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Air cargo demand continues to decline Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
shipping lines need to respond to changed market conditions in a timely manner and to use this time of low demand to improve container quality and cleanliness standards, and provide reasonable free time for their proper usage. Despite the glut of equipment and falling freight rates, shipper-owned containers (SOCs) may be more cost-effective than renting those owned by carriers, says consultancy Container Xchange in its annual survey. It suggests this is because of scarce equipment in inland locations and SOCs not being subject to unexpected demurrage and detention fees. As a result of frenzied newbuilding orders in 2020 and 2021, the world’s 11 largest container carriers are scheduled to receive 89 large containerships in 2023, according to maritime consultancy Alphaliner. OVERLAND A modest investment in overhead wiring for short branch lines could allow 95% of railfreight in the UK to be electrically hauled, compared with only 10% currently, said the CILT(UK). It added that electrifying short branch lines and other stretches of route could avoid the situation where freight trains travel for hundreds of miles diesel hauled ‘under the wires’ because a few vital miles have not been wired. Changing from diesel to electric locomotives en route is costly and can potentially lead to delays, so train operators tend to avoid doing so, even if it means operating for long distances with diesel instead of less polluting electric traction. Eurotunnel is launching FIRST, a subscription-based service offering a range of innovative services, including priority access to check-in lanes, boarding lanes and to the Douane/SIVEP Customs, plant and animal control centres, to better meet the needs of freight customers looking for additional time savings and dedicated support on their Channel crossings.
IN THE AIR Economic constraints continue to take their toll on demand in the air cargo sector as January became the 11th month in a row that air cargo volumes declined, according to IATA. It reported that global demand, measured in cargo tonne- kilometers (CTK), fell 14.9% year on year, whilst overall supply, fuelled by a resurgence in belly capacity, was up 3.9% compared with January 2022. From 3 April 2023, IAG Cargo will introduce a £10 charging fee for customers who opt to continue using paper air waybills (AWB), as part of its drive to become fully digital.
ON THE OCEAN Container lines will counter excess capacity and slow demand growth by deploying multi-faceted strategies to reduce slot supply,
according to Bronson Hsieh, former chairman of both Evergreen and Yang Ming. He told the The Freight Buyers’ Club podcast that carriers “know how to arrange” supply-side reductions and would do everything in their powers to “control redundant capacity”, which will include laying up ships, mass blank sailings and slow steaming to tie up more vessels and cut fuel costs. Condor Ferries will introduce a new ro-ro vessel between Portsmouth and the Channel Islands later this year. It provides sailings linking Portsmouth and Poole, the Channel Islands and the French ports of St Malo and Cherbourg, using a mixed fleet of high speed and conventional ships. Shortsea container shipping operator WEC Lines has expanded its existing services into the port of Liverpool, with new weekly calls from Bilbao, Vigo and Gijon in Spain, Setubal and Leixoes in Portugal, Casablanca in Morocco, and Santa Cruz and Las Palmas in the Canary Islands. These add to its existing Portuguese and Spanish routes, which have called at the port since 2019. FIATA has called for reasonable free time periods at pre-pandemic levels to be reinstated, adding that
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April 2023
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