Market Updates for Supply Chain and Logistics Market – June 2023 

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 

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