October 2023 Updates for Supply Chain and Logistics Industry   

Highlight in the Logistics Industry: New Vessel Deliveries

According to Alphaliner’s orderbook projections, 2024 is poised to break delivery records as numerous carriers placed substantial vessel orders during the robust years of 2021 and 2022. During these same years, scrapping activity remained minimal. 

Industry experts anticipate that new vessel deliveries will continue at elevated levels in the current year and the next. However, the combination of a weakening economy and a sluggish cargo market may lead to postponed vessel handovers and an increase in vessel scrappage. 

Ocean Freight Highlights – October 2023

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

Outbound

Middle East – North America

Ample capacity is available on routes USEC and USWC, with consistent spot rates month after month. The IN2 service to JED offers quicker transit times. 

Capacity — (=) 

Rate — (=/-) 

Middle East – Asia

Open allocations characterize this trade lane. Spot rates are on a downward trend, while overall rates remain relatively flat to decline. Adequate space is accessible.  

Capacity — (=) 

Rate — (=/-) 

Middle East – Europe

Rates are experiencing a slight uptick departing from the Gulf. Despite the Middle East being a major volume destination for Europe, space remains readily available. 

Capacity — (=) 

Rate — (+) 

Middle East – Latin America

Spot rates are declining on this trade route, but there’s ample space for most carriers to operate. 

Capacity — (=) 

Rate — (=/-) 

Inbound Updates

Asia – Middle East

Anticipate an increase in blank sailings during the Chinese Golden Week, particularly towards East Med and the Middle East, as a response to reduced demand and to maintain rate stability. Additionally, expect a 30% reduction in capacity for the Middle East region.  

Capacity — (–) 

Rate — (+) 

North America – Middle East

MSC is introducing a new port call in Dubai, SA. While there are regular blank sailings from South Atlantic ports, more options are becoming available on the Northeast Coast despite space constraints. 

Capacity — (=/+) 

Rate — (-) 

Latin America – Middle East  

Rates are generally steady with a slight decline, but space remains unpredictable due to equipment shortages originating from Colombia. 

Capacity — (=) 

Rate — (-) 

Europe – Middle East

Currently, there are no capacity issues on this trade lane, with carriers welcoming additional bookings. However, rate levels continue to face pressure due to reduced demand. 

Capacity — (=) 

Rate — (=/-) 

Air Freight Overview – October 2023

Demand: Despite a conservative uptick, volume remains generally low, showing flat growth month after month. However, it still lags significantly behind traditional peak seasons, mainly due to high inventories and limited growth in purchasing power, which are dampening demand.  

Capacity: Present capacity meets current volume requirements adequately. Moreover, belly capacity is on the rise due to increasing passenger travel demand. Globally, capacity has increased by 10% compared to the previous year, with no notable backlogs, except in the Asia/Intra Asia outbound routes. 

Rates: The market remains fiercely competitive, with minor rate increases observed in select trade lanes. As we approach Q4 of 2023, rate stability is expected to prevail, ensuring predictability in pricing.  

The Middle East and Air Carriers

The air freight market in the Middle East has displayed signs of improvement since early August, with rates now exhibiting greater stability. According to the recent report from IATA, Middle Eastern carriers recorded a 1.4% year-on-year growth in cargo volumes for August 2023, marking a slight improvement from the previous month. Additionally, Middle Eastern airlines saw a substantial 22.6% increase in July traffic compared to the same period the previous year, with capacity expanding by 22.1%. 

Asia

As we approach the fourth quarter, the buildup to the peak season appears to be more moderate compared to the previous year. This is primarily attributed to an uptick in demand for e-commerce products in preparation for the upcoming holiday season. 

Furthermore, rates are on the rise due to elevated jet fuel prices, capacity constraints caused by flight cancellations, and increased demand for specific trade lanes driven by seasonal demand. 

America

In Latin America, there has been a notable 12% year-on-year increase in capacity compared to the previous year, and this growth trend continues, gradually reaching pre-pandemic levels. This expansion is primarily driven by freighter and integrator networks deploying more capacity. Market conditions for the last quarter of the year are expected to closely resemble the current situation, with ample capacity available to accommodate existing volumes. 

