African air cargo tonnage up 8% in first half of 2024

https://www.logupdateafrica.com/air-cargo/african-air-cargo-tonnage-up-8-in-first-half-of-2024-1352559?infinitescroll=1

Tonnages from all the main world origin regions in Q2 this year were higher YoY, with Asia Pacific up 18%, Europe volumes up +7%, Africa origins up +6%. In comparison, there were +5% YoY increases from North America and Central & South America (CSA).

Global air cargo demand in the first half of 2024 (H1, 2024) was up, YoY, from all the main world origin regions, with Asia Pacific and MESA origins topping the growth list at +19% each, and there were single-digit percentage increases from Africa (+8%), Europe (+7%), CSA (+5%) and North America (+2%). Tonnages were up by +12% in the first half of 2024 compared with the equivalent period last year, according to preliminary figures and analysis from WorldACD Market Data, with +11% year-on-year (YoY) growth in the second quarter (Q2) following on from the +12% recorded in Q1. The preliminary figure for June of +9%, YoY, was slightly below the average YoY full-month tonnage growth figure so far this year, with strong YoY growth continuing from Asia Pacific origins but with demand from Middle East & South Asia (MESA) origins dropping back somewhat from the highly elevated tonnage growth levels experienced in the first quarter. Tonnages from MESA origins in Q2 were still significantly higher (+13%) than the equivalent period last year, but that growth figure was well below the +27% growth recorded in Q1, from a region particularly affected by the disruptions to container shipping caused by the attacks on vessels in the Red Sea.

Tonnages from Asia Pacific origins in Q2 were up by +18%, YoY, similar to the +20% YoY growth recorded in the first quarter of this year. Indeed, tonnages from all the main world origin regions in Q2 this year were higher than the equivalent period last year, with Europe volumes up +7%, Africa origins up +6%, while there were +5% YoY increases from North America and Central & South America (CSA). On the pricing side, average global air cargo rates of US$2.39 per kilo for the first half of 2024, based on a full-market average of spot rates and contract rates, were down by -8%, YoY. That decline was partly due to a tough comparison in the first quarter with the elevated average rates ($2.76/kg) still present in the market in Q1 last year. However, average rates of $2.46 per kilo in Q2 this year have risen back to +2% above their levels in the same period last year, thanks to significant YoY rises from Asia Pacific (+10%) and from MESA (+47%) origins, or at least on key lanes.

Whereas global average rates in the first four months of 2024 were down compared with last year, by May they had moved back into positive territory (+2%), with the gap widening to +9% in June, when they averaged $2.52 per kilo. Looking at the last full week (week 26, 24-30 June), average global rates dropped very slightly (by -$0.02) to $2.51 per kilo, WoW, according to the more than 450,000 weekly transactions covered by WorldACD’s data. But that figure was up, YoY, by +9%, and well above pre-Covid levels (+41% compared to June 2019). Meanwhile, total worldwide tonnages in week 26 rebounded by +3% after losing around -5%, in total, across the previous two weeks – mainly to and from countries with predominantly Muslim populations, linked to the Eid al-Adha annual festivals and holidays, which this year took place between 16 and 20 June.

As China blocks terminals deal, BlackRock chief says ports ‘will define the future’

The chairman of one of the largest global investment managers says ports are as critical to future infrastructure of the global economy as data centers and power grids.

BlackRock Chairman Laurence Fink in an annual letter to investors said that’s why the company spent 2024 transforming itself into a leader in private markets, the better to get a jump on what it estimates will be a $68 trillion infrastructure boom.

“Assets that will define the future—data centers, ports, power grids, the world’s fastest- growing private companies—aren’t available to most investors,” Fink wrote. “They’re in private markets, locked behind high walls, with gates that open only for the wealthiest or largest market participants.” 

New York-based BlackRock (NYSE: BLK) in February announced it was partnering with shipping giant MSC of Geneva to acquire most of the port terminals of CK Hutchison (0000.HK) of Hong Kong in a $23 billion deal that could alter the balance of power in container shipping.

