Newsletter- September 20, 2022
AIR FREIGHT UPDATES
Works starts on new Pittsburgh International air cargo facility
Work has started on a new cargo facility at Pittsburgh International Airport to meet recent growth in cargo volumes.
Yesterday, crews started work on the 77,000 sq ft facility that will allow “much-needed space for cargo expansion”. Read more here.
Say goodbye to ULD imbalances with first ever collapsible AAX
The world’s first fully collapsible AAX will be launched next week at WCS 2022 by VRR, the Dutch company behind many of the air cargo industry’s most innovative Unit Load Devices (ULDs).
“Our latest container solves a very real problem facing all ULD fleet managers: what to do with empty containers after a consignment has been shipped,” says Geert van Riemsdijk, Managing Director of VRR. Read more here.
Cathay Pacific predicts weak peak for cargo as China output slumps
Cathay Pacific has fully rebuilt its freighter schedule in time for the peak shipping season, but executives signaled Thursday that demand will be softer this year because of inflation and ongoing supply chain disruptions.
The prediction came as an unprecedented heat wave and another round of COVID lockdowns in a major city further constrained production at Chinese factories. Read more here.
Port of Long Beach narrowly misses record August
While imports declined by more than 5%, progress moving empty containers off the docks helped propel the Port of Long Beach to a near-record August.
The Southern California gateway in August moved 806,940 twenty-foot equivalent units, down just 764 TEUs — or 0.1% — from the same month a year ago, which was the port’s busiest August ever. Read more here.
OCEAN FREIGHT UPDATES
‘Hard landing’ forecast for container freight rates
Container shipping has been warned to brace for a hard landing rates-wise as multiple indices around the world plunge further.
Utilisation rates are sliding despite an increase in blank sailings. Spot rates, as recorded by the Shanghai Containerized Freight Index (SCFI), are on a “fast-declining trend” according to a new report from Jefferies. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Massive overcapacity expected to hit holiday parcel delivery market
Parcel delivery carriers will be confronting massive excess capacity during the peak shipping season and will face severe financial repercussions if they don’t align their resources with what are expected to be flat year-over-year volumes, transportation consultancy ShipMatrix said Monday.
In its annual forecast for peak season activity, ShipMatrix said the market will be saturated with 110 millions of parcel capacity per day. However, daily demand is likely to average 92 million parcels per day. This will create an 18 million daily capacity surplus that will be difficult for carriers to offset without cost reductions. Read more here.
Massive 7.7 magnitude earthquake strikes Mexico Pacific Coast region
A powerful earthquake struck Mexico’s central Pacific Coast region Monday afternoon causing at least one death, as well as major damage to buildings, roads and other infrastructure, according to early reports.
The U.S. Geological Survey initially reported a 7.6 magnitude earthquake. Mexico’s national seismological agency later upgraded the magnitude to 7.7 in a press conference on Monday. Read more here.