Shipping & Logistics Update – March 2023
Table of Contents
Highlight: MegaMax Ships to Hit the Market In 2023
The top 11 container lines across the globe are expected to get 89 more large containers vessels over the year 2023. It includes 31 MegaMax Containers (MGX), 41 NeoPanamx (NPX), and 9 mainline vessels (XXX), which are greater than 7’000 TEU. However, delivery of some of these ships could be delayed till next year, depending on the market demand.
The wave of these demands will begin when the 24’116 TEU MSC TESSA becomes a part of Ningbo service’s ‘AE6/Lion’. With this, the vessel will become the largest containership in the world. However, it will last for a few days, since a 24,188 TEU OOCL SPAIN will join Far East-North Europe ‘LL3 loop on 21st March, after leaving Shanghai on March 18th. Several other containerships are also expected to join the shores, including 24,346 TEU MSC IRINA joining Asia-Med ‘AE10/Jade Service’ on March 21. The other includes 24,116 TEU MSC CELESTINO MARESCA joining ‘AE6/Lion’ on 28th March, MSC RAYA in Shanghai on 9th April, and 23’666 TEU BERLIN EXPRESS joining The Alliance loop of Far East-North Europe.
Ocean Freight Overview – March 2023
Middle East – North America
The capacity for this trade lane is forecasted to be flat over the month, with the slight decrease in the rates. The capacity is above demand for Turkey and the ships are not sailing in full. The space has opened for Asia because of the soft rates offered for Asia-US demand.
Capacity — (=)
Rate — (-)
Note: US port congestion has improved. However, the space out of Gulf is tight.
Middle East – Asia
The capacity and spot rates are predicted to be flat over the month for this trade lane. The rate for cargo from Turkey to China ports has reached the pre-pandemic level, and the available capacity is above the current demand.
Capacity — (=)
Rate — (=)
Note: There is a rate rebound for the Gulf services after Chinese New Year.
Middle East – Europe
For this trade lane, the capacity will remain flat; whereas the rates will decrease slightly. On 21st February, MSC updated the route of West Med-WAF to Turkiye-West Med-WAF, which added a Turkey connection to MED.
Capacity — (=)
Rate — (-)
Note: ONE added on the Aliaga and Izir call connection to STS service; however, the demand remains narrow.
Middle East – Latin America
The spot rates and capacity will remain the same for this trade lane. However, the space is expected to improve, since less active carriers like WHL, EMC, and YML are also offering space for this trade lane.
Capacity — (=)
Rate — (=)
Asia – Middle East
For the Middle East markets, there is volume surge due to early Eid holidays this year, and considering the Pre-Lunar New Year’s blank sailings, the GRIs are strong for all the Gulf and Red Sea markets. The East MD market is affected by the blank sailings program, specifically because of The Alliance. However, the members of the non-Alliance are trying to counterbalance to avoid sudden GRIs.
Capacity — (-)
Rate — (+)
Note: The predictions show volume surge for Middle East markets.
North America – Middle East
The capacity is opening up for the services in the MENA area and Turkey/Egypt, while the rates are softening. The earthquake in Turkey/Syria has left the port of Iskenderun closed indefinitely for Mersin.
Capacity — (+)
Rate — (-)
Note: The port of TR is likely to take all the cargo for humanitarian relief to Iskenderun.
Latin America – Middle East
For Latin America’s exports, there is a downward trend for Med markets, and the rates are back to their pre-COVID levels.
Capacity — (=)
Rate — (-)
Note: Central America exports and trade to Africa stay at a high level.
Europe – Middle East
The capacity remains still for this trade lane with the prices slightly decreasing. The capacity for East Med is easily available and for short and long-term contracts the rates will remain soft.
Capacity — (=)
Rate — (=/-)
Note: There are no issues with the equipment.
Air Freight Overview – March 2023
Demand: The PMI index for this month is showing low exports as the volume isn’t increasing. Luckily, the volumes are predicted to recover later in 2023. Furthermore, the rates for air cargo are highly affected by the Ukranian crisis, Turkey/Syria earthquake, and high inflation.
Capacity: The capacity has increased, so now the current demand can easily be met, which means no bottlenecks are expected. Furthermore, this may lead to improvement in the CN PAX market as well.
Rates: The spot rates will remain aggressive on most of the trade lanes. However, in the second half of 2023, the long-term rates may increase.
The Middle East and Air Carriers
In 2022, the carriers in the Middle East experienced a loss of around USD 1.1 billion. However, in 2023, they are expected to gain USD 268 million due to the increase in the passenger demand growth rate to 23.4. Moreso, the air cargo industry experienced more benefits due to the rerouting occurred after Russia-Ukraine war.
