The latest news in the logistics industry 07/29/2022

In this week's newsletter, we will be discussing three major industry news 

Blank sailings are increasing

Spot fares are still down while blank sailings are increasing: Market blank sailings still happen far too frequently, which carriers are matching with the low spot prices and demand. The alliances' schedule dependability is still uneven and low. In certain inland sites, on-street container dwell is increasing and terminal inventory is at maximum capacity. Due to an inadequate quantity of chassis and/or imbalances in the rail traffic, containers are ground piled at the rail in Chicago, Dallas, Kansas City, Memphis, Denver, St. Louis, Santa Teresa, and Omaha. The railways have implemented train metering and temporary service interruptions.

You want more information about DocShipper's service, check out our last video!

Maritime: Peak season quiet and obstructed empty containers

Observers are concerned about how maritime freight rates will change in the future because the peak rate season has already passed and a "muted" peak season appears to be taking place. A developing consensus predicts that prices will drop further before stabilizing at a midpoint (between the historic low of pre-2020 and the records of 2021).

Demand is once again at normal levels, but port and inland congestion in Europe and the US is a problem. They continue despite the decline in circulation numbers and negatively affect capacity. In Europe, where the drought is also reducing river flow, an anomalous retention of empty containers has been seen. In addition to Rotterdam and Antwerp, the German ports are in the red. The East-West circuit's ability to operate more smoothly will be seriously hampered by the return of fewer empty boxes to Asia.

What is the situation with China and Covid?

In China, mass screening has returned, particularly in Shanghai and Tianjin. Nearly 20% of the nation is still subject to more or less tight confinement measures. The majority of recent occurrences have been found in Gansu province and Guangxi region.

CMA CGM expands its support for French shippers

After offering a €500 discount per 40-foot container at the end of June, the Marseille-based group, urged on by the government, is increasing its gesture to its French customers. The reduction in freight rates will reach €750 as of August 1 and will concern all French shippers, large groups as well as small businesses. The discount will be applicable to all imports from Asia to France or overseas.

Finally, for exports from France, a discount of €100 per 40-foot container will be granted. These measures will be valid for one year.

This new announcement comes in a turbulent context, as Rodolphe Saadé, CEO of CMA CGM, has been heard by Senate committees about the mega-profits made by his group, and as many voices are raised to ask for a surtax on the "super" profits made by some groups during the Covid crisis. In 2021, CMA CGM paid little tax thanks to a favorable tax regime, but increased its investments in France.

Did you like the content of this newsletter, Subscribe now and never miss an article

Sources

https://www.joc.com/port-news/european-ports/port-rotterdam/rotterdam-container-volumes-drop-h1-recession-hangs-over-europe_20220722.html

https://www.drewry.co.uk/supply-chain-advisors/world-container-index-weekly-update/world-container-index-assessed-by-drewry

https://www.joc.com/international-logistics/logistics-providers/kuehne-nagel/ocean-rates-past-peak-will-remain-elevated-kn-ceo_20220725.html

https://theloadstar.com/lines-banging-on-our-door-as-spot-rates-tumble-and-peak-season-disappoints/

https://www.freightwaves.com/news/viewpoint-why-europe-is-so-important-to-the-empty-container-supply

https://www.maersk.com/news/articles/2022/07/21/north-america-transpacific-update-july

https://theloadstar.com/smes-join-sourcing-shift-away-from-china-as-covid-policy-dents-confidence/

https://www.aircargonews.net/business/supply-chains/rates-predicted-to-stay-high-despite-a-muted-air-cargo-peak-season/

https://www.aircargonews.net/airlines/freighter-operator/lufthansa-cargo-reports-some-easing-of-frankfurt-bottlenecks/

https://ajot.com/news/worldacd-air-cargo-trends-for-the-past-5-weeks-wk-28

https://theloadstar.com/airfreight-rates-out-of-asia-take-a-dive-as-demand-from-the-west-is-subdued/

https://splash247.com/shipping-shown-pathway-to-battery-powered-future/

https://www.nature.com/articles/s41560-022-01065-y

https://theloadstar.com/cma-cgm-increases-ocean-freight-rate-discounts-after-government-pressure/