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Logistics News with TELS GLOBAL
Spot container rates for certain destinations resumed growth
The Drewry WCI freight index, which tracks the dynamics of spot rates for container shipments, began to grow for two key destinations, linking Asia with the consumer markets in Europe and North America.
China’s foreign trade is decreasing – but not with everyone
According to the General Administration of Customs of the PRC, China’s total foreign trade has decreased by 2.9% to $1.43 trillion in the first quarter.
TELS GLOBAL in the China-Europe market: variety of delivery schemes
Several years ago, it became apparent that the European Union’s foreign trade interests were rapidly developing in the direction of trade with China and Southeast Asian countries. In 2020, China ranked first on the list of the European Union’s most important trading partners, surpassing the United States of America.
IMF lowered expectations for the growth of the eurozone economy to 0.8%
According to the baseline forecast, the global GDP growth rate will decline from 3.4 percent in 2022 to 2.8 percent in 2023 (0.1 percentage point lower than the previous forecast) and then will stabilize at 3.0 percent in 2024.
Compliance of sea lines with the schedule has increased rapidly
According to Sea-Intelligence, in February 2023, the index of compliance of sea lines with the linear schedule increased by 7.7 percentage points compared to the previous month and reached 60.2 percent. The average delay time decreased to 5.29 days.
Contract rates for maritime transportation fell below forecasts
In January this year, the Drewry analysts predicted that the contract rates for maritime container shipping this year would decrease by at least one and a half times compared to the levels of the previous year. At the same time, cargo owners would be able to agree on improvement of other conditions, such as payment terms and penalties.
Industrialists in Poland and Germany are pessimistic in their expectations
The PMI of the industrial manufacturing dropped in Poland in March after recovering in February. The sentiment in the German manufacturing sector is also deteriorating. And there is a potential rise in oil prices on the horizon.
Sea freight costs will significantly increase due to new environmental regulations
The entry into force of new EU environmental regulations aimed at decarbonization of shipping will significantly increase the costs for carriers and cargo shippers in the next three years.
OECD predicts slower growth of the Western economies
The world economy will grow more slowly over the next two years than it did in 2022 (3.2%). It will be 2.6% and 2.9% over the next two years, respectively.
Decrease of the road transportation rates in Europe at the beginning of the year is a temporary phenomenon
According to Sennder, a Digital Freight Forwarder, the cost of road transportation in Europe increased by 13% in 2022 based on the rates it pays its carriers. However, 2023 brought another trend...
Asia-to-Europe shipping rates have already dropped by 2–3 times compared to pre-crisis rates
The Drewry WCI composite index, which tracks the dynamics of spot rates for container shipping, has decreased by 12.9% in the first two months of 2023.
Air freight rates are decreasing, but they will not return to the pre-coronavirus crisis levels
The average spot air freight rate was $2.73 per kg that is 35% lower than a year earlier, but 52% higher than in 2019.
Chinese auto exports switch to container shipping
Insufficient pure car and truck carrier (PCTC) space and lower rates for container transportation are driving some Chinese car-makers to use containers to export their automobiles.
Contraction in demand and collapse of rates: shipping container market risks
Maersk has put the collapse of the shipping container market first on the list of risks the industry will face in 2023.
Containership time charter rates fell by 8% in January
Containership time charter rates have been falling for 11 months in a row, but have so far remained 60% on average above levels of the end of pre-COVID 2019.
Air Cargo Turnover Fell by 8% in 2022, and Will Continue Falling in the Next Year
Global air travel grew by 64.4% last year compared to 2021 (in revenue passenger-kilometers, RPK). At the same time, air travel remains down by 31.5% compared to pre-pandemic figures in 2019.
Global Container Shipping Market Contracting by Almost 4%
According to the Container Trade Statistics (CTS), the global container volumes decreased by 3.9% over the past year (down to 173.7 million TEUs), but remain 2% higher than the level of the “pre-corona crisis” 2019.
The IMF has improved its global economy forecasts
The International Monetary Fund increased its global GDP growth forecast for 2023 by 0.2 percentage points to 2.9% (in 2022, growth was 3.4%).
New Silk Road traffic to/from Europe decreased by 38%
The decline in cargo volume is a result of the global energy and manufacturing crisis and China’s internal restrictions due to increase in COVID-19 cases.
Air freight down by 15% compared to January last year
According to Xeneta, air cargo rates as of mid-January of this year were on average 15% lower than at the beginning of last year, but continue to significantly exceed the level of pre-corona crisis 2019.