Logistics Market Update – March 2023
MegaMax Container Ships Winning Over the Market in 2023
In 2023, the leading 11 container lines in the world will add 89 more large container vessels to their services. The shippers can expect 31 new MegaMax (MGX), 9 mainline vessels (greater than 7’000 TEU), and 41 NeoPanamx (NPX). Nevertheless, due to market demand, there might be a slight delay in the delivery of these ships.
The first MegaMax container wave will start from Ningbo, where 24’116 TEU MSC TESSA will become part of the service ‘AE6/Lion’. Based on the expert views, this will be the biggest containership in the world for some time, until the 24,188 TEU OOCL SPAIN becomes part of Far East-North Europe LL3 loop on 21st March. The other containers hitting the market includes 24,346 TEU MSC IRINA joining ‘AE10/Jade Service’ on March 21st, 24,116 TEU MSC CELESTINO MARESCA on 28th March joining ‘AE6/Lion’, Shanghai’s MSC RAYA joining the service on 9th April, and lastly, 23’666 TEU BERLIN EXPRESS that joining The Alliance loop of Far East-North Europe.
Ocean Freight Overview – March 2023
Key | |
++ | Strong Increase |
+ | Moderate Increase |
= | No Change |
– | Moderate Decline |
— | Strong Decline |
Outbound
Middle East – North America
The capacity will remain flat over the month, while the rates will reduce slightly. The capacity available for Turkey is above the demand, which is why, the ships are not sailing in full. On the other hand, due to soft rates on Asia-US demand, the space has opened up for Asia.
Capacity — (=)
Rate — (-)
Note: The port congestion on the US ports has improved; while the space remains tight for the Gulf region.
Middle East – Asia
For the trade lane of Middle East to Asia, the rate and capacity will remain flat. The cargo rate has reached to the pre-pandemic level for Turkey to China shipments, and the capacity is more than the current demand.
Capacity — (=)
Rate — (=)
Note: After the Chinese New Year, Gulf services have experienced rate rebound.
Middle East – Europe
The capacity will remain the same; whereas the rates are expected to decrease slightly. MSC has recently updated their route from West Med-WAF to Turkiye-West Med-WAF on 21st of February 2023.
Capacity — (=)
Rate — (-)
Note: Aliaga and Izir call connection added to STS service by ONE. Despite that, the demand remains contract.
Middle East – Latin America
There are no changes expected in capacity or rate. However, less active carriers, like EMC, WHL, and YML are also offering space for this trade lane, improving the space condition for the trade lane.
Capacity — (=)
Rate — (=)
Inbound Updates
Asia – Middle East
With the upcoming Eid holidays, a volume surge is expected in the Middle East markets. Also, due to the Pre-Lunar New Year blank sailings, the GRIs will remain strong for all the Gulf and Red Sea markets. The East MD market has been impacted after The Alliance’s blank sailing programs. Luckily, the non-Alliance is counterbalancing to mitigate the immediate GRIs.
Capacity — (-)
Rate — (+)
Note: There will be volume surge in the Middle East markets.
North America – Middle East
For the MENA region and Turkey/Egypt, the capacity is opening up this month and the rates are softening. The port of Iskenderun is currently closed indefinitely for Mersin after the earthquake in Turkey/Syria.
Capacity — (+)
Rate — (-)
Note: All the humanitarian relief is taken from TR port to Iskenderun.
Latin America – Middle East
For MED markets, the exports in Latin America are facing downward trends with rates coming back to the pre-pandemic level.
Capacity — (=)
Rate — (-)
Note: The trade level remains high for Africa.
Europe – Middle East
This trade lane is moving into March with stagnant capacity and decreasing prices. For short-term and long-term contracts to East Med, the space will be available with soft rates.
Capacity — (=)
Rate — (=/-)
Note: Equipment will be easily available.
