freight news Archives

Overhead view of dock crane unloading containers from a cargo ship

November 16, 2022

Logistics Market Update – November 2022

Logistics Market Update – November 2022 https://transmodal.net/wp-content/uploads/ocean-freight-non-vessel-operating-common-carrier.jpg 690 518 Transmodal Transmodal //transmodal.net/wp-content/uploads/transmodal-logo_dsktp2x.png November 16, 2022 November 16, 2022

Here’s our November 2022 Logistics Market Update.

Earlier this month, an issue of the Global Port Tracker shared that retailers are not feeling optimistic. The prediction is that this month’s containerized imports will drop 9.2% in comparison to November 2021. Further, December imports are expected to drop 9% year-over-year, and this downward trend will continue through March 2023 at least.

Click to Read the full article: https://www.joc.com/maritime-news/container-lines/us-retailers-lower-import-forecast-amid-demand-decline_20221108.html

China’s zero-COVID policy continues to put pressure on its economy—which has slipped for the third month in a row. A senior economist from Caixin Insight Group states that “manufacturing activity was still way down by COVID-19 outbreaks,” and added, “both output and new orders saw further declines.” COVID restrictions prompted 200,000 Foxconn workers across a Zhengzhou complex called iPhone city to flee to escape lockdowns.

Click to Read the full article: https://theloadstar.com/china-manufacturing-slips-for-third-month-in-a-row-as-zero-covid-policy-bites/

In air freight news, the industry remains optimistic in the face of falling air cargo rates. Some levels have dropped to below 2021 rates and continue to fall. The good news is, they aren’t at recessionary levels yet. The industry hopes that demand will return in March, but no one is holding their breath.

Click to Read the full article: https://theloadstar.com/airfreight-a-tough-few-months-but-demand-could-return-in-march/

The drop in consumer demand is being felt around the world. Asia-Pacific airlines have seen a drop of more than 10% year-on-year in demand in September. The director general of the Association of Asia Pacific Airlines (AAPA) says, “The outlook for the cargo market remains subdued in the near term. Overall, the region’s airlines continue to face a challenging operating environment, with costs under pressure as a result of high fuel prices and weak local currencies.”

Click to Read the full article: https://theloadstar.com/sudden-slump-in-demand-leaves-asia-pacific-air-cargo-carriers-in-limbo/

For those who work on the high seas, the Delivering on Seafarers’ Rights progress report was published, thanks to the Sustainable Shipping Initiative. A progress report was written based on an October 2021 Code of Conduct and self-assessment questionnaire. The purpose of the assessment was to look into the welfare and rights of seafarers to identify areas where improvement is necessary.

Click to Read the full article: https://safety4sea.com/new-report-marks-progress-regarding-seafarers-rights-and-welfare/

July 26, 2022

Logistics Market Update – July 2022

Logistics Market Update – July 2022 https://transmodal.net/wp-content/uploads/cargo-insurance.jpg 690 518 Transmodal Transmodal //transmodal.net/wp-content/uploads/transmodal-logo_dsktp2x.png July 26, 2022 July 26, 2022

Sluggish supply chains could get even slower going forward. The green shipping initiative has had the industry concerned about increased costs, but now decreased speed could be a factor as well. This is because of the lack of insight shipping companies have into what type of fuel they’ll need to use. To offset that lack of knowledge, they’ll continue to use older vessels. The problem is that those vessels will need to run more efficiently and that could translate into them sailing at slower speeds.

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For some good news on the high seas, the ICC International Maritime Bureau (IMB) reports that the period between January to June 2022 had the lowest incident rate of piracy since 1994. Of the 58 incidents reported—there were 68 in the same period in 2021—there were 55 boardings, two attempted boardings, and one hijack. Despite the lower numbers, the IMB reminds the industry that it’s not the time to be complacent since the number of boardings remains high.

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California’s AB5 law has truckers protesting. The law restricts independent owner-operators, forcing them to be reclassified as employees. In response, a protest at the Port of Oakland forced its closure. Truckers blocked gates and access to the port’s container terminals. West Coast ports are already dealing with congestion and contract negotiations, so this new issue adds more stress to an already fragile supply chain.

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Speaking of ships, in a world of super-sized container vessels, the tide has turned—at least in the commodity trades market. Small ships are outperforming larger vessels by a significant amount. According to a report from Clarksons Platou Securities, Spot employment for smaller bulk commodity ships costs more than for larger ships — in most cases, a lot more.

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Moving to the East Coast, ports there are starting to deal with the same pain West Coast ports have been facing since early in the pandemic. Ships that are hoping to escape the congestion issues at the Ports of LA and Long Beach are moving east and shifting congestion at the same time. The McCown Report by Blue Alpha Capital states that the number of container ships waiting for a berth on the East Coast is much higher than usual, despite an overall drop in the number waiting country-wide.

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