Newsletter – March 15, 2018
AIR FREIGHT UPDATESEvolution of retail market makes predicting demand for air cargo capacity toughersource: theloadstar.co.ukLack of data for cross-border e-commerce shipments is making it harder to forecast air freight demand, analysts warned yesterday.But, as forwarders look to book space through the year to avoid a capacity crisis like last year’s, analysts indicate that demand for air freight may slow slightly. But in the short-term, it remains strong – and the peaks are here to stay. Read more here.
Cathay Pacific racks up first back-to-back loss in 71-year history, at US$160 millionsourcee: scmp.comCathay Pacific Airways, Asia’s largest international airline, saw its net loss more than double to HK$1.25 billion (US$160 million) in 2017, marking the carrier’s first back-to-back loss in its 71-year history.The poor performance was better than many had expected however, and signalled the business was on course to return to profitability, analysts said. Read more here.
OCEAN FREIGHT UPDATESGeneral average declared for stricken Maersk Honam vesselsource: lloydsloadinglist.comMaersk has declared general average (GA) for the stricken Maersk Honam containership which caught fire earlier this month, the British International Freight Association (BIFA) has informed members in a post on its website.The trade body adds that the insurance industry is bracing itself for hundreds of millions of dollars of claims.22 crew were evacuated the majority of them being released from hospitals after receiving treatment.The Singapore-flagged Maersk Honam was en route from Singapore to Suez with 7,860 containers when the fire started on March 6. [Excerpted from lloydsloadinglist.com]
Market share gains failed to offset OOCL losses last year as new ownership loomssource: theloadstar.co.ukOrient Overseas International Ltd’s (OOIL) return to the black last year was achieved despite a loss of $12m by its container arm OOCL, ahead of its sale to Cosco.Analysis of the OOIL 2017 accounts by Alphaliner reveals that OOIL’s net profit of $138m was achieved from its property and other businesses which contributed a gain of $150m. Read more here (login required).
INTERNATIONAL BUSINESS – GOVERNMENT UPDATESChina production shift to drive air and ocean demand from other Asian countriessource: lloydsloadinglist.comThe shift in manufacturing from China to Asian countries with lower labour costs will accelerate in the years ahead, driving demand for air and ocean freight out of developing markets in South and South-East Asia while further boosting intra-Asia supply chain movements by all modes, according to Nomura.One key characteristic of the intra-regional trade in Asia’s textile and apparel market is that China has moved up the ladder of the apparel supply chain. China increasingly concentrates on supplying textile materials to South Asia which then completes labour-intensive garment production, the report explained.Countries which have seen strong recent growth in ocean and air freight demand due to the shifting production of the apparel sector will continue to benefit. Bangladesh, Indonesia, and Vietnam currently have the cheapest labour costs, for example, while India, Pakistan and Indonesia should see the largest labour supply in next ten years. All are potential beneficiaries of the move of production away from China, according to Nomura. [Excerpted from lloydsloadinglist.com]