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Airfreight rates drop following Golden Week but market remains firm

There was a slight drop in airfreight rates last week as a result of the Golden Week celebrations in China, but overall the market remains firm heading into the peak season. The latest figures from the Baltic Air Freight Index show that rates edged 2.1% lower last week, which "was not unusual for the Golden Week holiday period in China when factories often shut down and volumes decrease", according to data provider TAC Index. However, TAC also highlighted that the market remained firm as the industry heads into the peak season and there was potential for rates to rise further. "Sources suggested the market remained pretty firm as it enters the traditional peak season," TAC explained. "E-commerce and other big shippers with products launching had now locked in capacity for peak season, sources said, while some others, including AI 'hyperscalers', were yet to secure space - so could yet push rates sharply higher." The data provider added that jet fuel prices were also still on the rise, which would also contribute to higher airfreight pricing. Figures from IATA's Jet Fuel Price Monitor show a 3.1% increase in the week to 9 October, while prices are up 112% year on year as a result of the conflict in the Middle East. Looking at origin performance last week, the index for outbound Shanghai reflected the Golden Week holiday and slipped by 2.1% week on week. However, elsewhere in Asia rates were on the rise. "Out of east Asia, rates were mostly rising - including on lanes from Taiwan as well as from Japan to Europe and from Seoul to the US," TAC said. "Out of Southeast Asia, rates from Bangkok were also higher week on week, though lower from Vietnam to Europe. Overall rates out of India were also slightly lower week on week, though still much higher year on year." While rates were down slightly last week, pricing remains far above last year's levels. The overall Baltic Air Freight Index is up 24.3% year on year as a result of higher jet fuel prices, the conflict in the Middle East and solid demand on the transpacific led by data centre/semi conductor demand levels.

GFS ship sinks after missile attack, second ship sustains damage

Missiles struck two container ships in Global Feeder Shipping's (GFS) fleet in the Strait of Hormuz in the last 24 hours, with one vessel subsequently sinking after catching fire. Singapore's Maritime and Port Authority (MPA) said that the 2008-built 2,824 teu GFS Pride was damaged and caught fire before sinking. All of its 21 crewmen were evacuated, with no injuries reported. The other ship, 2015-built 4,350 teu GFS Giselle, sustained hull damage but remained operational and proceeded under its own power to a safe anchorage. All 22 crew members were safe, and no injuries were reported. Both ships are Singapore-flagged but had no Singaporeans among their crew. SeaSearcher's AIS data shows that GFS Pride was approximately one nautical mile east of Ras Makhbuq, Oman, when it was hit. Iran's Islamic Revolutionary Guard Corps Navy said an unnamed container ship carrying more than 2,500 containers had struck a mine while transiting what it described as an "unauthorised and dangerous" route through the strait. The sinking of GFS Pride is the second vessel loss since the US-Israel-Iran war began on 28 February, according to data from the International Maritime Organization, the United Nations' shipping agency. The earlier incident involved a bulk carrier, Cape Dao, which sank in the Gulf of Oman yesterday, after being hit by two torpedoes on 23 September. One Indian seafarer was killed and two others were injured. Both GFS Pride and GFS Giselle were originally owned by Dubai-based Simatech Shipping, before the latter's liner operations were acquired by GFS in October 2018. Abu Dhabi-based AD Ports owns 81% of GFS. GFS' website states that GFS Pride served a Khor Fakkan-Fujairah-Karachi service, and was supposed to have arrived in Khor Fakkan on Friday. GFS Giselle is deployed on a Fujairah-Khor Fakkan-India (Nhava Sheva) service and was due to have arrived in Khor Fakkan, also on Friday. MPA said it was in contact with the vessels' management company and was closely monitoring developments. The authority expressed concern over continued attacks on commercial shipping in the Strait of Hormuz, including the latest incidents involving the two Singapore-registered ships. It described the attacks as unprovoked and unjustifiable, saying they violated international law. MPA added that all actions affecting international shipping must comply with international law, particularly the United Nations Convention on the Law of the Sea, and must not jeopardise the safety of vessels or seafarers.

Kuehne, DHL, Expeditors & DSV - top performers (again) if the sh*t hits the fan?

First off, click to expand the table below, please. Got it? Courtesy of RJ (and also widely circulated on other platforms), one excerpt is here: "Except for the Railroad bubble which Liaqayat Ahmad has chronicled in his book 1873, when rail road as a sector peaked at 63% of benchmark, every other bubble in last 150 years has peaked with a single sector at 40% of the benchmark." Fast forward And now, the so-called 'AI Big 10? (as defined here) account "for a record ...