Newsletter – November 22, 2023

AIR FREIGHT UPDATES

Mother nature helps push up airfreight rates
aircargonews.net
Airfreight rates continued to rise last week as weather conditions, volcanic activity and wars put capacity under pressure.
The latest figures from TAC Index show that the overall Baltic Air Freight Index was up 4.6% in the week to November 20 compared with the previous seven days. Read more here.

OCEAN FREIGHT UPDATES

More surcharges loom for shippers as Panama Canal restrictions tighten
theloadstar.com
French carrier CMA CGM is set to become the first major carrier to apply a new surcharge on shipments transiting the Panama Canal, in response to the ongoing capacity reductions.
The world’s third-largest shipping line said the series of reduced capacity measures introduced by the waterway authority this year – and forecast to continue into 2024 – were pushing up its costs. Read more here (login required).

Global shipping’s $3.6 billion carbon bill is six weeks away
theuncontained.com
Ships sailing to European ports face a combined carbon emissions bill of $3.6 billion next year, the start of a levy that’s almost certainly going to rise as the continent steps up efforts to combat climate change.
The figure is an estimate of the total price of complying with the European Union’s Emissions Trading System from Drewry Shipping Consultants Ltd. Read more here.

More shipping lines set to plunge into losses in Q4
theloadstar.com
Ocean carrier operational profits fell below pre-pandemic levels in the third quarter ? and results for Q4 are likely to be a whole lot worse.
Alphaliner’s assessment of the reported earnings before interest and tax (ebit) of the nine largest carriers saw the average operating margin fall to 1.5% in Q3, which was lower than recorded in any of the quarters in 2019. Read more here.

INTERNATIONAL BUSINESS-GOVERNMENT UPDATES

The Shift from China is Leading to India
scmr.com
As U.S. companies continue to shift away from Chinese manufacturing, a new frontrunner has emerged. A new study by Boston Consulting Group (BCG) has found that India may be the biggest winner, with exports to the U.S. increasing by $23 billion, a 44% increase from 2018 to 2022.
From a pandemic and natural disasters to trade wars and supply backlogs, years of continued trade disruption have driven many companies to shift where they manufacture and source product, with more than 90% of the North American manufacturers surveyed by BCG relocating some production from China in the past five years. The same number say they plan to make similar moves in the next five years. Read more here.