Global Logistics Market – May 2023 

Highlight: Steep Rise in Ocean Schedule Reliability 

There’s been a significant increase in Ocean Schedule Reliability lately. After staying relatively stable for the past 3 months, we saw a jump of 7.7% in February, bringing us up to 60.2%. And if we compare it to this time last year, we’ve seen an impressive 26%-point increase. 

The good news is that half of the 34 trade lanes showed an improvement in schedule reliability in February. Oceania-Asia had the biggest improvement, jumping from 38.7% in January to 51.9% in February. However, Oceania-North America experienced a decline of 16.2 points, reaching 44.9% in February. Let’s take a look at some other major trade lanes.  

• Asia to North America West Coast saw a 4-point decrease in reliability, hitting 30.2%. But Oceania-North America saw an increase of 3.5 points, bringing it up to 39.2% compared to the previous month.  
• Asia-North Europe saw a slight improvement of 1.1 points, reaching 53.2% reliability. But the Asia-Mediterranean route saw a decrease of 9.3 points, dropping to 44.5% reliability. 
• Finally, we saw a decrease of 2 points in schedule reliability for Transatlantic Eastbound, bringing it down to 49.2%. But Westbound trade saw an increase of 6.2 points, reaching 44.3%. 

Ocean Freight Globally – May 2023

Key
++	Strong Increase
+	Moderate Increase
=	No Change
–	Moderate Decline
—	Strong Decline

Outbound

Middle East – North America

There’s a seasonal demand rebound for services to the Gulf after Ramadan ended in the Middle East. As a result, the rates are trending upward.  

Capacity — (+) 

Rate — (+) 

Note: Space out of Gulf is tight. 

Middle East – Asia

The shipping rates have returned to pre-pandemic levels, which means we’re back in the three digits. Additionally, the capacity is generally above demand, which is good news for shippers.  

Capacity — (-) 

Rate — (-) 

Note: There’s a seasonal demand rebound after Ramadan. 

Middle East – Europe

The rates out of the Gulf are currently stable, while the capacity remains above demand. Due to this, space is easily available out of the Gulf. 

Capacity — (=) 

Rate — (=) 

Note: No space issues out of the Gulf. 

Middle East – Latin America

The rates out of the Gulf are on the rise. We’re also seeing a seasonal demand rebound for Gulf services after Ramadan ended in the Middle East.  

Capacity — (+) 

Rate — (+) 

Note: Space is available.  

Inbound Updates

Asia – Middle East

There have been notable increases in the rates for the MENAT region, particularly in the Gulf/Red Sea trade lane. The general rate increases (GRIs) for this trade lane have been robust, ranging from USD 300-400 per twenty-foot equivalent unit (TEU). The strong demand in the region is expected to sustain the GRIs through May. Blank sailings continue to be observed in the trade lane, especially from The Alliance, resulting in capacity constraints.   

Capacity — (-) 

Rate — (+) 

Note: Space is full in East Med. 

North America – Middle East

Intense market competition in the Middle East has led to a decline in rates, accompanied by increased concessions on side conditions.  

Capacity — (=) 

Rate — (-) 

Latin America – Middle East

The current market conditions have resulted in a softening of Central America’s exports. During the contracting season, the Med market is experiencing a downward trend. However, the rates have returned to pre-Covid levels. 

Capacity — (=) 

Rate — (-) 

Note: Open vessels. 

Europe – Middle East

The trade lane has adequate space availability, although the rates are experiencing a slight decline. Capacities in the East Med are ample, and rates are softening for both short- and long-term contracts.  

Capacity — (=) 

Rate — (=/-) 

Note: No equipment issues. 

Air Freight Globally– May 2023

Demand: The volume for this trade lane remains low, as export orders from the Asian Pacific region are declining. Additionally, due to the Easter holidays, demand volumes from the US and EU have reduced as well. However, major world economies are expected to become more resilient in the next two quarters to recover from the volume decline.  

Capacity: The current demand level is adequately supported by the available capacity. The increasing passenger volume is contributing to the belly capacity trend. Nevertheless, the ongoing labor disputes across various regions can potentially affect operations. 

