Keeping Up with Logistics Industry – Market Updates February 2023
Table of Contents
This Month’s Highlight: Fluctuating Prices Causing Supply Chain Troubles
The US East Coast is still as popular as last year, despite a bit of shifting away from it because of the release in Covid-related port congestion on the US West Coast. Prices have gone down a bit, but they’re still three times higher than before the pandemic for Europe-USEC trips and more than that for Asia-USWC trips.
South Korea is trying to keep capacity under control so that prices don’t drop too much. Recent studies show that freight rates will be based on the amount of cargo being shipped and the operators’ supply. The shipping lines all agreed that keeping rates steady will mean bigger profits.
Ocean Updates – United Arab Emirates February 2023
Middle East – North America
USEC and USWC have lots of space available, and IN2 is the only way to get straight to USEC. Even so, prices are still higher than before the pandemic, but there are some great offers from carriers if you look around.
Capacity — (+)
Rate — (=)
Note: Book 4-5 weeks in advance.
Middle East – Asia
Carriers in the Middle East and Asia are offering open allocation, and the prices keep dropping.
Capacity — (+)
Rate — (-)
Note: Booking of 4-5 weeks prior to order is recommended.
Middle East – Europe
There’s plenty of space and allocations available for this trade lane, and the freight rates should stay the same for the next two quarters of this year.
Capacity — (+)
Rate — (=/-)
Note: Overall stable market despite slight softening rates.
Middle East – Latin America
Lots of different companies are offering services in this market, so it looks like we’ll have even more options by the beginning of 2023.
Capacity –– (+)
Rate — (=)
Note: Book at least 2 weeks before.
Asia – Middle East
It looks like demand for MENAT in Africa is going to be slow until the Lunar New Year Holidays are over. There’s been a big drop in demand due to the uptick in Covid cases in January. After the holiday, we could be looking at tight space and higher pickup rates.
Rate — (-)
Equipment – Available
Note: In the last month, we’ve seen 40% blank sailings to EMED.
North America – Middle East
Capacity in the Middle East and Africa is increasing, and airlines seem to be offering more reasonable prices. Things should get even better soon, with Port Charleston joining CMA and Hapag on Indamex2.
Capacity — (+)
Rate — (-)
Note: The Indamex2 addition will provide direct services to Jeddah from mid-January.
Latin America – Middle East
Carriers are now focusing more on MEDGULF as the slots from MX EC to MED are still open. Unfortunately, demand for SAEC is getting softer and softer, and the market is quickly declining during this time of contraction.
Capacity — (=)
Rate — (=)
Europe – Middle East
Looks like the market is calming down a bit – there’s plenty of capacity in the East Med and the cost of short and long-term contracts is dropping.
Capacity — (=)
Rate — (=/-)
Note: Space and equipment are available.
Air Freight Updates – United Arab Emirates February 2023
Demand: Inflation is still high in 2023 and not much is changing. It looks like the amount of growth in the first half of the year is going to stay about the same as it is now.
Capacity: The capacity right now is enough to keep up with the demand. Plus, we’ve got more storage room this year.
Rates: It looks like there’s a lot of competition when it comes to trade lanes, so prices are on the rise as the market starts to get back to normal.
The Middle East and Air Carriers
It looks like the Middle East air freight market is set for a positive period of growth in 2023, as the region experiences robust economic growth and the demand for air freight services rises from various industries. This is being supported by the busy airports in the region, improved infrastructure, and increased air connectivity. Plus, trade agreements and digitalization are helping to drive the growth of the air freight market.
New technologies, such as blockchain and AI, are also expected to contribute to the increasing efficiency of air freight services. All in all, the outlook for the Middle East air freight market looks bright in 2023.
Things in North China seem to be calming down after a spike over the Lunar New Year. In the south, mainland China has relaxed Covid restrictions so cross-border travel is set to resume.
