Archive for category: Market Updates

Logistics Market Update March 2025

March 2025 Logistics Market Update | Forceget

Monthly Highlights

1. European Logistics Adapts to Demand Rebalancing

After months of congestion, Europe’s shipping industry is now adapting to reduced demand and improving port fluidity. However, geopolitical tension continues to cause uncertainty in trade routes.
🔗 Source

2.Air Freight Capacity Tightens in Key Regions

Air freight demand picked up slightly in March, with capacity remaining tight across major routes. Carriers continue to balance space allocation between passenger and cargo services.

🔗 Source

3.Warehousing Remains Expensive Despite Dip in Freight Rates

Even as some transportation rates dip, warehousing lease prices remain high, especially in major U.S. and EU logistics hubs. Businesses are urged to optimize long-term storage strategies.

🔗 Source

Key Takeaways

• Ocean freight spot rates remain unpredictable due to capacity adjustments.
• European supply chains are recalibrating in response to shifting demand and ongoing political instability.
• Air freight availability is limited, pressuring shippers with urgent cargo needs.
• High warehouse costs continue to impact long-term storage planning despite drops in trucking and container rates

Ocean Freight Market Update

Rate Trends and Capacity Adjustments

Freight Rates:
Ocean freight rates remain volatile due to tariff changes and Red Sea disruptions. The Shanghai Containerized Freight Index (SCFI) shows sharp YoY rate increases across several lanes:

• Asia–Europe: Rates soared +130% YoY, driven by ongoing Red Sea rerouting and vessel capacity constraints.
• Asia–U.S. West Coast: Up +95% YoY, primarily due to pre-Lunar New Year stockpiling and front-loaded import activity.
• Asia–South America: Jumped +110% YoY, as tight vessel space and strong demand continue to strain capacity.

Capacity Outlook:

• Idle Fleet Levels: Despite global challenges, the idle fleet remains under 0.5%, reflecting strong utilization rates across carriers.
• New Vessel Deployments: Major players like Maersk and Hapag-Lloyd have increased sailings to offset Red Sea detours and preserve schedule reliability.

Market-Specific Insights

Asia-Europe

• Delays & Rising Costs: Continued rerouting around Africa is extending transit times by 12–16 days, significantly increasing freight costs.
• Capacity Constraints: Several carriers have suspended new bookings on Asia–Europe lanes due to congestion and a shortage of available vessels.

Asia-U.S. West Coast

• Tariff Impact: A pre-tariff shipment surge in February caused temporary rate hikes and pushed demand toward premium services.
• Post-Tariff Trends: Spot rates are beginning to stabilize slowly, though port congestion continues to hinder full recovery.

South America

• Limited Capacity: Ocean freight rates remain 120% higher YoY, driven by persistent vessel space shortages.
• Port Congestion: Delays continue at major Brazilian and Chilean ports, adding an average of 3–5 extra days to shipping timelines.

Environmental and Compliance Developments

EU Emission Trading System (ETS) Expands

• Carriers are now required to cover 85% of their emissions under the EU ETS, contributing to higher surcharges and increasing operational costs throughout 2025.

IMO 2024 Regulations & Fuel Costs

• Ongoing stricter emissions regulations are pushing fuel costs higher, especially on long-haul shipping routes, intensifying margin pressures for carriers and shippers alike.

Congestion and Reliability

Global Schedule Reliability

• While global reliability has slightly improved to 63%, continued Red Sea disruptions and port congestion are creating delays and inconsistencies across key trade lanes.

Vessel Delays

• North Europe and U.S. West Coast ports are experiencing 5–8 day delays due to labor shortages and heavy backlogs, further complicating schedule adherence.

Air Freight Updates

Peak Season Performance

Demand Surge

• Elevated Demand Post-Holiday: Air freight demand remains high due to sustained movement of pharmaceuticals, electronics, and automotive components.
• E-commerce Growth: Increased e-commerce volumes, particularly on Asia–U.S. and Asia–Europe routes, are intensifying pressure on air cargo capacity.

Capacity Constraints

• Aircraft Maintenance & Staffing Issues: Ongoing maintenance delays and pilot shortages continue to restrict available cargo space, resulting in longer booking lead times.
• Premium Cargo Prioritization: Airlines are prioritizing high-margin cargo, pushing out lower-margin shipments to later flights or higher-cost lanes.

Rate Increases

European Routes: Air cargo rates to Europe climbed 9% MoM, driven by tight capacity and rising fuel costs.