But China this week blocked the sale, which includes terminals at the Panamanian ports of Cristobal and Balboa, near the Panama Canal, saying it planned a formal review.

The agreement in principle covers terminals at a network of 43 ports across 23 countries, Fink said. “One in every 20 shipping containers moving around the world passes through these ports each year.”

Fink said deficit spending is choking off infrastructure funding by governments, which will have no recourse but to tap private investment.

Between 2024 and 2040, global infrastructure will require investment of $68 trillion, Fink said – $2 trillion just in ports.

“Meanwhile, companies won’t rely solely on banks for credit,” he wrote. “Bank lending is constrained. Instead, businesses will go to the markets. The money is already there. In fact, more capital is sitting idle today than at any point in my career. In the U.S. alone, roughly $25 trillion is parked in banks and money market funds.”

Denmark’s Maersk buys Panama Canal Railway Company

Canadian Pacific Kansas City (CP.TO), said on Wednesday it and U.S.-based Lanco Group have sold the Panama Canal Railway Company to a unit of Denmark’s Maersk (MAERSKb.CO), one of the world’s largest container shipping groups.

The Canadian railway company did not disclose terms of the deal, but added the deal would help it focus on its core assets in Canada, the U.S. and Mexico.

The acquisition “represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement,” said Keith Svendsen, CEO of Maersk’s unit APM Terminals.

Founded as a joint venture between units of Canadian Pacific and Lanco Group, the Panama Railway Company provides rail-based freight and passenger services along the canal. It posted a revenue of $77 million last year.

The deal comes at a time when U.S. President Donald Trump’s administration has threatened to take over the canal – built by the United States and returned to Panama in 1999 – over allegations of growing foreign presence, especially China.

Hong Kong’s CK Hutchison (0001.HK), had last month agreed to sell key ports near the Panama Canal to a group led by BlackRock (BLK.N), which had eased some of the pressure from Trump.

However, the deal, originally expected to be signed this week, is now expected to be delayed over China’s criticism.

China Ship Sales Collapse as Industry Sweats Over US Ports Plan

Shipping companies have all-but stopped buying dry bulk commodity carriers that were built in China as the industry waits to see if President Trump will press ahead with historic port charges on vessels constructed in the Asian country.

Just four made-in-China bulkers — ships that ferry everything from coal to salt — were sold in the second-hand market in March, according to Clarkson Research Services Ltd. data compiled by Bloomberg. That’s the fewest since at least 2022, and about a fifth of the monthly levels observed last year. Transactions involving Japanese and Korean carriers were little changed in the same period.

The slowdown in purchases is the latest sign that the US proposals are impacting markets, and hampering Chinese-owned vessels, even before they’re finalized and introduced. The Office of the US Trade Representative is seeking to bring in charges that could rack up above $1 million per port call, but the measures are opposed by swaths of the global shipping industry and the supply chains it serves. 

“There is clearly stronger buying interest for Japanese-built ships compared to those built in China at the moment,” said Burak Cetinok, the London-based head of research at Arrow Shipping, a ship brokerage. “This is reflected in both transaction volumes and asset values. Most of the vessels that have changed hands in recent weeks are Japanese-built.”

Under the initial proposals, charges could theoretically reach as high as $3.5 million per ship in some scenarios, Clarkson previously said. 

Shipowners and firms who hire their vessels have also been altering leasing contracts to address with the prospect of multi-million dollar fees being introduced between when a ship leaves and when it reaches an American port.

The head of shipping at top trader Mercuria last week said at a conference that the measures, if introduced as planned, could be catastrophic for US grain exports on dry bulk commodity vessels. 

There are tentative signs that buyer caution may have affected the value of Chinese-built carriers — even if the sample size of transactions makes direct comparisons difficult.

Clarkson data show that a Chinese built ship was sold for about $5.8 million less than a comparable Japanese carrier last week. Before the USTR measures were announced similar size and age ships were sold at a $4.8 million discount to those built outside of China. Figures from brokerage SSY put the discount of newbuild Chinese bulk ships at the biggest since early 2023 relative to those built in Japan. 