The surplus in capacity can be attributed to reduced demand, leading carriers to offer competitive spot pricing options. Despite these fluctuations, contract rates remain stable, with minimal to no adjustments. 

Conversely, in North America, the US export market maintains its stability and is anticipated to do so in the final quarter of the year. Although capacity is expected to decrease during the summer travel season, the impact will be limited due to overall low demand.  

Europe

Anticipate rate increases as carriers gear up for their winter schedules in October. However, there are no foreseen disruptions for the last quarter of 2023. All regional airports, ports, and terminals are operating seamlessly with abundant capacity. 

Shipping News from United Arab Emirates – October 2023 (H2) 

Maersk has made changes to its collections email for UAE finance, effective from September 11, 2023. Read More 

Hamburg Sud has merged with Maersk, streamlining the supply chain for seamless integration, starting from September 15, 2023. Read More 

As of September 18, 2023, the Case Registration Service on the Dubai Trade Portal has been transformed into the Complaint and Enquiry Registration Service. Read More 

In compliance with DG Order no. 01 of 2016 and recent directives from Bangladesh Customs Authorities, shippers in origin countries must provide a Verified Gross Mass (VGM) declaration when submitting Shipping Instructions (SI). For more details, click here. 

Maersk has issued requirements for shipping restricted cargo from Jeddah to Aden. For import/cross trade details, contact ae.import@maersk.com, and for export queries, reach out to ae.import@maersk.com.  

To enhance facility capacity and improve the customer experience, Dnata has introduced available delivery slots at their facilities. Starting from October 1, 2023, forwarders are required to promptly book slots upon shipment availability; failing to do so within 48 hours will result in a surcharge of AED 0.36 per Kg/Per day. For more details, click here.  

Dubai Trade has announced the upcoming launch of Digital Delivery Order (DDO) services, in compliance with Administrative Decision (No. 2 of 2023), effective from November 1, 2023. Read More 

DP World has unveiled an updated procedure for container export bookings, effective from October 15, 2023. Read More 

FlyDubai has provided details for the transportation of Lithium Batteries. For document requirements, click here, and for battery transportation guidance, check here.  

Access the UAE GCCA Dangerous Goods Certified Entities list as of September 21, 2023, by clicking here.   

GAC has released Port Safety requirements and IMDG code compliance guidelines for the import, export, and transshipment of IMCO class 8 cargo. Read More 

To ensure reliable and efficient services for customers, CMA CGM has announced Peak Season Surcharges (PSS) applicable from October 9, 2023, to December 31, 2023. For more information. Read More 

Global Factory Output for October 2023  

The Drewry World Container Index (WCI) has recently decreased by 5.1%, resulting in a new value of USD 1,404.38 per 40ft container.  

United States of America (USA)

In the United States of America (USA), September witnessed manufacturing business conditions stabilizing, leading to increased output driven by improved employment and better supply availability. However, there are concerns about sluggish production growth due to a decline in new orders, especially from weak export markets. Despite this, manufacturers maintain an optimistic outlook for future output as supply conditions improve and the order book declines moderately. On the flip side, rising producer costs, attributed to higher oil prices, are translating into increased prices for customers, contributing to inflationary pressures. 

United Kingdom (UK)

In the United Kingdom (UK), September saw the service sector experience a slight decrease in output, mainly due to subdued demand and reduced non-essential spending by clients. Despite this, business sentiment for the future remained positive, driven by hopes of alleviating inflationary pressures. However, there was a noticeable decline in employment, primarily attributed to cost-related factors, marking the sharpest rate of job shedding since January 2021. The S&P Global / CIPS UK Services PMI Business Activity Index dropped to 49.3 in September, falling below the neutral 50.0 threshold for the second consecutive month. This figure represented the lowest level since January, although it was slightly above the initial September reading of 47.2. The downturn in service sector activity was attributed to sluggish business conditions, heightened client risk aversion, and reduced demand, which was influenced by rising borrowing costs. 

