Capacity Concerns

Capacity-constrained air cargo may be hit hard by peak season modal shift

Air freight has lost market share to ocean, a pattern common during downturns, but rare at the start of an economic upturn, said IATA today.
It notes that cheaper, slower sea freight becomes more attractive to shippers at the bottom of the cycle, but that air cargo rebounds when businesses need to rapidly refill inventories – but this has not happened.
As sea freight sees some of its highest prices, container lines …

The post Capacity-constrained air cargo may be hit hard by peak season modal...

https://theloadstar.com/capacity-constrained-air-cargo-may-be-hit-hard-by-peak-season-modal-shift/

Strong demand sees carriers pile back capacity into east – west trades

Due to continued increased demand, THE Alliance is extending its Asia – North Europe ‘extra loader’ programme with an additional five weekly sailings through to the end of September.
Earlier this month THEA members advised shippers that they would introduce the weekly loop commencing this week, lasting for a “limited period of four weeks” and deploying vessels of between 6,000 teu – 10,000 teu.
The move, said Hapag-Lloyd, was in response to …

The post Strong demand sees carriers pile back...

https://theloadstar.com/strong-demand-sees-carriers-pile-back-capacity-into-east-west-trades/

Tough times for forwarders, as factory shutdowns and lack of boxes bite

The ripples from from China’s extended factory shutdown are still spreading for forwarders serving key Asia-Europe tradelanes.
One based in Munich told The Loadstar there was “little air cargo on the move”.
He said: “Inbound you don’t see a lot; there’s some cargo from clients in South-east Asia mainly. Things are recovering a bit in south China, but in the Shanghai area there is almost nothing moving. It’s quite tough.
“For exports, it’s …

The post Tough times for forwarders, as factory...

https://theloadstar.com/tough-times-for-forwarders-as-factory-shutdowns-and-lack-of-boxes-bite/

China starts getting its logistics back on the move – but in a low gear

Supply chain disruption in China is easing alongside an apparent slowdown in the spread of the coronavirus.
However, more congestion and capacity shortages are still expected.
Today China reported the fewest new cases since the city of Wuhan went into lockdown on 23 January, according to the South China Morning Post. The flu-like illness has killed 2,118 people on the mainland, with 74,576 confirmed cases.
Stefan Holmqvist, managing director of Norman Global Logistics …

The post China starts...

https://theloadstar.com/china-starts-getting-its-logistics-back-on-the-move-but-in-a-low-gear/

Forwarders warned of shortage of cargo space once China factories reopen

Amid the coronavirus outbreak, freight forwarders are warning customers to expect space shortages once factories reopen in China, with some ocean shippers switching to air or rail freight in a bid to play supply chain catch-up.
According to Vincent Wong, Asia director of airfreight at CH Robinson, the majority of factories across China will remain closed until 10 February.
“Once they reopen there will be a rush for orders,” he told The …

The post Forwarders warned of shortage of cargo space once...

https://theloadstar.com/forwarders-warned-of-shortage-of-cargo-space-once-china-factories-reopen/

Capacity cuts on North Asia-Australia container trade as demand plummets

Shipping lines are cutting container services between North Asia and Australia as plummeting freight demand reaches “breaking point”.
According to Alphaliner, streamlining services on the North Asia-China-Australia trade will remove around 4,500 teu of weekly capacity and make five classic panamax ships redundant.
For example, Alphaliner said, the joint Australia Express service by ONE, Yang Ming, Evergreen, APL and Hapag-Lloyd would be closed in its current form; as will a service jointly …

The...

https://theloadstar.com/capacity-cuts-on-north-asia-australia-container-trade-as-demand-plummets/

MSC and Maersk clash on capacity policy as AE2/Swan loop readies for relaunch

The 2M is “unlikely” to suspend its AE2/Swan Asia-North Europe loop again after the Chinese New Year, according to an MSC source.
The insider told The Loadstar today MSC “had no intention of making the same mistake again”.
The source was referring to the 2M’s decision to suspend a service in October and November, rather than blank sailings, to balance supply and demand.
Maersk Line and MSC decided to “temporarily suspend” the AE2/Swan service …

The post MSC and Maersk clash on capacity policy as...

https://theloadstar.co.uk/msc-maersk-disagree-capacity-policy-ae2swan-loop-readies-relaunch/

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