Air Freight Overview – March 2023
Demand: Volume remains low, while the PMI index also indicates low export orders in this month. High inflation, Turkey/Syria earthquake, and Ukranian crises are affecting the rate. However, the low volumes are predicted to recover in the 2nd half of 2023.
Capacity: The belly capacity has increased, so now the available capacity is sufficient to meet the current demand level. No bottlenecks are expected in the coming months; more so, a recovery in the CN PAX market is expected.
Rates: The spot rates across most trade lanes are aggressive. Moreso, as the market is expected to recover in the 2nd half of 2023, the long-term rates are expected to increase.
The Middle East and Air Carriers
Middle East Air Carriers have faced a loss of approximately USD 1.1 billion in 2022; however, in 2023, it is predicted to experience a gain of USD 268 million. This is because the passenger demand growth rate of 23.4 will exceed the capacity growth of 21.2%. Furthermore, the region has benefited as a result of rerouting after Russia-Ukraine war.
Asia
In North China, the demand is picking up due to the volume increase in e-commerce and month-end usual factors. Whereas, in the South China, the rates are increasing due to the rise in demand; however, the supply will remain strained due to flight cancellations.
In the Taiwanese market, the demand remains low, while the market is slack. There are no signs of improvement on the horizon.
In Korea, the expectation was that the exChina’s ocean and air capacity would come under strain in March; however, it has now leveled up the falling rates.
Lastly, in the Southeast Asia region, the market remains soft, and demand remains the same, indicating no signs of improvement in March as well.
America
In American markets, the demand for exports remains steady, while the rates are also stable week over week. The capacity is opening, especially to the European markets. Furthermore, all the US airports are working at their normal pace.
Europe
With increased fluctuation in rates WoW across point pairs, the overall demand in the market has increased. The rates and lead time are higher for the direct routes; however, indirect options with one or more connections are available at low prices, and longer transit time. All in all, there are no major disruptions or delays across major hubs.
Shipping Local News - United Arab Emirates – March 2023
The Ministry of Foreign Affairs and International Corporation (MOFAIC) of UAE has introduced a new electronic attestation system for commercial invoices, which will be effective from 1st February 2023. The applications can be submitted using any channel; however, conditions may apply for certain Declaration Types or invoices above certain values. Read More
Hapag-Lloyd has introduced IMDG Code, 2022 edition (Amendment 41-22), which will be effective from January 1st, 2024. Till then, IMDG Code, 2020 edition (Amendment 40-20) will be in place till December 31st, 2023. However, these may be applied voluntarily from January 1st, 2023. Read More
Maersk’s logistics operations continue to be affected by the Turkey/Syria earthquake that hit the area on 6th February 2023. The representatives of the company will help with relief packages on the shipments in the affected areas. Read More
The European Union is implementing a new security and safety program, the Import Control System 2 (ICS2). It is an automated process that will be applied to all cargo and mail to and from EU countries; the system will be effective from 1st March 2023. Read More
Maersk has made some changes in the SLA, which will be effective from the 1st of March 2023. Following these changes is mandatory for payment confirmation, Bill of Lading, or Delivery Order release. Read More
Hapag-Lloyd has announced a new update on their Marine Fuel Recovery (MFR). This will be applicable from the 1st of April 2023 on all trades and will be mentioned separately as a surcharge on Bill of Lading and invoice. Read More
CMA CGM has announced a revision of the Bill of Lading export fees, effective from 1st of April 2023. Read More
Lotus Shipping has announced to extend their services to Hodeidah port, Yemen through Djibouti. Read More
UAFL Shipping has announced to increase its operational equipment surcharge in Moroni, effective from the 1st of March 2023. The step was taken after the rise in the Moroni Terminal Tariff on the 1st of January 2023. Read More
Global Factory Output – Overview
The global Drewry World Container Index (WCI) decreased by 2% and recorded at $1,859 per 40ft container. The value indicates the return of prices to their normal level.
