Terms of new long-term maritime contracts are reduced to less than six months on average
The average duration of new contracts has been declining since mid-2022. At its peak, in the second quarter, the average duration of new contracts was 12 months; in the fourth quarter, this figure dropped to 5.5 months.
Cargo delivery via Trans-Caspian route is one third more expensive than via the route through Russia
The Trans-Caspian route, which runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and further to Turkey and European countries, has become one of the alternative routes for the goods transportation from Asia to Europe, to which operators seek to redirect the rail transit from the “northern” route passing through Russia and Belarus.
The world’s biggest shipping lines acquire their own air fleet
Since 2021, a number of the biggest logistics companies specializing in sea and land transportation have begun to actively enter the cargo aircraft segment.
Deployed capacity will be too high for the “low season”
anish shipping data analysis company Sea-Intelligence estimates that deployed capacity on key Asian container export routes to Western consumer markets during the 2023 Chinese New Year season will exceed the levels of 2021, which was characterized by record high demand for transportation. A further drop in freight rates should be expected under these conditions.
Importers and manufactures are looking for solutions “closer to home”
Recent supply chain disruptions have led to a global trend of sourcing and moving production closer to home, according to the latest Reuters study “A generational shift in sourcing.”
China defuses anti-COVID measures
The Chinese authorities have announced the most significant easing of lockdown measures since the beginning of the pandemic, introduced as part of a “zero-Covid” policy. The main principle for their introduction will now be the minimization of “high risk” areas, which are subject to the quarantine regime when coronavirus cases are detected: its extension to include entire districts and cities will now be considered redundant.
The year of 2023 to be “extremely challenging” for ocean shipping market
Sea and air freight analyst Xeneta predicts that 2023 will be “extremely challenging” for the ocean shipping market and “turbulent” for the air shipping market. The sea freight volume will be reduced by about 2.5%.
European rail carriers will raise rates by 20-50%
According to the Wirtschaftswoche German magazine, the DB Cargo, freight transport division of German national railway operator Deutsche Bahn, began to notify its customers in mid-November of an increase in rail freight rates starting from January 1, 2023.
ESG reporting will become mandatory for a wide range of companies in the EU
The European Parliament has adopted the Corporate Sustainability Reporting Directive (CSRD), which will oblige a wider range of EU companies to disclose data on the social and environmental impacts of their activities.
The global economy will slow down, but with a different pace
Global economic growth will continue to slow down not only this year, but also next year, according to the Organization for Economic Co-operation and Development (OECD) Economic Outlook for 2023-24.
Border Controls Between EU Countries Are Being Reintroduced
A few weeks after the extension of the current border controls on the border with Slovakia, the Austrian Federal Ministry of the Interior announced the reintroduction of controls at the border checkpoints with other countries.
Air Cargo Spot Rates Keep Falling With No Peak Season In Site
According to Xeneta, air cargo spot rates in October were on average 20% lower YoY, but so far remain twice as high as in the pre-corona crisis 2019 year.
Road Freight Transport in Europe: Multidirectional Pressure on Road Freight Rates
Road freight rates in Europe hit all-time high, but their growth slowed sharply in Q3, according to the European Road Freight Rates Benchmark Report, produced by Transport Intelligence and Upply.
The Surplus of Empty Shipping Containers Causing Container Prices Falling
The sagging demand for container shipping and the equipment turnover acceleration have resulted in the release of a significant share of the fleet and a container surplus.
The Global Economy to Suffer Worse Blow Than Thought in October
The International Monetary Fund (IMF), which lowered its global growth forecast for 2023 from 2.9% to 2.7% in October, said that this figure could be reduced again in the future.
Energy Crisis Causes German Businesses Fleeing to the US
The energy crisis affects almost all branches of the German economy. About 82% of the 24,000 businesses surveyed view energy and raw material prices as a huge business risk and threat to business.
Maersk predicts a 2-4% contraction of the container shipping market in 2022
In its Q3 report, Maersk notes global container demand falling. High inflation and a slowdown in business activity led to a decrease in imports from Asia to Europe over the last quarter by 6.0% year-on-year.
Industry pessimism in Germany, Poland, and the Eurozone intensifies
The S&P Global Eurozone Manufacturing PMI fell to 46.4 in October from 48.4 in September. The index value was recorded in the sub-50.0 territory for a fourth month in a row.
Container spot rates continue to fall
Spot rates for shipping containers from Asia to North America East Coast continue to fall on all key routes, except for routes connecting North America with Europe.
Consumers around the world are tightening belts
Consumers in European, Asian countries, and the US are returning to belt-tightening measures that were prevalent in the 1970s and 1980s amid high inflation.