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Ocean carriers enjoy rising revenues Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
ON THE OCEAN All global ocean carriers have seen revenues increase substantially as a consequence of the record-high freight rates, and in terms of earnings before interest and taxes (EBIT), according to Transport Intelligence. The shipping lines reported US$37.24 billion in operating profit in third quarter of 2021 alone, which adds up to nearly US$80 billion in operating profit so far this year. Alphaliner’s latest survey at the end of November reported a slight drop in the global inactive container fleet, which stood at 161 ships of 523,059 teu, accounting for 2.1% of the global cellular fleet capacity. This totalled 24.83 million teu, with no ‘structural’ idling of ships by the lines. Ahead of World Trade Organization meetings in December, the International Chamber of Shipping (ICS) called for maritime transport to be prioritised during the negotiations on the critical issues and challenges confronting the multilateral trading system and impacting the global economy, including liberalisation of maritime transport services. IN THE AIR As the air cargo sector scrambles to add cargo capacity to meet unprecedented demand, December saw Boeing agree a plan with Taikoo (Shandong) Aircraft Engineering (STAECO) to add two
The Port of Felixstowe achieved a milestone by reaching the 100 million teu mark at the end of 2021, after handling its first container in the 1960s. The milestone box was loaded at berth eight, the port’s newest facility.
IN BUSINESS Various international transport organisations, including IATA, ICS, IRU and ITF, issued a statement in December calling for cross-border transport workers to be allowed to continue to do their jobs without overly restrictive travel rules. They warned that governments’ knee- jerk reactions to the Omicron variant would put supply chains, and the workers that enable them, at risk. According to Transport Intelligence, the global freight forwarding market could report 12% growth for 2021 driven by an especially strong first half, although the pace of growth slowed in the second half of the year. A recent study suggests that global sourcing and supply chains have continued and extended during the COVID-19 crisis, despite some early signs last year that shippers would shorten their supply chains in favour of more regional and local supply. It says that global supply chains have been a major enabler in the recovery of countries from the effects of the pandemic.
shipping demand during the height of the pre-holiday peak shipping season when freight rates jumped higher and aircraft were more full, analytics company Clive Data Services reported in December. It added that the disconnect between a red-hot airfreight market and less cargo moved was due to extreme congestion at major airports, where a shortage of labour among airline service providers is slowing aircraft loading and unloading, as well as freight deconsolidation of imports for pickup. ON THE QUAYSIDE Port and terminal operators are entering a new era with the operational threats they face making a return to ‘business as usual’ increasingly unlikely, post- pandemic, according to Deloitte. It says the transition to new technologies and digitally enabled systems, addressing the impact of climate change, defending against cyberattacks and shifting geopolitics, will couple with traditional supply chain and operational risks to change the face of the sector.
Capacity restoration is key to crisis recovery, says the Global Shippers Forum in a study of the ‘Great Shipping Crisis of 2021’. It says that shippers trapped between record rates and very poor service levels are finding alternative ways of getting their goods to market. The value of goods imported and exported globally hit USD5.6 trillion in the third quarter of 2021, setting a new quarterly record, according to an UNCTAD report published at the end of November. It added that whilst new projections show trade in goods and services would reach USD28 trillion for the year – an increase of 23% on 2020 and 11% compared with pre-COVID-19 levels – trade’s recovery has been uneven across countries and sectors. The UK economy will grow at a slower pace than expected with trade set to lag significantly behind the wider recovery, according to the British Chambers of Commerce’s (BCC) latest economic forecast, which predicts that UK GDP growth in 2021 will be down from the previous forecast of 7.1% to 6.8%.
additional 737-800 Boeing Converted Freighter (BCF) conversion lines at STAECO’s
facility in Jinan, China. These give it seven conversion lines dedicated to the 737-800BCF. The aircraft manufacturer forecasts that 1,720 freighter conversions will be needed over the next 20 years.
Global air cargo volumes declined in November despite intense
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January 2022
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