Rates: Across various trade lanes, there is a highly competitive spot market with a marginal rise in charter and ad hoc rates. Moreover, the industry is anticipating stability in the second quarter of 2023. 

The Middle East and Air Carriers

In March 2023, the carriers in the Middle East saw a 5% year-on-year decrease in volume, an improvement from the previous month’s decline of 7.1%. Recently, demand from the Middle East to Europe has been increasing, and the overall capacity has increased by 9.7% compared to last year’s March. 

Asia

As the year progresses, the air market in Asia is stabilizing, with rates expected to increase compared to the first quarter. Demand is recovering and expected to remain relatively stable over time. Some freighter capacity in Transpacific is retiring, but as the summer approaches, overall capacity (passenger + freight) is expected to remain relatively stable, maintaining a balance between supply and demand. 

America

Export capacity in the United States is open, and rates are decreasing. Additional capacity is expected to be added in the upcoming travel season to support demand. Export conditions are mixed, with the seed season in Chile, Argentina, and Uruguay supported by different charter programs. Capacity and rates out of Brazil remain stable for all major routes. Columbia’s peak flower season from 3rd – 22nd April created additional southbound capacity in Miami and attractive spot rates. 

Europe

Despite lower consumption and inflation in the market, volume decline has been reduced, and air freight conditions are improving. Capacity outside of Europe is slightly up compared to last year, mainly due to easing COVID restrictions in China. Rates show mixed trends, with stability for some routes and declines for others. 

Local News from UAE – May 2023 

CMA CGM has recently announced the implementation of an additional risk coverage surcharge for Sudan starting from May 1st, 2023. The surcharge of USD 500/TEU will be applied to both dry and reefer cargo shipments originating from North Europe, Scandinavia, East Mediterranean, Poland, Baltic, North Africa, Black Sea, Morocco, Adriatic, Red Sea, Middle East Gulf, and Indian Subcontinent, and destined for Sudan. Read More 

CMA CGM has also introduced a new overweight surcharge of USD 250/20’ container (with gross weight of over or equal 18 tons) on short-term contracts only (3 months and below) for dry cargo from Asia and Indian East Coast to Nigeria starting from April 28th, 2023. Read More 

Dubai Maritime Authority (DMA) has entered a new era of partnerships with the implementation of Law no. (3) of 2023. The DMA now covers the entire Emirates of Dubai, including special development zones and free zones. Read More 

Swire Shipping has announced new Pacific Weekly Express (PWX) services that will operate on a 7-day frequency from Southeast Asia to Papua New Guinea, Soloman Islands, Fiji, and New Caledonia, as well as connections via Fiji and New Caledonia to Pacific Islands of Tonga, Samoa, Vanuatu, Tahiti, and American Samoa. Read More 

To maintain reliable and efficient services, CMA CGM Group has updated its customers about the General Rate Restoration (GRR) applicable from May 7th, 2023, on all cargo including Dry and reefer from UAE and Upper Gulf to West Africa. Read More 

In a bid to improve service quality, OOCL has revised its local charges in UAE, effective from April 1st, 2023, for non-regulated trades, and from May 1st, 2023, for regulated trades. Read More 

Hapag-Lloyd has updated its inland tariff charges, effective from May 1st, 2023. Read More 

Global Factory Output for May 2023 

In the last week of April 2023, the World Container Index (WCI) decreased by 2% to reach USD 1,740.26/40ft container. The current value is 83% lower than the peak value reached in September 2021, indicating a return to normal price levels.  

United States of America (USA)

In the United States of America (USA), the manufacturing Purchasing Managers’ Index (PMI) increased from 49.2 in March 2023 to 50.4 in April 2023, indicating the first expansion in factory activity in six months. The production and new sales levels increased moderately, while the rate of increase for operating expenses was the fastest since November of last year.  

United Kingdom (UK)

The manufacturing PMI of the United Kingdom (UK) declined to 46.6 in April 2023 from the value of 47.9 in March 2023 due to the contraction in the manufacturing sector in the last four months. Production, new orders, and employment decreased, while the supply chain continued to improve amid higher raw material availability and lower demand. 

