Logistics & Shipping Market Analysis – April 2023
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Carrier industry had a bit of a downer towards the end of 2022 – Evident by financial results
The container carriers had a bit of a rough patch in the last quarter of 2022. Even though the situation had been better earlier in the year, things definitely slowed down towards the end.
- Hapag Lloyd is saying they’re expecting a huge drop in earnings for 2023 – they estimated that they’ll only make between USD 4.3-6.5 billion compared to the massive USD 20.8 billion they made in the previous year.
- Maersk Line is in the same boat – they’re predicting earnings of only 2.0-5.0 billion, compared to the massive 33 billion they made in 2022.
- It looks like the shipping market is going to continue to slow down in 2023, so CMA CGM is also expecting a bit of a tough year ahead.
Table of Contents
Ocean Freight Market – April 2023
| Key | |
| ++ | Strong Increase |
| + | Moderate Increase |
| = | No Change |
| – | Moderate Decline |
| — | Strong Decline |
Outbound
Middle East – North America
There’s not a lot of space in the Gulf right now, which is making the rates go up. More capacity is coming in every month.
Capacity — (+)
Rate — (+)
Note: Spot rates are flat.
Middle East – Asia
The Asian region Gulf services are seeing a rate rebound after Chinese New Year, but there’s not going to be any extra capacity coming in anytime soon.
Capacity — (=)
Rate — (+)
Note: Spot rates are flat.
Middle East – Europe
The Asian region Gulf services are seeing a rate rebound after Chinese New Year, but there’s not going to be any extra capacity coming in anytime soon.
Capacity — (=)
Rate — (=)
Note: Spot rates are flat.
Middle East – Latin America
There’s plenty of space out of the Gulf these days. Carriers are slowing down on this trade lane, which is improving the space situation.
Capacity — (=)
Rate — (=)
Note: Spot rates are flat.
Inbound Updates
Asia – Middle East
Ramadan is having an impact on the Middle East and Red Sea Market, which is causing rates to drop. But watch out – if carriers start canceling more sailings, we could see rates jump back up to pre-Covid levels.
Capacity — (-)
Rate — (-)
Note: Equipment situation is healthy across Asia.
North America – Middle East
Some carriers in the Mideast market are getting pretty aggressive, probably because the rates keep going down.
Capacity — (+)
Rate — (-)
Note: On side conditions, concessions are available.
Latin America – Middle East
Things aren’t looking too hot for Central American exports right now, especially to the Med and Mideast. The SAEC market is also heading downwards, which is making rates go back up to pre-Covid levels.
Capacity — (=)
Rate — (-)
Note: Vessels are open.
Europe – Middle East
You can breathe easy if you’re looking for capacity in the East Med – there’s plenty of space available. Rates are softening for both short and long-term contracts too, so it’s a good time to book.
Capacity — (=)
Rate — (=/-)
Note: No equipment issues.
Air Freight Overview – April 2023
Demand: Demand in emerging markets with higher export orders has improved according to the PMI index. However, the world economy is facing adverse effects due to increasing interest rates and the Ukraine crisis. Nonetheless, the reopening of the ASPA market is expected to facilitate a quick global economic recovery.
Capacity: Capacity is continuously improving, with both belly capacity and passenger travel capacity following an increasing trend. Although there are currently no bottlenecks anticipated in the coming months, ongoing labor disputes may have an operational impact.
Rates: There is a competitive spot market in many trade lanes, with a slight increase in charter and ad hoc rates. Long-term rates are expected to become more stable as 2023 progresses, with the tonnage growth trend playing a vital role.
The Middle East and Air Carriers
The Middle East aviation industry has seen an improvement in the pace of recovery in 2022 and is expected to continue this trend over the next decade with an increase in its share of the global fleet. According to a report, the fleet share of the Middle East will rise from 4.9% in 2022 to 6% in 2023.
