The multimodal network news digest - issue #26

Lower than ever? Rates on the North Europe tradelane can definitely compete for this title. While carriers do not expect the demand to rebound, the rates from China to North Europe landed at $750 per 20ft and $1,000 per 40ft. The Asia-Mediterranean tradelane is doing much better, showing subtle signs of increasing demand despite the drop in rates by 4% (at $2,821 per 40ft.) The booking prospects have also improved, therefore Maersk was quick to deploy MSC Amelia on the 2M AE11/Jade loop from Asia to Mediterranean ports to meet the awoken demand. 

The Shanghai Containerized Freight Index hit its lowest since the summer 2022 at $1,031.

Carriers on the routes from China to the US canceled half of the sailing before the Chinese New Year which resulted in rates bottoming out, at between $1,300 and $2,000 per 40ft. With Chinese factories shutting earlier than usual (in addition, the schedule is also interrupted by the rising COVID cases) and the approaching low volumes after the Chinese holidays, carriers are no longer trying to solve the unsolvable - to boost the freight rates - and focus on securing cargo volumes. 

Recent data show that manufacturing in the US is expected to go through a 7% decline which will therefore result in lower air cargo volumes since American air cargo is intercontinental. The drop at the end of 2022 was driven by China and it is expected to phantom consequences at least for the next 12 months. 

Nevertheless, China has expressed plans to remain competitive as more and more western companies start looking for alternative suppliers, aiming to focus on the development of its logistics systems that would feature supply/demand adaptation with internal and external connectivity and green initiatives by 2025. 

Routes & services

• Rail Cargo Group’s new subsidiary (EVU) will be handling the traffic between Turkey and Greece to Central Europe, having its own traction with staff and locomotives. Rail Cargo Group has had the expansion of its operations to Turkey in plans for a while now, and the launch of the subsidiary is part of the strategy. 
• Having obtained a new safety certificate, TX Logistik launches a new service between Stockholm Norvik Port and Eskilstuna Intermodal Terminal. The service will run 5 times a week. 
• MSC introduced a feeder service between Coega and Cape Town. The rotation: Coega – Cape Town – Coega. It will start operating on Jan 23, 2023.

Other 

• CEVA Logistics (owned by CMA CGM) launched Finished Vehicle Logistics (FVL) organization as part of its acquisition and integration of GEFCO becoming the largest France-based logistics company. For CMA CGM this acquisition is part of the plan to support US East Coast supply chain growth and expand its presence in this region. 

These are only several changes that occurred in more than 250 bn freight rates across 25 million routes with more than 1 million market players. Want to share some news about your company, services, and routes? Just post them on MAXMODAL, a multimodal network that digitally connects routes and rates worldwide to automate sales and operations across container transportation & logistics industry. Join to innovate.