Global logistics market update l May 2023

May 10, 2023

Global Logistics Market Updates – May 2023

Highlight: Sharp Increase in Ocean Schedule Reliability

After a sideward trend for the past 3 months, Ocean Schedule Reliability experienced an increase of 7.7% in February, reaching 60.2%. Similarly, the YoY level has seen an astonishing 26% points increase. The schedule reliability in February improved in half of 34 trade lanes with Oceania-Asia experiencing the biggest improvement (51.9% in Feb 2023 rising from 38.7 in Jan), while Oceania – North America experienced the largest decline of 16.2 points, reaching 44.9% in February. Here’s an overview of some other major trade lanes:

Reliability points decreased by 4 for Asia to North America West Coast, reaching 30.2%. However, for Oceania-North America, the reliability increased by 3.5 points and reached 39.2% MoM.
For Asia-North Europe, there was an improvement of 1.1 points MoM, and the reliability reached 53.2%, while for the Asia-Mediterranean route, the reliability decreased by 9.3 points, reaching 44.5%.
For Transatlantic Eastbound the schedule reliability decreased by 2 points to reach 49.2%; however, it increased by 6.2 points to 44.3% for Westbound trade.

Global Ocean Freight Updates – May 2023

Key
++	Strong Increase
+	Moderate Increase
=	No Change
–	Moderate Decline
—	Strong Decline

Outbound

Middle East – North America

Services to Gulf are facing seasonal demand rebound after Ramadan ended in the Middle East. The rates are trending upward in the region.

Capacity — (+)

Rate — (+)

Note: Space is fairly tight out of the Gulf.

Middle East – Asia

The shipping rates from Middle East to Chinese ports are coming back to its pre-pandemic level (i.e., the three digits). The capacity is generally above demand.

Capacity — (-)

Rate — (-)

Note: After Ramadan, the Gulf services are facing seasonal demand rebound.

Middle East – Europe

The rates out of the Gulf are stable and capacity remains above demand. There are no space issues prevailing in the market for this trade lane.

Capacity — (=)

Rate — (=)

Note: The space out of Gulf is available.

Middle East – Latin America

The rates out of the Gulf are increasing. After Ramadan in the Middle East, the Gulf services are facing a seasonal demand rebound.

Capacity — (+)

Rate — (+)

Note: Space is available.

Inbound Updates

Asia – Middle East

Rates for MENAT, especially Gulf/Red Sea have increased. The GRI are taking place strongly at USD 300-400/TEU. The demand is strong, which is why the GRIs is expected to come in May as well. Blank sailings are still taking place on this trade lane, especially from The Alliance that is causing capacity constraints.

Capacity — (-)

Rate — (+)

Note: Space in East Med is very full.

North America – Middle East

The ongoing aggressive competition in the market to Mideast has caused the rates to decline and increased concessions on side conditions.

Capacity — (=)

Rate — (-)

Latin America – Middle East

Due to the current market conditions, the Central America’s exports are softening. In the middle of the contracting season, there is a downward trend for the Med market. However, the rates are back to pre-Covid levels.

Capacity — (=)

Rate — (-)

Note: Vessels are open.

Europe – Middle East

The space available for this trade lane is ok; however, the rates are decreasing slightly. The capacities are available in the East Med and rates continue to soften for both short- and long-term contracts.

Capacity — (=)

Rate — (=/-)

Note: No issues with equipment.

Global Air Freight Update – May 2023

Demand: The volume continues to remain low. The lower export orders from the Asian Pacific region are causing the volume decline. Due to the Easter holidays, the demand volumes from US and EU also reduced. The major world economies are expected to be more resilient in the next 2 quarters to recover from the volume decline.

Capacity: The capacity is sufficient for the current level of demand; the belly capacity is following the same pattern as the passenger volume is increasing. However, the current labor disputes around the globe can have operational impact.

Rates: There is a competitive spot market across different trade lanes with a slight increase in charter and ad hoc rates. Furthermore, stability is expected in the 2nd quarter of 2023.

