Logistics Market Update July 2023 – Ocean and Air Freight

Insights into the Specializations and Dominance of Leading Trading Carriers Emerge

Alphaliner’s analysis reveals that the leading carriers in the shipping industry exhibit distinct trading profiles. The market leader, MSC, boasts a significant presence in the Middle East/Indian Subcontinent and Africa-related loops. Hapag-Lloyd assumes the forefront in Latin American trades, while Cosco and Evergreen specialize in intra-Asia routes. CMA CGM and Cosco predominantly allocate their fleet to Asia outbound lanes heading towards Europe and North America. HMM prioritizes Far East-Europe trading, whereas Yang Ming focuses on the Transpacific trade. Notably, Zim continues to hold dominance over the Transpacific route but has also independently expanded its operations on the Asia-Europe route subsequent to the termination of its cooperation with 2M. 

It is crucial to bear in mind that these trading profiles are based on ship capacity and may diverge when considering actual cargo transported or operating income. Furthermore, trades involving longer sailing distances necessitate a higher tonnage and possess the potential to impact resource allocation. 

Ocean Freight Updates – July 2023

Keys

SignMeaning
++Strong Increase
+Moderate Increase
=No Change
Moderate Decline
Strong Decline

Outbound

Middle East – North America

There is sufficient capacity on the trade lanes between the United States East Coast (USEC) and United States West Coast (USWC). Currently, the only direct service to USEC is provided by IN2 when it calls at JED. The Freight All Kinds (FAK) rates remain higher than the levels observed before the Covid-19 pandemic. 

Capacity — (+) 

Rate — (+) 

Note: The carriers are offering highly competitive pricing for the North America trade deals. 

Middle East – Asia

The carriers are offering open allocations and special spot rates for this trade lane; whereas the rates continue to drop.  

Capacity — (=) 

Rate — (-) 

Middle East – Europe

The space is easily available for this trade lane, while the freight rates remains competitive.  

Capacity — (=) 

Rate — (=) 

Middle East – Latin America

Overall, there is an adequate availability of space for this trade lane, and the freight rates remain competitive. 

Capacity — (=) 

Rate — (=) 

Inbound Updates

Asia – Middle East

With the resurgence in demand for white goods, the volume of shipments in the Middle East region remains robust. In response, certain carriers have discreetly deployed additional loaders to meet this increased demand.   

Capacity — (-) 

Rate — (+) 

Note: Space will be full for July 2023.  

North America – Middle East

While the market as a whole is competitive, there are indications pointing towards a gradual stabilization.   

Capacity — (=) 

Rate — (-) 

Latin America – Middle East

Although the export rates from Latin America are declining, the market rates for the Middle East region remain steady. 

Capacity — (=) 

Rate — (-)  

Europe – Middle East

Some departures within the Ocean Alliance are experiencing sufficient utilization, and notifications of shipping rolling have been received. It is anticipated that the rate level in July will soften in comparison to the rates observed in June. 

Capacity — (=) 

Rate — (=/-) 

Note: Bookings are currently being accepted by both the 2M and The Alliance shipping alliances. 

Air Freight Updates – July 2023

Demand: Despite the persistently low volumes, there has been a month-on-month increase observed. The global economy continues to be influenced by rising inflation, resulting in elevated inventories and diminished purchasing power, ultimately leading to weakened demand. 

Capacity: The current volume levels are adequately supported by available capacity, with an improvement in belly capacity due to the gradual recovery of passenger travel. 

Rates: Competitive spot rates are prevalent across most trade lanes, with certain lanes experiencing a slight upward trend. Forecasts indicate stability in long-term rates as we move towards the second half of 2023. 

The Middle East and Air Carriers

In May 2023, Middle Eastern carriers observed a 3.1% decrease in cargo volumes compared to the same month of the previous year. However, this represents a slight improvement from the previous month’s decline of 6.7%. Notably, capacity in the region witnessed a significant increase of 15.6% compared to May 2022. 