China

China’s manufacturing PMI unexpectedly fell in March 2023 to 50.0 from the February 2023 value of 51.6. This reduction was a result of growing concern about the recovery momentum of Chinese strength, ongoing property downturn, and financial uncertainty. New orders and output increased, while employment and foreign sales decreased. The supplier capacity and stock availability helped in improving the vendor performance.  

United Arab Emirates (UAE)

The manufacturing PMI of the United Arab Emirates (UAE) increased to 55.9 in March 2023 from 54.3 in the previous month, indicating quick improvement in the non-oil private sector. New orders reached their 5-month higher value due to an increase in tourism and market demand, while output grew at the fastest rate in the last 5 months. Inflation was mild, amid the increase in the prices of input.  

Freight News

Interesting News Across Globe – May 2023 

Air

Air France-KLM and CMA CGM officially launch their long-term strategic air cargo partnership Read More 

LATAM Cargo and Swiss Airtainer Win 2023 IATA Air Cargo Innovation Awards Read More 

Aviation Provides Critical Relief in Crises Read More 

Incheon Airport constructing $28M global distribution center for e-commerce Read More 

Industry ‘falling behind’ on lithium battery detection, AfA’s Fried says Read More 

DHL, Turkish Cargo sign MOU to improve ops Read More 

New route between HKIA SkyPier and Pazhou in Guangzhou begins trial Read More 

Turkish Cargo and Avianca Cargo sign an MoU to further enhance their cooperation with global reach Read More 

Qatar Airways Cargo relaunches its Next Generation Pharma product Read More 

WestJet Cargo and the GTA Group celebrate inauguration of dedicated freighter in Toronto Read More 

Kyte strikes strategic partnership with Air Canada Read More 

Saudia Cargo agreement with Tower Cold Chain extends choice in Middle East pharmaceutical shipments Read More 

Etihad Cargo and SF Airlines connect their mega hubs Read More 

Bolloré Africa Logistics rebrands following takeover Read More 

Kuehne+Nagel and Atlas Air team up on Sustainable Engine Alliance Read More 

FedEx pilots to vote on strike after contract negotiations fail Read More 

Qatar Airways Cargo Launches a Direct Freighter Service from Bogota to Dallas Fort Worth Read More 

Cathay Cargo integrates mail handling data with new mail service to improve visibility Read More 

Abu Dhabi Airport welcomes first SF Express cargo flight Read More 

Hongyuan joins the cargo.one online marketplace to boost digital sales Read More 

IAI establishes a freight conversion hub in South Korea Read More 

South Korea to develop 777F conversion facility Read More 

Saudia Cargo unlocks Tower Cold Chain Read More 

DHL Express orders Mammoth-converted freighters Read More 

Geodis boosts pharma offering in Asia, Middle East Read More 

Qatar Airways deploys 777F on BOG-DFW route Read More 

Maersk Air Cargo starts new US-China service Read More 

Airport Master Planning seminar for Kazakhstan’s airports Read More 

UAE and Canada to increase flights to 21 per week Read More 

Wizz Air receives Airline Of The Year award at Air Transport Awards Read More 

IATA Air Cargo Innovation Award winners revealed Read More 

Qatar Airways Cargo and Hactl partner in canine detection to sniff out lithium batteries Read More 

Ocean

Container shipping heading for $10 billion loss in 2024: Drewry Read More 

CMA CGM places major order for green ships at Chinese yard Read More 

Shipper savings to rocket in 2023 at expense of carrier profits: analysts Read More 

Slow steaming can partially offset newbuilding surge, says consultant Read More 

Transpacific rates shoot up as carriers prop up GRIs with more blanks Read More 

e-Shipping the latest carrier to launch Russia service Read More 

Protecting Offshore Energy Sources via USV Read More 

CMA CGM Offers $5.5 Billion for Bollore Logistics Unit Read More 

Berlin Reviewing Decision to Allow Chinese Investment in Hamburg Port Terminal Read More 

Chinese port halts resuming crew Covid testing after backlash Read More 

Saudi Ports Log 21.14% Growth in March Container Numbers Read More 

Invasion of Ukraine Caused Steep Drop in Black Sea Container Traffic Read More 

California container ports sign data system development agreement Read More 

Port of Gothenburg achieves container growth despite slump in imports Read More 

DP World reports 19.5 million TEUs in 2023 first quarter Read More 

Bangladesh grants permanent transit of Indian cargoes using Chittagong, Mongla ports Read More 