China

In September, the service sector in China witnessed a deceleration in its growth momentum. Both business activity and new orders expanded at their most sluggish rates in 2023. Although there was an improvement in new export business, the overall sales growth remained modest. Confidence in the future outlook declined to its lowest point in ten months, and the pace of job creation also slowed down. Input costs increased at a slower pace, resulting in only marginal price hikes by firms. The Caixin China General Services Business Activity Index fell from 51.8 in August to 50.2, indicating a minimal expansion in activity, marking the slowest growth in nine months. 

United Arab Emirates (UAE)

In September, the UAE Purchasing Managers’ Index (PMI) exhibited signs of improvement after a three-month period of stagnation. This upturn was fueled by a substantial surge in new orders, marking the fastest growth rate since June 2019. These new orders originated from both domestic and export clients. While there was an increase in activity, it remained below previous peak levels. Notably, the rate of growth in backlogs of work slowed, and there was a deceleration in inventory and staff expansion, suggesting that there was adequate capacity to handle the influx of new orders. Non-oil companies experienced heightened demand, resulting in an uptick in purchase price inflation, although businesses continued to offer modest price discounts due to competitive pressures. 

Global Logistics and Supply Chain Updates – October 2023 

Freight News

Air

Heathrow cargo tunnel closure set to cause delays Read More 

Maersk opens Los Angeles air cargo gateway Read More 

Ethiopian adds Gatwick flights with UK freighters on the horizon Read More 

IATA: First air cargo demand growth in 19 months Read More 

Judge backs Manston Airport airfreight hub plans Read More 

Peruvian company IKSA wins cargo contract at Lima Airport Read More 

ANA Cargo to consolidate its presence at Narita with new facility Read More 

Buffalo Airways launches new freighter route in Canada Read More 

Cargolux back in the air as management and unions reach agreement Read More 

Turning Sustainability Talk Into Action & Unlocking Airport Growth with Passenger Data Read More 

Passenger Growth Across Markets in 2023, Dangerous Goods Updates & A Sense of Belonging in Aviation Read More 

dnata is first combined air services provider to receive IATA’s environmental management certification (IEnvA) Read More 

Southwest Airlines exploring ‘every pathway’ for SAF feedstock Read More 

ANA to consolidate operations at Narita Read More 

Airport CCS can bring efficiency, new customers Read More 

Airfreight rates up 0.2% last week Read More 

Qatar Cargo partners with Xiamen Airlines Read More 

Special air cargo verticals see continued growth in 2023 Read More 

Qatar Airways Cargo launches freighters to Warsaw Read More 

Air Belgium ditches passenger flights to focus on cargo Read More 

flydubai launches daily service to Cairo Read More 

Amazon downsizes cargo operations at German airport Read More 

Walmart GoLocal teams up with air cargo platform for faster transit times Read More 

Maersk boosts its global air freight services with new LA air cargo gateway Read More 

CMA CGM launches new flight between France and Egypt Read More 

Lufthansa Cargo’s A321F Expansion Takes Off in Danish Market – More Capacity, More Connections Read More 

Saudia Cargo Leads the Way with 19% Annual Growth in Pharma Deliveries Read More 

Emirates shows SAF commitment with Shell deal Read More 

Sharjah Airport now equipped to provide horse shipment services Read More 

Buffalo Airways launches Edmonton-Yellowknife ‘Special Freighter’ service Read More 

Turkish cargo operator MNG Airlines joins ERA Read More 

Ocean

‘Peak season already over’ as ocean freight rates collapse further Read More 

Little hope of 2024 upturn in box shipping trades, says Yang Ming Read More 

THE Alliance suspends transpacific service, but more capacity cuts needed Read More 

Canada-India row: Drewry sees minimal impact on dry bulk shipping Read More 

Cascading of huge vessels poses a risk to intra-Asia business Read More 

Maersk Tankers moves into new segment with latest pool Read More 

Orders for LNG and methanol ships increased over summer Read More 

Lloyd’s Register and partners have designed environmentally friendly bulk carrier Read More 

