- Global efforts are being made to increase cargo capacity
According to the UPS’s weekly freight and logistics news and market update report on May 11, 2023:
TOP TAKEAWAYS
- Increasing connectivity within Europe is expected to boost cargo flow and major European airports are investing in hub expansions and renovations to further support this growth
- American airline carriers are increasing their investment in Sustainable Aviation Fuel (SAF) as the push for more sustainable aviation becomes more important globally
- There is optimism that a West Coast Ports labor deal could be reached in the coming weeks. A deal could signal a return to normalcy and increased ocean and intermodal volume through the West Coast Ports
- Increased routing frequency out of China and newly announced freighters from Japan Airlines will provide increased capacity into and out of the region
- Major airlines in the Middle East are expanding their global networks and increasing their cargo capacity via new routes, freighter planes and cargo hubs. Cargo flow can be expected to increase in the region in the upcoming months
NORTH AMERICA
Air
- After re-establishing the San Francisco to Hong Kong route in March, United Airlines has announced plans to increase to twelve weekly flights in August and further increasing to two daily flights by the end of October. The route will be flown by Boeing 777’s and will add additional transpacific cargo capacity moving forward.
- Delta Airlines and United Airlines have increased their commitment to more sustainable aviation with increased orders of Sustainable Aviation Fuel (SAF). United plans to triple it’s SAF usage in 2023, purchasing 10 millions gallons of SAF to be used on flights out of SFO. Delta has agreed to purchase 10 millions gallons of SAF to be used at its LAX hub over the next two years.
Ocean
- In an effort to become more competitive, expand capacity and enhance operational efficiency, the Port of Virginia will be placing an order for 36 new automated cranes in Q2 2023, which represents a $143 million investment.
- There is increasing optimism that a deal between International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) could be reached in the next couple of weeks. They have already reached an agreement on major non-automated terminal requirements and the final negotiation points of wages and pension benefits are about to be discussed.
LATIN AMERICA
Air
- According to the National Civil Aviation Agencry (ANAC), Brazil’s air cargo handling in March 2023 surpassed its pre-pandemic levels. More than 38,000 tons were transported in March, which is a 5.1% increase compared to March 2019.
- In March, Latin American airlines were the best performers across all regions, with air cargo capacity increasing 12.9% year-over-year.
Ocean
- The construction of the new maritime customs office in Veracruz, Mexico is expected to be completed by the end of 2024, offering new import and export areas.
ASIA-PACIFIC
Air
- Over a decade after Japan Airlines (JAL) shed its freighter fleet, the airline announced a plan to return to Freighter cargo service. JAL will begin to convert retired passenger jets to freighters to meet increased demand both on domestic routes and internationally.
- The US Department of Transportation has allowed for a 50% increase in weekly frequency for Chinese airlines. Chinese carriers will now be able to operate twelve weekly round trip flights to US destinations, matching the number of flights allowed into China by US carriers.
Ocean
- It is estimated that Kaohisung port’s new Number 7 terminal will be able to handle an annual volume of 4.5 million TEUs and it will be operated by Evergreen. It includes five berths enabling it to accommodate four container vessels each holding 24,000 TEUs simultaneously.
- Indian ports saw TEU volumes fall by 7% in April, month-over-month. The Mundra Port alone reported a 13% decrease, from 665,000 TEUs in March to 579,000 TEUs in April.
EUROPE
Air
- Turkish Airlines has added Palermo Airport Falcone Borcellino to its lists of destinations in Italy. Turkish Airlines has also expanded its services to Poland by launching flights to Krakow, in hopes of increasing its connectivity to Europe. Additional cargo capacity and flow can be expected between the regions.
- Lufthansa Cargo aims to turn Frankfurt Airport into a leading global E-commerce hub. The German carrier is working in collaboration with its subsidiaries - Heyworld, a logistics service provider and CB Customs Broker, to expand E-commerce business at its home hub by offering comprehensive solutions for shipping, customs clearance and further transportation of E-commerce shipments.
