Market Updates for Supply Chain and Logistics Market – June 2023
Table of Contents
Highlight: MSC Leading the Way with a 5 million TEU Fleet, Securing Global Dominance in Container Shipping
MSC has reached a significant milestone by surpassing a fleet size of 5 million TEU slots, establishing itself as the leading container shipping company globally. This achievement, accomplished within a short timeframe and without relying on mergers or acquisitions, sets MSC apart from its competitors. With projections to exceed 6 million TEU by 2024, MSC is well-positioned to maintain its independent global network while selectively collaborating with partners. Despite the industry’s trend of slower vessel speeds, MSC’s accomplishment demonstrates its unwavering dedication to providing exceptional service and capacity amidst the evolving challenges of the shipping industry.
Ocean Freight Updates – June 2023
| Key | |
| ++ | Strong Increase |
| + | Moderate Increase |
| = | No Change |
| – | Moderate Decline |
| — | Strong Decline |
Outbound
Middle East – North America
The available capacity in the Gulf region is limited, but rates show an upward trend for this trade lane.
Capacity — (+)
Rate — (+)
Middle East – Asia
Capacity remains stable for this trade lane as Gulf services continue to recover from seasonal demand fluctuations.
Capacity — (=)
Rate — (=)
Middle East – Europe
Spot rates are increasing for this trade lane, and capacity is tightening in the Gulf region.
Capacity — (=)
Rate — (+)
Middle East – Latin America
Spot rates are rising month over month for this trade lane, and Gulf services are still experiencing a rebound in seasonal demand.
Capacity — (+)
Rate — (+)
Inbound Updates
Asia – Middle East
Market growth and carrier blank sailings are driving rate increases in this trade lane. While the East MED market remains strong, the effectiveness of GRI plans is limited due to additional capacities offered by small carriers, which adequately meet market demand.
Capacity — (-)
Rate — (+)
Note: Equipment availability in the region is generally manageable, but there is a shortage of 20’GP containers, particularly in North China.
North America – Middle East
The Mideast market is characterized by intense competition, leading to decreasing rates and more concessions on side conditions.
Capacity — (=)
Rate — (-)
Latin America – Middle East
Export rates from Central America are experiencing a significant decline, with Mexico’s export rate to the Middle East softening.
Capacity — (=)
Rate — (-)
Note: Vessel availability is not an issue.
Europe – Middle East
Rates in this trade lane are decreasing, and equipment availability is not a concern. Capacity to the East MED is also available, while rates for short and long-term contracts continue to soften.
Capacity — (=)
Rate — (=/-)
Note: Sufficient space is available.
Air Freight Updates – June 2023
Demand: Despite overall low volume, certain trade lanes are witnessing month-on-month growth. Additionally, there is a slight rise in outbound hi-tech demand from the Asia Pacific region.
Capacity: Despite the low volume, there is an adequate capacity available, particularly with increased passenger and belly capacity. Globally, capacity has increased by 14% without notable backlogs.
Rates: Competitive spot rates prevail across most trade lanes, with a slight upward trend in some countries. Looking ahead, long-term rates are expected to stabilize in the second half of 2023.
The Middle East and Air Carriers
In April 2023, Middle East carriers recorded a year-on-year decline of 6.8% in cargo volume. Although this reflects a slight deterioration compared to the previous month (-5.5%), the capacity has increased by 10% compared to April 2022.
Asia
In Asia, the industrial-level Air Cargo Load Factors (CLFs) are experiencing a downward trend due to softening air cargo demand and the recovery of belly cargo capacity on passenger flights. While air cargo demand decreased in March, the rate of decline has slowed, indicating a market improvement. Furthermore, the capacity for air cargo increased by 9.9% on a year-on-year basis, driven by the rise in belly-hold capacity from passenger aircraft.
The strength of air cargo drivers, particularly trade and manufacturing exports, continues to weaken as global new export orders remain sluggish throughout the year.
America
In the Latin America region, the inbound capacity is deemed sufficient, and rates are showing a decline accompanied by higher passenger numbers (PAX). Conversely, outbound rates are increasing due to elevated cargo volumes during perishables and flower seasons.