Asia–U.S. West Coast: Rates on this corridor spiked by 12% MoM, with some lanes seeing even sharper increases due to demand surges.

Region-Specific Developments

Asia-Pacific

• Semiconductor & Electronics Surge: High demand for semiconductors continues to drive up rates across intra-Asia and Asia–U.S. routes.
• Export Growth in China: Strong outbound volumes from hubs like Shanghai Pudong and Hong Kong are keeping capacity tight and pushing up rates.

Europe

• Aerospace & Automotive Shipments: Increased industrial shipments are crowding out general cargo on major lanes.
• Customs Congestion: Delays at Frankfurt and Amsterdam airports due to customs backlogs are extending lead times.

Disruptions and Delays

Weather Events

• North America Snowstorms: Winter conditions caused disruptions and delays at Chicago O’Hare, New York JFK, and Dallas/Fort Worth.
• Perishable Shipment Delays: Sensitive goods are experiencing delays of up to 36 hours, especially in volatile temperature conditions.

Geopolitical Tensions

• Middle East Conflict Impact: Instability continues to affect global air lanes, leading to detours, higher fuel costs, and longer transit times.
• Red Sea Diversions: These have increased reliance on air freight, driving capacity constraints even further.

Technological Advancements

Cargo Tracking Systems

• AI-Powered Visibility: Airlines are adopting AI-driven visibility tools for enhanced tracking and real-time decision making.
• Predictive Analytics: New tools are being used to optimize cargo allocation and reduce operational bottlenecks.

Drones for Last-Mile Deliveries

• Rural Trials: Logistics providers are expanding drone delivery pilots, especially in high-demand and remote areas.
• Regulatory Progress: Some countries are moving forward with regulatory approvals for wider drone operations, especially in healthcare and time-sensitive sectors.

Freight Market and Amazon News

Tariffs and Trade Policy Updates

U.S. Tariffs on Chinese Imports Take Effect

• Trump’s proposed tariffs could hit Chinese imports with duties up to 60%, shaking global trade flows.These changes may raise costs for e-commerce sellers, especially on electronics and essential goods.
• Vietnam, Mexico, and India continue to attract companies seeking alternatives to Chinese manufacturing hubs.
• Source:Forceget

Mexican Tariff Policy Impacts Cross-Border Trade

• Mexico implemented a 19% tariff on goods from non-trade-agreement countries, complicating U.S.-Mexico trade routes for certain SKUs.
• U.S. sellers exporting into Mexico are reevaluating their supply chain strategies and looking for localized fulfillment options.
  Source: The Loadstar

Amazon Marketplace Updates

Amazon Introduces New Seller Incentives for FBA Adoption

• First-time FBA sellers are now eligible for fee waivers, making onboarding more accessible and cost-effective.
• New discounted fees for high-demand product categories were introduced to increase FBA adoption among Amazon sellers.Source: FreightWaves

Amazon Enhances Restocking Capabilities with AI-Driven Features

• Amazon launched a new AI-powered “Send It Again” tool to help automate inventory restocking decisions.
• The tool is designed to reduce overstocking, improve inventory turnover, and enhance stock visibility for high-velocity products.
  Source: TechCrunch

Shifts in Freight Demand and Pricing

Container Shipping Rates Experience Sharp Fluctuations

• Trans-Pacific spot rates surged 14% as U.S. shippers rushed orders ahead of expected tariff increases.
• Congestion in key European ports due to Red Sea rerouting has extended delivery times, impacting global shipping schedules.
  Source: Sino Shipping.
  Source: Sino Shopping

Air Cargo Sees Increased Demand Due to Supply Chain Disruptions

• Rising port congestion and geopolitical instability have driven more volume to air cargo, spiking prices and reducing available capacity.
• Airlines are adjusting routes and capacity to maintain stability amidst growing demand for faster, more predictable logistics solutions..
  Source: Wiima Logistics

Forceget Supply Chain Provider is a leading NVOCC licensed global logistics company that specializes in parcel, air and ocean shipping. With offices in key locations such as the USA, China, Hong Kong, Turkey, Israel and Colombia, we are well-positioned to assist you with all your logistics and brokerage needs, no matter where you are located. We take care of all the complexities of international shipping, allowing you to focus on what you do best – competing in your local market. Additionally, we pride ourselves on being the number one Amazon FBA focused freight forwarder, ensuring that your products are delivered to Amazon warehouses in a timely and cost-effective manner. With Forceget, you can have peace of mind knowing that your global logistics needs are in expert hands.

