Newsletter – March 3, 2021
AIR FREIGHT UPDATES
A leaner, more efficient air cargo market post-Covid – but more expensive
Covid-19 has created a slimline and more efficient – if more expensive – air cargo sector.
While volumes are now broadly the same as a year ago, capacity remains significantly down, revealing more efficient use of aircraft.
Dynamic load factors, according to Clive Data Services, are eight percentage points higher than in February last year, and six points higher than in February 2019. Read more here (login required).
IATA: Air cargo demand beats 2019 levels in January
Air cargo volumes returned to pre-Covid levels in January with demand even increasing compared with 2019 levels for the month.
The latest statistics from IATA show that air cargo volumes in cargo tonne km terms were in January up by 1.1% compared with 2019 levels and 6.1% year on year.
Meanwhile, capacity for the month was down by 19.5% compared with 2019 and 19.3% on last year. Read more here.
OCEAN FREIGHT UPDATES
Singapore Port Faces Container Congestion amid Surge in Vessel Calls
Container vessels planning to berth at the Port of Singapore are now facing longer wait times. One source estimated that this has grown to five to seven days from a maximum of two days to turn around an 18,000-TEU vessel.
“There is a lot of port congestion in Singapore, which is one of the biggest factors,” a freight forwarder based in Singapore said. Vessels calling at Singapore have not departed on time since September, the forwarder said. Read more here.
India to spend $82bn on port development
India will make investments totaling $82bn in various port projects by 2035 in order to boost the country’s maritime sector.
Speaking at the Maritime India Summit, India’s prime minister Narendra Modi revealed that the projects will promote clean renewable energy in the maritime sector, develop waterways, and boost tourism as part of his government’s port-led development. Read more here.
Why panamaxes spiked
The Metal Ox is certain and very strong willed but is also blunt and direct in their views and is not afraid to say what it really thinks. The same goes for Splash Extra, as it goes for the captain of the now-scuttled and ashamed Wakashio. Read more here.
No relief for perishables shippers: reefer rates will stay high into summer
From 1 April, Hapag-Lloyd will raise rates for general and reefer containers from Egypt to Latin America, while higher rates will kick in at MSC for cargo going from Australia, the Middle East and the Indian subcontinent to the US as well as from the US to Latin America.
Yesterday’s announcements mark the latest increases in reefer rates and spell further grief for perishables shippers. Read more here (login required.
GROUND AND RAIL UPDATES
Transportation capacity sees ‘accelerated contraction’ in February
A February survey of logistics executives showed growth in the supply chain is “increasing at an increasing rate.”
The Logistics Managers’ Index, a reading on changes in several areas of the supply chain, increased 4.2 percentage points during February to 71.4%. The reading was notably higher than the historical average of 62.7% and well above the February 2020 level of 52.6%. Read more here.
INTERNATIONAL BUSINESS- GOVERNMENT UPDATES
Taiwan Factories Face Worst Supply Chain Delays on Record
Factories in Taiwan faced the longest delays on record in securing raw materials and components in February as they worked overtime to keep up with surging demand from clients overseas.
Manufacturers cited low stock levels at suppliers, a shortage of freight containers and delayed shipping schedules as main reasons for the biggest delays since records began nearly 17 years ago, according to a report by IHS Markit Tuesday. This comes as the Purchasing Managers’ Index rose to 60.4 last month, the highest level since April 2010, fueled by improved demand from China, Europe and the U.S. Read more here.