Freight and Logistics News and Market Update - Week of March 2, 2023

Ocean

• The ILWU (International Longshore and Warehouse Union) and the PMA (Pacific Maritime Association) jointly announced, that they are both hoping to reach an agreement on contract negotiations soon. Hopefully as an agreement is reached, companies will increase their shipments to the ports on the West Coast US, alleviating the constraints on the East Coast and Gulf ports in the US.

Ground

• Four major US railroad companies (CSX, Union Pacific, NS and BNSF) have settled sick leave agreements with two union groups, the TCU (Transportation Communications Union) and the NFCO (National Conference of Firemen and Oilers).
• 2022 marked the sixth consecutive year that North American Intermodal transportation underperformed.

Air

• According to IATA (International Air Transport Association), the Latin America Region had the best international air freight results year-over-year, with demand growing 13.1% in 2022 compared to 2021.
• New Xiamen (CN) to Sao Paulo (BR) air cargo route was launched in February and is planned to fly every Monday and Friday through March. This should increase capacity for shippers who export ecommerce, healthcare and high tech from China.

Ocean

• Ocean freight rates are expected to increase over the next few weeks. This is due to increased market activity following Lunar New Year and blank sailings.

Air

• Air Incheon, a cargo airline based in South Korea has begun two-weekly flights from Incheon International Airport in South Korea to Haikou in China. Cargo volumes are expected to increase by 30 tons per round trip.

Ocean

• The volume of container exports from Asia to the United States declined significantly in January, with China exports dropping by 25.4%, and exports from Taiwan and Japan registering 28.5% and 19.9% drops respectively.

Air

• A new collapsible AAX air cargo container has been certified for use by the European Union Aviation Safety Agency. This new container model will require only two people to erect and collapse it, enable carriers to transport more empty containers back on return flights and hopefully help firms reduce their carbon footprint.
• The trade union ver.di’s worker strikes over pay led to the cancellation of several flights in Germany’s Düsseldorf Airport (DUS) and Cologne/Bonn Airport from Sunday to Tuesday, which caused significant delays and flight disruptions. According to ver.di, negotiations will continue from March 27 until March 29 at Potsdam.
• Beginning June 1, four new routes will be launched by Norse Atlantic to London Gatwick from Boston, Los Angeles, San Francisco and Washington Dulles, in addition to the original three routes from New York, Fort Lauderdale and Orlando. Bellyhold capacity is predicted to increase in the upcoming summer season.
• Beginning June 1, ITA Airways will launch three daily A330 flights from Fiumicino Aiport in Rome to JFK International Airport in New York. Bellyhold capacity and cargo flow can be expected to increase between the two regions in the upcoming summer season.

Ocean

• UK’s major port group, Associated British Ports (ABP) have announced their new sustainability plan with an investment of around $2.4 billion (GB£2 billion) allocated for decarbonizing its operations by 2040, in hopes of contributing to the overall UK energy transition.

Air

• Ethiopian Airlines launched a new freighter service between Shenzhen, China and Liege, Belgium, which will operate twice a week and carry e-commerce and industrial products. Also, beginning May 23, after about three years Ethiopian Airlines will resume flights between New York JFK international and Felix Houphouet Boigny International Airport in Côte d'Ivoire, Abidjan. Cargo flow can be expected between the two regions.
• New Terminal 2 in Kempegowda International Airport (Bengaore), India has officially opened and is set to begin international operations after about two years of construction, leaving Terminal 1 to serve domestic flights only. Cargo flow can be expected with the increasing operations.

Ocean

• CMA CGM has announced their latest freight rates. Beginning March 24, from many destinations including India, Pakistan, Sri Lanka, Middle East Guld, the Red Sea and Egypt to the US East Coast and US Gulf the updated rates are quantum per 20’ will be $500, quantum per 40’ will be $600 and quantum per 45’ will be $600.
• Dutch container shipping company WEC Lines, which has existing connectivity between Port of Liverpool, Portugal and Spain, will include weekly connections from Liverpool to several destinations including Northern Spain, Portugal, North Africa and the Canary Islands.

• A year after Russia’s invastion of Ukraine, The White House announced it’s expanding trade tariffs and sanctions against Russia to hold them accountable for their actions.
• Effective January 1, the California Department of Toxic Substance Control (DTSC) began regulations related to nail coatings and nail polish thinners containing toluene. According to Customs and Border Protection (CBP), the regulation falls on the importer where if DTSC identifies a non-compliant manufacturer, the importer will either submit an Alternatives Analysis or remove product from the California market.