 

Logistics Market Update January 2025

January 2025 Logistics Market Update | Forceget

Monthly Highlights

1.Tariff Implementation Begins – Impact on Global Trade

The new U.S. tariffs on imports from China, Canada, and Mexico took effect on February 4, 2025, raising costs for businesses dependent on these supply chains. Experts warn that these tariffs could lead to higher consumer prices and disruptions in sourcing strategies as companies shift production to alternative regions like Vietnam and India.
🔗 Source: AP News

2.Red Sea Shipping Disruptions Worsen

Ongoing attacks on commercial vessels in the Red Sea have forced major shipping lines to reroute around Africa’s Cape of Good Hope, significantly increasing transit times and costs. Spot rates for Asia-to-Europe shipments have surged by over 30%, with carriers imposing additional surcharges due to security concerns.
🔗 Source: FreightWaves

3.Chinese New Year Shutdowns Delay Global Shipments

China’s annual Lunar New Year holiday (February 10-24) is leading to widespread factory closures, reducing export volumes. Companies that didn’t plan shipments in advance are now facing extended lead times, with backlogs expected to persist through March.
🔗 Source: The Loadstar

4.U.S. East Coast Ports Gain Volume as West Coast Struggles

A potential port labor strike on the U.S. West Coast is prompting shippers to divert cargo to East Coast ports, causing a 15% increase in spot rates on trans-Pacific routes. East Coast ports in New York and Savannah are seeing higher-than-usual congestion as a result.
🔗 Source: FreightWaves

Key Takeaways

• Chinese New Year Slowdown: Factory shutdowns across China have led to delays in production and shipping. Expect backlog clearance to extend through late February to early March.
• Tariff & Trade Shifts: With new tariffs affecting China, Canada, and Mexico, businesses are adjusting supply chain strategies. Companies are increasing regional sourcing to mitigate risks.
• Air Freight Rate Drops: Despite peak season activity in early January, demand softened toward month-end, leading to slightly lower rates in some lanes.
• Trucking & Domestic Logistics: Winter weather and regulatory changes have contributed to capacity fluctuations in US and Canada.

Ocean Freight Market Update

Rate Trends and Capacity Adjustments

Freight Rates:
Ocean freight rates remain volatile following tariff implementations and Red Sea disruptions. The Shanghai Containerized Freight Index (SCFI) shows notable increases in key trade lanes:

• Asia–Europe: Rates surged +180% YoY due to Red Sea rerouting.
• Asia–U.S. West Coast: Increased by +115% YoY, mainly driven by pre-tariff stockpiling.
• Asia–South America: Saw a +140% YoY rise, as limited capacity puts pressure on rates.

Capacity Outlook:

• Idle Fleet Levels: Despite disruptions, the idle fleet remains below 2%, reflecting strong demand and tight capacity.
• New Vessel Deployments: Major carriers, including MSC and CMA CGM, are adding extra services to compensate for longer transit times caused by rerouting around Africa.

Market-Specific Insights

Asia-Europe

• Delays & Rising Costs: Rerouting around Africa adds 10-14 days in transit time, increasing costs for shippers.
• Capacity Constraints: Some carriers have halted bookings temporarily due to backlog.

Asia-U.S. West Coast

• Tariff Impact: Companies rushed shipments ahead of February 4 tariffs, increasing demand and rates.
• Post-Tariff Trends: Spot rates are expected to stabilize in late February.

South America

• Limited Capacity: Rates remain 140% higher than in January 2024, with tight vessel space causing delays.
• Port Congestion: Severe congestion at Brazilian and Chilean ports is extending lead times.

Environmental and Compliance Developments

EU Emission Trading System (ETS) Expands

• Carriers now must cover 70% of their emissions under the EU ETS, leading to higher surcharges in 2025.

IMO 2024 Regulations & Fuel Costs

• Fuel costs continue to rise due to new low-emission mandates, which will likely push rates higher in Q2 2025.

Congestion and Reliability

Global Schedule Reliability

• Improved to 62%, but disruptions from tariffs and Red Sea diversions still impact consistency.

Vessel Delays

• North Europe & U.S. West Coast ports are experiencing delays of 4-7 days, increasing transit uncertainty.

Air Freight Updates

Peak Season Performance

Demand Surge

• The post-holiday season demand for air freight remains strong, particularly for high-value goods like electronics and pharmaceuticals.
• Increased demand from e-commerce has led to higher volumes on trans-Pacific and Europe-bound flights.

Capacity Constraints

• Aircraft maintenance backlogs and labor shortages have tightened available capacity, causing longer booking lead times.
• Airlines prioritized high-margin cargo, leading to delays for lower-priority shipments.

