Air
Expansion of Transpacific Flights by Chinese Airlines: Starting April, Chinese airlines have been authorized to increase their weekly flights to the US from 35 to 50. This decision by the US Department of Transportation is aimed at further normalizing the air travel market between the US and China, although the current flight frequencies remain significantly lower than pre pandemic levels.
FedEx Network Redesign Post USPS Contract Termination: With UPS poised to become the Postal Service’s primary air cargo transportation provider, FedEx is set to adjust its network by potentially slashing half of its daytime flight capacity. This could save approximately $1.5 billion, aligning with FedEx’s broader strategy to enhance efficiency and reduce operational costs in the absence of the USPS contract.
Air Cargo Demand Spikes Due to ECommerce and Red Sea Conflicts: March air cargo volumes increased by 11% year over year for the third consecutive month, driven by a surge in ecommerce orders and shippers opting for air freight to circumvent delays associated with the Red Sea conflict. This shift underscores the growing influence of online retail and geopolitical events on logistics strategies.
Oseaan
Suspension of THE Alliance’s AsiaUSEC EC4 Service Extended: The ongoing instability in the Red Sea has led THE Alliance to postpone the relaunch of its suspended AsiaUSEC EC4 service indefinitely. The vessels intended for this service will be redeployed across the alliance’s remaining East Coast services, which will now include additional port calls to accommodate the shifting shipping demands.
land
Introduction of New Parcel Surcharges in the US: In an effort to manage costs and expectations around free shipping, FedEx and UPS have introduced new delivery surcharges across various US regions. This move reflects the parcel carriers’ strategies to navigate rising operational costs and changing consumer expectations regarding shipping fees.
European Rail Sees Increased Cargo Traffic from China: Amid the ongoing conflict between Russia and Ukraine and maritime disruptions in the Red Sea, European rail operators report a notable increase in freight volumes from China. This trend highlights a shift towards rail as a faster and more reliable alternative to sea transport, prompting investments in infrastructure to support the growing demand.
Voorsieningskettingbestuur
Taiwan(China)’s Exports Thrive on Global AI Server Demand: Taiwan’s exports experienced their fastest growth in two years, largely due to a 400% increase in shipments of computer hardware, including AI servers. This surge reflects the global demand for AI technology and positions Taiwan as a key player in the technology supply chain, despite mixed performances in other sectors such as semiconductors.
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