Asia
In Asia, there has been a slight increase in demand since Chinese New Year, which is expected to further rise in the coming months. Available capacity is sufficient to support the soft demand, and rates are expected to remain competitive in the market.
Demand on the Asia to Europe route remains soft, resulting in decreasing rates and increasing capacity. On the Asia-North America route, providers are adding more flights, but improvement is not expected until the third quarter due to importers selling through existing inventory.
America
In the United States, capacity is open, but rates are still trending downwards. Additional capacity in the market is expected due to increased travel demand in the coming months. Capacity for North American trade lanes is anticipated to remain flat month over month, and the spot rates will remain flat for Africa, Latin America, and the Middle East, while decreasing in Asia, Europe, and Oceania.
In the Latin America market, overall capacities are expected to remain flat, while spot rates will increase for all trade lanes.
Europe
In Europe, due to the ongoing return of regular scheduled passenger flights, capacity continues to increase. Demand for the Asia trade lane will stay moderate this month, allowing for easier capacity access.
The Latin America market is overall stable, while in North America, capacity is expected to grow as the summer schedule becomes effective from the second quarter. Spot rates from Europe to Africa, Asia, Latin America, and the Middle East will remain flat, and will decrease for North America.
Shipping Local News – United Arab Emirates – April 2023
CMA CGM has announced revisions to the Bunker Adjustment Factor (BAF) on its RORO services connecting France to Algeria, Tunisia, and Morocco, with the new surcharges to come into effect from April 1, 2023. Read More
Maersk has provided an update on the Nhava Sheva Port in India, indicating an expected surge in export demand due to traffic and queues outside the port. Read More
Ocean Network Express (ONE) has announced new surcharges that will apply to all trade lanes to/from the United Arab Emirates, with the changes to become effective from April 1, 2023. Read More
ONE has unveiled new demurrage and detention tariffs that will take effect in the UAE from 1st April 2023. Read More
CMA CGM has launched BIGEX services to connect Bangladesh to India and UAE, the only product connecting Bangladesh to Jebel Ali and Khalifa. See More
Emirates Shipping Line LLC will implement an Environmental Fuel Surcharge (EFS) between USD 650 to USD 700 per ton, based on the price of low sulfur fuel, from April 1, 2023. Read More
Hapag Lloyd has updated local charges for the Middle East, Indian Subcontinent, and Africa. Read Details
Hapag Lloyd is introducing a West Africa Service (WA1) in May 2023 to factor in strong schedule reliability and extended port coverage in cargo planning. Read More
Cargo Gulf is again launching the Arabian Gulf Indian Subcontinent (AGISC) service. Read More
Ogefrem Head Office has issued a Circular Letter regarding shipments arriving in the Democratic Republic of Congo without FERI. Read More
Global Factory Output – Overview
The Drewry World Container Index (WCI) declined by 2% to $1,716.85 per 40ft container in the final week of March, indicating that prices are approaching their normal level. The current PMI value is 36% lower than its 10-year average of $2,690.
United States of America (USA)
The US manufacturing sector demonstrated concerning trends in March, despite output increasing since last October, as growth was fractional and supported by production ramping up. Firms were able to work through their backlogs due to timely input delivery, but scarce demand resulted from pressure on customer spending due to high interest rates and inflation.
United Kingdom (UK)
UK manufacturing production fell back to contraction at the end of Q1 as companies scaled back production in response to subdued market conditions. Although there was a fractional increase in new orders following a nine-month sequence of contraction, the overall order book levels remained low. The declining new export orders continue to be a drain on demand, balancing the signs of a domestic market revival.
China
Chinese manufacturers reported soft gains at the end of Q1 2023 after a solid increase in output and new orders in February. The sustained upturn in demand supported a further increase in purchasing, but inventory continued to fall as most firms maintained a cautious approach to stock building.
United Arab Emirates (UAE)
In February, the UAE PMI index reached 54.3, up from 54.1 in the previous month, with output growing for the first time in four months due to increasing sales and new project initiation. New orders also increased, although the expansion rate was the weakest since September last year.
