AIR FREIGHT

Asia Pacific Airlines Mark 17 Months Of Consecutive Decline In July

• According to Asia Pacific Airlines (AAPA), international air cargo demand — measured in freight tonne-kilometres (FTK) is falling by 0.6% year-on-year in July as the persisting slowdown in global activity continued to weigh on demand for air freight transport.

• Amidst a weakness in demand for both consumer and intermediate goods, Asian airlines experienced an 8.4% drop in international air cargo demand during the first seven months of the year. The ongoing restoration of flights led to an increase in belly-hold cargo space, contributing to an expansion in offered freight capacity. As a result, the average international freight load factor declined by 5.5% points to 60.9% for the month.

• AAPA director-general commented, ‘In the passenger business segment, demand is expected to remain strong, underpinning further growth in passenger traffic — although uncertainties in the wider macroeconomic environment. The outlook for Asian airlines remains positive, as carriers continue to grow networks to meet travel demand and return gradually to profitability.’

Traffic Update – Preliminary ​

(International Scheduled Services of Asia Pacific Airlines)

Source: asiacargonews, aircargonews

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OCEAN FREIGHT

Shipping ‘Traffic Jam’ At Panama Canal: It’s Not A Crisis (Yet)?

• The recent "traffic jam" of ships at the Panama Canal and seems it is not considered a crisis at the moment. Despite the canal facing a historic water shortage due to drought, the constraints have not significantly impacted American consumers or global supply chains.

• The average waiting time for container ships remains insignificant, while the waiting time for other types of vessels has increased. The official data from the Panama Canal Authority shows that the current queue is only 30% higher than normal, not more than twice normal levels.

• On the schedule reliability of vessels from Asia to the North America east coast through the Panama Canal, there is a slowdown trend since its peaked in April 2023 at 46.2%, down to 38.8% in July. The data doesn’t include the 160+ ships that were waiting in August, implies its common sense the trend line of reliability is going down.

• While the situation at the Panama Canal is being closely monitored, shippers and customers are being flexible to adapt to canal constraints, such as dropping off containers at Pacific hubs for transshipment or redirecting cargo to West Coast ports or the Suez Canal. At this point leaders will need to create contingency plans to make actionable decisions to minimize the impact that could bring in the future.

Source: Freightwaves-1, Freightwaves-2