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Logistics News with TELS GLOBAL
Euro-Zone Recession Is Now More Likely Than Not
The risk of a euro-area recession has reached the highest level since November 2020 as energy shortages threaten to drive already record inflation higher still, according to economists polled by Bloomberg.
Shipping operations around Taiwan destabilized
China’s military drills around Taiwan in response to US House Speaker Nancy Pelosi’s visit to the island are threatening to disrupt maritime and air transportation in the region. Shippers expect delays due to re-routing and higher shipping costs.
Economic crisis may evolve into a global recession in 2023
The head of the International Monetary Fund said that outlook for the global economy had “darkened significantly” since April, and she couldn’t exclude a possible global recession next year.
European flights cancelled amid shortages of manpower
European airports have recorded a record number of flight cancellations. The main reason, according to the airlines, is personnel shortage: tens of thousands of workers engaged in the airline industry were dismissed during the coronavirus pandemic, and now these vacancies are difficult to fill.
European companies consider shifting out of China
Nearly one in four European companies in China are considering shifting their investments out of the country and redirecting them to other countries – Bloomberg reports, citing data from a survey conducted by the EU Chamber of Commerce.
Long-term ocean freight rates set new records
Despite a significant decline in spot container shipping rates (already below the last year’s level according to the Drewry index), long-term contracted ocean freight rates have been breaking records for four consecutive months and, according to Xeneta analytical agency, increased by 10% in June compared to May.
Polish and German Industries Reduce Demand for Logistics
The PMI in the Polish industry fell from 52.4 points in April to 48.5 points in May and continued to drop in June lowering to 44.4 points. In comparison, in June 2021 this indicator was at the record high level of 59.4 points.
Strikes All Over the World Worsen a Supply Chain Crisis
If employers and trade unions on several continents fail to agree at the earliest possible time, a wave of strikes could worsen a supply chain crisis.
Spot Freight Rates from Asia Have Dropped Below 2021 Levels
According to Drewry World Container Index, container freight rates from Asia to the leading consumer markets in Europe and North America continue to decline and are already lower than a year ago.
France: 20 industrial sites blocked as striking truckers
Professional drivers throughout France began a strike today for higher wages and better working conditions. According to Le Parisien, twenty industrial sites were already blocked by dawn.
Global Demand for Container Shipping Is Weak, Yet the Rates Are Getting Higher
Container Trade Statistics (CTS) estimates that global container shipping demand in April 2022 is 14.3 million TEUs, which is 4% lower than in April 2021 and only 1.5% higher than the pre-pandemic level of April 2019.
Air Cargo Market Declines Steadily
The most recent data published by the International Air Transport Association (IATA) indicates that the demand for air freight services decreased by 11.2% in April 2022 compared to April 2021, and international traffic volumes were 10.6% lower than a year earlier.
Updated Outlook is Becoming Increasingly Pessimistic
Global economic growth is projected to decelerate in 2022. The Institute of International Finance (IIF, Washington) now expects global GDP to grow only by 2.3%
Shanghai–Europe Freight Rate Index Has Dropped by 28% for Two Months
The World Container Index (WCI) assessed by Drewry for Shanghai to Northern Europe routes has reached a record low of $10,000 per a 40ft container at the 18th calendar week, and it continues to fall.
China–EU Transit Switches to Southern Routes
Turkey, Kazakhstan, Georgia, and Azerbaijan signed a declaration on the East-West Middle Corridor with the Caspian Transit.
Two Largest European Ports Reduce Container Turnover
Container turnover in Rotterdam, which is the largest European container port and which transports about a third of all containers transshipped through northern European hubs decreased by 1.4% to 3.6 million TEU in the first quarter of 2022.
Hundreds of Vessels are Queuing Up at Chinese Ports
A number of vessels waiting to load or unload in the combined anchorage of Shanghai with Ningbo, where vessels are waiting for entry into ports, has increased by 17% in comparison to the previous month.
The Cost of Shipping a Container from China to Northern Europe Has Fallen by 20%
In the first half of April 2022, the World Container Index (WCI) assessed by Drewry has decreased to 8 thousand US dollars per FEU, which is close to the level of the end of June 2021.
Road Freight Transport Rates in Europe Almost Doubled in a Year
Road transport rates in Europe grow every year so they are not likely to decrease as the main factors driving the growth will remain for a long time.
European road freight capacity has been reduced by up to 7%
A recent report in Germany’s most-read news site, Der Speigel, contained information regarding an internal document by Germany’s DSLV transport federation.