COSCO Shipping Ports boosts first quarter profits with flat container volumes Read More 

Port of London Authority to upgrade its VTS system Read More 

CMA CGM announces overweight surcharge update from Asia and India East Coast to Nigeria Read More 

April sees tanker orders rain in Read More 

Freight Forward: Breakbulk in the Spotlight Read More 

Freight Forward: Ocean Carriers Take Flight Read More 

The economy is in a ‘freight recession,’ with China trade decline continuing Read More 

Berlin reexamines COSCO’s Hamburg port plans Read More 

Three Canadian ports hit by cyber attacks Read More 

CMA CGM’s secondhand splurge since 2020 surpasses the 100-ship mark Read More 

MoEI backs UAE Maritime Week to build a skilled workforce Read More 

Dubai Maritime Authority launches series of workshops to bolster partnership with industry stakeholders Read More 

Aero Africa launches sea-air freight service from Asia to Africa via Dubai Read More 

AD Ports Group Starts New UAE-Qatar-Kuwait Container Shipping Service Read More 

India-Russia explore market access in railways, agriculture and pharmaceutical sectors Read More 

Ground

Yellow looks to reopen Teamster contract, negotiate consolidation Read More 

Bulk carrier Trimac acquires AIP Logistics Read More 

Federal Railroad Administration urges caution on train lengths Read More 

California could phase out diesel locomotives Read More 

Walmart Adds First-of-its-Kind Truck to Transportation Fleet Read More 

JD Logistics pilots emissions tracking platform Read More 

Road transport prices in France were ”marking time” in March Read More 

Road transport: a coveted German market Read More 

Electric Freight Trucks: Not Happening Anytime Soon For Long-Haul Moves Read More 

Rail data shows reality of current supply chain Read More 

Where the trucking and rail recession is showing up in the logistics data Read More 

Kazakhstan’s KTZ Express, Russia’s RZD Logistics organize first dispatch of reefer train to China Read More 

Massive Frederickson distribution and logistics complex lands national tenant Read More 

European Road Freight Transport Market is anticipated to register a CAGR of 3.57% during 2023 – 2028 – Market Size, Share, Forecasts, and Trends Analysis Report by Mordor Intelligence. Read More 

Land secured for Beveridge Intermodal Freight Terminal Read More 

Saudi infrastructure activity brisk in 2022; 56 new roads built Read More 

Egypt signs transport investment deal with Japan valued at about $700mln Read More 

6 transportation systems coming to the UAE Read More 

Other

Container shipping warning: Green shoots are ‘transitory illusion’ Read More 

MPV sentiment improves even as short-term demand softens Read More 

Lufthansa aims to halve carbon emissions by 2030 Read More 

Digitalizing perishable shipments allows real-time recovery, data insights Read More 

DSV reports profit, revenue, volume declines Read More 

C.H. Robinson sees 32.3% revenue dip in Q1 earnings Read More 

DHL unveils sustainability milestones and a new tool at industry-first global summit Read More 

Qatar Airways Cargo launches a direct freighter service from Bogota to Dallas Fort Worth Read More 

Cargo.one launches new platform to speed up import bookings Read More 

Protective Face Mask Market To Hit US$ 25.78 Billion By 2032 Read More 

Transformers Market Size to Reach USD 93 Bn by 2030 Read More 

Sudan unrest poses no immediate risk to shipping Read More 

Lloyd’s Register wins IMO green corridors challenge Read More 

Investment from Maersk propels Danish fuel-startup forward Read More 

Maersk pauses freight to Sudan due to intensifying conflict Read More 

Maersk joins collaboration on access to green methanol in Melbourne Read More 

Global Food Roundup: Shift to Discount Grocers and Aussie Wine Woes Read More 

Nearshoring Shift Brings Production Hurdles Closer to Home Read More 

Vessel ownership information a major indicator of illicit trade risk, report finds Read More 

