Freight and Logistics News and Market Update - Week of March 16, 2023

• Airline networks and routes continue to expand in India and the Middle East, opening up new routes and options for carriers into and out of the region
• LATAM records a 4.6% increase in demand year-over-year, despite global demand falling 14.9%
• Georgia Ports continue to display record high volume through its deep water ports, signaling continued faith in East Coast ports as a viable option for many shippers
• Workers’ strikes over pay dispute in airports in Europe continue to impact air freight. Rail workers’ strikes in the UK are also predicted to cause delays and disruptions.

Air

• US Manufacturing PMI improved to 47.3 in February, increasing from 46.9 the previous month.
• Milwaukee Mitchell International Airport is planning to develop a new air cargo facility in an effort to address the congested gateways. Airlines will have the ability to handle large aircraft, and the potential to adapt warehouse and office space to tenant’s needs.

Ocean

• Despite continued global economic and geo-political issues, Georgia Ports had their second busiest February on record.

Ground

• NS Railway (Norfolk Southern) has announced it will implement a new Port of Virginia to Memphis intermodal service starting April 1. The company decided to offer the new service in an effort to win some of the Transatlantic business, as freight continues to shift to the United States East Coast.

Logistics

• S&P Global Market Intelligence updated its forecasted Real GDP growth up from 0.7% to 1.0%, measured year-over-year. The revision is due to a surprisingly optimisitic Q1 growth from -1.3% last month to -0.4% growth this month, which can be tied to consumer spending.

Air

• The GRU Airport (Sao Paulo) has been building a new area of 200,000m² that will enable freight forwaders, ground handlers and others to establish themselves in the market.
• LATAM Cargo airlines has added a new service that will operate twice a week between EC, BR and US to support the increasing flower volumes in the region.
• According to IATA, January air freight demand remained slow, but Latin America carriers reported a 4.6% increase in international air freight demand, year-over-year.

Ocean

• There was a 24% increase in Bolivian cargo moving through the Port of Arica in Chile between January and February 2023, totaling 530,496 tons. The increase is mainly due to the closure of the border between Peru and Bolivia.
• Uruguay exports decreased 8% in February, year-over-year, due to decrease in sales of products like wood, rice and wooden by-products.

Air

• AirAsia and Teleport are resuming flights into China and are adding new air cargo connections and belly capacity. 18 cargo routes into China are expected to resume with the intention to increase to 40 routes by July.

Ocean

• The Singapore government has expressed its intention to streamline processes in an effort to simplify transshipment operations and container moves. Some of the measures would include issuing cross-land border transshipment permits and giving foreign drivers easier access to container terminals.

Air

• Airport Staff in Europe strike over Pay Dispute
• Unite the union is holding a ballot calling for action in Heathrow Airport due to pay dispute which will close on March 17. If union members vote to strike, strike action could take place in April.
• Swissport ground staff in airports across Spain are coordinating strike actions which will take place every Monday, Tuesday and Thursday starting from March 13 until April 13. 17 airports will be impacted in Spain including Madrid-Barajas, Barcelona-El Prat, Alicante, Valencia, Murcia and Malaga. Delays and disruptions are expected to occur.

• Cargo volumes at Frankfurt Airport registered an 11% year-over-year drop in February. Additionally, cargo demand demonstrated a 18% year-over-year decline in January. The decline in rates were attributed to the global economic slowdown and the discontinued air traffic from and to Russia.

Ocean

• Malta Freeport Terminals will launch a newservice, the NC LEVANT express, connecting Malta to Northern Europe, the Western Mediterranean, North Africa and Adriatic Ports. According to the NC LEVANT express, transit time will reduce significantly from Malta to different European ports.

Ground

• The RMT union rail workers within 14 different train companies including Chiltern Railways, Cross Country Trains, Greater Anglia and LNER will strike due to pay dispute on March 16, 18, 30 as well as April 1. Although the walkout may not shut down all train systems completely across Britain, it is expected to disrupt large portions of the network.

Air

• The Saudia Arabia airline, Saudia has launched six new routes and beginning in August, Saudia will have 45 flights per week from Jeddah to four UK airports, which are Birmingham, Gatwick, Heathrow, and Manchester. Cargo capacity can be expected to increase between the two regions in the peak summer season.
• Emirates is increasing their global network. Starting on March 26, Emirates will relaunch its daily operations between Singapore and Melbourne, Australia. In the early summer season, flights to Bologna, Venice and Budapest will operate daily, while flights to London will increase to eleven flights per day. Cargobelly capacity and cargo flow is expected to increase among the regions in the early and peak summer season.
• Boeing is planning on setting up a facility in India to convert 737 passenger planes into freighters for domestic and international users. With this investment, Boeing is expecting to expand its presence in India as India’s air cargo volume is expected to climb by 6.3% annually until 2040.

Ocean

• AD Ports has officially signed the deal for Congo’s Pointe Noire Port’s multipurpose terminal. According to the agreement, AD Ports Group will have the rights to the developmental, operational and managemental investment of the port, which will handle containers, general cargo, bulk, and other various types of cargo. The deal will be valid until March 15, 2024.
• The closure of one of the berths at Nhava Sheva has created terminal congestion and bottlenecks, causing the calls per week to drop from thirteen to six, according to port sources.
• Hapag-Lloyd announces a new rate increase (GRI and GRA) from the Middle East to the US from March 29 until further notice for “cargo transported in 20’ and 40’ dry, reefer and special containers.” This also includes high cube equipment.
• Beginning April 5, CMA CGM Group will launch a new direct service called, Bangladesh India Gulf Express (BIGEX). It will have three 1,700 TEU vessels connecting Bangladesh to the Jebel Ali Gulf, Abu Dhabi, Nhava Sheva and Mundra in India. The new services will operate in hopes of broadening market access and shortening transit times.

• US Customs and Border Protection (CBP) has just launched the Uyghur Forced Labor Prevention Act (UFLPA) enforcement dashboard with interesting insights for trade. The new dashboard presents aggregate statistics on the number and value of shipments that are stopped for UFLPA enforcement. It also provides insight on the industries and countries of origin that are most affected.
• The Environmental Protection Agency (EPA) has issued the first three notices of violations for illegal import of hydrofluorocarbons (HFCs) without allowances. The notices resulted in fines of $382,473, $275,000, and $247,601.
• US Customs Border Protection (CBP) has published guidance on upcoming aluminum smelt and cast reporting requirements. Importers should provide the necessary information to CBP to identify the countries where the primary aluminum and derivative aluminum articles are smelted and cast.