July 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 - July 2023
Current State
- Industry-wide cargo capacity continued to climb this month after returning to pre-pandemic levels for the first time in April. Available cargo-ton kilometers (ATKs) grew by 14.5% year-on-year and were 5.9% above May 2019 levels.
Market Forecast
- From Hong Kong to Europe, average rates were down from $3.77 per kg to $3.73 per kg, and against a year earlier, prices are down 40.4%. The fall between May & June is typical for the year, given that demand reduces during the summer period and capacity increases as belly hold capacity is added for the summer season. Prices tend to fall incrementally during the summer before starting to pick up again in September ahead of the summer peak season.
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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 - July 2023
Current State
- The peak season for container volumes from Asia to the US has arrived and may decline. The Ocean TEU Volume Index shows a new year-to-date high for US-bound container volumes, suggesting the peak has likely been reached. The Booking Index also reveals a decrease in booking new volumes, further supporting the notion of a downward trend in container demand.
Market Forecast
- The maritime industry will face a cost of compliance with Europe's Emissions Trading System (ETS), amounting to $3.2B in 2024, which will rise to $9.1B in 2026. While the IMO discussions are ongoing, the maritime industry engaged in trade with Europe must prepare for the substantial cost burden imposed by the ETS starting next year.
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Road Freight News - July 2023
Current State
- Dry-van TL spot rates (incl fuel) through mid-July are down 18% year over year but up slightly versus May and June. Rates are now near 2017 levels. While rates appear at/below break-even profitability, our work indicates trucks willing to run to cover cash flow.
Market Forecast
- The June 2023 reading of the Logistics Manager’s Index (LMI) reached a new all-time low at 45.6, and for the second time in a row, the Logistics Managers’ Index registers as contracting. This is the fourth consecutive month the index has reached a new all-time low (above 50 indicates expansion, below 50 indicates contraction). Transportation capacity, warehouse utilization, and transportation prices all increased month over month.
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