Tanker newbuild orders hit two-year high Read More 

3PL News

UPS Healthcare expands in Blonie Read More 

CILTSA Leads the Discussions on Warehouse Automation at its Free-to-Attend Conference Read More 

DHL Supply Chain facility is showcasing how automation, humans can coexist Read More 

CMA CGM’s start-up initiative to set up Asia-Pacific hub Read More 

Full warehouses and labour issues soften Long Beach’s volumes Read More 

Warehouse Jobs Drop to Lowest Level in 15 Months Read More 

A.P. Moller – Maersk expands warehouse offering for its customers in UK Read More 

Warehouses Find Insulation From U.S. Banking Crisis Read More 

Last Mile Delivery Grows Up with Ron Richardso Read More 

How Lithium Forklift Battery Data Solutions Can Help Estimate Battery Health Read More 

How Warehouse Automation Keeps Cold Food Chains Moving Read More 

Reducing energy usage in temperature controlled rooms Read More 

Thorn and Zumtobel to showcase innovative lighting solutions at IWLEX Read More 

Unbox Robotics brings its innovative “UnboxSort” to the UK and EU in partnership with L.A.C Logistics Automation Read More 

Enhanced Fire Protection from Hörmann UK Read More 

Inflation’s inventory gluts are here to stay and will hit the bottom line in weaker economy: CNBC Supply Chain Survey Read More  

Industrial, logistics sector leasing up 26% in Jan-Mar: Report Read More 

Automotive Logistics Services (3PL and 4PL) Market Research Report 2023-2031 Market – Major Technology Giants in Buzz Again Read More 

New 3PL Announces Jacksonville Cold Storage Facility Read More 

Automyze Fulfillment Center eyes growth with SnapFulfil Read More 

Trade and Customs News

China’s ports dominance undermines western aims to loosen trade ties Read More 

Tensions mount at US west coast box ports over labour talks Read More 

Freight movements halted as conflict in Sudan kills hundreds Read More 

IMF: Germany & UK enter recession in 2023 Read More 

US sanctions Türkiye-based shipowners for ties to Russia Read More 

UAE’s extended links to Russia supports sanctions circumvention Read More 

US demands Iran release oil tanker seized in Gulf of Oman Read More 

Indonesia’s export of coal increases with demand in Asia Read More 

A Global Analysis: How friendshoring is impacting trade with China and the Far East Read More 

Port Labor Disputes Raise New Fears Over U.S. Import Disruptions Read More 

China-Germany Trade following China’s Reopening Read More 

Facilitating trade and transit in developing countries Read More 

Sudan unrest poses no immediate risk to shipping Read More 

Timor-Leste expands electronic single window to boost international trade Read More 

Shipment from abroad stuck at ports after new payment system glitches Read More 

UAE-India’s planned ‘green corridor’ will fuel smoother customs process, higher trade flows under CEPA Read More 

UAE-Israel Cepa comes into force Read More 

Azerbaijan’s trade turnover with CIS countries up Read More 

EAEU Integration Plans With China, India and MENA Gain Momentum Read More 

Ecommerce Logistics News

FedEx to consolidate companies, pilots frustrated over contracts Read More 

Amazon Air’s team balloons to 14,000 Read More 

Alibaba’s logistics arm Cainiao Ranks Top 10 in Global Unicorn Index 2023 Read More 

Gol to increase e-commerce cargo fleet in May Read More 

Amazon Institutes New Returns Fee To Reduce Shipping Costs Read More 

Challenge Group makes ground in e-commerce Read More 

Online Shopping’s Fast-Delivery Race Is Slowing Down Read More 

The Parcel Delivery Revolution: How Newspapers Can Leverage Technology and Infrastructure to Diversify Revenue Streams Read More 

OneRail Solutions Now Available on the Shopify App Store to Accelerate Omnichannel E-Commerce Read More 

Ecommerce consumers add to cart while AI helps logistics and supply chain deliver Read More 

India’s e-commerce logistics space on the fast track for growth Read More 

E-commerce logistics industry to cross 10 bn shipments by FY28: Report Read More 

Changing Landscape of the UAE E-Commerce logistics Market post-Pandemic: Explore the key trends that are driving AED 500 Mn Market: Ken Research Read More