October 2023 Updates for Supply Chain and Logistics Industry
Table of Contents
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
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 — (=/-)
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%.
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.
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.
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 firstname.lastname@example.org, and for export queries, reach out to email@example.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.
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
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
‘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
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
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
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