AIR FREIGHT

Is the air cargo market finally showing signs of improvement?

• Emerging reports suggest that the air cargo market may finally be showing signs of a slight mprovement after a year and a half in the doldrums. While WorldACD data shows that air cargo demand increased a bit, F Flexport also reported a pick-up in demand last week, particularly out of Asia.

• in August, bucking an industry downtrend, which it attributed to strong e-commerce volumes. The company recorded air freight increases last month both on year-on-year terms and also compared to the volumes seen in July. E-commerce remains a bright spot for the business, with tonnage continuing to see positive growth.

• On the other hand, Bournemouth airport’s freight division Cargo First announced doubling capacity to Chengdu in China from three to six weekly services. The increase was a huge vote of confidence in Bournemouth as an e-commerce gateway to the UK, with the airport’s location, lack of slot constraints, flexibility and speed, and European Cargo’s growing fleet capacity, “a winning combination”.

Airfreight rates – Baltic exchange airfreight index​

Source: Air Cargo News-1, Air Cargo News-2, The Loadstar, Asia Cargo News

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OCEAN FREIGHT​

Boxship inactivity flat in first half of September

• After a persistent downward trend in the first half of the year, the global inactive container ship fleet remained stable with only slight fluctuations in the months of June, July, August and September.

• Over the past fortnight, a slight capacity growth in terms of carrier controlled idle tonnage was offset by a drop in non-operating-owner controlled idle tonnage and in the count of vessels in drydock. This period of stability is expected to end in the coming weeks. Carriers have already outlined ‘blank sailing’ initiatives as the Chinese Golden Week holidays are expected to create a demand lull in early ​
• October. The holidays also mark the start of the traditional slack period in liner shipping that typically last through all of Q4 and into Q1.

• With China’s Golden Week holiday on the horizon, Container xChange predicts blank sailing rates will jump to 16% during weeks 38 to 42 of this year, specifically on trade routes from Asia to Northern Europe as well as the Mediterranean.

Inactive fleet capacity (TEU) & proportion to total cellular fleet (%)

Source: Alphaliner#38, Supply Chain Brain ​