BIFA News
Containerline reliability continues to improve Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
based European Cargo using its fleet of all-cargo A340 wide-bodied freighters, each with a capacity of 70 tonnes, as part of a strategic partnership to grow its cargo operation. OVERLAND The Upply x Ti x IRU rates index indicates spot and contract rates in the European road freight market dropped 7.5% and 2.8%, respectively, quarter on quarter for the three months to 31 March, amid falling volumes and rising capacity. Upply CEO Thomas Larrieu said that while it is typical for road freight rates to dip after the holiday season, this year’s drop is hitting harder than usual. Legislation will be laid to safely roll out longer lorries on Great Britain’s roads from 31 May, in a move that the government claims will help grow the economy, boost productivity, slash road emissions and support supply chains. The longer vehicles are able to move the same volume of goods, while making 8% fewer journeys than current trailers. An open letter and petition has been handed in to 10 Downing Street calling for more safe and secure parking for HGV drivers, emphasising the concern that poor conditions and insecure sites mean many lorry drivers now believe they can do better parking off-site. IN BUSINESS The UK government must ensure its policies support the decarbonisation of London’s logistics sector if the UK is to meet net zero ambitions, says the Accelerating Logistics Towards Net Zero report, produced by consultant Sounding Board (ILSB). Two of three recommendations in the report suggest the installation of rooftop solar panels across all logistics spaces and clarifying the electrification of HGVs across the capital. Turley, and the London Industry and Logistics
ON THE OCEAN After a dramatic 7.7% increase in reliability between January and February this year, global containerline schedule reliability was up a further 2.4% in March. They reached an average of 62.6% according to SeaIntel’s latest Global Liner Performance Report, which covers over 60 lines on 34 different trades and was published in mid-May. Stena Line is constructing two bespoke 147 m long freight ferries for its Heysham-Belfast route that have been designed to maximise freight volumes and will provide 2,800 lane metres of capacity, an 80% increase on current ship
capacities. The first is due to enter service on the route in autumn 2025. IN THE AIR The Loadstar publication predicted in early May that surging China-Europe air passenger services will only serve to further depress air freight rates, as the industry struggles to contend with
mounting belly capacity amid weak demand. It added that for the UK alone, the spike in services over the past six months has been dramatic, with weekly China-Heathrow flights increasing more than tenfold, from five to 54. IATA has released data for March 2023 global air cargo markets showing a continued decline against the previous year’s demand performance. Global demand, measured in cargo tonne-kilometers, fell 7.7% compared with March 2022 (-8.1% for international operations). It said, however, that the decline in demand is slowing, although at this point, it is unclear whether this is a potentially modest start of an improvement trend or the upside of market volatility. According to analysis in mid- May from CLIVE Data Services, part of Xeneta, the global air cargo market may have to ‘hang on until October’ for signs of a recovery after a flood of summer bellyhold capacity on major lanes and a -4% drop in demand in April indicated a challenging 4-5 months ahead. Bournemouth Airport’s Cargo First air freight business is celebrating the start of a thrice-weekly all-cargo airfreight service between Chengdu Shuangliu International Airport (CTU) in China and the UK airport operated by Bournemouth-
4 | June 2023
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