China logistics still struggling with COVID
Shipping, air freight and possibly some supply chains threatened with renewed crisis as China plunges back into emergency anti-COVID measures. Thomas Cullen, Chief Analyst at Ti Insights, reports.
Shipping, air freight and possibly some supply chains threatened with renewed crisis as China plunges back into emergency anti-COVID measures. Thomas Cullen, Chief Analyst at Ti Insights, reports.
Incumbent logistics players have been making mergers and acquisitions to improve their e-commerce offerings in a growing market.
The air freight market is as volatile as ever. Some of the trends that are obscured include the buoyancy of semiconductor demand earlier on in the year combined with the collapse in health-care related cargoes. The movements in these sectors has been violent, both up and down. Yet it is still the US consumer that smooths everything out of the top-line trends.
The issue of strikes by rail workers continues, with the SMART union stating that it was setting a deadline of the 8th December for the rail companies to put forward an acceptable deal, otherwise it would call a strike for the 9th of December.
Maersk recently announced a strategic partnership with US-based project developer Carbon Sink LLC to develop green methanol production facilities in the US.
Further confirmation from C.H. Robinson that freight markets – to quote the company’s CEO Bob Biesterfield – “are entering a time of slower economic growth where freight markets will continue to cool from their peaks and will operate more reliably and at more normalised rates, with fewer disruptions”.
The anticipated 2023 slowdown will affect many economies, with countries accounting for one-third of the global economy poised to contract in 2023.
From 2020 through to the second quarter of 2022, the port of LA was at the centre of the congestion and price inflation storm that hit the container shipping sector. Things today are very different.
The outlook for the European road freight market will depend on the outcome of various unpredictable factors such as high inflation, driver shortages, and fuel costs.
Sentiment Index. Ti’s Sentiment Index has fallen significantly throughout Q3-22 and now heads into the final quarter in negative territory. Out of 2,379 respondents in Q3, 1,009 expected some levels of rate decrease in the coming 3 months, just shy of the 1,066 who expected rates to rise. In July 54% of respondents expected some …
As usual, the CEO of Hapag Lloyd, Rolf Habben Jansen, has articulated the reality of the container shipping market. In presenting his company’s third quarter results last week, Mr Habben Jansen observed that the fundamentals of the container shipping sector were changing.
Optimism in the face of a slowing market is what is striking about Deutsche Post DHL’s recent set of results.