Meanwhile, in North America, direct passenger flights between the United States and China have decreased by 73% this year. Currently, US-based airlines are limited to 12 round-trip flights to China. As a result, air freight demand between the two countries remains relatively low, but still manageable with the existing capacity. If additional capacity is introduced, air rates are expected to decrease even further.
Europe
The European market remains affected by inflation, higher interest rates, and geopolitical factors. During the specified period, global air freight volumes in this region decreased by 11.1%, while capacity increased by 4.5% compared to the previous month.
Rate developments in April displayed inconsistency, with certain countries witnessing a decline in rates due to reduced pressure on the supply chain. Conversely, other countries observed minimal to no change, reflecting the unpredictability in supply and demand dynamics.
United Arab Emirates’ Shipping Local News – June 2023
Valued customers are hereby notified that effective July 1st, 2023, a General Rate Increase (GRI) will be implemented for all cargo loaded from the Middle East to destinations including the USA East Coast, USA Gulf Coast, USA West Coast, and San Juan. Read More
Hapag-Lloyd would like to inform customers about an important update concerning the Marine Fuel Recovery (MFR) surcharge. The MFR, applicable to all container shipping trades, will have new values in effect for sailings commencing on July 1, 2023. The MFR will be clearly indicated as a separate surcharge on customers’ invoices and Bills of Lading. Read More
Effective from May 15th, 2023, the Gambian government has mandated the requirement of a Cargo Tracking Note (CTN) certificate for all exports, imports, and in-transit shipments to and from Gambia. This regulation is applicable to all cargo transactions involving Gambia. Read More
Maersk is currently transitioning to the SAP S/4HANA financial system and has updated the credit note issuing process. As a result, multiple partial credit notes will be replaced by a completely new invoice reflecting revised charges. Support is available to address any inquiries or concerns during this transition period. Read More
In order to enhance service delivery and streamline the process, customers are now required to submit all invoice dispute requests through the CMA portal starting from May 15th, 2023. This change is intended to provide convenience and facilitate smoother business operations for customers. Read More
Global Factory Output – June 2023
The Drewry’s World Composite Index (WCI) experienced a slight decrease of 0.2% in the last week of May 2023, reaching a value of $1,682.10 per 40-ft container.
United States of America USA
In the United States of America (USA), the Composite PMI for May 2023 increased to 54.5, indicating a significant expansion in the private sector, the highest since April 2022. The service sector witnessed strong growth due to increased demand, while manufacturing production showed minimal growth. Employment levels rose, and input prices for manufacturers declined for the first time in three years. Improved business expectations were driven by anticipated growth in demand and investment.
United Kingdom UK
In May 2023, the UK Composite PMI recorded a decrease to 53.9, indicating a slowdown in the growth of the private sector. The manufacturing sector experienced a decline in output for the third consecutive month, while the service sector saw a deceleration in expansion, despite robust demand in the consumer services segment. Challenges such as budget constraints, economic uncertainty, and increased borrowing costs contributed to a decline in business optimism.
China
In April 2023, the Caixin China General Composite PMI declined to a three-month low of 53.6. Both the manufacturing and service sectors witnessed a deceleration in output growth compared to the previous month. However, there were modest increases in new orders and employment levels. Notably, input cost inflation slowed due to lower manufacturing input prices, and there was a drop in output cost inflation for the first time since September.
United Arab Emirates (UAE)
The UAE Purchasing Managers’ Index (PMI) has demonstrated a consistent upward trend, signaling a robust expansion in the non-oil economy. This growth can be attributed to the rise in new orders coupled with a decline in inflationary pressures. Notably, companies employed price promotions, resulting in a substantial increase in sales. Furthermore, proactive measures to enhance services and strengthen marketing efforts have contributed to a significant expansion in overall activity. Additionally, employment figures have shown an upward trajectory, and the overall confidence for future activities has reached its highest level since September 2022.
