In 2022, we at Kemiex reported several significant news regarding global logistics.
In this article, we will explore some the most important logistics news of 2022 arround the world, highlighting their impact and implications for the economies.
Disclaimer: These are just a few selected examples of the news we share with our members during 2022. If you also want to be the first to know and have unbiased information in record time Click here.
1. Sea freight: capacity outweighs demand during Chinese New Year 2023
According to Alan Murphy, CEO of Sea-Intelligence, there will be an extraordinary increase in deployed capacity in 2023, against a typical reduction of capacity during Chinese New Year to accomodate to lower demand levels. If demand continues to be sluggis, freight rates will continue to tumble. With the shipping lines sitting on piles of cash, further helped by a highly profitable 3Q 2022, we might end up in a situation where there is another price war, reminiscent of 2015-2016. _22/DEC/2022 _2. China: cities and provinces ease COVID-19 control measures
According to China Daily, several cities and provinces have recently optimized COVID-19 control measures to minimize the impact on people and economic activity. Starting today, Shanghai will no longer require negative test result to use public transportation, or when entering outdoor public spaces. Shanghai is the latest to join other major Chinese cities in optimizing COVID-19 prevention and control measures to try to return to normal life and work following similar announcements by Beijing, Guangzhou and Chongqing. _05/DEC/2022 _3. Brazil: Paranagua port blocked by landslides
Brazil’s Paranagua port authority said that landslides caused by heavy rainfall blocked the main access road to the ports of Paranagua and Antonina and rail access to the port, the second busiest for grain exports in the country. Other port operations are normal as ships continue to unload and load products stored at the port’s warehouses. The port authority is monitoring the situation but has not given a timeline for clearing that road. _29/NOV/2022 _4. Freight rates continue to spiral downwards
Freight rates continue to spiral downwards with Far East to Europe, Far East to Middle East and Far East to Australia suffering the sharpest falls last week, amidst volume weakness across all tradelanes. Carriers are pushing for a new round of General Rate Increases in DEC but they are unlikely to succeed if surplus capacity are not removed. Contract rates for the new 2023 season appear certain to fall by as much as -80% as they mirror the drop in spot rates with the SCFI already down by -73% YoY. _29/NOV/2022 _5. Freight: lower rates, overcapacity in 2023
According to freight data provider Xeneta, a rapidly cooling ocean freight market looks set for an extremely challenging 2023 after over two years of rising rates and overstretched capacity. They suggest that ocean cargo volumes could fall by up to -2.5%, rates will drop significantly and weak demand will force increased idling of vessels. The air freight market, their analysts predict, will also face a turbulent twelve months. _02/SEP/2022 _6. LINERLYTICA: SCFI container rate index drops by another -8.6%
According to LINERLYTICA, freight rates slumped further with the SCFI falling by -8.6% last week as pressure mounts on the Asia-Europe and US East Coast routes where rates are still above pre-COVID levels. On the Far East-US West Coast, rates have already dropped below their pre-pandemic levels with current spot rates reminiscent of the period leading to the bankruptcy of Hanjin Shipping in August 2016. _15/NOV/2022 _7. CMA CGM adds to service for Europe to South America East Coast
The large freight group reported that in order to improve the schedule reliability of its SAFRAN service connecting North Europe with East Coast South America, a 9th vessel will be added into the service, with effect from 15 November 2022 ex Antwerp. At the same time, the southbound call in Tanger will be reinstated, allowing a smooth transfer of cargoes from North Europe to ports served on our Med service SIRIUS calling in Salvador, Rio Grande, Itajai and Itapoa. _20/SEP/2022 _8. East China ports affected by typhoon Muifa
According to CNN, authorities in China’s eastern province of Zhejiang ordered ships to return to ports as one of this year’s strongest typhoons is set to make landfall on Wednesday. Typhoon Muifa intensified on Tuesday as it moved toward the twin port cities of Ningbo and Zhoushan. _14/SEP/2022 _9. US: nationwide trainmen strikes could start Friday
Only five of the 12 unions representing 21’000 employees have reached voluntary agreements with the railroads. The Association of American Railroads has released a report projecting that the economic impact of a nationwide railroad strike could be more than US$ 2bn a day, far more than a port strike on the West Coast. _12/SEP/2022 _10. Europe’s Rhine river with extremely low water levels
The Rhine River’s low water levels threaten Germany’s largest industrial players that rely on the 1288 kilometer waterway from Switzerland to the North Sea for transport. A new estimate cautioned water levels could decline, taking it within centimeters of being impassable by barge. _03/AUG/2022 _Want full access to this information?:
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Kemiex is a company founded in Zurich in 2017, with the aim to improve the handling of raw materials in the Feed, Food, Vet and Pharma industries. The vision of the founders, Oriol Saludes and Pau Franquet, is to create the first platform able to digitalise transactions in these traditional industries, connecting reliable buyers and sellers around the world and helping companies to grow. This information is collected and summarized by our global team of Market Analysts, led by Stefan Schmidinger.__
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