Asia

With the upcoming holidays in the Northern Hemisphere, air freight capacity is recovering and improving. E-commerce cargo continues to experience steady demand, while general cargo demand remains weak. Rates, on the other hand, remain stable and consistent. 

America

Cargo volumes for North American carriers declined for the third consecutive month in May 2023. However, the decline of 8.1% was slightly better than the previous month’s performance, which saw a decline of 12.4%. Notably, the North America-Europe trade lane experienced a third consecutive contraction in volumes, with a decline of 10.3%. Meanwhile, capacity in the region increased by 1.2% compared to May 2022. 

In contrast, Latin American carriers showcased positive performance in May 2023, with a 3.6% increase in cargo volumes compared to the same month of the previous year. This improvement marks a turnaround from April, where a slight decline of 1.6% was observed. Additionally, capacity in Latin America experienced significant growth, rising by 14.7% compared to May 2022. 

Europe

In May 2023, European carriers encountered a decline in cargo volumes, with a decrease of 6.7% compared to the same month of the previous year. However, this performance was an improvement from the previous month’s decline of 7.7%. Notably, the contraction in international Cargo Tonne-kilometers (CTKs) on the Europe-Middle East trade lane showed a smaller annual decline, decreasing from -4.7% in April to -2.9% in May. Furthermore, the decline in international cargo traffic within Europe displayed improvement, decreasing from -16.2% in April to -7.8% in May (seasonally adjusted). Additionally, capacity in the region increased by 5.6% compared to May 2022. 

Shipping News – United Arab Emirates – July 2023 

The UAE GCAA (General Civil Aviation Authority) has recently released the updated list of Dangerous Goods Certified Entities, effective as of June 5th, 2023. Further information can be found by referring to the provided source. Read More 

Starting from June 15th, 2023, it will be mandatory to obtain an Electronic Cargo Tracking Note (ECTN) for all shipments destined for Djibouti. Shippers, freight forwarders, and exporters can acquire the ECTN directly from the respective port of loading. For more details, please refer to the source provided. Read More 

One has introduced a new feature in their online payment services, enabling customers to make direct debit/credit card payments. This feature allows customers to conveniently submit online payments for requesting a Delivery Order (DO) through the Dubai Trade Portal. For further information, please visit their website. Read More 

Dubai Trade has implemented an enhanced system to facilitate importers and agents by enabling them to electronically request Delivery Orders, make online payments, and securely exchange documents through a dedicated login. Visit the website for more information.  

CMA CGM has recently revised the Late Bill of Lading (BL) fees, which will now be applicable to export shipments across all sectors. Read More 

CMA CGM has introduced an empty container drop-off fee for cargo bound for Zanzibar, with the ports of discharge being DAR es Salaam or Mombasa as indicated on the Bill of Lading (BL). Read More 

Global Factory Output – Overview July 2023

In the first week of July 2023, the Drewry’s World Composite Index (WCI) experienced a decline of 1.3% and reached a value of $1,474.32 per 40-ft container. 

United States of America (USA)

The manufacturing Purchasing Managers’ Index (PMI) for the United States reached its lowest level in six months, recording 46.3 in June 2023. This decline can be attributed to a renewed drop in output and a significant decrease in new orders, influenced by inflationary pressures and high interest rates. 

United Kingdom (UK)

In June 2023, the manufacturing PMI for the UK increased to 46.5. However, this value represents the lowest recorded in the past six months. The UK has witnessed contraction in manufacturing for eleven consecutive months. Although the output has been declining for the past four months, the rate of reduction has slowed down in the latest period. 

China

China’s manufacturing PMI fell from 50.9 in May 2023 to 50.5 in June 2023. This indicates the second consecutive month of expansion in factory activity, albeit at a slower pace. The growth of output has decelerated compared to May, and there is a softening in new orders. 

United Arab Emirates (UAE)

In June 2023, the PMI value for the UAE rose to 56.9, an improvement from 55.5 in the previous month. This signifies a significant enhancement in business conditions. Stronger customer demand has contributed to an increase in new orders, and promotional activities have stimulated expansion in output.  

