The digital booking revolutionizes air freight
With the pandemic still ongoing, technological progress is accelerating in all the world's major cargo markets, but the progress in air freight is perhaps the most impressive.
https://topalpha.de/ As per the TAC Index, rates to transport goods in planes from Hong Kong to North America or Europe climbed to fresh records this week as importers fretting about depleting stockpiles opted to fly over bottlenecks on the ground.
Cruising Altitude
Air cargo rates from Asia to the U.S. and Europe hit records this week
A number of factors contributed initially to the demand, including the urgent need for health-care supplies like vaccines and PPE at no matter what cost, as well as the shift to online shopping. Because of the grounding of passenger jets, the capacity has remained severely limited.
In contrast, air freight bookings - which used to take longer to complete before the pandemic - are becoming easier and faster to complete through platforms like Barcelona-based WebCargo. Bookings for Freightos' unit have exceeded 1000% in the past year, while the share of capacity from top 100 airlines digitized has grown from 8% in 2019 to 29% at the end of 2019.
Covid cases force FedEx to close Hong Kong crew base
According to Freightos, WebCargo has access to more than 10000 freight-forwarding offices around the world and access to carriers like Qatar Airways, Turkish Airlines, Air France-KLM, IAG, etc. The number of bookings surged between October 2019 and October 2020, and then increased six-fold in the past year.
Flying Off the Shelf
The share of air cargo capacity digitized on top 100 carriers increased on WebCargo
The normally unsung world of air cargo at this week's Dubai Airshow made waves because passenger travel is still in decline. In that market, Air Lease became the first customer for the Airbus A350 freighter, as part of a tentative agreement to buy 111 narrow- and wide-body jets.
The demand for on-demand shipping, coupledcoupled with reduced capacity and higher volatility,led to more than a tenfold increase in digital air cargo bookings between the third quarter of 2020 and the third quarter of 2021,said Manuel Galindo,CEO of WebCargo. Air cargo digitization will remain a majorstay in a post-Covid world.
Two indicators based on shipping data suggest that American consumers have not yet returned to their normal balance of spending on services over goods. As per Flexports' post-Covid Indicator, it showed a reading of 123 for December, up from 122 in November, and representing the 11th straight month above 100 since it was set in mid-2020 as a baseline to illustrate how consumer spending patterns changed after coronavirus outbreaks and lockdowns.
Todays Must Reads
A 15% increase in global consumer prices is expected by 2023 due to rising costs for ocean shipping, with smaller, trade-dependent countries potentially suffering the most.
Food costs Walmart and Target said this week that their costs are outpacing their prices, and they're not exactly rushing to get the gap closed. At the same time, Lowe's raised its sales projection for this year and reported higher revenue than forecast.
The European Union has imposed tariffs of up to 44% on optical-fiber cables from China, affecting the supply of next-generation telecom equipment used by Deutsche Telekom and others.
In a bid to avoid another Visa credit card ban in the U.K., Amazon is considering switching its co-branded credit cards to Mastercard amid tensions with the payment giant.
California will increase weight limits for trucks carrying goods into and out of its ports in an effort to ease supply-chain bottlenecks and clear containers off Los Angeles and Long Beach docks.
Auto sales in Europe plummeted to their lowest level on record in October, as manufacturers rejoice that the long-running chip slicing shortage may now be alleviated.
As global pharmaceutical companies try to cope with their supply chains, Bayers chief executive officer said labor costs will rise next year.
Steph Flanders, host of the Stephenomics podcast, discusses Singapore's plans for this year's New Economy Forum annual meeting for political, business and academic leaders, with NEF editorial director Andrew Browne.
On the Bloomberg Terminal
According to AAR data, North American rail traffic declined 45% in the week ended Nov. 13. There are more issues surrounding intermodal traffic following washouts near Vancouver, plus record congestion at Southern California ports. The supply chains could take a breather during Lunar New Year in an attempt to get back on track at the ports and inland terminals, Bloomberg Intelligence reports.
Bloomberg Intelligence reports that automakers have thousands of components to integrate into new vehicles and few options for preventing supply disruptions such as the chip shortage that has ravaged global supply.
Track global commodities trade flows using the AHOY function.
Supply chain stories can be found by clicking HERE.
BNEF offers insight into clean energy, advanced transport, digital industry, innovative materials, and commodities.
VRUS is a terminal gadget that contains news about the Coronavirus, as well as maps and charts.
Like Supply Lines?
