Ocean Freight Market Update
Europe –> North America:
Did You Know?
The entire world’s population could fit inside Los Angeles
With Container Shortages, U.S. Exports still hitting new highs
Despite the shortage of empty containers, U.S. exports are hitting new highs and on track for a record year, especially soybeans, corn, LPG, LNG, and even coal exports.
- Agribulk exports: Exports in June-July totaled 96 million metric tons, which is the highest total ever recorded in the first seven months of a year.
- Natural gas exports: Last year export facilities saw volumes drop during June-August because of COVID, but that was short-lived. LNG exports total 2 trillion cubic feet in January-July, the best first seven months of the year ever.
- Coal exports: Prices of coal (as well as LNG) are at all-time highs in Europe and Asia. To put it in perspective, prices now top $200 per ton.
- LPG exports: Are up 15% from the same period last year
- Crude oil and refined products exports: In the first seven months of this year averaged 6.17 million bpd, according to Energy Information Administration data and are continuing to be on the rise.
United Airlines is back with Cargo Only Flights
When the pandemic wiped out most intercontinental travel, United was the most aggressive domestic carrier in reassigning aircrafts for dedicated cargo operations, with flying more than 13,400 passenger freighters between March 2020 and late July. Now, United Airlines is restarting cargo-only flights again, weeks after assigning all aircrafts to normal passenger operations because the delta variant has drug down travel volumes and growth expectations for the remainder of the year, reported by Freightwaves. With the uptick in traffic picking up, management decided to return all aircrafts to passenger service, with freight sharing space, and luggage in the lower hold.
In early September at a conference, United Chief Commercial Officer, Andrew Nocella said, he just released five Boeing 777-300s to their cargo division for later this year to put those aircrafts back into all-cargo markets, based on the dynamics they’ve been seeing in the marketplace today, so the aircrafts won’t be idle. Earlier this month, United updated their third-quarter revenue guidance after customer bookings and passenger yields decreased below estimates, in response to the spike in COVID cases, reported by Freightwaves.
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