Global Interesting News – April 2023
Freight News
Air
Narita Airport to build $2.7B cargo logistics facility Read More
Another warning strike brings Germany’s main airports to a halt again Read More
YEG to pilot hydrogen technologies to advance air cargo Read More
Air cargo seeing little impact from French general strike Read More
Deadline looms for freighter operations to change airports in Mexico City Read More
Etihad Cargo streamlines dangerous goods, pet bookings online Read More
IATA: Soft start to 2023 for air cargo industry Read More
LATAM Cargo announces the addition of a new Boeing 767 BCF Read More
DHL Global Forwarding reports record airfreight revenues Read More
FedEx to transfer LAX airport maintenance to Indianapolis Read More
Maersk’s new air freight service to connect Denmark with China Read More
Changi team up with Brussels airport on cargo Read More
CargoAI takes in more airline partners Read More
DACHSER offers daily air freight service from China and Hong Kong to Frankfurt Read More
Saudia Cargo awards multi-station contract to WFS Read More
Air Cargo closes 2022 near Pre-Pandemic Levels Read More
LATAM Cargo connects South America with Brussels Airport Read More
Messe München brings first logistics multimodal trade fair to Singapore Read More
UPS expands hub at Changi Airport, nearly doubling capacity Read More
Ocean
New EU law ‘marks the beginning of the end of dirty fuels in shipping’ Read More
Retail giants launch new alliance for green sea freight Read More
Labor shortage puts pressure on deliveries of new ships from South Korea Read More
Maersk Supply Service wins three-year contract on three L-class ships Read More
Maersk enters methanol collaboration with world’s largest port Read More
Freight thieves in US ports target food products Read More
Major US port enters deal about green corridor to Japan Read More
DP World to invest USD 35m in Brazilian port Read More
Maersk opens first freight route to Ukraine since war began Read More
House panel eyes ending ocean carriers’ antitrust exemption Read More
Trans-Atlantic container rates still double pre-COVID levels Read More
Norway’s leading car port seeks expansion to meet growing EV imports Read More
Russia-bound Containers Stuck at Antwerp Port for Year Read More
See-Saw effect in ocean freight rates affecting supply and demand equilibrium Read More
CMA CGM applies new overweight surcharge from Saudi Arabia to North Africa and Morocco Read More
Jeddah Islamic Port enhances decarbonisation activities Read More
DP World adds inland container depot at India’s Hazira Port Read More
Record container throughput for King Abdulaziz Port Read More
YILPORT integrates Navis TOS into Portuguese box terminal Read More
Port of Rotterdam supports green hydrogen project at Maasvlakte Read More
DP World to build new edible oil terminal in Berbera Port Read More
Maersk Supply Service extends long-term contract in Taiwan with Seaway7 Read More
Chittagong port to receive larger vessels Read More
The Suez Canal breaks record for single-day vessel registration Read More
COSCO and China Merchants tipped to bid for stake in Hutchison Ports Read More
CMA CGM, COSCO and Hapag-Lloyd line up further orders Read More
Strikes at UK Airports and Ports – Cargo operations may be impacted Read More
Ground
Beijing and Moscow develop rail trade with new route and river bridge Read More
Lawmakers introduce ‘clear path’ to more truck parking Read More
Transport prices in France see a timid rise in February Read More
EAEU mulls over transport hub in United Arab Emirates Read More
Russia’s Transport Industry Adapts to a New Way of Life Read More
The Ministry of Transport of Uzbekistan is negotiating the transportation of goods to Europe through Lithuania Read More
Kazakh deputy minister talks Middle Corridor’s Benefits for global trade dev’t Read More
Other
Intra-Asia trade could surpass $13T by 2030 Read More
European Commission Proposes Net Zero Industry Act Read More
IAG Cargo sets sights on digitalization, new routes Read More