The Middle East and Air Carriers

The carriers in the Middle East experienced a 5% year-on-year decrease in volume in March 2023. This is an improvement from the last month’s decrease of 7.1%. Furthermore, the demand from the Middle East to Europe has been increasing recently. Additionally, the overall capacity has increased by 9.7% as compared to last year in March.

Asia

The air market is stabilizing as the year progresses. The rates will increase in comparison to the first quarter, while the demand is recovering and is expected to remain relatively stable over time. Few of the freighter capacity in Transpacific are retiring. As the summer approaches, it is expected that the overall capacity (passenger + freight) will remain relatively stable and the balance between supply and demand will be maintained.

America

The export capacity in the United States is open and the rates are decreasing. However, in the coming traveling season, it is predicted that additional capacity will be added, which will support the traveling demand.

On the other hand, the export conditions are mixed. The seed season in Chile, Argentina, and Uruguay started in the early March, which will continue till the mid-May due to the support from different charter programs. Furthermore, the capacity and rates out Brazil remains stable for all the major routes. Similarly, Columbia had its peak flower season from 3rd – 22nd April that created additional southbound capacity in Miami and attractive spot rates.

Europe

In spite of the lower consumption and inflation in the market, the volume decline has been reduced, and the air freight conditions are improving. The capacity outside of Europe is slightly up when compared to last year; this is mainly due to easing covid restrictions in China. The trends in the rate are mixed; stable for some routes and declining for others.

Local News UAE – May 2023

CMA CGM has announced to implement extra risk coverage surcharge for Sudan, effective from May 1st, 2023. The charges of USD 500/TEU will be implemented on dry and reefer cargo from North Europe, Scandanavia, East Med, Poland, Baltic, North Africa, Black Sea, Morocco, Adriatic, Red Sea, Middle East Gulf, and Indian Subcontinent to Sudan. Read More

CMA CGM is implementing new overweight surcharge on dry cargo from Asia and Indian East Coast to Nigeria from April 28th, 2023. The charges of USD 250/20’ container (with gross weight of over or equal 18 tons) will be implemented on short-term contracts only (3 months and below). Read More

A new era for partnerships for Dubai Maritime Authority (DMA). With the implementation of Law no. (3) of 2023, Dubai Maritime Authority now spans over whole Emirates of Dubai, which includes special development zones and free zones. Read More

Swire Shipping has announced new Pacific Weekly Express (PWX) services, which will operate on an unparalleled 7-day frequency from Southeast Asia to Papua New Guinea, Soloman Islands, Fiji, and New Caledonia. It will also include connections via Fiji and New Caledonia to Pacific Islands of Tonga, Samoa, Vanuatu, Tahiti, and American Samoa. Read More

To continue the reliable and efficient services, CMA CGM Group wants to update the customers about the General Rate Restoration (GRR). The updates will be applicable from 7th of May 2023 on all cargo including Dry and reefer from UAE and Upper Gulf to West Africa. Read More

OOCL has revised local charges in UAE to improve the service quality. The new charges will be effective from 1st April 2023 for non-regulated trades and 1st of May 2023 for regulated trades. Read More

Hapag-Lloyd has updated their inland tariff charges that will be effective from 1st of May 2023. Read More

Global Factory Output – May 2023

The World Container Index (WCI) has decreased by 2% in the last week of April 2023, and reached the value of USD 1,740.26/ 40ft container. The current value is 83% below the peak value reached in September 2021. The reduction in the index indicates a return to normal price levels.

United States of America

The US manufacturing PMI has increased from 49.2 in March 2023 to 50.4 in April 2023. The change resulted after a first expansion in factory activity in six months. The production levels were moderately increased along with the new sales level. When it comes to price, the rate of increase for operating expenses was the fastest since November of last year.

United Kingdom (UK)

The manufacturing PMI of the UK has declined to 46.6 in April 2023 from the value of 47.9 in March 2023. The reduction in prices is a result of the contraction in the manufacturing sector in the last four months. Production decreased along with the fall in the new orders and there was job shedding. At the same time, the supply chain continues to improve amid the higher raw material availability and lower demand.

