Asia Shipping : Third-Quarter Review and Outlook

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operator ’ s footprint given DP World ’ s focus on technology , growing its logistics portfolio and building strategic port infrastructure .

DP World has been aggressively expanding its logistics exposure , integrating its infrastructure ownership in terminals , warehouses , rail and trucking around the world into the expanded forwarding product . In the past eight months , the port operator has opened 100 forwarding branches around the world in a calculated move away from the traditional asset-light approach of global forwarders .

China origin specialist

The acquisition of Cargo Services brings on board a China specialist and market leader in “ origin services ,” the moving of goods from factories to a customer ’ s door . A key offering is sophisticated supply chain management services for retail and high-fashion customers in the US , UK , Europe , South Africa , Australia and New Zealand .

“ Industries such as automotive , chemicals , healthcare , perishables , retail and technology require tailored logistics solutions ,” DP World noted in the statement , adding that its goal was to provide sector-specific solutions for each of the verticals .

With the acquisition process of Cargo Services now officially complete , DP World said the company would be fully integrated into its forwarding division over the next few months .

DP World ’ s foray into the forwarding business mirrors moves made by other global port operators such as Singapore-based PSA , Manila-based International Container Terminal Services Inc . and Maersk ’ s APM Terminals .

Adding supply chain solutions to terminal operations allows the port operators to give cargo owners a greater degree of control over their goods

email : greg . knowler @ spglobal . com

CMA CGM Air Cargo launches first trans-Pacific air service

CMA CGM is joining fellow ocean carriers Maersk and MSC in offering trans- Pacific air freight service . MBekir / Shutterstock . com

By Keith Wallis

CMA CGM Air Cargo has inaugurated its first trans-Pacific air cargo service amid continued strong demand for air freight ahead of the peak season .

The carrier joins Maersk Air Cargo and MSC Air Cargo in offering trans-Pacific air freight services after its first flight left Hong Kong for Chicago on Aug . 25 . The outbound flight from Hong Kong includes a refueling stop in Anchorage , while the return leg is flown via Seoul .

The service comes as air freight rates out of Hong Kong have stabilized but are still approximately 20 % higher than this time last year , according to the Baltic Air Index .

Rates from Hong Kong to the US eased slightly in August but were still just under $ 6 per kilogram at the end of the month and slightly higher from neighboring Shenzhen to the US at $ 6.13 per kg , forwarders told the Journal of Commerce .

Analysts believe air freight rates will firm again on tighter capacity in the coming weeks ahead of the Thanksgiving , Christmas and New Year holidays in the US . They say continued robust e-commerce shipments , especially from Hong Kong , will drive demand , leading rates to spike . DHL Global Forwarding said airlines have already contracted more than 80 % of their air cargo capacity to e-commerce companies for the fourth quarter , creating a possible last-minute capacity crunch for shippers switching to air freight to avoid ocean delays and port congestion .

Interest in China-to-US air cargo charters is expected to surge in the third and fourth quarters as a cost-effective alternative to ocean freight with the air peak season approaching , DHL Global Forwarding said in a market commentary .

CMA CGM Air Cargo will eventually use three Boeing 777-200F freighters operated by US company Atlas Air on trans-Pacific services . Each aircraft can carry up to 103 metric tons .

CMA CGM said a second aircraft would arrive by December and connect China with the US , with the third scheduled for delivery in 2025 . The first two aircraft will provide seven flights per week across the Pacific .

“ The launching of this new route between Chicago and Hong Kong is a strategic milestone in the development of CMA CGM Air Cargo ,” airline CEO Damien Mazaudier said in a statement .

CMA CGM Air Cargo already operates two B777- 200Fs on routes between Europe and Greater China , with five flights per week to Hong Kong and four flights per week to Shanghai .

email : keithwallis @ hotmail . com

24 Journal of Commerce | September 23 , 2024 www . joc . com