b'22American Journal ofTransportation ajot.comE-commerce behemoths deliver an early(INSIGHTScontinuedCustomsBonds,andProfes-from page 20) sionalLiabilityInsurance. Christmas present, but is Novembers globalhavealreadydeparted.ItisJoemaintainsanAssociates ofutmostimportancetobein Marine Insurance Manage-air cargo demand boost sustainable? mindfulofthisinformationment(AMIM)designation whenpreparingshipmentswiththeAmericanInstitute Asurgeine-commercevolumesfrommothsseemtobeupsettingthemarketbyto high-risk destinations. WeFor Chartered Property Casu-Hong Kong and China inflated global air cargothemselves, supposedly accounting for somestronglyadviseyoutostayalty Underwriters (The Insti-demand by +5% year-over-year in November80% of airfreight volumes ex-Hong Kong onalerttoanynotificationstutes)andaTransportation as US and European consumers splashed outcertain days. fromyourinsurer,astheyRiskandInsuranceProfes-on low-cost products, but this growth failed toIn a tight market, you only need a slightmayannouncerestrictionssional(TRIP)designation disguise the underlying subdued nature of theimbalance to push rates up because of the fearin response to ever-changingthroughInternationalRisk market nor quell concerns over its sustainabil- of missing out that we have referenced previ- global events. Management Institute (IRMI).ity heading into 2024, according to the latestously. This seems to be happening out of China weekly market data analysis by Xeneta. and Hong Kong, which are experiencing quiteT akE ThET iME Tol Earn a bouTr oanokE :E-commerce behemoths Shein and Temua boost in rates.andl Ean onE xpErTs Roanoke Insurance Group almost single-handedly accounted for the riseThe big question is: how long can thisUnderstandingtheintri- Inc.,aMunichRecompany, inaircargovolumesandratesoutofHonglast? Airfreight is a key part of the e-com- caciesofinsurancecoverageis a specialty insurance broker KongandChinalastmonth,creatingsomemerce model because it relies on speed. Thiscan be daunting and time-con- focusedonsuretybondand welcome havoc in an air cargo market devoidneedforcapacityiscreatingquiteabitofsuming, but it is an importantinsurancesolutionsforlogis-of a traditional peak season.havoc in the marketbut this is a local shiftfacet of a comprehensive risktics service providers, customs andnotabellwetherforachangingglobalmanagement strategy. Know- brokers and companies manag-c hinaT ous s poTr aTEso uTpacEo cTobEr economic tide. It is more related to US anding what your insurance doesing supply chains. Founded in China to the US spot rates outpaced theirEuropeanconsumersbuyingmorelowerand does not cover becomes1935,Roanokewasthefirst Octobergrowthof+10%,climbing+11%value goods from these vendors.evenmorecrucialwhentheproviderofcustomsimport month-over-monthtoUSD4.46perkg. AirThe improvement is not being driven by anrisks are high, and both cargobondsaswellasthefirst cargospotratesfromChinatoEuropefol- increase in shipments of higher value products,owners andlogistics serviceappointed ATA Carnet provider lowed a similar upward trend, rising to USDand this is a worry for airlines and forwarders.providersmustgivespecialin the United States. Roanoke 3.96 per kg, up 9% from a month ago. E-commerceproducesbigvolumesbuthowattentionwhenshippingtohasdecadesofpartnership These increases contributed to an overallcan you, in a sustainable manner, deliver an $8areasexperiencingconflictwith the trade community as a +7%month-on-monthimprovementinthet-shirt to someones doorstep from China to theand civil unrest. To put yourtrustedproviderofinsurance, globalaircargospotrate,whichaveragedUS and make money across the entire supplyclients in the best position tosurety bonds, ATA Carnet prod-USD 2.45 per kg in November, compared tochain? Even the vendors delivering these goodsprotecttheirinterests,workucts and specialty services.