Global Interesting News – July 2023 

Freight News

Air

Digital Pulse: Air cargo industry migrates to e-booking Read More 

Air India affiliate bolsters local fresh produce shipments Read More 

Europe’s airports return to profitability Read More 

Air cargo market to rebound slightly in 2024 Read More 

Drones to deliver dangerous goods in Canada Read More 

DHL Group plans fully automated Helsinki facility Read More 

Maersk bolsters intercontinental airfreight network Read More 

IAG Cargo adds Heathrow to Cincinnati route for e-commerce Read More 

IATA looks to bolster African air safety Read More 

Renovated warehouse opens at ORD Read More 

Robot in 1st test run at Munich Airport cargo terminal Read More 

Flat air cargo market continuous through June Read More 

MSC Air Cargo partners with IBS Software to power its global air cargo business Read More 

Etihad Cargo boosts pharmalife product efficiency Read More 

Lufthansa Cargo adds third A321 freighter Read More 

EL AL interlines with Bamboo Airways and Astral on cargo Read More 

Air China Cargo extends partnership with Lufthansa Cargo in Chengdu Read More 

EV Cargo expands in Southeast Asia Read More 

Qatar Airways Cargo to host IATA Cargo Hackathon Read More 

Cargo handler CHI completes TIACA sustainability programme Read More 

Swissport adds new Dublin Airport pharma facility Read More 

Boeing delivers Iraqi Airways’ first 787-8 Dreamliner Read More 

Qatar Airways Cargo is the First Airline Globally to Complete the Suite of IATA CEIV Certifications Read More 

Etihad Cargo expands European Road Feeder Services to 90 Airports across 27 Countries Read More 

JAL to start domestic freighter next year Read More\ 

Maersk Air Cargo strengthens growing network Read More 

Changi Airport outlines top priorities for cargo Read More 

Emirates SkyCargo and Air Canada Enhance Cargo Interline Cooperation Read More 

Emirates SkyCargo to Double its Capacity in Next Decade Read More 

Omni Air International operates Asia-Europe routes for MIAT Read More 

Ocean

Dubai’s DP World keeps London on container trade map Read More 

Container spot market: up or down ahead of late peak season? Read More 

Tentative US West Coast port contract deal reached, union and employers say Read More 

Seafarer labour market tightest on record Read More 

Canada dock strike continues as mediation resumes Read More 

Blank sailings hit lowest level since the pandemic Read More 

MSC continues purchase spree of secondhand ships Read More 

Emerging from pandemic fog, global reefer market reverts to type Read More 

Container volumes getting back to trend after pandemic surge: analyst Read More 

Schedule reliability continues to improve Read More 

Greece seen stalling on new EU sanctions package on Russia that targets dark fleet ships Read More 

Critical level approaching for trans-Pacific spot rates Read More 

Saudi Arabia Urges Improved Maritime Security in Gulf Read More 

Mitsubishi Shipbuilding and NYK Line obtain approval for ammonia and LCO2 carrier Read More 

Valenciaport establishes hydrogen pathway for European ports Read More  

Hapag Lloyd increases rates from Middle East / Indian Subcontinent to US East Coast Read More 

CMA CGM revises peak season surcharge from Indian Subcontinent to US East Coast Read More 

Port of Oakland gets “green light” and funding for green power project Read More 

THE Alliance set to raise capacity on Asia-North Europe service Read More 

Congestion at Mundra Port hits vessel productivity for carriers Read More 

CMA CGM updates service connecting Med ports with Turkiye Read More 

Vietnamese port launches container handling service Read More 

HMM announces new service linking Far East, India and Mediterranean Read More 

Little sign of congestion on day three of Canada’s port strikes Read More 

Ascent, Descent and Crescent in the ocean freight industry – an independent analysis Read More 

A.P. Moller – Maersk adds Sohar port call to the ‘Shaheen Express’ further strengthening its commitment to Oman Read More 