In Korea, the market demand for eastern-bound cargo is picking up after the holidays, but western-bound is still dropping.
In Southeast Asia, demand is low, and capacity is widely available, apart from Hanoi which saw a rush at the end of last month.
Overall, the U.S. market is holding steady. Airports are running as usual and even ramping up capacity, especially in Europe. Prices seem to be settling week after week.
Now that the holidays are over, demand for air cargo is going up, causing prices to go up too. If you need to ship something quickly, you can usually get it done within two days of being ready. Good news is that there aren’t any disruptions or delays in the EMEA region.
Local News – United Arab Emirates February 2023
The UAE GCAA has updated their list of Dangerous Goods Certified Entities, which will come into effect on February 1st, 2023. With the current pandemic, all organizations can use the PDF version of their dangerous goods certificate for the time being. Read More
CMA CGM is excited to tell you that they’re changing the Bill of Lading and Delivery Order Fees for UAE starting March 1st, 2023. Read More
The CMA CGM Group is adding an extra cost of USD 500 for every dry container shipped from the Indian Subcontinent, Middle East & Red Sea to North Europe, the Mediterranean, and North Africa. This extra fee will start from February 15th, 2023. Read More
Maersk is bringing together different brands, such as Hamburg Süd and SeaLand, in order to make the supply chain more efficient, agile, and strong by giving customers more choice. Read More
Maersk and MSC have decided to call it quits and part ways from the 2M alliance come January 2023. Read More
Global Factory Output – Overview
After months of decline, the Drewry WCI index is finally showing a small increase of 0.7%. That said, it’s still a far cry from where it was last year – a whopping 77% lower than the peak of $10,377 seen in September 2021. Even with the current index of $2,135 per 40-foot container, it’s still 50% higher than the rate at the start of the pandemic. Throughout the year, the average index has been $2,135, which is $559 less than the 10-year average.
United States of America USA
The Markit Manufacturing Purchasing Managers’ Index in the US is a dependable way to get a read on how the manufacturing sector is doing. The index is made up of five parts, each of which has a certain amount of weight in the overall score: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stock of Items Purchased (10%). This is all based on a survey of 600 industrial companies.
United Kingdom UK
Markit/CIPS UK’s Manufacturing Purchasing Managers Index (MPMI) is a measure of how the manufacturing sector is performing. It’s worked out by surveying 600 businesses and is made up of five separate indexes – New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stock of Items Purchased (10%).
Caixin’s Manufacturing PMI Purchasing Managers’ Index in China is a measure of how well the manufacturing sector is doing – it’s made up of feedback from 430 private industrial companies. This survey looks at five different categories, each weighed differently – New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stock of Items Purchased (10%).
United Arab Emirates (UAE)
The UAE Purchasing Managers’ Index is a way of keeping track of how non-oil private sector companies in the United Arab Emirates are doing. To figure this out, 400 businesses including manufacturing, services, construction, and retail are surveyed, and the results are based on five factors. These factors are how many new orders are made (30%), output (25%), employment (20%), how quickly suppliers deliver (15%), and the amount of inventory (10%).
