CARGOCONNECT-MAY23 - Flipbook - Page 64
N EWS
SATS completes
acquisition of WFS
in €1.3 billion deal
Ltd (SATS) completed
ScargoATSits acquisition
of global air
logistics provider World-
Margin pressures will ease for container
terminal operators, says Drewry
A
n improving economic
outlook and falling energy
costs are expected to
provide some reprieve through
the second half of the year for
container terminal operators.
Widespread easing of port
congestion reduced average container dwell times at terminals
and led to a corresponding fall
in storage revenues in 4Q22,
according to the latest readings
from Drewry’s Global Container
Terminal Revenue Index which
is published in the Ports and
Terminals Insight. The Drewry
index measures quarterly changes
in industry earnings per TEU,
based on the financial results
of global terminal operators. A
similar approach is used to measure indexed trends in terminal
operator revenue and operating
costs and all three indexes are
updated quarterly in Drewry’s
Ports and Terminals Insight.
Meanwhile, according to the
Drewry report, costs are on the
rise, due to continuing inflationary
pressure particularly from escalating labour and energy costs. This
together with softening revenues
put pressure on operator margins,
sending Drewry’s Global Container
Terminal Earnings Index down
19% YoY and 21% QoQ in the
final quarter of last year.
Looking ahead, while
weakening container traffic
will depress total revenues, the
impact on per unit revenues will
be partially offset by inflationlinked annual tariff increases.
Additionally, if carriers continue
to use blank sailings to manage
trade-lane capacity then average
terminal dwell times could settle
at a level above pre-pandemic
norms which would see some
of the storage revenue gains
maintained.
FIATA, Global Shippers Forum push for
stronger data governance standards
S
hippers and forwarders
organisations are calling
for improved standards of
data protection and confidentiality in digital trading and booking systems. The International
Federation of Freight Forwarders
Associations (FIATA) and the
Global Shippers Forum have
jointly issued an agreed Charter
for Protection and Governance
of Data in International Trade
that sets out the minimum
arrangements for data security
and confidentiality that providers
and operators of digital booking
and trading platforms should
adopt and incorporate in their
End-User Agreements (EUAs).
Recommendations in the
Charter seek to enable a safe
and trustworthy environment
for conducting business based
on a level playing field. The
Charter has been approved by
members of both organisations
and is believed to be the first
declaration of rights for platform
users in the trade and logistics
sector.
Longer term air cargo contracts signal
stabilising market: CLIVE
T
he global air freight
market, which has been
on the decline for 13 consecutive months, stabilised in
March with volumes down 3%
YoY, which has been the lowest
monthly decline in more than a
year, according to CLIVE Data
Services, part of Xeneta.
Meanwhile, air freight spot
rates averaged at US$2.62 per
kilogram in March, down 38%
year-over-year, and is attributed
to both declining cargo volumes
and recovering capacity, Clive Data
Services reported. On the China
64 | CARGOCONNECT MAY 2023
to US trade lane, spot rates
stood at US$5.07 per kilogram in March, down 7%
from the previous month and
down 43% from last year.
However, the downward
pressure on rates somewhat
eased from the second week of
March and stabilised towards
the end of the month.
Longer-term contracts
between shippers and carriers
could signal “more common
ground” in a stabilising global
air cargo market.
The distribution of shipper
contract lengths in the first quarter
of 2023 caused the number of sixmonth contracts to increase to 36%
from 23% in the fourth quarter of
last year, a shift that is possible, says
van de Wouw pointing to a “hunt
for volume” by freight forwarders
who want to retain customers for
a longer period of time.
wide Flight Services (WFS)
for €1.3 billion (equivalent to
approximately US$1.8 billion)
from an affiliate of Cerberus
Capital Management (Cerberus),
representing an enterprise value
of €2,250 million as previously
announced. The acquisition
received an overwhelming
support of 96.8% approval from
SATS’ voting shareholders in
January this year and obtained
regulatory approvals in all
relevant jurisdictions in February. With effect from completion,
WFS becomes a fully owned
subsidiary of SATS, which is
headquartered in Singapore. WFS
will continue to be headquartered in Paris and operate as
Worldwide Flight Services.
ECU360 platform
simplifies air freight
through new service
Worldwide's digital
EhasCUlogistics
platform – ECU360
launched a new digital air
freight service to streamline the
shipping process for businesses
of all sizes. The service is yet
another value-added offering
to ECU360’s customers based in
the US, leveraging technology
to improve the efficiency
and cost-effectiveness of
air freight operations. This
new service streamlines the
entire air freight process, from
Quoting to Booking, including
real-time tracking and live
schedules. Real-time tracking
and transparent pricing give
customers complete visibility of
their shipments, enabling them
to make informed decisions and
manage their supply chain more
efficiently. Reportedly, ECU
Worldwide is already providing
air freight services to 780 US
customers, exporting to 310
airports across 174 countries.