United States of America USA
The USA composite PMI has reached 50.2 in the month of February 2023 from its value of 46.8 in the previous month. The reading indicates that the output across the private sector hasn’t changed broadly, which is due to the slow decrease in manufacturing production and slight increase in service sector output. From the price point of view, the input cost inflation was slower than October 2020; whereas the output charges have increased since that time.
United Kingdom UK
The PMI value for the UK has increased sharply from 48.5 in January to 53.0 in February 2023. This indicates the quick expansion in the private sector. Furthermore, there is growth in both the service and manufacturing sectors. The inflation prices have eased slightly, especially in the service sector.
China
The composite PMI of China has increased from December 2022 and stands at 51.1 in January 2023. There was an expansion in the service sector for the first time in the last 5 months. The new orders have started to grow at a marginal rate. From the price point of view, the cost of input has increased; whereas the prices charged were steady.
United Arab Emirates (UAE)
The PMI of the UAE reduced to a one-year low value of 54.1 in January; but in February, it has shown a strong growth, especially in the non-oil business. Due to the boost in order inflow, the activity levels have increased as well.
Global Interesting News
Freight News
Air
Surge in freighter orders by carriers, despite ‘paradigm shift’ in air cargo Read More
Polar Air Cargo ‘was the victim’ in ‘illegal payments’ case Read More
Plunging airfreight rates and no post CNY pick-up: ‘the end of globalisation?’ Read More
Small airlines bottom of the pile for SAF Read More
South African cargo airline Suid poised for launch Read More
Qantas plans to add more freighters Read More
IAG Cargo to charge for paper air waybills Read More
Cosco opens sea and air logistics centre in Guangzhou Read More
Hong Kong Airport aims to further enhance sea-air services Read More
Kuehne+Nagel partners with Birmingham-Shuttlesworth Airport Read More
EV Cargo becomes sole shareholder of Allport Netherlands Read More
Kuehne+Nagel partners with Birmingham-Shuttlesworth Airport Read More
US air cargo sector concerned over stricter screening rules Read More
DHL Express launches GoGreen Plus Read More
Network Airline Management transports relief aid to Turkey with B747F flights Read More
UPS providing relief supplies to Turkey via Cologne-Istanbul airbridge Read More
Oman Air Cargo highlights Oman’s logistics capabilities to major international air freight partners Read More
Emirates SkyCargo and Air Canada Cargo sign agreement to enhance networks and reach Read More
Etihad Cargo expands European capacity Read More
Spright orders 40 Blueflite drones Read More
Canada’s Edmonton Airport eyes expanded drone services Read More
FedEx pilot leaders set stage for possible strike Read More
A Positive Outlook for Aviation & The Importance of Being a Socially Responsible Airline Read More
Formula 1 announce Qatar Airways as new Global Airline Partner in multi-year deal Read More
Chinese cargo airline SF invests in airframe repair station Read More
Qatar Airways Cargo Partners with INOMAD, an all-in-one Air Cargo Platform Read More
Kuehne + Nagel looks to grow share of Southeast US air cargo market Read More
American Airlines Cargo partners with BioNatur Plastics Read More
American Airline Cargo transports Fresh Flowers Read More
CMA CGM extends air cargo service to Shanghai Read More
Kuehne+Nagel offers SAF option with Lenovo Read More
New series talks about air freight consolidation Read More
CargoAi unveils new payments solution Read More
Apex Logistics welcomes last Queen freighter Read More
Qatar Airways Cargo enhances Courier service; increases service between Munich and Doha Read More
Ocean
Why a ‘dramatic’ drop in freight rates is ‘double-edged’ for procurement Read More
Ocean carriers ‘boxed in’ by 5m teu surplus equipment mountain Read More
Euro/US exporters back in favour as carriers seek backhaul cargo Read More