China

China’s manufacturing PMI unexpectedly fell in March 2023 to 50.0 from February 2023 value of 51.6. This reduction was a result of growing concern about the recovery momentum of Chinese strength, ongoing property downturn, and financial uncertainty. The new orders and the output increased, while the employment and foreign sales decreased. Furthermore, the supplier capacity and stock availability helped in improving the vendor performance

United Arab Emirates (UAE)

The manufacturing PMI of the UAE has increased to 55.9 in March 2023 from 54.3 in the previous month. The increase indicates quick improvement in the non-oil private sector. The new orders have reached their 5-month higher value due to an increase in tourism and market demand. Furthermore, the output has grown at the fastest rate in the 5 months. As far as the prices are concerned, inflation was mild, amid the increase in the prices of input.

Global Interesting News – May 2023

Freight News

Air

Air France-KLM and CMA CGM officially launch their long-term strategic air cargo partnership Read More

LATAM Cargo and Swiss Airtainer Win 2023 IATA Air Cargo Innovation Awards Read More

Aviation Provides Critical Relief in Crises Read More

Incheon Airport constructing $28M global distribution center for e-commerce Read More

Industry ‘falling behind’ on lithium battery detection, AfA’s Fried says Read More

DHL, Turkish Cargo sign MOU to improve ops Read More

New route between HKIA SkyPier and Pazhou in Guangzhou begins trial Read More

Turkish Cargo and Avianca Cargo sign an MoU to further enhance their cooperation with global reach Read More

Qatar Airways Cargo relaunches its Next Generation Pharma product Read More

WestJet Cargo and the GTA Group celebrate inauguration of dedicated freighter in Toronto Read More

Kyte strikes strategic partnership with Air Canada Read More

Saudia Cargo agreement with Tower Cold Chain extends choice in Middle East pharmaceutical shipments Read More

Etihad Cargo and SF Airlines connect their mega hubs Read More

Bolloré Africa Logistics rebrands following takeover Read More

Kuehne+Nagel and Atlas Air team up on Sustainable Engine Alliance Read More

FedEx pilots to vote on strike after contract negotiations fail Read More

Qatar Airways Cargo Launches a Direct Freighter Service from Bogota to Dallas Fort Worth Read More

Cathay Cargo integrates mail handling data with new mail service to improve visibility Read More

Abu Dhabi Airport welcomes first SF Express cargo flight Read More

Hongyuan joins the cargo. one online marketplace to boost digital sales Read More

IAI establishes a freight conversion hub in South Korea Read More

South Korea to Develop 777F conversion facility Read More

Saudia Cargo unlocks Tower Cold Chain Read More

DHL Express orders Mammoth-converted freighters Read More

Geodis boosts pharma offering in Asia, Middle East Read More

Qatar Airways deploys 777F on BOG-DFW route Read More

Maersk Air Cargo starts new US-China service Read More

Airport Master Planning seminar for Kazakhstan’s airports Read More

UAE and Canada to increase flights to 21 per week Read More

Wizz Air receives Airline Of The Year award at Air Transport Awards Read More

IATA Air Cargo Innovation Award winners revealed Read More

Qatar Airways Cargo and Hactl partner in canine detection to sniff out lithium batteries Read More

Ocean

Container shipping heading for $10 billion loss in 2024: Drewry Read More

CMA CGM places major order for green ships at Chinese yard Read More

Shipper savings to rocket in 2023 at expense of carrier profits: analysts Read More

Slow steaming can partially offset newbuilding surge, says consultant Read More

Transpacific rates shoot up as carriers prop up GRIs with more blanks Read More

e-Shipping the latest carrier to launch Russia service Read More

Protecting Offshore Energy Sources via USV Read More

CMA CGM Offers $5.5 Billion for Bollore Logistics Unit Read More

Berlin Reviewing Decision to Allow Chinese Investment in Hamburg Port Terminal Read More