Things are looking up in North China because of more people shopping online and the usual end-of-the-month stuff. Down in South China, rates are going up due to demand increase, but flights getting canceled means there won’t be enough supply.
Over in Taiwan, the market’s pretty slow and there’s no sign of things getting better anytime soon.
People thought there’d be less shipping capacity coming out of China in March but turns out things are leveling out and rates are dropping.
And finally, things aren’t looking great in Southeast Asia – the market’s soft and demand’s the same, so it looks like March won’t be much better.
In the American markets, people still want to buy exports and the prices are staying about the same every week. There’s more space available now, especially for sending stuff over to Europe. And good news: all the airports in the US are running just like usual.
There’s been a lot of ups and downs with the rates for shipping between different places, but it looks like more people are trying to ship stuff lately. If you want to go straight there, it’s going to cost more and take longer, but there are some cheaper options with layovers. And don’t worry, things are running pretty smoothly in the big shipping spots – no major problems or delays.
Shipping Local News – United Arab Emirates – March 2023
The MOFAIC has a new system for electronic attestation of commercial invoices starting from Feb 1, 2023. Some rules apply for certain types of declarations or expensive invoices. Read More
Hapag-Lloyd has a new edition of IMDG Code coming up in 2024, but you can follow it voluntarily starting Jan 1, 2023. Read More
Maersk is still dealing with the earthquake that hit Turkey/Syria in Feb 2023, and they’re helping with relief packages. Read More
The European Union is rolling out a new automated security and safety process for cargo and mail called Import Control System 2 starting March 1, 2023. Read More
Maersk changed their SLA and it’s mandatory to follow the new rules to get paid or receive important documents. Read More
Hapag-Lloyd has a new Marine Fuel Recovery update starting April 1, 2023, which will be a surcharge mentioned separately on bills and invoices. Read More
CMA CGM is revising their Bill of Lading export fees starting April 1, 2023. Read More
Lotus Shipping is extending their services to Hodeidah port, Yemen through Djibouti. Read More
UAFL Shipping is increasing their operational equipment surcharge in Moroni starting March 1, 2023, after a rise in the Moroni Terminal Tariff in Jan 2023. Read More
Global Factory Output – Overview
The Drewry World Container Index (WCI) dropped by 2% and now stands at $1,859 per 40ft container. This means that prices have returned to normal levels.
United States of America USA
The composite PMI for the US rose from 46.8 in January to 50.2 in February 2023, indicating that output across the private sector has remained largely unchanged due to a slow decline in manufacturing production and a slight increase in service sector output. Input cost inflation has slowed since October 2020, while output charges have increased.
United Kingdom UK
The UK’s composite PMI increased sharply from 48.5 in January to 53.0 in February 2023, signaling quick expansion in the private sector, with growth in both the service and manufacturing sectors. Inflation prices have slightly eased, particularly in the service sector.
China’s composite PMI rose from 51.1 in December 2022 to 51.1 in January 2023, with the service sector expanding for the first time in five months. New orders have started to grow at a marginal rate. Input costs have risen, but prices charged have remained steady.
United Arab Emirates (UAE)
The UAE’s PMI fell to a one-year low of 54.1 in January, but rebounded strongly in February, particularly in the non-oil business sector. Activity levels have increased due to the boost in order inflow.