Containership lay-ups continue to spike as demand slump rolls on Read More
Cross-alliance cooperation on the increase as market weakens Read More
Worker shortages won’t be solved by more pay, a career path is key Read More
More blank sailings and detours as ONE’s volumes, earnings, fall Read More
Li-ion batteries pose a risk to freight ro-ro services Read More
Ukraine wants to insure ships to promote exports Read More
Maersk stuck with ghost ship in Russian port Read More
‘Colossal’ tidal wave of new container ships about to strike Read More
BlueCargo raises $11M to bring visibility to drayage fees Read More
Greece-owned tankers ship Russian cargoes from Baltic ports Read More
Maersk Sues Evergreen Over Suez Canal Blockage Read More
Port of Los Angeles and Port of Long Beach report January volume declines Read More
Traxens upgrades container tracker to meet new explosion safety requirements on ships Read More
Jeddah Port scoops Port of the Year Award beating top international rivals Read More
Maersk Supply Service seals cable layer contract extension with Seaway 7 Read More
New capacity enters ‘thriving’ Russian container sector Read More
HMM creates digital system to track and move empty containers Read More
Hapag-Lloyd kicks off retrofits of 100 ships with new propellers and bulbous bows Read More
CMA CGM books another dozen 13,000 teu methanol-powered ships Read More
Hapag-Lloyd agrees LNG supply deal with Shell for 12 new vessels Read More
Ground
Maritime Gateway Releases the South Asia Container Market Report 2022 Read More
IAG Cargo adds Heathrow to Amsterdam freighter capacity Read More
Road feeder services getting closer to zero emissions with electric project Read More
How dire are electric truck maker Nikola’s finances? Read More
Borderlands: Nearshoring creates booming demand for border logistics facilities Read More
Falling used truck prices push largest dealership network to sidelines Read More
Is FedEx Ground looking to zero out 3rd-party influence? Read More
Dynamic pricing is heading LTL’s way — or is it? Read More
Can electric trucks make sense for digital brokerages? Read More
South Africa’s Transnet looking for partner to operate Joburg/Durban rail corridor Read More
WiseTech brings in rail game with $414m purchase Read More
Europe: the rise in road transport prices comes to an end Read More
Other
Top PE investor buys up majority of ambitious Scan Global Logistics Read More
Gebrüder Weiss announces a new location in Albania Read More
Russian carrier and 22 ships added to US sanctions lists Read More
4th consecutive weekly drop posted for benchmark diesel price Read More
Pandemic exposed global pharmaceutical supply chain’s fragility Read More
Target announces massive supply chain investment Read More
Bangladesh Shipping Corporation to Get $22.48 Million for Ship Hit by Missile in Ukraine Read More
DMB Takes Over the Anschütz Group Read More
Herman Senior Acquires ST Marine Support Read More
Keppel and Sembcorp yard merger completed Read More
Industrial improvement in China amid global recession Read More
Thailand plans multi-billion-dollar infrastructure investment to boost economy Read More
Asian liner SeaLead opens more India-centric connections amid growth expectations Read More
CMA CGM announces updated rates from Indian Subcontinent, Middle East Gulf, Red Sea and Egypt to USEC and US Gulf Read More
Yusen Logistics supports Baseball Equipment Donation Project Read More
Saudia and WFS seal cargo handling deal Read More
The market, yet again, is shifting on multiple levels Read More
3PL News
TAPA EMEA achieves cargo security milestone Read More
Dronamics raises $40 million in pre-Series A funding to launch Europe’s first middle-mile drone deliveries Read More
FedEx invests €11.7m in new Cork facility Read More
Maersk to promote logistics leg with expansion of inventory space Read More
DHL announces Southern California expansion into new Redondo Beach facility Read More
Locus Launches ‘Last-Mile Maturity Assessment’ For Enterprises to Level-Up Their Strategies Read More
Why Enterprises Must Prioritize an End-to-End View of Last-Mile Operations to Remain Competitive Read More