Still, the impact is mixed, depending on the ships in question. Giant 300-meter Capesize vessels haven’t been as strongly impacted as they don’t call at US ports as frequently, according to Arrow’s Cetinok. It’s also creating a buying opportunity for some.  

“Those focused on Pacific or other non-US trades increasingly view this bifurcation in valuations as an opportunity to acquire ships at attractive prices,” he said. “Others, particularly those exposed to US trades, remain more cautious.”

There’s also a been a slowdown in the number of smaller bulk carriers being ordered for building in China, according to Bilal Muftuoglu, head of dry bulk research at Howe Robinson Partners. 

“For newbuilding activity in China, we’ve only had one handysize being ordered in Feb and nothing firm in March, which is highly unusual,” he said. 

Over the first quarter, 13 such ships were ordered in China compared with 21 in Japan, Muftuoglu said. 

“Japan seeing higher orders than China is also unusual as of late,” he added. 

Top Japanese Shipping Line Fears US Tariffs Will Slow Cargo Flows, President Says

Nippon Yusen NYK, Japan’s largest shipping line, is concerned that U.S. President Donald Trump’s tariffs could push up the cost of automobiles and daily goods, denting consumer demand and slowing cargo flows, its president said.

“The tariffs are not directly borne by consumers, but the burden ultimately falls on them, which in turn reduces the actual flow of goods. That’s our biggest concern,” President Takaya Soga told Reuters in an interview on Monday.

Trump last week unveiled plans to impose a 25% tariff on automobile imports, a move expected to hit Japan’s export-driven economy. He has also vowed to announce reciprocal tariffs targeting all trading partners on Wednesday.

“Tariffs could have a considerable impact on the economy,” Soga said, adding that the extent of the impact on shipping and logistics companies will depend on actual cargo movements.

However, Soga sees potential benefits from the trade war. As seen during the COVID-19 pandemic, even if cargo volumes decline, tariff-related procedural delays could disrupt logistics, tighten ship demand and lift freight rates, he said.

And if China shifts to sourcing raw materials from outside the U.S., NYK could find business opportunities.

A rush for general consumer goods drove up cargo movement in December until just before the Chinese New Year in anticipation of U.S. tariffs, but there has been no major shift in material flows since they took effect, Soga said.

The United States is also planning to charge fees for docking at U.S. ports on any ship that is part of a fleet that includes Chinese- built or Chinese-flagged vessels and will push allies to do similar or face retaliation.

“The U.S. government will carefully examine the policy, including whether it will be implemented, so we cannot say now that we will stop ordering vessels from China,” he said.

With ongoing geopolitical risks in the Middle East, Soga expects Red Sea avoidance to continue for a while. Disruption in the Red Sea due to attacks by Yemen’s Houthi militants absorbed extra capacity last year, as many ships took a longer route around Southern Africa.

While container vessel congestion in the Panama Canal has largely been resolved, NYK is urging the Panama Canal Authority to reinstate Tier 1 priority for liquefied natural gas (LNG) tanker traffic, Soga said.

Regarding the investment plans in vessels involved in offshore wind power projects, Soga said the company’s plans in Japan may be delayed due to slower-than-expected market development, but overseas investments will proceed sooner.

How the liner lineup has changed this century

Of the 50 largest container shipping lines in the world in the year 2000, only 24 are still in existence, according to new research from Denmark’s Sea-Intelligence. 

The capacity operated by these surviving carriers has grown dramatically.  Overall, they have grown their collective capacity from 2.5m teu in 2000 to 26.7m teu in 2025, 983% capacity growth over 25 years, equalling 10% growth on average, every single year for 25 years. 

Sea-Intelligence also noted in its latest weekly report that apart from the 24 survivors, 26 carriers have entered into the top 50, some as new carriers and some that were outside the top 50 in the year 2000. 

These 26 newcomers in total operate 6% of the global fleet – versus the 84% operated by the survivors, Sea-Intelligence data shows. 

This is a market which has undergone extreme consolidation

“Clearly, this is a market which has undergone extreme consolidation. But it has also been a 25-year journey, where the incumbents have clearly been better at adapting and growing in the market than the newcomers,” Sea-Intelligence noted. 