- Maastricht Aachen Airport, the second-largest cargo hub in the Netherlands, is undergoing a runway renovation and extension as part of its plan to invest up to €100 Million in infrastructure over the next few years. Maastricht Aachen Airport is expected to contribute significantly to the Dutch air cargo flow.
Ocean
- CMA CGM adjusted its Port Congestion Surcharge for Iskenderun and Mersin ports in Turkey as of May 5, 2023, due to operational conditions related to the aftermath of the Turkey and Syria Earthquake. The updated surcharge will be $100 per dry and reefer container shipping from the two ports to West Africa.
- The acquisition of Bolloré Logistics' transport and logistics operations has been confirmed by the CMA CGM Group. Once completed, the combined entity will have the capacity to move 800,000 tons of air freight annually and over 2 million TEUs of sea freight shipping capacity. Additionally, the acquisition will provide CMA CGM access to new logistics hubs, particularly in France and Asia.
Ground
- MSC has re-established its DRAGON service, connecting Asia to the Hutchison Ports BEST terminal located in the port of Barcelona. With this service, the Spanish market will export containers to Shanghai and Singapore while importing from various destinations such as Ningbo and Yantian. As a result, it is expected for the rail transport to become more active.
INDIA, MIDDLE EAST AND AFRICA
Air
- Air India is expanding its global network and has recently revealed a new direct route to Europe. Beginning on June 11, the airline will initiate flights connecting Delhi and Amsterdam, increasing Air India’s direct flight frequency between India and Europe to 77 weekly flights.
- Emirates SkyCargo has incorporated two Boeing 747-400Fs into its freighter fleet with the goal of doubling its current capacity in the next ten years. The cargo unit anticipates 15 additional freighters to join its fleet via ordered acquisitions and its freighter conversion program, increasing it’s bellyhold capacity from new passenger planes.
- In collaboration with RwandAir, Qatar Airways Cargo has launched a cargo hub in Kigali, Rwanda. This marks the airline's first cargo hub situated outside of Qatar, and it will be served by a Boeing 777 freighter from Doha twice a week. Qatar Airways Cargo also has stated that it will soon disclose new destinations from Kigali.
Ocean
- MSC introduces its new inter-Asia service, Shikra, connecting major ports in China and India. The first vessel on this route, MSC Mara, is estimated to arrive at Qingdao port on May 23. The rotation for this service includes ports such as Shanghai, Ningbo, Kaohsiung, Shekou, Singapore, Colombo, Nhava Sheva, Mundra, Port Klang, Tanjung Pelepas, Vung Tau and finally back to Qingdao.
Ground
- China and Pakistan have agreed to extend the China-Pakistan Economic Corridor, a $60 billion project aimed at modernizing existing infrastructure in Pakistan to Afghanistan. The project includes railway lines and motorways connecting Pakistan's southern ports, Gwadar and Karachi, with western China.
CUSTOMS AND BROKERAGE
- Customs and Border Protection’s (CBP) standard of evidence to prove imports aren’t subject to a Withhold Release Order (WRO) may be expanding. This could cause issues amongst importers, since a higher standard of evidence could be challenging for importers to meet.
- The US and South Korea are working together on key initiatives including supply chains, critical minerals, green shipping and Indo-Pacific Economic Framework (IPEF) engagement in efforts to further broaden cooperation on trade and supply chain issues.
This document is for informational purposes only. It does not constitute legal advice. Information herein was obtained from government, industry, and other public sources. It has not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to the recipient's specific circumstances.
Tags: Africa,All Products,AlwaysFree,Americas,Asia Pacific,English,Europe,ISC,Latin America,Middle East,US
Published on May 12, 2023 9:22 AM (GMT+8)Last Updated on May 12, 2023 9:22 AM (GMT+8)