+2% in October. Available capacity rose +3%question its long-term viability.closelywithanexperiencedDisclaimer:Thisarticle year-on-year.Xenetaslatestanalysisofthegeneralcargoinsurancebrokerwhois provided for informational Demand slightly outpacing supply helpedcargo market shows continuing weak demand,can help you navigate the con- purposesonlyanddoesnot to push the global dynamic load factor to 60%,extendingadownwardstrendsincethelaststantly changing risks associ- constitutelegaladvice.It based on both volume and weight perspectivesweek of September this year. ated with armed conflict. should not be construed as an of cargo flown and capacity available, whichAligned to this, global general cargo spotoffer to represent you, nor is is on a par with its corresponding level of arates (valid for up to one month) have beena bouT ThEa uThor : it intended to create, nor shall year ago.stayingbelowseasonalrates(validforoverJoe Chillino is Senior Vicethe receipt of such informa-The figures, however, need to be looked atone month). Under the backdrop of a still-sub- PresidentforRoanokeandtionconstitute,anattorney-in context due to comparison with the state ofdued general cargo market, air cargo spot ratesjoined the team in 2006. Heclientrelationship.Readers the global air cargo market in November 2022,foroutboundAsiamarketsgrewatslowerhas gained valuable insuranceare urged to seek professional says Niall van de Wouw, Xenetas Chief Air- paces compared to their October levels, whileexperiencethroughoutRoa- orlegaladvicefromappro-freight Officer.the growth of Southeast Asia to both Europenokes organization in variouspriatepartiesonallmat-He said: We dont see Novembers data asand the US air cargo spot rates slowed downroles, including management,tersmentionedherein.The a fundamental shift in the economy nor the out- to 6% and 8%, reaching USD 2.66 per kg andsales,marine,andclaims.description of coverages are look for 2024 for the global air cargo market.USD 3.90 per kg respectively. His specialties include Cargogeneralizedandaresubject Seasonalitymeansvolumesareup,While air cargo spot rates from Europe toInsurance, Transit Liabilities,to the specific policys terms, admittedly slightly more than we expected, butthe US roseup +10% month-over-month toCommercial Lines Insurance,conditions, and exclusions.the figures also look better than they really areUSD 2.04 per kg in November - the increase because November last year was disappoint- was mainly driven by the reduction of belly ingforairlinesandforwardersalike.Morecapacity during carriers winter season.(PICTUREcontinued fromschemeforoffsettingavia-than anything else, what we saw this Novem- Global airfreight capacity will likely con- page 20) tion emissions.But to reach berwasaircargosgrowingdependencyontinue to outpace market demand next year. Thisfriendly fuel, one that is likelynet zero, we need more than e-commerce.is due to anticipated weak consumer spendingalow-carbonsolution.Thean emissions trading scheme. at least in H1 2024 and a continuing recoveryblog,whichfeaturedacon- Wearealsogoingtoneed s hEin andT EMui MpacT in belly capacity for certain markets next year,versation between two WorldSustainable Aviation Fuels, or VandeWouwcontinued:Novembersboosted by improving passenger travel.Bank experts, Megersa AberaSAF. These are biofuels, made growth was strongly influenced by ex-ChinaTheCivilAviationAdministrationofAbate,aTransportEcono- from different feedstocks such volumes driven by two companies. You rarelyChina, for example, expects international pas- mist, and Charles E. Schlum- as crops, municipal waste, or haveaconversationwithanairlineorfor- senger flights to restore to 70% of their 2019berger, a Lead Air Transportothers. Many SAF are already warder right now that doesnt reference SheinlevelinthiswinterseasonendinginMarchSpecialist, addressed the issuecertifiedforuseinexisting or Temu because these two e-commerce behe- 2024, from the October level of 51%.offindingalternativefuels.airplanes, blended up to 50% When asked how to make airwith conventional jet fuel.transportgreenerSchlum- Schlumberger added that bergeroutlinedwhatiscur- thedecarbonizingthrough rentlyinplaysaying,Thebetterefficienciesinopera-big focus is on decarbonizingtions and innovations in air-air transport to get to net zerocraftdesignandpropulsion emissions by the year 2050.technologycombinedwith It is notable that aviation is theSAF could reduce emissions first industry in the world thatby up to 85% by 2050. But as has a global commitment andwith other transportation sec-a global program to decarbon- tors, whether air transport can izethroughtheCarbonOff- meet these goals in the time-setting and Reduction SchemeframeoutlinebytheParis forInternationalAviationAgreement and COP 28 is a (CORSIA).Itisatradingquestion mark.(ROUTEcontinued fromishables are largely exported page 18) intotheMiddleEast.The destinations in Latin America.businessalsooffersdirect Likewise, the service enablesconnections between Madrid greater access for customersand eight key cities in North in Europe, Latin America andAmerica,alongsideadaily NorthAmericaparticularlywide-body bridge connection in the food sector where per- to London.'