Dark fleet shipping sanctioned oil expands to 530 tankers after oil price cap breach Read More 

DP World and Maspion Group to build $1.2bn container terminal in East Java Read More 

Outline of first transpacific green shipping corridor unveiled Read More 

US spending shifts cast shadow over transpacific box shipping outlook Read More 

Ports call for policy support to boost trade Read More 

More carriers emerge as global terminal operators Read More 

Maritime Partners Acquires Maersk’s USMMI Read More 

Europe’s Ports See First Signs of Business Leakage Read More 

Port of LA, Long Beach and Shanghai Planning Trans-Pacific Green Shipping Corridor Read More 

South Carolina Ports Authority cargo volumes drop 9% in August Read More 

Sanmar becomes first customer of Maersk Tankers’ new LR1 segment Read More 

CMA CGM to enhance its ASEA KENYA service connecting Far East & Kenya Read More 

August Container Traffic Rises 4.79% at Saudi Ports Read More 

Hapag-Lloyd increases rates from Middle East and Indian Subcontinent to US East Coast and Gulf Coast Read More 

Chinese ports exceed 200 million TEUs in 2023 so far, Shanghai and Ningbo remain on top Read More 

Bunker prices return to downward trend after a month Read More  

AD Ports welcomes new Ro-Ro service Read More 

Global Freight Monitor: Dry bulk strength hinges on continued China imports Read More 

Changed conditions for 2024 container contract negotiating round Read More 

Average age of the merchant fleet now above 22 years: UNCTAD Read More 

Ground

LTL estimates move higher ahead of Q3 reports Read More 

‘More needs to be done to promote freight rail competition’ Read More 

Fuel price jump boosts rates but threatens trucking capacity Read More 

FLS Transportation acquires cross-border Mexico specialist Read More 

Trucking sees ‘green shoot’ in August Read More 

Norfolk Southern and Florida East Coast Railway expand intermodal offerings Read More 

13th Annual Rail/Intermodal Roundtable: Emerging optimism? Read More 

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

Union Pacific speeds up cross-border intermodal transit times Read More 

Fernride Raises $50M in Series A Funding Read More 

Maersk launches new weekly ocean-rail offering to better connect Central Asian markets Read More 

Maersk tests heavy-duty electric truck solutions in Latin America Read More 

MSC buys stake in Italian high-speed rail operator Read More 

Dexterity AI and FedEx Unveil First-of-its-Kind Robotics Trailer Loading Technology Read More 

How Shippers Can Successfully Navigate The Intermodal Transportation Market Read More 

Omni Transloading and Logistics Creates Direct Rail-to-Truck Transloading Service Read More 

UAE implements ban on trucks and worker buses during ADIPEC 2023 Read More 

Saudi Arabia greenlights landmark railway agreement with Kuwait Read More 

UAE warns of delays on key road due to Etihad Rail Bridge works Read More 

Other

Freighter conversion market turned on its head Read More 

EXCLUSIVE: UPS rumoured to have eyes on DB Schenker Read More 

FedEx’s belt-tightening on track… while goading UPS Read More 

Maersk insists CMA CGM deal is not a change in green strategy Read More 

Air-ocean price difference far above pre-pandemic levels Read More 

Technological advancement must be human-centered Read More 

Green Gains: DHL, Sasol invest in eSAF facility Read More 

More former Amazon execs part ways with Flexport Read More 

Industrywide digitization requires platform interoperability Read More 

BlueBox Systems offers real-time shipment visibility to WACO members in new agreement Read More 

Röhlig Logistics expands its global network Read More 

Declines in transportation prices slow again in September Read More 

China Plus One strategy offers best of both worlds for manufacturers, retailers Read More 

French DB Schenker rival aims to close “white spots” on the world map Read More 

Cargo safety initiative seeks to improve screening and inspections Read More 

Uber Freight heralds various new customer-focused supply chain technology offerings Read More 

Russia, Saudi Arabia Extend 1.3M Barrel/Day Oil Cuts to the End of 2023 Read More 

