific route,?increasing the total number of weekly transpacific flights to seven. A third 777-200F will be delivered in 2025, bringing the total fleet to five 777Fs.

Weekly logistics trivia

Mario Harik?is a renowned logistics executive and CEO of XPO, a leading provider of less-than-truckload (LTL) transportation services in North America.?His innovative approach to logistics and supply chain management has significantly influenced the industry.

Harik has several logistics strategies and characteristics, these are:

• Adaptability:?Harik’s ability to adapt to the rapidly changing logistics landscape and integrate new technologies reflects adaptability, a crucial trait in logistics where unforeseen challenges often arise.

• Communication Skills:?His ability to effectively communicate and collaborate with various stakeholders, including customers, employees, and partners, facilitated the growth and success of XPO.

• Innovation:?Harik’s vision for a technology-driven logistics company led to the development of advanced systems that improved efficiency and capacity in the freight market.

• Exploration and Navigation: Harik’s strategic exploration of market opportunities and navigation through industry challenges showcased his ability to steer XPO towards becoming a major player in the logistics sector.

To this day, Harik’s contributions are considered a?landmark in the history of logistics, providing valuable insights into the complexities of freight management and influencing subsequent innovations and practices in the industry.

Canada’s Railways Back on Track: Union Workers Return

The two largest Canadian railroads, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), are expected to take a week or more to recover from a recent shutdown that briefly stalled billions in freight, including transborder trade with the United States.

Most unionized workers returned to work on Monday after the Canada Industrial Relations Board affirmed an order by Labor?Minister Steven MacKinnon, ending a lockout and ordering binding arbitration to resolve the contract dispute with the Teamsters Canada Rail Conference.

Rail-served trade between Canada and the U.S. was valued at $9.1 billion in June, representing about 14%?of all trade between the two countries1. Recovery is expected to take up to a week for each railroad to reset and run smoothly again, with a longer period needed to catch up on backlogged shipments.

Customs & Regulations

The EU’s Greening Freight Transport Initiative is part of the broader European Green Deal, aiming to make freight transport more efficient and sustainable. Here are some key aspects:

Reduction of CO2 Emissions:?The initiative aims to cut transport emissions by 90% by 2050.?This involves promoting the use of low-emission lorries and improving rail infrastructure to make rail freight more attractive.

Incentives for Low-Emission Vehicles:?New regulations will allow additional weight for vehicles using zero-emission technologies, encouraging the adoption of cleaner vehicles.

Improved Rail Infrastructure Management: The initiative includes measures to optimize the use of rail tracks, improve cross-border coordination, and increase the punctuality and reliability of rail services.

Common Methodology for Emissions Calculation:?A standardized method for calculating greenhouse gas emissions from transport services will be introduced, helping companies to better track and reduce their emissions.

These measures are designed to enhance the efficiency and sustainability of freight transport, contributing to the EU’s climate goals while supporting economic growth.

???Until Next Week

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Stay tuned for our upcoming market updates.

Sources

EPS orders the world’s largest ethane carriers at Jiangnan Shipyard

CMA CGM Air Cargo launches transpacific route with latest 777F

Canada railroads look to restart as union returns to work

Green Deal: Greening freight for more economic gain with less environmental impact