August 15, 2023
Download the latest on Operations and Carrier updates.
We are equipped to navigate the changes at Crane Worldwide Logistics to support our clients best. We monitor developments globally to keep you informed.
All our facilities and warehouses are operational. We have space and intermodal transportation options globally, book air charters, and fill space on ocean carriers.
Air Freight News - August 2023
Current State
- Leading indicators of air cargo demand, including global goods trade, manufacturing PMIs, and inventory-to-sales ratio, continued to point to contractions. However, improvements in inflation in major economies could provide a tailwind to the global economy and air cargo demand.
Market Forecast
- The biggest rate declines occurred on Northeast Asia trade lanes. China–US and US–China rates fell by more than 60% year on year, for instance, while China–Europe and Europe–China both registered a fall of more than 55% compared to July last year.
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Commercial Air Operations Update
IATA released an information page listing airlines' status globally, accessible to all. Visit the IATA page here.
Charter Operations and Aircraft Availability
What charters do Crane Worldwide Logistics have available?
- Capacity is available for charters globally. Contact us for current rates and availability.
- If you have an opportunity, send us the details, and we can work on the current part charter capacity and pricing. Charter prices are based on current availability, and that could change rapidly. So, the size and rates have fluctuated over the past few days.
- Crane Worldwide Logistics must have a signed charter authorization from our client before signing the charter contract with the provider. Ensure you have someone standing by to sign agreements; capacity and rates change quickly.
- On all charters, funds must be received before they wheel up.
Ocean Freight News - August 2023
Current State
- Shipping companies are progressing in effectively managing vessel capacity in the Asia-U.S. trade routes. Over the past three weeks, spot rates have been consistently increasing. U.S. import bookings continue to surpass pre-COVID levels, and consequently, reduced vessel capacity positively impacts rates. Traditionally, higher demand leads to greater capacity availability. However, in the past month, shipping lines have concentrated on tightening their service offerings due to improved demand. Asia-West Coast capacity has declined by 15% in July compared to June, while Asia-East Coast capacity is down by 8% to 10%, accounting for the impact of Panama Canal restrictions.
Market Forecast
- The recent uptick in freight rates on trans-Pacific routes indicates ocean carriers' improved ability to align vessel supply with demand through schedule adjustments and canceled sailings. However, experts in the ocean freight sector caution that the impending arrival of new ships could disrupt this equilibrium. As of August 14th, the Asia-West Coast spot rate stands at its highest point since October 2022 and is a twofold increase from the late June rate. These gains are likely linked to the heightened blank sailings activity initiated by carriers since late June. After reducing the number of canceled sailings during June, carriers have increased the frequency of blank sailings. In July, 21.7% of trans-Pacific capacity to the US West Coast was blanked, compared to 14.7% in June. While August has seen only 8.5% of capacity blanked so far, there is a seasonal uptick in volumes for some ocean freight customers. Carriers' efforts to control space have been relatively successful and could persist. However, it is anticipated that challenges in further raising rates through peak season surcharges or general rate increases. Consequently, carriers are now more cautious, and it is expected that the period from now until the end of October might not be as robust as initially anticipated.
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Road Freight News - August 2023
Current State
- Dry-van TL spot rates (incl fuel) through early August are down 15% year over year and down slightly versus July. Rates are now near 2017 levels. While rates appear at/below break-even profitability, this analyst's work indicates trucks willing to run to cover cash flow.
Market Forecast
- U.S. trucking hiring slowing amid soft freight demand. The hiring surge by U.S. trucking companies is receding, with the number of new jobs created in July falling short of expectations after several monthly gains this spring, but overall employment remains at an all-time high. Trucking firms added only 1,200 jobs in July before seasonal adjustment, compared with more than 11,000 jobs added in July 2022 and 2021 and more than 10,000 in 2020, according to the U.S. Bureau of Labor Statistics (BLS). The 1,200 jobs gained last month was even smaller than the previous low record for the past decade, 2,100 jobs in July 2016.
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