Dont keep it to yourself. Colleagues and friends can sign up here. New Economy Daily is also published, a briefing on the latest global economic developments.
https://topalpha.de/ As per the TAC Index, rates to transport goods in planes from Hong Kong to North America or Europe climbed to fresh records this week as importers fretting about depleting stockpiles opted to fly over bottlenecks on the ground.
Cruising Altitude
Air cargo rates from Asia to the U.S. and Europe hit records this week
A number of factors contributed initially to the demand, including the urgent need for health-care supplies like vaccines and PPE at no matter what cost, as well as the shift to online shopping. Because of the grounding of passenger jets, the capacity has remained severely limited.
In contrast, air freight bookings - which used to take longer to complete before the pandemic - are becoming easier and faster to complete through platforms like Barcelona-based WebCargo. Bookings for Freightos' unit have exceeded 1000% in the past year, while the share of capacity from top 100 airlines digitized has grown from 8% in 2019 to 29% at the end of 2019.
Covid cases force FedEx to close Hong Kong crew base
According to Freightos, WebCargo has access to more than 10000 freight-forwarding offices around the world and access to carriers like Qatar Airways, Turkish Airlines, Air France-KLM, IAG, etc. The number of bookings surged between October 2019 and October 2020, and then increased six-fold in the past year.
Flying Off the Shelf
The share of air cargo capacity digitized on top 100 carriers increased on WebCargo
The normally unsung world of air cargo at this week's Dubai Airshow made waves because passenger travel is still in decline. In that market, Air Lease became the first customer for the Airbus A350 freighter, as part of a tentative agreement to buy 111 narrow- and wide-body jets.
The demand for on-demand shipping, coupledcoupled with reduced capacity and higher volatility,led to more than a tenfold increase in digital air cargo bookings between the third quarter of 2020 and the third quarter of 2021,said Manuel Galindo,CEO of WebCargo. Air cargo digitization will remain a majorstay in a post-Covid world.
Two indicators based on shipping data suggest that American consumers have not yet returned to their normal balance of spending on services over goods. As per Flexports' post-Covid Indicator, it showed a reading of 123 for December, up from 122 in November, and representing the 11th straight month above 100 since it was set in mid-2020 as a baseline to illustrate how consumer spending patterns changed after coronavirus outbreaks and lockdowns.
Todays Must Reads
A 15% increase in global consumer prices is expected by 2023 due to rising costs for ocean shipping, with smaller, trade-dependent countries potentially suffering the most.
Food costs Walmart and Target said this week that their costs are outpacing their prices, and they're not exactly rushing to get the gap closed. At the same time, Lowe's raised its sales projection for this year and reported higher revenue than forecast.
The European Union has imposed tariffs of up to 44% on optical-fiber cables from China, affecting the supply of next-generation telecom equipment used by Deutsche Telekom and others.
In a bid to avoid another Visa credit card ban in the U.K., Amazon is considering switching its co-branded credit cards to Mastercard amid tensions with the payment giant.
California will increase weight limits for trucks carrying goods into and out of its ports in an effort to ease supply-chain bottlenecks and clear containers off Los Angeles and Long Beach docks.
Auto sales in Europe plummeted to their lowest level on record in October, as manufacturers rejoice that the long-running chip slicing shortage may now be alleviated.
As global pharmaceutical companies try to cope with their supply chains, Bayers chief executive officer said labor costs will rise next year.
Steph Flanders, host of the Stephenomics podcast, discusses Singapore's plans for this year's New Economy Forum annual meeting for political, business and academic leaders, with NEF editorial director Andrew Browne.
On the Bloomberg Terminal
According to AAR data, North American rail traffic declined 45% in the week ended Nov. 13. There are more issues surrounding intermodal traffic following washouts near Vancouver, plus record congestion at Southern California ports. The supply chains could take a breather during Lunar New Year in an attempt to get back on track at the ports and inland terminals, Bloomberg Intelligence reports.
Bloomberg Intelligence reports that automakers have thousands of components to integrate into new vehicles and few options for preventing supply disruptions such as the chip shortage that has ravaged global supply.
Track global commodities trade flows using the AHOY function.
Supply chain stories can be found by clicking HERE.
BNEF offers insight into clean energy, advanced transport, digital industry, innovative materials, and commodities.
VRUS is a terminal gadget that contains news about the Coronavirus, as well as maps and charts.
Like Supply Lines?
Dont keep it to yourself. Colleagues and friends can sign up here. New Economy Daily is also published, a briefing on the latest global economic developments.