DP World in talks to expand East African coverage to Tanzania Read More 

Nations Haggle Over Targets to Cut Shipping’s Huge Emissions Read More 

COSCO finalises Hamburg terminal stake buy Read More 

Ground

Contract rate decline puts capacity at risk Read More 

Teamsters at ABF Freight ratify new labor deal Read More 

United Road under new ownership in swap of debt for equity Read More 

Trucking spot rates should be on the rise: ACT Research Read More 

Batteries on freight trains could be tapped to support the power grid in emergencies: study Read More 

Tracking the speed, dwell and cars of Class I railroads Read More 

U.S. rail carload and intermodal volumes are down, for week ending June 24, reports AAR Read More 

Rose Rocket, whose platform helps transportation companies communicate, raises $38M Read More 

Trucksters shifts into high gear with €33 million series B funding Read More 

Munich-based FERNRIDE raises €29 million to solve autonomous trucking with human-assisted approach Read More 

Logistics Startup Next Trucking Tries to Sell Itself Read More 

US to conduct safety review of all major railroads Read More 

Trucking marketplace Convoy makes more layoffs, citing customer-service efficiency gains Read More 

Electric Vehicles Continue to Race Ahead in Market Share: Study Read More 

‘AI revolution’ set to drive into Felixstowe with robot truck fleet Read More 

Other

Gebrüder Weiss strengthens German air and sea network with acquisition Read More 

DSV is ready to deliver packages to ships and wind turbines with drones Read More 

The negotiations for shipping’s new climate targets are gridlocked Read More 

Bank points to capacity as the box market’s biggest challenge Read More 

Valencia promotes hydrogen for green terminals Read More 

Co-operation needed on lithium-ion battery carriage risks Read More 

Borderlands: Texas vertical farms designed to disrupt fresh produce supply chains Read More 

Consumer staples earnings reports bring yet more evidence of demand weakness Read More 

Improving operations and reducing costs through better facility data Read More 

5 things shippers should know about real-time freight procurement Read More 

FedEx to close sites in Texas, Georgia Read More 

AD Ports Group completes Noatum acquisition Read More 

Global shipping can halve emissions without impacting trade: New study Read More 

MSC reports progress in sustainability initiatives Read More 

Supply chain startup Baskit supports Indonesia’s middlemen Read More 

Insight Partners backs Germany’s SPARETECH in €10M round: Know more Read More 

Y Combinator-backed Rever aims to modernize refunds and returns Read More 

Nigeria’s Haul247 raises funding to scale its logistics platform Read More 

enabl sammelt 3.2 Millionen Euro in Pre-Seed Finanzierungsrunde ein Read More 

Onebeat secures $10 million Series B for AI-enabled supply chain solutions Read More 

Revolutionising freight forwarding: Cargofive snaps €1.8M to drive digital transformation Read More 

All you need to know about Cold Treatment Sterilisation for shipment of fresh produce Read More 

Retailers Are Shrinking Logistics Operations in a Changing Consumer Market Read More 

Prologis To Acquire 14msf Blackstone Industrial Portfolio In $3.1 Billion Deal Read More 

Kuehne+Nagel Acquires South African Freight Forwarder Morgan Cargo Read More 

DoKaSch Temperature Solutions Announces Business Expansion in Asia-Pacific Read More 

China Smartphone Shipments Back to Double-Digit Growth in May Read More 

Flotilla of Saudi Oil Tankers Near the Suez Shrinks a Little Read More 

Gebrüder Weiss acquires freight forwarder B+A Read More 

DRY BULK QUARTERLY: Atlantic Supramax market adopts a cautious stance Read More 

Kazakhstan Kashagan expansion projects progressing ‘well,’ amid legal battle Read More 

GPT-4 is set to radically change supply chain network design Read More 

AD Ports Group acquires Spanish logistics major Noatum for $720 million Read More 

3PL News

IAG Cargo integrates automation at LHR facility Read More 

CPKC, Americold team up on temperature-controlled intermodal warehouses Read More 