This week the global liner fleet will likely cross the 32m teu mark, according to data from Alphaliner. The container fleet has grown very fast this century. The 30m teu landmark was hit in June last year with a teu tsunami cascading out of yards in Asia delivering a record volume of newbuildings. 

It took the industry around 50 years to reach the 5m teu mark in 2001. By contrast, the leap from 20m teu to 30m teu was achieved in just seven years. 

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MPC Container Ships offloads seven vessels

Oslo-listed tonnage provider MPC Container Ships (MPCC) said in a stock exchange filing that it sold five vessels en bloc, involving three 1,300 teu vessels and two 2,000 teu vessels.

According to Greek media reports, the five vessels were bought by Nikolas Pateras-owned Contships Logistics. The vessels in question are the 2010-built AS Alexandria and AS Anita, as well as the 2008-built AS Filippa, AS Fabrizia, and AS Floriana. Delivery to the Greek firm will take place between April and June 2025.

Two more vessels were sold separately to unrelated parties. The average age of the seven sold vessels is 17 years, and the transactions imply a net asset value of NOK 30 ($2.86) per share.

The five vessels will be sold with the existing charters attached, which will reduce the revenue backlog by approximately $40m, subject to the respective handover dates. Of the total amount, $24m relates to the backlog for 2025.

Consequently, MPCC reduced its financial guidance for 2025. The updated guidance for 2025 revenue is between $485m and $500m, down from the previous revenue guidance of $515m and $530m.

Russian Oil Freight Rates From Baltic Ports to India Ease as More Western Shipowners Return

MOSCOW, March 26 (Reuters) – Freight rates for Russian oil supplies from its Baltic ports to India are declining from recent record highs amid an increase in offers from Western shipowners after Urals crude oil prices fell below a price cap of $60 per barrel, two traders said.

The Group of Seven countries, in coordination with the EU, imposed the price cap in late 2022 that blocked access to Western shipping services and insurance if Russian oil was purchased at more than $60 a barrel, aiming to reduce Moscow’s ability to finance its Ukraine war.

The cost of shipping Urals oil from the Baltic ports of Primorsk and Ust-Luga to India fell to $7 million per one-way shipment on average after rising to a 12-month high early in March.

Global oil prices fell in March, which pushed the price of Urals crude in Russia’s ports below $60 per barrel, allowing more Western shipping companies to resume services for Russian oil, including freight.

As of Wednesday, the cost of Urals oil loaded from the port of Primorsk was about $57 per barrel. URL-PRMSK

“Urals has been below the limit (of $60 per barrel) for quite a long time now, so many shipowners have entered the market and are offering good prices,” said one Urals trader.

Freight rates for Russia’s crude may fall further amid a maritime and energy truce between Russia and Ukraine, if implemented. It is not clear when or how the Black Sea maritime security deals would start.

Russian crude shipping rates rose sharply after a new round of U.S. sanctions on Russian energy interests announced in January came into effect. Russian oil sellers were forced to look for new tankers to replace those hit by sanctions.

Freight rates still remain significantly above levels in January, when the cost of shipping Russian crude from the Baltic ports to India was $4.7-4.9 million.

The U.S. is not prepared to win an economic war against China-built containerships, farmers, ocean carriers warn

Key Points

  • The U.S. is considering steep fines on containerships made in China as a way to help revive domestic shipbuilding.
  • From global ocean carriers to U.S. farmers, business interests are warning that the economic consequences will be devastating.
  • The World Shipping Council estimates that the rules being considered by the U.S. Trade Representative would soon cover 98% of all liner vessels calling on U.S. ports.

Business interests, from U.S. farmers to global ocean carriers, are warning of severe economic damage from proposals being considered by the U.S. government to hit containerships made in China with steep fines when they call on U.S. ports. The goal of bringing more shipbuilding back to the U.S. is at odds with reality in the global ocean trade market, they say, where virtually all container traffic will soon be carried on ships built in China.

