This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: UPS has retired its MD-11 fleet after a deadly November crash featuring the aircraft model and a subsequent grounding of the fleet, the company announced in Q4 earnings results Tuesday. MD-11s made up about 9% of UPS' air fleet prior to their retirement, with the aircraft primarily being used domestically, per Cirrus Global Advisors. Much o ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the impact of tariffs on global supply chains, particularly freight flows from China to the USA, and the transportation sector's performance in light of these dynamics [1][4][10]. Core Observations - **Freight Volume Trends**: - Laden vessels from China to the USA decreased by 3% week-over-week (WoW) and 26% year-over-year (YoY) [1][3]. - Expected TEUs (Twenty-foot Equivalent Units) into the Port of Los Angeles are projected to increase by 26% next week, followed by a moderation of 6% two weeks out [3][10]. - Rail intermodal volumes along the West Coast were down 11% YoY, indicating a decline in import trends post-summer [3][11]. - **Ocean Container Rates**: - Ocean container rates fell by 31% sequentially and are down 62% YoY, reflecting pressure from shipper attempts to implement General Rate Increases (GRIs) [3][35]. - **Truck Load Availability**: - Truck load availability on the West Coast decreased by 32% YoY, despite the peak season [3][49]. Tariff Impact and Market Dynamics - The report highlights the ongoing volatility in freight flows due to tariff-related uncertainties, which have led to a pull-forward in demand and subsequent indecision among shippers regarding inventory levels [6][7]. - The long-duration freight recession is indicated by ISM manufacturing readings below 50, exhausting investor sentiment and leading to a downward trajectory in earnings per share (EPS) for transport stocks [6][7]. Future Outlook - Despite current challenges, there is a positive outlook for a recovery cycle in the medium to long term, driven by: - Anticipated Federal Reserve rate cuts, which historically benefit transport shares [8]. - Increased investments in US manufacturing by major corporations, potentially boosting domestic freight flows [8]. - The potential for re-shoring or nearshoring strategies to enhance US manufacturing and freight volumes [8][9]. Additional Insights - The report notes that the volatile nature of weekly data can obscure trends, and a multi-week perspective is recommended for assessing tariff-related impacts [5][10]. - The Logistics Managers Index indicates upstream inventory expansion but a compression in downstream retail inventories, suggesting a mixed outlook for supply chain dynamics [66]. Conclusion - The transportation sector is currently facing significant challenges due to tariff impacts and changing market dynamics, but there are signs of potential recovery driven by macroeconomic factors and shifts in corporate strategies [6][8][9].

Core Insights - Freightos has integrated Jambojet Cargo into its WebCargo platform, enhancing digital booking capabilities for freight forwarders across East Africa [1][2][3] - Jambojet Cargo operates nine key routes connecting major economic centers in Kenya and Tanzania, facilitating the transport of various goods [2][3] - The partnership aims to improve visibility, reduce manual coordination, and ensure faster service for freight forwarders [2][3] Company Overview - Freightos is a leading global freight booking and payment platform, facilitating connections between airlines, ocean carriers, freight forwarders, and importers/exporters [4][5] - The platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [5][6] - Freightos processes over 1.6 million transactions annually, showcasing its significant market presence [2] Market Impact - The integration of Jambojet Cargo expands Freightos' reach in Africa's logistics market, supporting regional trade and supply chains [3] - Digitalization is transforming air cargo operations in Africa, with Jambojet positioning itself as a leader in this shift [3] - The partnership is expected to strengthen trade links between African markets and the global economy [3]

Core Insights - DHL Express has upgraded its freighter aircraft on the Hong Kong-Penang route to a Boeing 767, increasing cargo capacity by 20 tons per flight [1][2] - The upgrade is in response to rising demand for time-sensitive shipments from technology and semiconductor manufacturers in Penang [2] - Penang has seen a significant manufacturing investment of approximately $3 billion in the first half of 2025, marking a 150% increase compared to the same period last year [3] Industry Context - Malaysia is ranked among the top 10 fastest-growing trading nations globally in the first half of 2025 and is identified by DHL Group as one of 20 markets with the highest growth potential [4] - The growth in Malaysia is attributed to global companies diversifying manufacturing from China, along with its strategic location, business-friendly environment, and good infrastructure [4] - The DHL GoTrade Summit 2025, held in Kuala Lumpur, underscores the importance of the Malaysian market to DHL [5]

Core Insights - Freightos has announced a partnership with Megacap Aviation Service to enhance digital access for over 5,000 global freight forwarders to capacity from 13 airlines, starting with Ethiopian Airlines [1][3] - The partnership aims to improve transparency and instant access to rates and capacity, particularly benefiting trade between China and Africa, as well as other global routes [2][3] Company Overview - Freightos (NASDAQ: CRGO) is a leading vendor-neutral global freight booking and payment platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters to streamline international trade [5][6] - The platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [6][7] Partnership Details - The integration with Megacap Aviation Service will provide real-time access to Ethiopian Airlines' capacity and pricing, with plans to include additional carriers like Aeromexico [3][4] - This collaboration is expected to enhance digital distribution in emerging markets, allowing clients to access real-time logistics prices and book services instantly [4][3] Market Impact - The partnership is positioned to support the growth of global trade, particularly in the Asia-Pacific region, by providing efficient and transparent logistics solutions [2][4] - Megacap Aviation Service's expertise in regional markets will complement Freightos' platform, facilitating better service for logistics stakeholders [4][3]