DHL relocates e-commerce facility to Kansas City, adds automation Read More 

Target bolsters last-mile delivery reach with first extension facility Read More 

Amazon reopening Seller Fulfilled Prime enrollment after extended pause Read More 

Bloated inventories are impacting cash flow strategies Read More 

WMS + OMS: Maximize ROI & Win Customers for Life Read More 

B Garage raises $20M for its warehouse inventory drones Read More 

Dexory nabs $19M to bring visibility to warehouses through analytics and autonomous robots Read More 

Amazon Turns to AI to Weed Out Damaged Goods Read More 

First integrated drone-based transportation solution for laboratory samples and medical supplies in Africa Read More 

Robots Are Looking to Bring a Human Touch to Warehouses Read More 

Gather AI acquires Ware to Become the Largest Autonomous Inventory Management Platform in the World Read More 

Dachser opens automated facility in Memmingen Read More 

New parcel facility finds home in Western Sydney Read More 

Cainiao pushes global express service to 5 days Read More 

DB Schenker Opens New Warehouse in Nurmijärvi, Finland Read More 

Bolloré Logistics Opens a New Hub in South Korea Read More 

A Red-Hot Market for Warehouse Workers Has Cooled Off Read More 

Learn how dnata keeps perishable goods farm fresh in Dubai Read More 

How Predictive Maintenance Helps Overcome Food & Beverage Distribution Challenges Read More 

Automation in the Last Mile: A Dream or Reality? Read More 

Trade and Customs News

Proposed US bill targets China, Russia imports Read More 

Solid economic conditions for shippers remains intact, observes FTR’s SCI report Read More 

ICC releases eUCP V2.1 (Uniform Customs and Practice for Documentary Credits) Read More 

Enigio completes first end-to-end paperless digital trade document transaction Read More 

China’s Share of U.S. Goods Imports Falls to Lowest Since 2006 Read More 

U.S. Struggles to Turn Steel Imports ‘Green’ With Tariffs Read More 

DHL Express Expands Export Service from Thailand to the United States for Non-Perishable Plants Read More 

China’s Chip-Metals Producers Surge on Export Restrictions Read More 

China’s Importing So Much Coal That Local Miners Are Suffering Read More 

Wheat Climbs to Four-Month High as Traders Assess Russia Risks Read More 

South Korea Early Exports Hint at Budding Global Recovery Read More 

Germany Secures a Deal to Get Kazakh Oil for Crude-Starved Refinery Read More 

Indonesia to Ban Copper Exports Once Freeport, Amman Plants Open Read More 

Oil Tankers Avoid Nigeria After Multimillion-Dollar Tax Bill Read More 

Africa gets single portal for trade services Read More 

UK targets e-commerce exports boost with new trade commission Read More 

Ukraine axes ban on ECA-backed loan repayments Read More 

Digital trade set to propel intra-Commonwealth trade to US$2tn Read More 

Facilitating trade and transit in developing countries Read More 

India initiates safeguard investigation on metcoke imports Read More 

Ukraine grains exporters turn to Danube ports, heating competition with iron ore, steel shipments Read More 

Brazil’s record $91.8 bil funding to boost agriculture, support global food security Read More 

France, Germany, Italy agree to strengthen cooperation on critical raw materials supply Read More 

Iraq launches 6th licensing for gas exploration blocks to halt Iranian imports Read More 

UN defends grain deal and progress on facilitating Russian agricultural products Read More 

Ecommerce Logistics News

Consultant’s Insight: FedEx invests in Floship to expand cross-border e-commerce capabilities Read More 

DHL rebrands corporate name, e-commerce division Read More 

Philippine Ecommerce Marketplace Startup Shoppable Business Closes $1.15m Pre-seed Round Read More 

ShipBob Taps Former Amazon Exec, Takes E-Commerce Services to Stores Read More 

Amazon doubles storage capacity with new fulfilment centre in Riyadh Read More 

FedEx, Floship Partner To Provide Enhanced Logistics Services To E-retailers Read More 

Maersk guns for Indian e-commerce fulfillment pie Read More 

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