Chinese port halts resuming crew Covid testing after backlash Read More

Saudi Ports Log 21.14% Growth in March Container Numbers Read More

Invasion of Ukraine Caused Steep Drop in Black Sea Container Traffic Read More

California container ports sign data system development agreement Read More

Port of Gothenburg achieves container growth despite slump in imports Read More

DP World reports 19.5 million TEUs in 2023 first quarter Read More

Bangladesh grants permanent transit of Indian cargoes using Chittagong, Mongla ports Read More

COSCO Shipping Ports boosts first quarter profits with flat container volumes Read More

Port of London Authority to upgrade its VTS system Read More

CMA CGM announces overweight surcharge update from Asia and India East Coast to Nigeria Read More

April sees tanker orders rain in Read More

Freight Forward: Breakbulk in the Spotlight Read More

Freight Forward: Ocean Carriers Take Flight Read More

The economy is in a ‘freight recession,’ with China trade decline continuing Read More

Berlin reexamines COSCO’s Hamburg port plans Read More

Three Canadian ports hit by cyber attacks Read More

CMA CGM’s secondhand splurge since 2020 surpasses the 100-ship mark Read More

MoEI backs UAE Maritime Week to build a skilled workforce Read More

Dubai Maritime Authority launches series of workshops to bolster partnership with industry stakeholders Read More

Aero Africa launches sea-air freight service from Asia to Africa via Dubai Read More

AD Ports Group Starts New UAE-Qatar-Kuwait Container Shipping Service Read More

India-Russia explore market access in railways, agriculture and pharmaceutical sectors Read More

Ground

Yellow looks to reopen Teamster contract, negotiate consolidation Read More

Bulk carrier Trimac acquires AIP Logistics Read More

Federal Railroad Administration urges caution on train lengths Read More

California could phase out diesel locomotives Read More

Walmart Adds First-of-its-Kind Truck to Transportation Fleet Read More

JD Logistics pilots emissions tracking platform Read More

Road transport prices in France were ”marking time” in March Read More

Road transport: a coveted German market Read More

Electric Freight Trucks: Not Happening Anytime Soon For Long-Haul Moves Read More

Rail data shows reality of current supply chain Read More

Where the trucking and rail recession is showing up in the logistics data Read More

Kazakhstan’s KTZ Express, Russia’s RZD Logistics organize first dispatch of reefer train to China Read More

Massive Frederickson distribution and logistics complex lands national tenant Read More

European Road Freight Transport Market is anticipated to register a CAGR of 3.57% during 2023 – 2028 – Market Size, Share, Forecasts, and Trends Analysis Report by Mordor Intelligence. Read More

Land secured for Beveridge Intermodal Freight Terminal Read More

Saudi infrastructure activity brisk in 2022; 56 new roads built Read More

Egypt signs transport investment deal with Japan valued at about $700mln Read More

6 transportation systems coming to the UAE Read More

Other

Container shipping warning: Green shoots are ‘transitory illusion’ Read More

MPV sentiment improves even as short-term demand softens Read More

Lufthansa aims to halve carbon emissions by 2030 Read More

Digitalizing perishable shipments allows real-time recovery, data insights Read More

DSV reports profit, revenue, volume declines Read More

C.H. Robinson sees 32.3% revenue dip in Q1 earnings Read More

DHL unveils sustainability milestones and a new tool at industry-first global summit Read More

Qatar Airways Cargo launches a direct freighter service from Bogota to Dallas Fort Worth Read More

Cargo.one launches new platform to speed up import bookings Read More

Protective Face Mask Market To Hit US$ 25.78 Billion By 2032 Read More

Transformers Market Size to Reach USD 93 Bn by 2030 Read More

Sudan unrest poses no immediate risk to shipping Read More

Lloyd’s Register wins IMO green corridors challenge Read More

Investment from Maersk propels Danish fuel-startup forward Read More

Maersk pauses freight to Sudan due to intensifying conflict Read More

Maersk joins collaboration on access to green methanol in Melbourne Read More

Global Food Roundup: Shift to Discount Grocers and Aussie Wine Woes Read More

Nearshoring Shift Brings Production Hurdles Closer to Home Read More

Vessel ownership information a major indicator of illicit trade risk, report finds Read More

