Logistics Market Updates | December 2022

December 15, 2022

Download and read the latest on Operations and Carrier updates.

At Crane Worldwide Logistics, we are equipped to navigate the changes to best support our clients. We will continue to monitor the situation globally to keep you informed.

All our facilities and warehouses are operational. We have space, and ground transportation options globally, book air charters, and fill space on ocean carriers.


Air Freight - December insights

Current State

  • Available cargo tonne-kilometers (ACTKs) increased by 2% MoM but contracted YoY for the first time since April 2022, decreasing by 0.6% in October. However, the YoY growth in international air cargo capacity remained positive at 2.4%.
  • Global trade activity remains clouded. Inflationary pressures, however, eased somewhat regarding consumer prices, and producer price increases continued to cool down for the third consecutive month since July.

Market Forecast

  • IATA Jet Fuel Price Monitor shows the jet fuel price for the week ending December 9th was up 24.2% compared with a year ago at $108.5/bbl. The jet fuel price average for 2022 (year to date) is $140.1/bbl. The impact of jet fuel price developments on 2022's industry total fuel bill is $128.4 billion.
  • Spot and contract rates from Hong Kong to North America slipped to an average of $6.49 per kg, compared with $6.74 per kg in October. Rates on the trade lane were also down a year ago when forwarders were paying a whopping $11.54 per kg.

Read all Air Freight Updates

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. Make sure 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 - December insights

Current State

  • Ocean carriers struggle to match capacity with plummeting demand, and their capacity remains far above average sport market levels on both major east-west trade lanes out of Asia. Carriers are even withdrawing significant amounts of capacity through blank sailings, and still, they have yet to be able to match the demand drop. Carriers have announced blank sailings on Asia-North Europe and both the Asia-US West Coast and East Coast trade lanes in January 2023, traditionally a peak shipping period ahead of factory closures for Chinese New Year. But the amount of capacity to be withdrawn compared with the total capacity is down from previous months.

Market Forecast

  • Schedule reliability continues to trend upwards. In October, there was a 17.8% Y/Y increase, the most significant increase in 2022. Moreover, the average delay for late vessel arrivals has been dropping consistently since the turn of the year. In October 2022, the average delay dropped by another -0.31 days M/M and reached 5.56 days. The October 2022 figure is now closer to 2020 than the extraordinarily high delay of October 2021.

Read all Ocean Freight Updates


Road Freight - December insights

Current State

  • A Wall Street analyst survey of 3PLs shed some light on the current state of the domestic ground. Many of these 3PLs recently completed a 90-day mini bid, and rates fell another 4% sequentially. Looking ahead to next year, these same 3PLs expect asset-based FTL rates to fall around 5% next year, assuming they start to level off in the second half of 2023.

Market Forecast

  • Looking at the US domestic truck brokerage market, the invoice amount per load decreased quarter over quarter for the second quarter after a prolonged run of increases. The gross margin was at its highest in the past two years, although the improvement slowed from the past two quarters.

Read all Road Freight Updates

 

For questions or assistance, please get in touch with our experts.

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