Rate Increases Spot rates on Asia-U.S. routes climbed 15% month-over-month, while Europe-bound freight rates also increased by 10% due to limited space

Region-Specific Developments

Asia-Pacific

• Demand for semiconductor and electronics shipments has surged, pushing rates higher on key trans-Pacific trade lanes.
• China’s export volume rebounded, straining capacity and causing backlogs in major hubs like Hong Kong and Shanghai.

Europe

• Automotive and high-value industrial parts shipments increased, tightening capacity for general cargo.
• Congestion at key European hubs, such as Frankfurt and Amsterdam, has extended processing times for inbound cargo.

Disruptions and Delays

Weather Events

• Severe winter storms in North America disrupted air cargo operations, leading to temporary closures at major hubs like Chicago O’Hare and New York JFK.
• Delays of up to 48 hours were reported for inbound shipments due to weather-related congestion.

Geopolitical Tensions

• Middle East conflicts forced rerouting of cargo flights, increasing transit times and operational costs.
• Red Sea shipping disruptions caused shippers to shift time-sensitive cargo to air freight, further straining capacity.

Technological Advancements

Cargo Tracking Systems

• Real-time cargo tracking adoption is increasing, offering better visibility and improved reliability for urgent shipments.
• AI-powered predictive analytics help airlines optimize load planning and minimize delays.

Drones for Last-Mile Deliveries

• Carriers are expanding drone delivery trials, particularly in remote areas and for time-sensitive healthcare shipments.
• Successful pilot programs indicate that autonomous last-mile delivery could soon become a mainstream logistics solution.

Freight Market and Amazon News

Tariffs and Trade Policy Updates

U.S. Tariffs on Chinese Imports Take Effect

• The new 10% tariff on select Chinese imports officially went into effect on February 4, 2025, reshaping supply chain strategies for global sellers.
• Many U.S. importers are actively seeking alternative sourcing options in Vietnam, Mexico, and India to reduce tariff-related costs.
  Source: AP News

Mexican Tariff Policy Impacts Cross-Border Trade

• Mexico has implemented a 19% tariff on imports from non-trade-agreement countries, affecting Chinese-manufactured goods.
• Amazon sellers targeting the Mexican market may need to reconsider sourcing strategies and explore regional suppliers.
  Source: The Loadstar

Amazon Marketplace Updates

Amazon Expands Logistics Incentives for FBA Sellers

• Amazon has introduced new fee waivers for first-time FBA sellers and reduced placement fees for high-demand products.
• These incentives aim to increase seller adoption of Amazon’s fulfillment services amid growing competition.
  Source: FreightWaves

Amazon’s “Send It Again” Feature Streamlines Inventory Restocking

• Amazon launched a one-click restocking tool that simplifies the FBA replenishment process for sellers, reducing errors and time spent on inventory management.
• This feature is expected to enhance seller efficiency and minimize stockouts.
  Source: TechCrunch

Shifts in Freight Demand and Pricing

Container Shipping Rates Remain Volatile

• Trans-Pacific spot rates rose 12% following increased demand from U.S. importers rushing to move goods before additional tariffs take effect.
• European container rates remain elevated due to Red Sea disruptions, leading to longer transit times and route diversions.
  Source: Freightos

Air Cargo Sees Increased Demand Due to Supply Chain Disruptions

• Ongoing port congestion and geopolitical tensions have pushed shippers toward air freight solutions, driving up rates in major trade lanes.
• Carriers are adjusting schedules and expanding capacity to accommodate the growing demand for expedited shipping.
  Source: Sino Shipping

Forceget Supply Chain Provider is a leading NVOCC licensed global logistics company that specializes in parcel, air and ocean shipping. With offices in key locations such as the USA, China, Hong Kong, Turkey, Israel and Colombia, we are well-positioned to assist you with all your logistics and brokerage needs, no matter where you are located. We take care of all the complexities of international shipping, allowing you to focus on what you do best – competing in your local market. Additionally, we pride ourselves on being the number one Amazon FBA focused freight forwarder, ensuring that your products are delivered to Amazon warehouses in a timely and cost-effective manner. With Forceget, you can have peace of mind knowing that your global logistics needs are in expert hands.

 

Logistics Market Update November 2024

Monthly Highlights

U.S. East Coast Port Strikes: What to Know 

Port workers on the U.S. East and Gulf Coasts reached a temporary agreement in early November to avert a strike. While this provides short-term relief, tensions remain high, and further action may occur in January 2025, creating uncertainty for shipping operations. Shippers are rerouting cargo to avoid delays, leading to increased congestion at alternate ports.