Global Interesting News – June 2023
Freight News
Air
IATA: Air cargo market decline slows in April Read More
Nauru Airlines plans nonstop service to Guam Read More
Cainiao trials IATA’s ONE Record system successfully Read More
WFS opens air cargo terminal in BLR Read More
Belly cargo capacity to surge on trans-Atlantic routes this summer Read More
Qatar Airways Cargo, Envirotainer to provide sustainable pharma shipping Read More
Swissport refines cool chain solution at Nairobi air cargo center Read More
Menzies Aviation expands partnership with i6 Read More
IAG Cargo officially launches state of the art cargo handling facility Read More
FedEx launches FedEx Innovation Lab to fuel digital capabilities Read More
Cargo iQ joins forces with FIATA and ASA to drive global standards across all sectors in air cargo Read More
Korean Air gains IATA CEIV battery certificate Read More
Air Partner and Worldwide GSA join forces in APAC Read More
Airlines that adapt quickly will survive likely freight pain in H2 Read More
Cathay Pacific nears Boeing 777-8F freighter order Read More
Boeing looks to sell at least 150 737 Max jets to Riyadh Air – Bloomberg News Read More
Flydubai and Air Canada announce a codeshare partnership Read More
FedEx agrees to tentative deal with pilots Read More
AIR FRANCE Chooses PORSCHE for Exclusive Car Transport at the Airport Read More
LATAM Cargo, Kuehne+Nagel and Elite Flower invest in sustainable aviation fuel (SAF) Read More
Ethiopian Cargo partners with digital enabler cargo.one to lift off its digital sales Read More
Airport Master Planning seminar for Kazakhstan’s airports Read More
Abu Dhabi Airports Free Zone Reports a Two-Fold Increase in Leased Out Spaces and Properties Read More
Qatar Airways Cargo launches Kigali Africa Hub in partnership with RwandAir Read More
Bolloré Logistics launches new Air Charter Service Read More
WFS grows partnership with Qatar Airways Cargo Read More
Ocean
Kenya to shift 50% of horticultural exports to sea freight Read More
Freight slump does not stop US inland ports’ advance Read More
Carriers look for trade mix to stay in the black Read More
Alliance rivals ready to cash in if 2M divorce gets messy Read More
Carriers struggle to hold transpacific GRIs as rates come under pressure Read More
Ocean trade emerges from pandemic haze to face new realities Read More
CMA CGM attempts peak season surcharge for India-US trade Read More
Piracy and maritime crime incidents on the increase Read More
DP World granted millions of euros to expand Black Sea port Read More
UN to begin emptying dangerous tanker vessel of oil in the Red Sea Read More
Ukrainian grain exports inactive despite corridor renewal Read More
Spain fines ship that caused concerns for Maersk Tankers Read More
Improving time schedule reliability for container ships Read More
Union Pacific expands intermodal service at Port Houston Read More
Freight Industry must Resist the Tidal Wave of Drug Smuggling Read More
Technology Solutions from Israeli-Based Docktech Improving Freight Movement Through the Global Port System Read More
CMA CGM Acquires La Méridionale, New Ship Orders Planned Read More
Ukraine Says Russia Prevents Black Sea Grain Deal Port Operating Read More
LNG bunker costs now competitive Read More
DHT bags 2018-built VLCC for $94.5m Read More
Positive developments in container safety in liner shipping – World Shipping Council Read More
GEODIS Announces Acquisition of Southern Companies Read More
2 ocean carriers fined for Ocean Shipping Reform Act violations Read More
Cargo ships lost 661 containers at sea in 2022, WSC report says Read More
ONE increases Africa, India, Middle East service frequency to weekly Read More
MSC adds King Abdulaziz Port to Upper Gulf Express service Read More
DP World launches CARGOES Community vessel status dashboard in Saudi Arabia Read More
DP World launches first direct ferry service between UAE and Iraq Read More
Ground
Shippers, regulators muddle through ‘grey area’ of rail storage fees Read More
California Dems lobby DOT for $700M electric truck charging project Read More
FRA proposes rules for certifying train dispatchers, signal employees Read More
Canadian Pacific Kansas City expands Mexico intermodal reefer rail service Read More
Hylane adds Iveco as FCEV supplier with €25 mn funding boost Read More
