Table of contents
Topic of the week:
Things are finally starting to look up within the industry as rates increase after a tumultuous start to the year. Sea freight is currently the most stable it has been since 2019. Carriers were expecting a rush before the Chinese public holiday “Labour Day” lasting 5 days. As a result carriers looked to increase rates, but due to unforeseen lower demand, rates did not increase, with most carriers either extending or slightly reducing rates throughout the first half of May. In an attempt to reduce capacity, carriers continue to blank sailings in May, however current spaces are still open. The Ocean Alliance have blanked sailings on their fastest route to Felixstowe and one sailing into Southampton for the first week of May. The 2M Alliance have not blanked any sailings yet, however, they have decided to replace their usual fleet with smaller vessels in an attempt to fill capacity and increase demand and rates.
The auto export market has continued to thrive as carriers resort to moving cars in shipping containers to tackle increased demand. High demand and limited vessel space leading to increased rates has European ports reaching storage capacity forcing them to refuse to take more vehicles. Vehicle imports into Europe has ports overwhelmed, and as demand is expected to remain high, if not grow as EVs become more popular, carriers are now ordering more vessels to increase capacity.
The United Arab Emirates have implemented a new rule for port authority effecting surcharges in order to make supply chain costs more transparent. The Dubai Maritime Authority (DMA) will now require forwarders, NVOs, shipping lines and customs brokers to pre-file their container charges on the Dubai Trade Single Window Portal. Examples of charges that will need to be pre-filed include cargo loading and unloading charges, weighing, sealing, customs clearance, delivery and more. These regulations were put in place on Monday 1st May and aim to use this data to determine whether logistics stakeholders are providing fair competition and promoting best practices to clients.
Sea:
- Freightos data suggests that China/East Asia to North America West Coast rates have increased by 68% from $1,008/FEU on 14th April to $1,697/FEU.
- China/East Asia to North America East Coast have increased by 16% and are stable at $2,516/FEU.
- Global container spot prices have fluctuated over the last two weeks, but have now increase from $1406 to $1576 a 12% increase from April 14th This is still an 82% decrease from April 2022 rates, according to the Freightos Baltic Index (FBX)
- However, China/East Asia to North Europe spot rates have fallen by 2% over the last two weeks, now sitting at $1,399/FEU, 87% lower than rates for this week last year, says (FBX)
- Swiss firm AELER showcased their new container made out of composite materials that they call Unit One. Using these material instead of the traditional steel used on current containers, means that it is stronger and able to carry 28 tonnes of cargo over the usual 24. It also provides 4% less fuel consumption due to an aerodynamic design claims AELER.
- Relatively new Chinese carrier, Global Field Line (GFL), have launched a liner service from Busan port to St Petersburg, Russia.
Air:
- Beijing to UK rates are averaging around $2.61 USD/KG
- Rates from Xian to UK are averaging at $2.38 USD/KG
- Qingdao to UK rates are averaging around $2.45 USD/KG
- Rates from Chongqing to UK are averaging at $2.32 USD/KG
- Changsha to UK rates are averaging around $2.75 USD/KG
- The Envirotainer Releye RLP and RAP containers have been approved for use by American Airlines. These containers provide better temperature controlled transit solutions. American Airlines are hoping that this addition to its fleet will increase their options for shipping pharmaceuticals and other cold chain solutions.
- Etihad Cargo has announced a new weekly service from Abu Dhabi – Wuhan (Wuhan Tianhe International Airport) offering an additional 100 tonnes in capacity. The first flight commenced on April 29th.
- A new software solution that optimizes pallet loading has been adopted by Aeromexico Cargo. The software produces more accurate quotes, efficient build-up instructions and improved flight plans in order to reduce waste and improve capacity.
- Shenzhen Sharing Express Logistic-Tech Ltd (SSELT) has launched its new regular service between China and Bournemouth, UK. The route start at Chengdu Shuangliu International Airport and land at Bournemouth Airport.
That’s all for this week’s update…
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