Source: https://www.cbsnews.com/news/east-coast-port-strike-what-to-know/

Air Cargo Demand Surge Amid Increased Competition

Air freight demand remained strong throughout November, with airlines and freight companies adjusting schedules to meet the peak holiday season demand. However, growth showed as the global air cargo market saw only a 3% increase compared to the previous year. At the same time, global spot rates rose to $2.71 per kiogram, marking the fourth consecutive month of double-digit growth in air cargo rates. 

Source: https://www.aircargonews.net/airlines/air-cargo-demand-up-again-in-september-but-growth-narrows/

Supply Chain Disruptions from Hurricane Milton

Hurricane Milton disrupted shipping operations in Florida, particularly affecting Port Tampa Bay. Closures at the port caused significant congestion, increasing dwell times by 25%. Florida’s citrus industry was also severely impacted, with estimated crop losses of 30% and a 15-20% rise in prices. Shipping delays of 3-5 days are expected due to road closures and disrupted logistics.

Source: https://www.freightwaves.com/news/milton-threatens-ripple-effects-across-global-supply-chains

Key Takeaways

• The threat of U.S. East and Gulf Coast strikes, although temporarily resolved, led to significant congestion at alternate ports. Container dwell times rose by 15%, and linehaul rates spiked by 8% in the impacted areas. 
  
• Despite a slower growth rate in air cargo volume, rates continued to rise sharply, with global spot rates up by double digits for four months in a row. 
  
• The logistics market faces mixed conditions, with tight capacity across certain segments like flatbed and reefer carriers, particularly in Florida and along U.S. coastlines affected by Hurricane Milton. The holiday season’s increased demand is also causing higher warehouse prices as retailers scramble for storage space. 
  
• Overall Freight volumes in November were down 5.2% year-over-year. While some routes saw rate reductions, East Coast routes experienced a temporary rate increase due to potential labor strikes.
  
  

Ocean Freight Market Update

Rate Trends and Capacity Adjustments

Ocean freight rates on major trade routes displayed continued volatility throughout November. 

Increased capacity from additional loaders and alternative routing strategies, such as using the Cape of Good Hope, helped balance some capacity shortfalls. 

Despite added capacity, disruptions caused by the looming East Coast port strikes and labor disputes created temporary spikes in rates, particularly on the U.S.-Europe and U.S.-Asia routes. 

Market-Specific Insights

North Europe and Meditterranean: Rates declined further as peak season demand subsided and shipping lines competed aggressively on these routes. 

Asia-U.S. West Coast: Rates remained mixed due to competitive pressures and a focus on repositioning equipment to meet holiday season demand. 

South America: Capacity shortages led to a temporary increase in spot rates, exacerbated by delays at major Brazilian and Chilean ports. 

Environmental and Compliance Developments

Implementation of stricter IMO 2024 environmental regulations prompted some carriers to upgrade fleet technologies. However, the associated costs are expected to reflect in long-term freight rates. 

Congestion and Reliability

Global schedule reliability improved marginally, reaching 60%, but challenges such as port congestion and vessel delays persisted. Carriers responded with better planning and adjusted port rotations, but the improvements have not yet significantly alleviated supply chain disruptions. 

Air Freight Updates

Peak Season Performance

The holiday shopping season drove an uptick in air freight demand, especially for ecommerce and consumer electronics shipments. However, the following challenges influenced market dynamics: 

Capacity Constraints: Limited aircraft availability due to maintenance backlogs and crew shortages led to tighter capacity. 

Rate Increases: Global spot rates surged to $2.71 per kilogram, with some high-demand routes experiencing double-digit percentage rate hikes. 

Ecommerce Growth: Cross-border ecommerce shipments accounted for a larger share of air cargo volumes, with North America and Europe being key markets. 

Region-Specific Developments

Asia-Pacific: Strong demand for electronics shipments pushed rates higher, particularly on trand-Pacific lanes. 

Europe: Airlines faced capacity shortages due to increased demand for automotive and high-value industrial parts, contributing to regional rate increases. 

Disruptions and Delays

Weather Events: Hurricane Milton disrupted air cargo operations, causing shipment delays and congestion at key airports in Florida. 

Geopolitical Tensions: Conflicts in the Middle East disrupted air freight routes, forcing carriers to reroute flights, leading to extended transit times and increased costs. 