Tracking the speed, dwell and cars of Class I railroads Read More
Truckers threaten to boycott Florida over migrant crackdown Read More
Flexport Taps Uber Freight Executive to Build Truck Brokerage Read More
Europe: general decline in road transport prices Read More
Road container transport: merchant haulage makes its comeback Read More
Rail data shows reality of current supply chain Read More
PSA and Kazakhstan Railways sign Trans-Caspian rail corridor pact Read More
Gulf railway project: Saudi Arabia in talks for a railway link with Kuwait Read More
Etihad Rail map: Unveiling the UAE’s $3 bln railway network Read More
Etihad Rail, DHL enter new major partnership agreement Read More
Oman and Etihad Rail Company ink logistics agreement with mining giant Vale Read More
Other
Cargo thefts up 41% in first half of 2023 Read More
Consultant’s Insight: Reshaping globalization through nearshoring Read More
Cold chain technology: Ensuring temperature control during air transportation Read More
Global IoT Communication Protocol Market to Surpass US$ 24.6 Billion by 2032 Amid Skyrocketing Demand for Smart Home Appliances Read More
Top Shipper of Russian Oil Secures Indian Cover as Western Certifiers Exit Read More
Singapore logistics service provider Janio secures fresh funding Read More
Saudi Arabia and U.K. Ink Critical Minerals Supply Chain Deal Read More
Ford inks long-term lithium supply contracts Read More
How a DHL center in Seattle moves 4,000 packages daily Read More
Nike CFO takes on procurement oversight Read More
Maersk opens supply chain innovation center Read More
AI opens new frontier in supply chain planning Read More
Logistics providers expand operations in Mexico, leveraging nearshoring as a strategy Read More
Shein invests $70M toward upgrading its supply chain Read More
Maersk Warns of a Downturn in Global Trade Read More
Building a transparent, traceable, and sustainable Middle East food supply chain Read More
3PL News
Pros and Cons of Using AI for Inventory Forecasting Read More
Wingcopter, Germany’s drone delivery startup, raises another $44M from the EIB Read More
Cold-chain startup Figorr raises $1.5M, backs the rollout of data-driven perishables insurance Read More
Delhivery agrees to invest in SaaS provider Vinculum Read More
Drone Delivery Startup Zipline Boosts Valuation To $4.2 Billion Read More
UPS Healthcare Opens New Logistics Facility in Singapore Read More
Deutsche Bahn Open to Strategic Buyer for Schenker Read More
Wood vs. plastic: Which pallets are more sustainable? Read More
FedEx Express ramps up robotic arms use at its Memphis World Hub Read More
Nippon Express opens Temperature-Controlled Warehouse in Shanghai Read More
5 Key Steps to Optimize Across Modes for Last-Mile Delivery Read More
As back-to-school, holiday orders begin, this is what may be the new ‘normal’ in peak retail trade season Read More
Amazon doubles storage capacity with new fulfilment centre in Riyadh Read More
Qatari SARCO to set up $50mln logistics centre in Oman Read More
Trade and Customs News
Passenger Car Price in UK Increases to $36,155 per Unit Read More
U.S. Prisms and Mirrors Export Soars to $109M in March 2023 Read More
Recession in Germany to Cast Shadows on Europe’s Peak Season Imports Read More
Panama Canal Imposes Shipping Restrictions to Cope With Worsening Drought Read More
As trade grows, US and Mexico race to invest in ports of entry Read More
Convoy Beverage Alliance joins Northeast Florida’s Foreign Trade Zone Read More
US government warns trade finance lenders over breaches of Russia export controls Read More
Ecommerce Logistics News
Flexport eyes global e-commerce market with Shopify takeover Read More
Amazon Turns to AI to Weed Out Damaged Goods Read More
Shopify to Lay Off 20% of Its Workforce as It Sells Logistics Business to Flexport Read More
NAP, ATEM launch NeX e-commerce supply chain logistics network Read More
Saudi logistics: CJ Logistics to set up global e-commerce centre in Riyadh Read More
The future of e-commerce tech and SaaS logistics in third party logistics companies Read More
WEE Marketplace Taps into UAE’s 12.7 billion USD E- Commerce Market with Its Quick Delivery Service Read More
Swisslog Will Showcase Cutting-Edge Automation Solutions for E-Commerce and Retail Industries at Seamless Middle East 2023 Read More