Global Interesting News
Teesside Airport approved for perishable handling Read More
No signs of Chinese New Year rise in air cargo demand Read More
FFAF Cargo launches subsidiary in India Read More
American Airlines’ cargo revenue tops $1.2B despite market slide Read More
Comac to convert ARJ21 airliner into a freighter Read More
Singapore Airlines awards WFS domestic cargo trucking contract to connect 18 UK airports Read More
Globe Air Cargo Japan premieres with Air Premia’s Japanese launch Read More
DB Schenker launches global CO2-neutral air freight offer Read More
Gulf Air and Unilode extend partnership Read More
Challenge Group offers capacity from Türkiye Read More
Qatar Airways secures Li-batt certification Read More
dnata, Emirates Leisure Retail, SEGAP start operations in Zanzibar airport Read More
Four new, more sustainable freighter aircraft for KLM Group Read More
Kuehne+Nagel teams up with Lenovo to reduce carbon footprint Read More
Air Canada Cargo expands freighter services to Liege, Basel Read More
Hamilton Airport gets C$46.9mn funding for infra projects Read More
Etihad Cargo bolsters its global customer service centre operations Read More
Amazon Air takes off in India Read More
Antonov carries 169 tonnes sensitive cargo from Europe to Canada Read More
KLM accelerates sustainability efforts with Martinair A350F order Read More
WFS goes green across cargo and ground handling operations at Spanish airports Read More
Air France Embarks on WhatsApp for a Direct Relationship with its Customers Read More
Container rates are ‘like a fighter aircraft that has been shot down’ Read More
Shipping hurt by weak demand for Chinese goods Read More
More than 50 sailings from Asia to Europe blanked in first seven weeks Read More
Surplus tonnage cascading a threat to smaller box ships Read More
Carriers take short-term rate hit and eye post-CNY demand surge Read More
International airfreight rates hit turbulence and ocean freight prices sink. Will shoppers’ benefit? Read More
Carrier alliances shaped by decade of crises, price war and major acquisitions Read More
How will Maersk-MSC split redraw container shipping landscape? Read More
Port of New York-New Jersey sees imports softening after a record year Read More
FMC reports over 200 charge complaints against ocean carriers since June Read More
Maersk to integrate Hamburg Süd and Sealand Read More
King Abdulaziz Port launches container terminal development project Read More
Brazilian President confirms reversal of port privatisation plans Read More
Saudi ports record 13 per cent annual throughput growth in 2022 Read More
Shipping Platform Freightos Goes Public in SPAC Deal Read More
West Coast Port Labor Contract Talks Remain in Limbo Read More
Maersk rebrands Hamburg Süd and several other well-known subsidiaries Read More
Singaporean competition authorities to probe DSME sale Read More
Maritime supply chains need urgent investment to boost resilience to future crises Read More
UK driver shortage adds to ocean freight ‘perfect storm’ Read More
Electric vehicles will have a tough audience in LTL carriers Read More
The Uber-ization of US Trucking is only Speeding Up Read More
Fleet Advantage Helps Corporate Truck Fleets Certify GHG Output For New SEC Climate Disclosure Proposal Read More
Railway Talks with China Terminated as Uganda Turns to Turkey Read More
U.S. Container Imports on Downward Track in 2023 Read More
Intra-Italy railway line resumes operations amid Yilport’s ongoing investments in Taranto terminal Read More
Port of Valencia enjoys rail traffic growth Read More
UK van drivers will need new goods vehicle operating licenses to enter EU from May Read More
Gebrüder Weiss boosts operations in Bulgaria Read More
European road freight prices reach record highs Read More
Russian rail companies struggle with volume collapse as sanctions bite Read More
LTL players up their game and rates head up despite volume slowdown Read More
Electric trucks and ships? Metals for batteries ‘will run out by 2050’ Read More
EU relaxes state aid rules to drive ‘greener’ multimodal transport Read More
DP World projects further declines in freight rates Read More
Maersk scraps name of German forwarder Read More
Russian Oil Price Cap: Complexity, Disruption and Unintended Consequences Read More
73% of Supply Chain Professionals Predict Chaos on Cards due to Early Chinese New Year and COVID Infections in China Read More
