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Bangladesh garment shippers struggle as liners prioritise lucrative China cargo

Bangladesh's garment exporters are struggling for space amid equipment shortages and growing demand out of China, provoked by the looming Golden Week holiday. Rates from Bangladesh to the US have doubled in the past fortnight, with exporters that send cargo on a delivered-duty-paid system particularly exposed, some saying they have failed to make any fresh bookings. Shovon Islam, MD of apparel exporter Sparrow Group, told The Loadstar he was "struggling" to get new US bookings, adding almost all those who use DDP are facing the same problem, and are now being charged significantly more. Exporters said freight rates more than doubled last month, from $5,000 to $11,400 per 40ft on the Chittagong-US trade, and while those sending freight-on-board, where the buyer covers costs, aren't being stung, they are still struggling to find space. Apparel exporter Abul Kalam Azad told The Loadstar: "Those who are not in long-term contract with the liners and depend on the spot market are failing to secure fresh bookings and are forced to pay extra to send cargo. "Excessive space consumption by Chinese exporters has created the shortage, and we are being told by the container lines that they simply do not have the required equipment to cater for us." A Dhaka-based representative of a mainliner told The Loadstar that, from Chittagong to Europe, the net contribution per 40ft to the carrier was $537, while from China it was $3,000 - carriers obviously far more willing to send vessels and equipment to China. An MSC representative explained: "Mother vessels have reduced the number of slots available for Bangladesh and increased the Far East/China availability, which has created the fresh crisis." Another carrier representative admitted to The Loadstar that Chinese exporters were being given priority, noting that they expected the situation to remain unchanged for the next six to seven weeks, in the build-up to the October Golden Week. Hapag-Lloyd said it had been contending with an equipment crisis over the past three weeks, telling The Loadstar that, "most of the equipment is being sent to China due to high demand". The spokesperson added: "With the equipment available to us, we will be able to continue providing service next one or two weeks normally. After that we have to be choosy and provide equipment only to priority customers." Although a Maersk representative told The Loadstar the issues in the Middle East and the need to transit around the Cape of Good Hope meant rates were 25% to 40% higher on Asia-Europe trades and 15% to 25% higher on Asia-US east coast trades.

Putzger perspective: Frothy skies for AI air cargo volumes?

The EU's customs duty on low-value imported parcels has seen e-commerce air cargo volumes dip, but likely not for long, while artificial intelligence (AI) shipments are rising, although opinions differ on the stability of this market. It didn't take long for the European Union's hit on e-commerce imports to show up in airfreight volumes. Following the implementation of a €3 customs duty on incoming parcels on 1 July, airfreight tonnage from Hong Kong to Europe slumped 12% week-on-week in the week ending 5 July, according to WorldACD. Industry observers expect the curve to reverse itself before long. Washington's end of de minimis exemption last year triggered a massive slump in parcel imports, but volumes climbed again to account for 13% of all US airborne imports in the first quarter of this year, down from 16% a year earlier. While e-commerce continues to generate substantial volumes, in terms of driving airfreight growth the baton has clearly passed to AI-related traffic, which fills freighters to the rafters, first and foremost across the Pacific. US high-tech imports by air surged 70% in the first quarter, which pushed the nation's overall airborne imports in the period 11% higher year-on-year. The ripple effect from this tsunami of servers and semiconductors and assorted equipment, notably the insatiable need for electricity, is powering a surge in project logistics manifesting itself in full order books and long wait times for some equipment. How long is this bonanza going to drive airfreight growth? According to a report by the UN Council for Trade and Economic Development published in April, the global AI market will soar to $4.8trn by 2033, a 25-fold increase over $189bn in 2023. It has to be noted that many predictions and valuations of AI firms are decidedly frothy, including numbers put out by Wall Street. In the run-up to the SpaceX IPO (which was re-branded as an AI company), major banks published eye-watering numbers, setting target prices for shares from $205 to $800, implying market caps up to $10.4trn, which would have SpaceX trading at a price-to-sales multiple between 139 and 542. Clearly these numbers were driven by banks' desire to get a chunk of the IPO, but they indicate that projections have soared wildly, suggesting that the party will have an encounter with reality at some point down the road. For the near future, AI looks set to drive airfreight growth further, widening the gap with capacity growth hobbled by supply chain issues. Adding to this the volatility and uncertainty that have come to define global trade conditions, rates seem unlikely to move down for some time.

BIFA appoints Amanda Francis as PR and media manager

UK forwarder association BIFA has appointed Amanda Francis as PR and media manager. With 15 years' experience of leading strategic communications across public and private sectors, Francis will develop and execute a national, regional and trade PR strategy for BIFA. She will work closely with senior stakeholders to support policy communications, raise BIFA's profile and present BIFA TV to members. Francis' career experience includes developing thought leadership campaigns, managing high-profile reputational issues and delivering integrated PR and communications strategies. As Francis steps up, Ian Matheson will move towards semi-retirement after 20 years as BIFA's PR Consultant. BIFA thanked Matheson for his longstanding contribution in raising the organisation's profile and supporting its communications activity over two decades. In the role, Francis will be responsible for output across all communications activity, working closely with cross-functional teams across PR, digital and creative to deliver integrated and impactful campaigns. Steve Parker, director general of BIFA, said: "Amanda's work building strategic storytelling across notable brands makes her a great fit for BIFA. We look forward to her presenting BIFA TV and leading a PR strategy to elevate our story to members and media." Dawn White, events and communications director at BIFA, commented: "Amanda's appointment marks an exciting step in strengthening how we communicate BIFA's work and the value we deliver for members. Her experience will help us tell more of the stories that matter, raise BIFA's profile and engage members and stakeholders through compelling communications." Francis added: "I'm proud to be joining BIFA at such an important time for the freight and logistics sector. Freight forwarding sits at the heart of international trade, and I'm looking forward to working with members and the media to showcase BIFA's expertise and the vital role the industry plays in keeping global commerce moving."