Global Interesting News
Surge in freighter orders by carriers, despite ‘paradigm shift’ in air cargo Read More
Polar Air Cargo ‘was the victim’ in ‘illegal payments’ case Read More
Plunging airfreight rates and no post CNY pick-up: ‘the end of globalisation?’ Read More
Small airlines bottom of the pile for SAF Read More
South African cargo airline Suid poised for launch Read More
Qantas plans to add more freighters Read More
IAG Cargo to charge for paper air waybills Read More
Cosco opens sea and air logistics centre in Guangzhou Read More
Hong Kong Airport aims to further enhance sea-air services Read More
Kuehne+Nagel partners with Birmingham-Shuttlesworth Airport Read More
EV Cargo becomes sole shareholder of Allport Netherlands Read More
Kuehne+Nagel partners with Birmingham-Shuttlesworth Airport Read More
US air cargo sector concerned over stricter screening rules Read More
DHL Express launches GoGreen Plus Read More
Network Airline Management transports relief aid to Turkey with B747F flights Read More
UPS providing relief supplies to Turkey via Cologne-Istanbul airbridge Read More
Oman Air Cargo highlights Oman’s logistics capabilities to major international air freight partners Read More
Emirates SkyCargo and Air Canada Cargo sign agreement to enhance networks and reach Read More
Etihad Cargo expands European capacity Read More
Spright orders 40 Blueflite drones Read More
Canada’s Edmonton Airport eyes expanded drone services Read More
FedEx pilot leaders set the stage for possible strike Read More
A Positive Outlook for Aviation & The Importance of Being a Socially Responsible Airline Read More
Formula 1 announces Qatar Airways as new Global Airline Partner in multi-year deal Read More
Chinese cargo airline SF invests in airframe repair station Read More
Qatar Airways Cargo Partners with INOMAD, an all-in-one Air Cargo Platform Read More
Kuehne + Nagel looks to grow share of Southeast US air cargo market Read More
American Airlines Cargo partners with BioNatur Plastics Read More
American Airline Cargo transports Fresh Flowers Read More
CMA CGM extends air cargo service to Shanghai Read More
Kuehne+Nagel offers a SAF option with Lenovo Read More
New series talks about air freight consolidation Read More
CargoAi unveils new payments solution Read More
Apex Logistics welcomes the last Queen freighter Read More
Qatar Airways Cargo enhances Courier service; increases service between Munich and Doha Read More
Why a ‘dramatic’ drop in freight rates is ‘double-edged’ for procurement Read More
Ocean carriers ‘boxed in’ by 5m teu surplus equipment mountain Read More
Euro/US exporters back in favor as carriers seek backhaul cargo Read More
Containership lay-ups continue to spike as demand slump rolls on Read More
Cross-alliance cooperation on the increase as the market weakens Read More
Worker shortages won’t be solved by more pay, a career path is key Read More
More blank sailings and detours as ONE’s volumes, and earnings, fall Read More
Li-ion batteries pose a risk to freight ro-ro services Read More
Ukraine wants to insure ships to promote exports Read More
Maersk stuck with ghost ship in Russian port Read More
‘Colossal’ tidal wave of new container ships about to strike Read More
BlueCargo raises $11M to bring visibility to drayage fees Read More
Greece-owned tankers ship Russian cargoes from Baltic ports Read More
Maersk Sues Evergreen Over Suez Canal Blockage Read More
Port of Los Angeles and Port of Long Beach report January volume declines Read More
Traxens upgrades container tracker to meet new explosion safety requirements on ships Read More
Jeddah Port scoops Port of the Year Award beating top international rivals Read More
Maersk Supply Service seals cable layer contract extension with Seaway 7 Read More
New capacity enters ‘thriving’ Russian container sector Read More
HMM creates a digital system to track and move empty containers Read More
Hapag-Lloyd kicks off retrofits of 100 ships with new propellers and bulbous bows Read More
CMA CGM books another dozen 13,000 teu methanol-powered ships Read More
Hapag-Lloyd agrees on LNG supply deal with Shell for 12 new vessels Read More
Maritime Gateway Releases the South Asia Container Market Report 2022 Read More
IAG Cargo adds Heathrow to Amsterdam freighter capacity Read More
Road feeder services getting closer to zero emissions with electric project Read More
How dire are electric truck maker Nikola’s finances? Read More
Borderlands: Nearshoring creates booming demand for border logistics facilities Read More
Falling used truck prices push largest dealership network to sidelines Read More
Is FedEx Ground looking to zero out 3rd-party influence? Read More
Dynamic pricing is heading LTL’s way — or is it? Read More
Can electric trucks make sense for digital brokerages? Read More
South Africa’s Transnet looking for partner to operate Joburg/Durban rail corridor Read More
WiseTech brings in rail game with $414m purchase Read More
Europe: the rise in road transport prices comes to an end Read More
Top PE investor buys up majority of ambitious Scan Global Logistics Read More
Gebrüder Weiss announces a new location in Albania Read More
Russian carrier and 22 ships added to US sanctions lists Read More
4th consecutive weekly drop posted for benchmark diesel price Read More
Pandemic exposed global pharmaceutical supply chain’s fragility Read More
Target announces massive supply chain investment Read More