Technological Advancements

Airlines continued to adopt advanced cargo tracking systems, offering better visibility and improved service levels for high-priority shipments. 

Some carriers tested drones for last-mile deliveries in remote areas, showcasing future possibilities for e-commerce logistics. 

Freight Market and Amazon News

Amazon’s Air Freight Expansion

Amazon has been aggressively expanding its air cargo network, adding to new routes and increasing its fleet of dedicated aircraft, allowing Amazon to offer faster delivery times and increased capacity to third-party sellers.

Source: https://www.freightwaves.com/news/amazon-airline-sells-excess-cargo-capacity-to-third-party-shippers

Alibaba’s New Singles Day Focus

Alibaba’s annual Singles’ Day shopping event saw record-breaking sales, demonstrating strong consumer demand in China, highlightingthe importance of e-commerce, and the impact it has on global logistics and supply chain operations.

Source:https://www.scmp.com/tech/big-tech/article/3282703/alibabas-new-singles-day-focus-protecting-sellers-price-wars

Amazon AI Delivery Technology

Amazon is deploying AI-Powered delivery vans that use computer vision to streamline package identification and delivery, improving efficiency and reducing delivery times.

Source: https://www.supplychaindive.com/news/amazon-ai-delivery-technology-vapr/730138/

Forceget Supply Chain Provider is a leading NVOCC licensed global logistics company that specializes in parcel, air and ocean shipping. With offices in key locations such as the USA, China, Hong Kong, Turkey, Israel and Colombia, we are well-positioned to assist you with all your logistics and brokerage needs, no matter where you are located. We take care of all the complexities of international shipping, allowing you to focus on what you do best – competing in your local market. Additionally, we pride ourselves on being the number one Amazon FBA focused freight forwarder, ensuring that your products are delivered to Amazon warehouses in a timely and cost-effective manner. With Forceget, you can have peace of mind knowing that your global logistics needs are in expert hands.

Logistics Market Update September 2024

Monthly Highlights

Market rises into Labor Day, but falls well short of Fourth of July

Tender volumes in the trusking industry increased in August, yet this rise in demand was accompanied by a slight increase in tender rejection rates, which could be a sign of carriers having more leverage in negotiations. However, the stock market only rose in the lead-up to Labor Day (first Monday of September), suggesting that this increase in demand was not as strong as the market rise seen before the Fourth of July (early July). 

Source: https://www.freightwaves.com/news/market-rises-into-labor-day-but-falls-well-short-of-fourth-of-july

Portland Terminal 6 aid “urgently” needed, report says

The Port of Portland is in urgent need of state funding to keep Portland Terminal 6, the state’s only international container terminal, operational. The terminal is currently losing money, but it is critical to the state’s economy. The port and its stakeholders have requested $35 million in capital investments and $5 million in operational funding from the state. 

Source: https://www.freightwaves.com/news/portland-terminal-6-aid-urgently-needed-report

5 new generative AI tools to accelerate seller growth and enhance the customer shopping experience

Amazon has introduced a suite of AI-powered tools designed to streamline seller operations, improve product listings, and ultimately enhance the overall customer shopping experience. Key benefits include AI-generated review highlights that provide customers with more informed purchasing decisions and the simplification of seller tasks, allowing them to allocate more resources to product innovation. 

Key Takeaways

• The threat of a strike by dockworkers on the US East and Gulf Coasts was a major concern throughout September 2024. The potential strike could have had a significant impact on the global supply chain, yet lasted 3 days and was postponed till January, in hopes of a rectified contract. 
  
• Hurricane Helene, which made landfall in Florida, caused disruptions at several ports in the region, leading to delays in cargo operations, damage to infrastructure, and potential impacts on supply chain. 
  
• Air Frieght rates continued to rise in September 2024, driven by strong demand and capacity constraints. This was particularly evident as the peak season approached. Disruptions in ocean freight, such as rerouting around the Cape of Good Hope, also contributed to the increased demand for air cargo. 
  
• The US government’s proposed changes to the de mnimis exemption for low-value imports could have significant implications for ecommerce retailers, particularly those operating out of China, leading to increased costs, compliance challenges, and potential disruptions in the supply chain. 
  

Ocean Freight Market Update

• Container freight rates on major trade routes continued to fal significantly in September 2024.This decline was initially driven by a combination of factors. The demand for container shipping services decreased on several key trade routes, leading to a surplus of capacity. The addition of extra loaders and rerouting around the Cape of Good Hope helped to increase capacity, further contributing to the decline in rates. 
  