Core Insights - FedEx has launched a new direct flight route connecting Dublin and Indianapolis to enhance the transport of healthcare and high-value freight products, reducing delivery times by one day for shipments between the U.S. and Ireland [1][2]. Group 1: New Flight and Operational Details - The new air freight lane will operate four days a week, allowing goods from Dublin to bypass congested East Coast gateways [2]. - The flight is part of FedEx's strategy to strengthen its capabilities in the global air freight market, particularly benefiting U.S.-based customers in sectors experiencing significant growth, such as healthcare, electronics, and aerospace [4]. Group 2: Strategic Network Enhancements - FedEx has restructured its air network over the past two years to eliminate excess capacity and improve profitability and customer service [4]. - The company has implemented a color-coded strategy to segregate its fleet by product categories and demand requirements, enhancing operational efficiency [4]. Group 3: Market Context and Infrastructure - Ireland is a major export market, with approximately 68% of total goods exported in early 2025 destined for the United States, primarily in pharmaceuticals and medical equipment [5]. - FedEx has also opened a new cold-chain facility at the Indianapolis hub, featuring multiple temperature zones to support the handling of sensitive products [5].

Core Viewpoint - AerCap Holdings N.V. has successfully delivered the first two Boeing 777-300ERSF Passenger-to-Freighter converted aircraft to Kalitta Air, marking a significant milestone in their partnership and the cargo conversion program [1][4]. Group 1: Aircraft Delivery and Certification - The first two aircraft were delivered to Kalitta Air on September 12 and 13, 2025, and are part of a larger order of seven aircraft [1][3]. - Kalitta Air is the launch operator of the AerCap Cargo 777-300ERSF conversion program, which began in 2020, aimed at replacing their aging Boeing 747 freighter fleet [2][5]. - The aircraft have received certification from both the Civil Aviation Authority of Israel (CAAI) and the Federal Aviation Administration (FAA) for a 100-tonne payload capacity [2][4]. Group 2: Operational Plans and Market Impact - Kalitta Air plans to commence revenue operations with both aircraft in early October, with additional deliveries expected in the following weeks [3]. - The Boeing 777-300ERSF is designed to redefine air freight capabilities, featuring a payload capacity of 100 metric tons (220,000 pounds) and a volume of 811 m³ (28,640 ft³) [5]. - The introduction of the 777-300ERSF is expected to lower operating costs compared to existing widebody freighters and contribute to decarbonization efforts by reducing CO2 emissions by 20% [5]. Group 3: Company Backgrounds - AerCap is a global leader in aviation leasing, serving approximately 300 customers worldwide and maintaining a strong order book [6]. - Kalitta Air operates a fleet of Boeing 747 and 777 freighters, providing cargo services across six continents and is recognized for its commitment to safety and reliability [7].

Core Insights - Freightos has partnered with SriLankan Cargo to enhance online air cargo booking and payments, significantly expanding its presence in South Asia and improving access to Colombo as a transshipment hub [1][4] Company Overview - Freightos is a leading digital booking and payment platform for the international freight industry, facilitating connections among airlines, ocean carriers, freight forwarders, and importers/exporters [7][8] - SriLankan Cargo, the air freight division of SriLankan Airlines, connects to 32 online destinations in 21 countries and over 200 destinations globally, with strong capacity to India and the Gulf [3][11] Partnership Details - The integration allows over 10,000 freight forwarding offices using WebCargo to access, quote, book, and pay for SriLankan's air freight capacity through a single platform [2] - The partnership democratizes access to SriLankan Cargo's capacity for non-IATA forwarders in Asia, removing the need for airline credit lines or bank guarantees, which is particularly beneficial for SMEs in emerging markets [4] Service Enhancements - SriLankan Cargo will leverage Freightos' rate management and procurement tools to enhance visibility during the freight buying process [5] - The integration will also enable seamless booking of complex multi-carrier routes, optimizing load factors for partner airlines like Qatar Airways and Emirates SkyCargo [5] Industry Context - The partnership is positioned to enhance agility in the freight industry, which is increasingly reliant on digital solutions for efficiency and resilience [4][8]

Investment Rating - The report indicates a generally positive outlook for the global transport markets, particularly in ocean freight, while air freight shows signs of weakness [1][2]. Core Insights - Global ocean volumes in Q2 are up 6% year-over-year (yoy) in China, with Asia-Europe trade also experiencing mid-single-digit growth, despite some declines in Pacific volumes [1][2]. - Air freight has weakened recently, with initial growth in April fading due to regulatory changes and underperformance in North America [1][3]. - The China-US cargo rush is slowing, with forecasts indicating significant declines in US imports and weaker export orders from China [2][4]. Summary by Sections Freight: Ocean Resilient, Air Softer - Ocean freight volumes are showing resilience with a 6% increase in China port throughput yoy, while air freight has softened following regulatory changes [1][2]. Air Freight: Softer Following De Minimis Changes - Air freight growth was initially positive in April but has since declined, particularly in North America, with ISM new orders in contraction for four consecutive months [1][2][3]. Sea: Positive Global Volume Growth in Q2 - Global container volumes increased by 6% in April, indicating a positive trend in seaborne trade despite some regional variations [1][2][35]. Shipping: Rates Up from April Lows, but Starting to Fade on the Pacific - Shipping rates have recovered from April lows but are beginning to show signs of fading momentum, particularly in the Pacific region [1][2][95]. Airlines: Weaker Unit Revenue Trends into Summer - Airline fare data has weakened, particularly in Europe and the US, with expectations of slowing passenger growth across major hubs [3][4]. Airports: Generally Slowing Traffic Growth - Airport traffic growth is generally slowing, reflecting broader trends in air travel demand [3][4]. Commodities Shipping - Crude tanker rates have increased due to geopolitical tensions, while demand for shipments remains high [9]. Asia-Europe Trade - There is robust growth in Asia-Europe container trade, supported by favorable exchange rates for imports from China [9][67][69].