Bangladesh Shipping Corporation to Get $22.48 Million for Ship Hit by Missile in Ukraine Read More
DMB Takes Over the Anschütz Group Read More
Herman Senior Acquires ST Marine Support Read More
Keppel and Sembcorp yard merger completed Read More
Industrial improvement in China amid global recession Read More
Thailand plans multi-billion-dollar infrastructure investment to boost economy Read More
Asian liner SeaLead opens more India-centric connections amid growth expectations Read More
CMA CGM announces updated rates from Indian Subcontinent, Middle East Gulf, Red Sea and Egypt to USEC and US Gulf Read More
Yusen Logistics supports Baseball Equipment Donation Project Read More
Saudia and WFS seal cargo handling deal Read More
The market, yet again, is shifting on multiple levels Read More
TAPA EMEA achieves cargo security milestone Read More
Dronamics raises $40 million in pre-Series A funding to launch Europe’s first middle-mile drone deliveries Read More
FedEx invests €11.7m in new Cork facility Read More
Maersk to promote logistics leg with expansion of inventory space Read More
DHL announces Southern California expansion into new Redondo Beach facility Read More
Locus Launches ‘Last-Mile Maturity Assessment’ For Enterprises to Level-Up Their Strategies Read More
Why Enterprises Must Prioritize an End-to-End View of Last-Mile Operations to Remain Competitive Read More
Walmart’s store-fulfilled delivery sales nearly triple in two years Read More
Wayfair cancels plans for Houston fulfillment center Read More
Target plans $100M investment to expand next-day delivery Read More
DACHSER strengthens its logistics centre in Bremen Read More
Companies Are Slow to Adopt Robot-Operated ‘Dark’ Warehouses Read More
Aramex takes next mile in drone, bot deliveries Read More
Why we continue to expand our Warehouse network Read More
Kuwait government orders Agility to vacate logistics parks Read More
Small Press Distribution Launches GoFundMe to Support New Operating Model Read More
Order Picking Accuracy Speeds Up Distribution Read More
Sainsbury’s to shut two Argos warehouses as it ‘modernises’ logistics, 1,400 roles impacted Read More
Target and Solo Cup are opening huge warehouses in the southwest suburbs Read More
Ocado pauses building new warehouses as annual losses balloon to £500m Read More
Maersk advances warehouse fulfillment speed with new software and scanning technology Read More
Public invited to have a say on plans for ‘huge’ warehouse and logistics development outside Spalding Read More
Rooker sells Williams-Sonoma warehouse for $20.7 million to investor Read More
Family-run haulage and warehousing specialist joins major distribution network Read More
DAS Companies, Inc. continues to grow with official opening of new warehouse Read More
Battery Energy Storage Systems Market Size Will Attain USD 52.9 Billion by 2033 Owing to the Ongoing Grid Modernisation | Future Market Insights. Inc. Read More
Audi Volkswagen Middle East Announces Collaboration With DHL In The Middle East Read More
Trade and Customs News
Cyprus axes ships as EU targets Dubai Sovcomflot operations Read More
First Russian clean cargoes to Brazil signal shift in global diesel trades Read More
Sanctioned Russian ship departs Indian waters after failing to unload cargo Read More
Australia Bans MSC Containership Over Safety Deficiencies Read More
Spain Detains Oil Tanker Over Mediterranean Fuel Spill Read More
Danish-operated Tanker Seeking New Port After Spanish Entry Ban Read More
ATA and U.S. Chamber of Commerce commend FHWA on revised infrastructure funding memo Read More
US hits Russia with 200% aluminum tariff Read More
Legal reforms key to achieve global trade digitalization – Chris Southworth, ICC UK Read More
CargoX and CEBS launch partnership to help customers migrate from TradeLens Read More
Bills of lading will be 100% electronic by 2030 – DCSA member lines commitment Read More
Argentinean taxation on waterways increases demand by port of Paranaguá Read More
Relief Efforts in Turkey, Syria Face Logistical Hurdles Read More
Teleport sets eyes on Australian exports with Wexco Read More
China-EU rail freight: a highly sensitive market Read More
QBE says US$9mn insurance row based on fake commodity trades Read More
Sanction risks fail to stop carriers’ gold rush in Russian trade Read More
E-commerce Logistics News
Returns a costly and speeding juggernaut for Amazon and parcel carriers Read More
Amazon contractor ATSG expects cargo jet usage to dip 5% in 20233 Read More
Amazon closes, cancels more warehouses as cost-cutting persists Read More
Amazon expanding same-day delivery service Read More
FedEx Express to lean on third-party carriers for less urgent shipments Read More
Target And Amazon Sharpen Their Delivery Weapons Read More
Sam’s Club Adding Distribution Centers to Speed Up Online Fulfillment Read More
Shopify Bulks Up Online Fulfillment Logistics Services Read More
DHL and Cainiao join forces in Poland Read More
Lödige Industries to deliver smart material handling system for Cainiao Smart Gateway Read More
FedEx delivers critical aid to Turkiye/ Syria Read More
NimbusPost Collaborates with ClickPost to Streamline eCommerce Logistics Experiences Read More
A.P. Moller – Maersk and Mawani break ground for Saudi Arabia’s largest Integrated Logistics Park at Jeddah Islamic Port Read More
SMEs to benefit from fuller e-com solution Read More
China’s JD.com to shut e-commerce sites in Indonesia, Thailand Read More