• The looming threat of a strike at US East and Gulf Coast ports continued to create uncertainty in the market. While the strike was ultimately averted after three days, the mere threat of it has a significant impact on shipping rates and supply chain operations. Shippers and carriers were forced to adjust their plans and strategies in anticipation of potential disruptions. 
  
• The balance between capacity and demand remained a key factor influencing rates. While additional capacity was added through rerouting and extra loaders, strong demand on some routes contrinubuted to fluctuations in raates. The overall trend was one of declining rates, but there were some exceptions where demand outpaced supply.  
  
• With the peak season arrival window closing and capacity increasing, shipping rates to North Europe and the Mediterranean have decreased, while rates to the West Coast are showing mixed trends due to a potential strike and increased competition.
  

Global Schedule Reliability

Schedule reliability increased by 1.2 points monthly to 60%, in July 2024.

Air Freight Updates

• Airlines faced challenges acquiring new aircraft, leading to limited capacity and reduced availability for air cargo shipments. Delays in aircraft maintenance and repairs further constrained capacity and increased operating costs. Airlines were forced to adjust their networks and flight schedules to cope with rising demand, which could have resulted in longer transit times and higher rates. 
  
• The continued growth of ecommerce led to a surge in demand for airfreight services, as online retailers on air cargo for faster delivery times. The approach of the peak season, with major shopping events like Black Friday and Cyber Monday, further intensified demand for airfrieght. 
  
• Some shippers opted to shift their shipments from ocean freight to air freight to avoid potential delays and ensure timely delivery. 
  
• Volcanic eruptions in regions like Kamchatka, Russia, disrupted key flight routes and led to load reductions for airlines operating in the area. Other natural disasters, such as typhoons or hurricanes, could have also impacted air cargo operations in specific regions. 
  
• The market in North China showed signs of strengthening, driven by increased demand for e-commerce shipments and other traditional air cargo products. Other regions faced challenges due to various factors: Unstable political situations in some regions could have led to disruptions in air cargo operations, and economic downturns or slowdowns in certain regions could have reduced demand for air freight services. 
  

Freight Market and Amazon News

Proposed Changes to De Minimis Exemption Impact Ecommerce

Amazon empowered third-party sellers by allowing them to select their preferred trucking carrier when sending LTL and truckload shipments to its US fulfillment centers. 

Source: https://www.supplychaindive.com/news/amazon-sellers-trucking-preferred-carrier/725250/

India-US Rates on Hold

Container lines are portponing and reducing planned rate hikes for India-US routes due to weakening demand and declining rates. 

Source:https://theloadstar.com/india-us-container-gris-pushed-back-as-demand-falters/

Rough Seas, Rough Claims

Weather-related cargo damage and insurance claims are on the rise as container ships take the longer route around the Cape of Good Hope to avoid congestion. 

Source: https://theloadstar.com/insurance-claims-on-the-rise-with-box-ships-forced-to-brave-cape-weather/

Forceget Supply Chain Provider is a leading NVOCC licensed global logistics company that specializes in parcel, air and ocean shipping. With offices in key locations such as the USA, China, Hong Kong, Turkey, Israel and Colombia, we are well-positioned to assist you with all your logistics and brokerage needs, no matter where you are located. We take care of all the complexities of international shipping, allowing you to focus on what you do best – competing in your local market. Additionally, we pride ourselves on being the number one Amazon FBA focused freight forwarder, ensuring that your products are delivered to Amazon warehouses in a timely and cost-effective manner. With Forceget, you can have peace of mind knowing that your global logistics needs are in expert hands.

Logistics Market Update July 2024

Monthly Highlights

Paris Olympics will be a true test of supply chains

The 2024 Paris Olympics will impact global supply chains with increased demand and logistical challenges, while investments in infrastructure aim to enhance long-term capabilities and sustainability.

Source: https://www.freightwaves.com/news/paris-olympics-will-be-a-true-test-of-supply-chains

Container spot rates have peaked as all major trades see prices fall

Peak container freight prices have declined this week due to reduced ship utilization and increased capacity, ending a three-month period of rising rates.

Source: https://theloadstar.com/container-spot-rates-have-peaked-as-all-major-trades-see-falling-prices/

FedEx to cut domestic flight activity by 60%

FedEx plans to cut daytime flights and city destinations by up to 60% in response to losing its U.S. Postal Service contract, leading to significant pay cuts for pilots.

Source: https://www.freightwaves.com/news/fedex-to-cut-domestic-flight-activity-by-60 

Key Takeaways

• The 2024 Paris Olympics will be a challenge, but infrastructure investments aim to improve long-term sustainability and capabilities.
  