Applying AI to Supply Chain Network Design Read More 

How shippers can reduce their exposure to potential peak surcharges Read More 

DP World joins forces with Indian batting legend Sachin Tendulkar in bid to make cricket more global Read More 

MOL forges offshore wind and green hydrogen partnership with EDF Renewables Read More 

Resourcify, a platform to digitize waste management, raises €14M Read More 

Irish solar startup UrbanVolt scoops €26M for European expansion Read More 

Peel Ports cuts GHG emissions by over 30% Read More 

Noatum acquires Sesé’s Finished Vehicles Logistics Read More 

DP World welcomes new South America shipping service Read More 

Declining box trades more attractive to car industry Read More 

UPS to Acquire MNX in Bid to Bolster Healthcare Business Read More 

Commodity traders urged to seize opportunity as investment in critical metals lags Read More 

Freight Forward: Improvements in rates & volumes may be later in 2024 or 2025 Read More 

MSC tables bid to to buy 49.9% stake in Hamburg’s HHLA Read More 

SaaS Solution for Predictive Supply Chain Visibility and Mitigation Read More 

How AI is heralding a new age of port operations Read More 

UPS to hire over 100,000 workers ahead of holiday rush Read More 

Dubai’s self-driving taxis launch date revealed Read More 

3PL News  

Flexport’s warehouse plan in doubt as landlord queries its financials Read More 

C.H. Robinson opens 400,000-square-foot facility near Mexican border Read More 

Cathay Cargo adds rates, availability to Kuehne+Nagel platform Read More 

3PL, warehousing provider WSI acquires El Paso carrier Read More 

The Future of Fulfillment is Wherever You Are Read More 

Prepare Your DTC Fulfillment Operations to Thrive Under Peak Season Pressure Read More 

UPS leans on automation to boost throughput, handle repetitive tasks Read More 

AI will revolutionize packaging, but strong controls are needed: Pack Expo speakers Read More 

Denmark’s Nordic Secondary Fund delivers €3.5M funding to Estonia’s robotics logistics firm Cleveron Read More 

JOKR now valued at $800M after bagging about $50M in Series D funding Read More 

Buyandship raises $10m in first closing of Series B funding Read More 

How Warehouses Are Escaping Real Estate’s Doom Loop, in Charts Read More 

DB Schenker invests €94 million for new facilities in Ireland Read More 

cargo-partner upgrades its warehouses in Southeast Europe Read More 

CMA CGM boosts UK presence with innovation hub Read More 

The Clark electric forklift series with Li-Ion technology Read More 

How Last-Mile Delivery Software Enhances Food & Beverage Delivery Read More 

GWC unveils Phase-2 expansion of Al Wukair Logistics Park Read More 

Saudi Sadr Logistics announces new $40 million logistics complex in Riyadh Read More 

Trade and Customs News

Mexico-US trade flows checked as borders become pressure points Read More 

China’s Share of US Imports Falls to Lowest Since 2006 Read More 

Doubts over G20 economic corridor’s ports and logistics promise Read More 

US, India, Middle East and Europe commit to developing railway and ports during G20 Read More 

Retailer optimism to boost US imports Read More 

Russia Expects 2023 Trade Volumes with China to Exceed $200B Read More 

The dawn of a new trade era with the UK Electronic Trade Documents Act Read More 

WTO in Survival Mode Pushes Back on Splintering Global Trade Read More 

Trade facilitation: Countries make steady but uneven progress Read More 

EU Emissions Trading System (ETS) effective January 1, 2024 Read More 

Ecommerce Logistics News

Alternate delivery model gains traction in US but has ways to go Read More 

Third Party Logistics (3PL) providers bolster e-commerce fulfillment services Read More 

Amazon expanding program in which items ship without added packaging Read More 

E-commerce packaging reinvented: UK-based Penny Black conceals £1.5M boost Read More 

Alibaba will spin off its logistics arm Cainiao in an IPO in Hong Kong Read More 

Flexport’s new e-commerce tool to help online firms manage supply and goods delivery Read More