The World Bank is Forecasting a Recession – Good News for Some Read More
MPC Container Ships, INERATEC to explore new alternative fuel for shipping Read More
CMA CGM announces new peak season surcharges worldwide Read More
Cargo theft increased by 15% in 2022; a total of $223 million was stolen Read More
Freight Forwarder Flexport Is Laying Off 20% of Its Workforce Read More
Etihad Cargo boosts China capacity with additional Shanghai freighter service Read More
Project by UNCTAD port programme graduate saves fresh water in Malaysia Read More
UK logistics and warehousing lags behind Europe on solar power Read More
A Prominent Freight Forwarder Faces Impending Layoffs Read More
As Cargo Volumes Slow, Maersk Invests in Flagship Shanghai Warehouse Read More
Dnata breaks ground with new cargo warehouse in Iraq Read More
Amazon is moving to a single monthly storage cap for FBA sellers Read More
Prologis Says Warehouse Demand Remains Strong in Slowing Economy Read More
Warehouse Leasing Tumbled at the End of 2022 Read More
Bolloré Logistics Strengthens Commitment to Thailand with SMILE HUB, a Modern Warehouse & Distribution Centre Read More
Warehouse automation market growth is expected to cool in 2023 Read More
Low emission warehousing: operational efficiency with a positive environmental impact Read More
Bolloré warehouse fire raises new concerns over lithium battery safety Read More
Xcell Logistics Services, a B.I.G. Logistics Company, Expands Warehousing Presence in Laredo, TX with Second 3PL Facility Read More
Last-mile logistics growth in the U.S. continues to grow strongly Read More
Amazon to close three UK warehouses and open two new mega DCs Read More
Bottleneck at LA distribution center eats away at Dr. Martens earnings Read More
Co-Warehousing Space Market May Set New Epic Growth Story | Flowspace, Waredock, Saltbox Read More
UAE Third-Party Logistics Market to Worth US$ 6,529.7 Million By 2030 | Import and Export Activities Determine Right Path for Market Growth | Astute Analytica Read More
The Global Automotive 3PL Market is forecast to grow by $93.48 bn during 2022-2027, accelerating at a CAGR of 6.6% during the forecast period Read More
Trade and Customs News
The Transatlantic Relation in the Era of Friend-shoring Read More
Iran sanctions evasion network used UAE, Panama front companies Read More
Demand-supply gaps and geoeconomic confrontation top WEF risk report Read More
African states to get US$150mn trade finance from IsDB Read More
Trade costs rise as war risk cover cancellation takes effect Read More
UK links up with Thailand on digital trade Read More
US banks throw weight behind sustainable finance, but corporates remain indifferent Read More
Pakistan faces ongoing commodity shortages as dollar crisis and lack of LCs take effect Read More
UNCTAD customs automation programme to bolster trade for Tajikistan Read More
An urgent appeal to the shipping community: Help the UN avert catastrophe in Yemen Read More
New cargo verification data rules costly and testing for UAE importers Read More
Thailand Opens First Digital Free Trade Hub Read More
China’s trade tumbles sharply in Dec, clouds 2023 growth outlook Read More
E-commerce Logistics News
Returns a costly and speeding juggernaut for Amazon and parcel carriers Read More
FedEx to Pare Sunday Deliveries Again as E-Commerce Wanes Read More
EFW redelivers its 10th aircraft to DHL Express in time for e-commerce and cargo demand Read More
Emirates Sky Cargo adds UK to Home Delivery Shopping Platform Read More
How Amazon plans to transform Indian e-commerce with air service Read More
Cross Border eCommerce Logistics Market Growth Factors, Applications, Regional Analysis, Key Players and Forecast by 2029 Read More
Walmart, Amazon Lead Shift to Boost Last-Mile Delivery Options Read More
Veho and Shipium Partner to Reinvent the E-Commerce Delivery Experience Read More
Ethiopian Airline, MailAmerica launch e-commerce logistics services Read More
Radial Selects Covariant to Automate eCommerce Fulfillment with AI-Powered Robotics Read More
Why shippers will add more FedEx and UPS competitors to their carrier mix in 2023 Read More
Shopee to increase investments in Malaysia Read More
Alibaba Plans Logistics Hub at Istanbul Airport, Data Center Near Ankara Read More
FedEx, UPS, and Amazon look to shore-up margins in a slower market Read More
PH, China sign MOU on e-commerce Read More