Between reshoring and e-commerce transformations; rising airfreight rates from China to the U.S.; ocean carriers stretching transit times; vaccine demand stressing capacity; and a 2020 shipping review … a lot went on in this week’s international freight updates. Short on time? Check out our summary of the latest shipping industry news:
Week 52 Freight Updates
December 23rd, 2020
Reshoring and e-commerce will transform transportation
For decades, transportation service providers have operated in a relatively stable environment with consistent, steady growth. However, meaningful changes in the configuration of today’s manufacturing and retail industries—exacerbated by the structural upheavals currently being experienced—are set to significantly upend this system.
Airfreight rates from China to U.S. rise 58% ahead of the holidays
Airfreight rates from China to the U.S. have soared since mid-October, increasing nearly 58% between Oct. 12 and Dec. 21 to reach $8.02 per kilogram, according to the latest figures from the TAC Index. Demand for air cargo was down in October, though, with volume down more than 6% YoY for the month, according to the International Air Transport Association’s monthly report.
'Slidings' replacing blank voyages as ocean carriers stretch transit times
Ocean carriers are looking to extend transit times in a bid to improve schedule reliability and cut costs. They are starting to add more buffer time into schedules to mitigate the impact of chronic global port congestion.
Vaccine demand to stress but not soak up capacity, say transport executives
Logistics managers cheering the release and delivery of the first COVID-19 vaccines in the United States are also bracing for disruption the massive healthcare logistics campaign may or may not bring to their supply chains in 2021, as more and more capacity is needed to move vaccines.
Shipping and Freight Review 2020 – the year that was and wasn’t
I am sure many people and companies around the world are glad to see the stern of 2020 as it sails away, hoping for a better 2nd year of the new 20s decade. Globally, 2020 will be long remembered as the year when the world tilted on its axis, or that’s how it felt for everyone, throwing the entire world into chaos, the likes of which has never been seen before, at least by many who are alive today.