An estimated 98% of the global fleet would be subjected to fees when calling on U.S. ports because the fee applies to both existing Chinese-built vessels or future vessels in the order book of carriers, and any carrier with at least one order on the books for a vessel made in China, according to the World Shipping Council, which represents the international ocean liner shipping industry. Currently, 90% of the world’s vessels are subjected to the fee. According to Sea-Intelligence, the total number of port calls made by deep-sea container liner vessels in the United States in 2024 was 12,410.

On Monday and Wednesday, hearings are being held by the U.S. Trade Representative to consider the implementation of penalties. The investigation, begun under President Joe Biden, culminated in a report released in January that concluded China’s shipbuilding and maritime industry had an unfair advantage. Now, it is being continued by the Trump administration as part of the president’s widening global economic and trade war, with Trump saying in his recent speech to Congress that he will create a new office of shipbuilding in the White House that would offer special tax incentives to bring more shipbuilding back to the U.S.

“The nation’s agriculture exporters are united in concern and opposition to the proposal,” Peter Friedmann, executive director of the Agriculture Transportation Coalition, said in prepared testimony ahead of the hearing. “We are not opposed to the objective, but we are not willing to sacrifice America’s agriculture and the communities throughout the country that would be economically distressed or worse, by a plan such as the present, that would eliminate our ability to sell agriculture outside our own borders.”

The AgTC says there are no U.S.-built vessels suitable for international commercial shipping that exist today that can move agricultural cargo, moved by container ships, bulk ships, and breakbulk ships, and across products that include corn, wheat, grains, and soybeans. “If they were available at a reasonable cost, U.S. exporters, including agriculture, would already be using this option,” Friedmann said in his testimony.

The razor-thin margins that farmers face in the world economy, and the increased and intense competition for bulk commodities, have to be factored into vessel choices for transport of commodities, he said. Put another way by Friedmann in his testimony on Monday, “The hogs in China couldn’t give a damn where the soybeans come from. You’ve essentially told those exporters you’re out of business.”

To penalize ocean carriers using Chinese-made vessels to move trade, the U.S. government has proposed steep levies on Chinese-made ships arriving at U.S. ports. For Chinese-owned operators (such as COSCO), a service fee of up to $1 million could be charged on each vessel. For non-Chinese-owned ocean carriers with fleets containing Chinese-built vessels, the service fee would be up to $1.5 million for each U.S. port of call.

Tanzania completes trials for SGR freight wagons

What you need to know:

According to TRC, Latra conducted inspections on all 264 wagons, including 200 container carriers and 64 designed for loose cargo. 

  • , including 200 container carriers and 64 designed for loose cargo. 

Dar es Salaam. The Tanzania Railways Corporation (TRC) has announced the completion of trials for 264 freight wagons, marking a significant step towards the commencement of freight transportation on the standard gauge railway (SGR).

The wagons, which arrived in Tanzania in December 2024, underwent a month-long testing phase under the supervision of the Land Transport Regulatory Authority (Latra), the TRC said in a statement on Monday March 10, 2025.

The tests covered both static and dynamic evaluations to assess the wagons’ durability and performance while in motion.

According to TRC, Latra conducted inspections on all 264 wagons, including 200 container carriers and 64 designed for loose cargo. 

The authority confirmed that the wagons met the required design speed of 120 kilometres per hour and performed well in critical systems such as braking and handling curves, it stated.

“Latra has verified that the wagons are functioning effectively and has expressed satisfaction with their design. The next step will be granting certification in line with legal and regulatory requirements to allow freight operations to commence,” said TRC’s head of information and public relations, Mr Fredy Mwanjala, in the statement.

The 264 wagons are part of a larger batch of 1,430 being manufactured by the Chinese company CRRC.

“The completion of the trials signals that freight transportation on the SGR is set to begin soon,” TRC stated.

The SGR project is expected to enhance Tanzania’s logistics and transport sector which is currently dominated by lorries, by providing a faster, more reliable means of moving cargo across the country and beyond. Authorities hope this will improve trade efficiency and reduce transportation costs for businesses.

TRC has not yet announced the official launch date for SGR freight services but indicated that preparations are in the final stages.