Walmart’s store-fulfilled delivery sales nearly triple in two years Read More
Wayfair cancels plans for Houston fulfillment center Read More
Target plans $100M investment to expand next-day delivery Read More
DACHSER strengthens its logistics centre in Bremen Read More
Companies Are Slow to Adopt Robot-Operated ‘Dark’ Warehouses Read More
Aramex takes next mile in drone, bot deliveries Read More
Why we continue to expand our Warehouse network Read More
Kuwait government orders Agility to vacate logistics parks Read More
Small Press Distribution Launches GoFundMe to Support New Operating Model Read More
Order Picking Accuracy Speeds Up Distribution Read More
Sainsbury’s to shut two Argos warehouses as it ‘modernises’ logistics, 1,400 roles impacted Read More
Target and Solo Cup are opening huge warehouses in the southwest suburbs Read More
Ocado pauses building new warehouses as annual losses balloon to £500m Read More
Maersk advances warehouse fulfillment speed with new software and scanning technology Read More
Public invited to have a say on plans for ‘huge’ warehouse and logistics development outside Spalding Read More
Rooker sells Williams-Sonoma warehouse for $20.7 million to investor Read More
Family-run haulage and warehousing specialist joins major distribution network Read More
DAS Companies, Inc. continues to grow with official opening of new warehouse Read More
Battery Energy Storage Systems Market Size Will Attain USD 52.9 Billion by 2033 Owing to the Ongoing Grid Modernisation | Future Market Insights. Inc. Read More
Audi Volkswagen Middle East Announces Collaboration With DHL In The Middle East Read More
Trade and Customs News
Cyprus axes ships as EU targets Dubai Sovcomflot operations Read More
First Russian clean cargoes to Brazil signal shift in global diesel trades Read More
Sanctioned Russian ship departs Indian waters after failing to unload cargo Read More
Australia Bans MSC Containership Over Safety Deficiencies Read More
Spain Detains Oil Tanker Over Mediterranean Fuel Spill Read More
Danish-operated Tanker Seeking New Port After Spanish Entry Ban Read More
ATA and U.S. Chamber of Commerce commend FHWA on revised infrastructure funding memo Read More
US hits Russia with 200% aluminum tariff Read More
Legal reforms key to achieve global trade digitalization – Chris Southworth, ICC UK Read More
CargoX and CEBS launch partnership to help customers migrate from TradeLens Read More
Bills of lading will be 100% electronic by 2030 – DCSA member lines commitment Read More
Argentinean taxation on waterways increases demand by port of Paranaguá Read More
Relief Efforts in Turkey, Syria Face Logistical Hurdles Read More
Teleport sets eyes on Australian exports with Wexco Read More
China-EU rail freight: a highly sensitive market Read More
QBE says US$9mn insurance row based on fake commodity trades Read More
Sanction risks fail to stop carriers’ gold rush in Russian trade Read More
Ecommerce Logistics News
Returns a costly and speeding juggernaut for Amazon and parcel carriers Read More
Amazon contractor ATSG expects cargo jet usage to dip 5% in 20233 Read More
Amazon closes, cancels more warehouses as cost-cutting persists Read More
Amazon expanding same-day delivery service Read More
FedEx Express to lean on third-party carriers for less urgent shipments Read More
Target And Amazon Sharpen Their Delivery Weapons Read More
Sam’s Club Adding Distribution Centers to Speed Up Online Fulfillment Read More
Shopify Bulks Up Online Fulfillment Logistics Services Read More
DHL and Cainiao join forces in Poland Read More
Lödige Industries to deliver smart material handling system for Cainiao Smart Gateway Read More
FedEx delivers critical aid to Turkiye/ Syria Read More
NimbusPost Collaborates with ClickPost to Streamline eCommerce Logistics Experiences Read More
A.P. Moller – Maersk and Mawani break ground for Saudi Arabia’s largest Integrated Logistics Park at Jeddah Islamic Port Read More
SMEs to benefit from fuller e-com solution Read More
China’s JD.com to shut e-commerce sites in Indonesia, Thailand Read More
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