Tanker newbuild orders hit two-year high Read More

3PL News

UPS Healthcare expands in Blonie Read More

CILTSA Leads the Discussions on Warehouse Automation at its Free-to-Attend Conference Read More

DHL Supply Chain facility is showcasing how automation, humans can coexist Read More

CMA CGM’s start-up initiative to set up Asia-Pacific hub Read More

Full warehouses and labour issues soften Long Beach’s volumes Read More

Warehouse Jobs Drop to Lowest Level in 15 Months Read More

A.P. Moller – Maersk expands warehouse offering for its customers in UK Read More

Warehouses Find Insulation From U.S. Banking Crisis Read More

Last Mile Delivery Grows Up with Ron Richardso Read More

How Lithium Forklift Battery Data Solutions Can Help Estimate Battery Health Read More

How Warehouse Automation Keeps Cold Food Chains Moving Read More

Reducing energy usage in temperature controlled rooms Read More

Thorn and Zumtobel to showcase innovative lighting solutions at IWLEX Read More

Unbox Robotics brings its innovative “UnboxSort” to the UK and EU in partnership with L.A.C Logistics Automation Read More

Enhanced Fire Protection from Hörmann UK Read More

Inflation’s inventory gluts are here to stay and will hit the bottom line in weaker economy: CNBC Supply Chain Survey Read More

Industrial, logistics sector leasing up 26% in Jan-Mar: Report Read More

Automotive Logistics Services (3PL and 4PL) Market Research Report 2023-2031 Market – Major Technology Giants in Buzz Again Read More

New 3PL Announces Jacksonville Cold Storage Facility Read More

Automyze Fulfillment Center eyes growth with SnapFulfil Read More

Trade and Customs News

China’s ports dominance undermines western aims to loosen trade ties Read More

Tensions mount at US west coast box ports over labour talks Read More

Freight movements halted as conflict in Sudan kills hundreds Read More

IMF: Germany & UK enter recession in 2023 Read More

US sanctions Türkiye-based shipowners for ties to Russia Read More

UAE’s extended links to Russia supports sanctions circumvention Read More

US demands Iran release oil tanker seized in Gulf of Oman Read More

Indonesia’s export of coal increases with demand in Asia Read More

A Global Analysis: How friendshoring is impacting trade with China and the Far East Read More

Port Labor Disputes Raise New Fears Over U.S. Import Disruptions Read More

China-Germany Trade following China’s Reopening Read More

Facilitating trade and transit in developing countries Read More

Sudan unrest poses no immediate risk to shipping Read More

Timor-Leste expands electronic single window to boost international trade Read More

Shipment from abroad stuck at ports after new payment system glitches Read More

UAE-India’s planned ‘green corridor’ will fuel smoother customs process, higher trade flows under CEPA Read More

UAE-Israel Cepa comes into force Read More

Azerbaijan’s trade turnover with CIS countries up Read More

EAEU Integration Plans With China, India and MENA Gain Momentum Read More

Ecommerce Logistics News

FedEx to consolidate companies, pilots frustrated over contracts Read More

Amazon Air’s team balloons to 14,000 Read More

Alibaba’s logistics arm Cainiao Ranks Top 10 in Global Unicorn Index 2023 Read More

Gol to increase e-commerce cargo fleet in May Read More

Amazon Institutes New Returns Fee To Reduce Shipping Costs Read More

Challenge Group makes ground in e-commerce Read More

Online Shopping’s Fast-Delivery Race Is Slowing Down Read More

The Parcel Delivery Revolution: How Newspapers Can Leverage Technology and Infrastructure to Diversify Revenue Streams Read More

OneRail Solutions Now Available on the Shopify App Store to Accelerate Omnichannel E-Commerce Read More

Ecommerce consumers add to cart while AI helps logistics and supply chain deliver Read More

India’s e-commerce logistics space on the fast track for growth Read More

E-commerce logistics industry to cross 10 bn shipments by FY28: Report Read More

Changing Landscape of the UAE E-Commerce logistics Market post-Pandemic: Explore the key trends that are driving AED 500 Mn Market: Ken Research Read More

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Tags: Update