Tanzania is building in phases some 2,561 kilometers of the SGR line which will connect the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria and Kigoma on Lake Tanganyika.

The modern railway will eventually spur to Burundi, the Democratic Republic of Congo (DRC) and Rwanda. The three countries largely use the Tanzanian port to import and export goods.

The section between Dar es Salaam and Dodoma is completed and the services between the cities commenced operations since last June.

Ocean carrier CMA CGM commits $1B for US air cargo operation

CEO promotes purchase of American-made Boeing cargo jets, supply chain investments during meeting with Trump

CMA CGM, the world’s third-largest container shipping line, will open an air cargo hub in Chicago for its cargo airline division and deploy five factory-built Boeing 777 freighter aircraft, operated by American pilots, as part of a $20 billion U.S. shipping, port and logistics investment plan announced shortly after the company’s top executive met with President Donald Trump on Thursday at the White House.

CMA CGM Air Cargo is a small freighter operation established in 2021 to round out the Marseille, France-based company’s freight transportation and logistics offerings. It currently operates four aircraft – three Boeing 777 freighters and one Airbus A330 freighter – according to aviation databases.

The integrated freight company will invest $1 billion for air cargo operations in the U.S., Chairman and CEO Rodolphe Saadé said in an interview with The Wall Street Journal. The five freighters based in Chicago will operate between the United States and Asia, he added. The announcement touted how the investment supports America’s economy, boosts U.S. exports and will create 10,000 jobs.

A CMA CGM media representative responding to questions said she was unable to provide details at this time. Atlas Air said it had no comment about the CMA CGM news. Still, it is possible to infer likely scenarios for the new U.S. fleet.

CMA CGM Air Cargo deploys two 777s and the A330 in the Europe-Asia trade corridor. It launched trans-Pacific service with one Boeing 777, operated by New York-based Atlas Air, early last fall.

The easiest – and most likely – path would be to place four additional freighters with Atlas Air to operate on CMA CGM’s behalf. Establishing an airline with a U.S. operating certificate would be expensive and complicated since federal law limits foreign ownership of U.S. airlines to 25% of the voting stock and requires U.S. citizens to control operations. Atlas Air has a pilot base at Chicago O’Hare International Airport for pilots that fly the Boeing 747.

CMA CGM was scheduled to receive another 777 in the fourth quarter last year for the Asia-U.S. service, but there is no record that the plane has been delivered. Boeing is behind on aircraft deliveries for a variety of reasons, including supply chain delays and a 58-day strike by machinists last fall. CMA CGM has another 777 order that it previously said would be completed by the end of March. CMA CGM Air Cargo’s website now says two 777s will join the fleet this year. Atlas Air is slated to fly all three aircraft.

Under their agreement, CMA CGM Air Cargo provides the metal, and Atlas Air provides crews, maintenance and insurance. The Paris-based freighter airline needs Atlas Air to operate routes across the Pacific because it doesn’t have traffic rights from the United States to transport goods from another country without first stopping in its home country.

It’s also likely that CMA CGM will purchase the remaining two aircraft directly from Boeing rather than lease them because all the company’s 777s so far have been production freighters and the $1 billion investment mentioned by Saadé fits the price tag of multiple new aircraft, with some money left over for hub expenses and to pay Atlas Air. Furthermore, the company has ordered eight all-new A350 freighters from Airbus for delivery later this decade.

It should be noted that CMA CGM’s in-house airline discontinued trans-Atlantic service out of Chicago, Atlanta and Miami in the spring of 2023 to focus on Asia routes.

Thursday’s announcement is less than it appears if CMA CGM simply includes the three Boeing 777s it has already paid for in the Chicago-based fleet. That’s the approach many companies and countries take to placate Trump and ease his demands. Canada, for example, recently committed to more border security measures to stop the small amount of fentanyl entering the United States, but it was essentially the same deal officials made with the outgoing Biden administration. And, as The Wall Street Journal has reported, CMA CGM was already planning to spend hundreds of millions of dollars upgrading several U.S. port terminals it leases to improve container capacity.