Freight Forward: Strong Import Demand in Europe Continues

Welcome to Freight Forward, where each Monday, I’ll recap what happened in supply chains the previous week through JOC.com articles and additional sources and also what to expect for the week ahead.

I’m Cathy Roberson, a supply chain writer and researcher. For this weekly series, I serve as a research analyst for the Journal of Commerce (JOC), for whom I identify trends, provide thoughts and input into stories, and assist with air express and parcel last-mile queries.

Ocean Freight

• JOC Analysis - Carney has fresh opportunity to galvanize Canadian shipping industry, Mark Szakonyi
• CMA CGM has reflagged its 9,300-TEU container ship Phoenix under the US flag, the first of four ships that will be so flagged this year as the carrier looks to triple the size of its US fleet to 30 over the next four years writes Kevin Saville.
• Mediterranean Shipping Co. will launch a new direct weekly service between the US East Coast and Oceania in February. The full rotation includes Philadelphia, Savannah, Freeport, Rodman, Papeete, Auckland, Sydney, Melbourne, Brisbane, Tauranga, Rodman and Cristobal, before returning to Philadelphia writes Laura Robb.
• Strong import demand in Europe over the past few months has kept ships full and volume growing in double digits; that demand is expected to continue through the third quarter, piling more pressure on the overstretched terminals writes Greg Knowler.
• Container lines active on the India-Europe trades have been able to achieve short-term contract and spot rates higher in July, thanks to elevated bookings due to the onset of peak shipping season, albeit milder than the normal pattern writes Bency Mathew.
• The Asian Development Bank warned in a note that escalating tariffs and further trade friction would dim intra-Asia growth prospects. HPH Trust said the US government sent letters to several counties in Asia to increase pressure on them to conclude trade negotiations by an Aug. 1 deadline writes Keith Wallis.

“If these trade deals fail to materialize, the sudden reinstatement of higher tariffs and possible sectoral tariffs by the US could trigger fresh turmoil in global trade, particularly for intra-Asia trade,” HPH Trust said.

• The pulp industry will see higher costs and tightened supply when a 50% US tariff on Brazil goes into effect Aug. 1. As the tariffs are implemented, the US paper pulp market is especially exposed, experts say writes Laura Robb.

Freight Forwarding

• Kuehne + Nagel reported above-market share growth in both air and ocean volumes in the first half of the year, although foreign currency headwinds weighed on the forwarder’s financial results writes Greg Knowler.

“Since ‘Liberation Day’ at the start of Q2, we have seen the devaluation of our key functional currencies, the US dollar and Euro, relative to our reporting currency, the Swiss franc,” CFO Markus Blanka-Graff told analysts on a first-half earnings call, referring to the launch of the Trump administration’s new tariff policy.

Air

• Data from Rotate shows capacity deployed on China and Hong Kong routes to the US is down slightly over the past four weeks at 36,000 metric tons. Frontloading of ocean freight and the sharp drop in e-commerce demand following a US clampdown on low-value Chinese imports have reduced the need for trans-Pacific air cargo writes Greg Knowler.
• Air Cargo News - The Airforwarders Association (AfA) highlights need for air cargo infrastructure funding. AfA said the U.S. Government Accountability Office (GAO) report on the nation's airport air cargo infrastructure validates concerns raised repeatedly by AfA with legislators about the knock-on effects of inadequate investment and maintenance in this area.

Inland

• JOC Commentary - Possible transcontinental rail a chance to ‘rewire’ US freight movements, Paul Tonsager
• Union Pacific Railroad (UP) and Norfolk Southern (NS) confirmed they are in “advanced discussions” on a possible merger to create a transcontinental railroad, although UP officials declined to offer further details during a second-quarter earnings call writes Ari Ashe.
• The Transportation Intermediaries Association (TIA) is warning truck safety regulators in the US that proposed rules to allow trucking companies to review the rates shippers pay their brokers would harm small brokers and eventually lead to higher shipper and consumer prices writes Eric Johnson.
• Hub Group will acquire the reefer intermodal division of Marten Transport for $51.8 million in cash. Hub will add nearly 1,250 refrigerated containers to its existing fleet writes Ari Ashe.
• BBC - Trucking's uneasy relationship with new tech
• Transport Topics - Ryder Q2 Profit Boosted by Supply Chain Service Wins
• Transport Topics - Saia Posts Profit, Revenue Dip Due to Depressed Freight Volume

Parcel

• Supply Chain Dive - FedEx plans dimensional weight tweaks that could impact pricing

That's it for now. Thank you for reading! For readers interested in reading more Journal of Commerce stories, click here to subscribe. Enter code FFNL20 at checkout to receive a 20% discount on any subscription option. (Note that this is only for first-time subscribers or for upgrading a current subscription). What did I miss? Have a question? Let me know in the comments. I’ll be checking back throughout the week to answer questions, address comments, and share additional insights. In the meantime, here’s wishing everyone a good freight week ahead.

-Cathy