Qatar Airways Cargo to use AI to optimize overbooking Read More
IAG Cargo adds Aruba and Guyana to its network Read More
86% of pharma and biotech companies plan to invest in ‘digitally agile’ supply chains in the next 12 months Read More
DP DHL outlines criteria for any DB Schenker bid Read More
Supply chains ‘finally beginning to stabilize’, says Maersk Read More
For Shippers, Disruption Means Opportunity to Rethink Carrier Strategy Read More
Guidelines for shipment of Lithium-Ion Batteries by Sea published Read More
Are there really any limits to artificial intelligence in shipping? Read More
A.P. Moller Capital to Acquire South African frozen logistics operator Read More
AD Ports Group commences new Ro-Ro service between UAE and Kuwait Read More
CMA CGM to launch BIGEX, a new service connecting Bangladesh and India with the Gulf Read More
DHL forms joint venture with Saudis Aramco Read More
Saudis’ newest carrier to Fly with all-Boeing Fleet Read More
Dachser expands in Oceania with acquisition Read More
DHL Express launches GoGreen Plus Read More
DB Schenker uses ultra-thin high-tech labels for shipment tracking Read More
Global trade growth powered by green products, UNCTAD finds Read More
Navigating the 2023 Supply Chain: Opportunities and Challenges Ahead Read More
Freight Forward: Volumes slowly growing Read More
Cargo theft, led by food and beverage, is surging across the U.S. Read More
3PL News
UPS Healthcare opens first dedicated pharma facility in Germany Read More
DP World announces $200M cargo hub in Dominican Republic Read More
Delta Cargo unveils largest cooler facility at JFK Read More
Milwaukee Mitchell International Airport plans new cargo facility Read More
Optimizing inventory key for SMBs to beat shrinking warehouse landscape Read More
APM Terminals to Partner on new Vietnam Facility Read More
DP World opens reefer container facility in Sydney Read More
DHL global forwarding opens Brisbane facility Read More
Locus launches ShipFlex for flexible third-party delivery Read More
MET taps 15 lenders for €1.23bn facility Read More
Freight Forward – Slowdowns but opportunities increase Read More
Home Delivery Performance: Ticking Time Bomb Or Market Opportunity? Read More
Scalable automation that optimises core warehouse functions Read More
GemOne: how telematics is helping warehouse businesses become safer, more efficient, and digitally mature Read More
Barcelona to tax logistics companies Read More
Trade and Customs News
China’s exports continue to slide – adding pressure to the economy Read More
Electronic bill of lading provider leverages Singapore legal reform to rip up the rulebook Read More
Letter of credit payments permitted despite Russia sanctions, UK court rules Read More
Ukraine grain deal faces fresh uncertainty as Russia struggles with agri exports Read More
WTO stays glum on trade prospects Read More
REVISED COVID-19 Point Of Entry Guidelines (Zambia, 2023) Read More
Industry bodies unite in producing Guidelines for the safe transport of Lithium-ion batteries in containers Read More
Single window for ship data exchange to become mandatory Read More
UNCTAD and World Customs Organization enhance cooperation Read More
Israel-UAE free trade deal takes force as customs agreement inked in Jerusalem Read More
E-commerce Logistics News
DB Schenker opens automated e-commerce logistics hub in Spain Read More
Is inflation crushing e-commerce volume growth? Read More
Ethiopian Airlines and MailAmericas Launch E-commerce Logistics Services Read More
The slowdown in E-Commerce Hitting Logistics Companies’ Payrolls, Experts Say Read More
Global e-Commerce Logistics Market Report 2023: Market to Grow 7.9% in 2023 to Reach a Value of €451+ Billion – Forecasts to 2027 Read More
Preparing for the peak: how retail, FMCG and lifestyle brands can build an agile e-commerce strategy Read More
5 trends Indian E-commerce industry can expect to see in 2023-24 and how to prepare Read More
U-Freight gains recognition for e-commerce logistics product Read More
E-Commerce Giant Alibaba Will Become 6 Different Entities Read More