• Amazon’s new AI chip outperforms NVIDIA’s by up to 50% in cost and efficiency, and despite Amazon’s late entry into the market, it has the potential to reshape the AI ​​technology landscape.
  
• Amazon is launching a discount shopping app for low-cost Chinese products with 9-11 day shipping, aiming to compete with Temu and Shein and expand its presence in the discount retail sector.
  

Ocean Freight Market Update

• Transpacific volumes remain strong, exceeding last year’s figures, but delays and capacity issues are expected from Cape of Good Hope routes due to structurally empty voyages, port congestion and adverse weather conditions.
  
• Volumes on FEWB remain very strong, exceeding last year’s figures. There are structurally empty sailings due to the Cape of Good Hope routes and port congestion in Asia. However, extra loaders added in late July are helping to compensate for the smaller vessels and longer transit times.
  
• Demand and prices in Northern Europe are stable and are expected to remain so until the end of September. In contrast, congestion and delays in the Mediterranean are causing empty sailings and 100% utilization, prompting carriers to raise prices through Peak Season
  

Global Schedule Reliability

Schedule reliability increased by 3.8 points m-month on month to 55.8%, in May 2024.

Asia

• Additions to shipping capacity, including new sailings and additional carriers through August, will keep the charter market tight as carriers continue to face tonnage shortages.
  
• In Asia, global demand for ocean freight container shipping reached a record high, up 7.5% from 2023, despite significant capacity challenges such as severe port congestion and diversions around Africa.

North America

• In North America, reduced capacity did not impact demand from Northern Europe, with most carriers holding steady through the end of Q3.
  
• Mexico’s domestic intermodal shipments have increased by 139% year to date, accounting for 2.5% of the North American market, due to nearshore and rail investments, while Canada’s domestic intermodal shipment growth has stalled due to an unresolved labour dispute affecting major Canadian railroads.
  
• Spot rates from East Asia to Europe showed mixed trends in July, with declines of 16% and 11% in Thailand and Taiwan, respectively, and increases of 7%, 5% and 3% in Hong Kong, South Korea and Japan, respectively, despite an 8% decline in Hong Kong tonnage.

Air Freight Updates

• Global air cargo tonnage decreased by 1% in the second week of July 8-14, 2024, with declines of 5%, 2% and 5% in Europe, Asia Pacific and Africa, and increases of 6% and 4% in North America and Central and South America.
  
• The average air cargo rate worldwide decreased by 1% in the first half of July to $2.50 per kilo, but remained 11% year over year and 44% above July 2019 levels, while significant increases of 23% and 51% were seen in Asia Pacific and MESA origins, respectively.
  
• Global air cargo trends show a slight decrease (-1%) in paid weight flown worldwide compared to the previous two weeks, but tonnages were up 12% year-on-year in Weeks 22 and 23.

Asia

• In the first half of July, global air cargo tonnage fell by 2% in the Asia-Pacific region, while Africa saw a 5% decline and the world saw a 1% decline.
  
• Spot prices to Europe from various East Asian origins showed mixed trends in the first half of July, with declines of 16% and 11% in Thailand and Taiwan respectively, while increases of 7%, 5% and 3% were seen in Hong Kong, South Korea and Japan.

North America

• North America saw a 6% increase in air cargo tonnage, contrasting with declines in Asia-Pacific and Europe.
  
• The average worldwide air cargo rate dropped by 1% to $2.50 per kilo in first half of July, though North American rates have seen substantial increases, with notable year-on-year rises in rates from Asia-Pacific origins to the U.S.
  

Freight Market and Amazon News

Amazon’s Latest AI Chip Promises 50% Performance Boost

Amazon has launched a new AI chip that aims to reduce costs and increase efficiency for its AWS AI cloud services, better than NVIDIA’s models by up to 50%. Despite being a late entrant into the AI ​​chip market, Amazon’s latest processors could significantly impact the competitive landscape in AI technology.

Source: https://www.trendforce.com/news/2024/07/30/news-amazon-unveiled-the-latest-ai-chip-performance-up-by-50/ 

Amazon to Launch Discount App to Rival Temu

Amazon is preparing to launch a new discount shopping app offering low-cost Chinese products with shipping times of 9 to 11 days to compete with platforms such as Temu and Shein. The move aims to expand Amazon’s reach in the discount retail sector amid increasing competition from new e-commerce players.

Source: https://www.independent.co.uk/tech/amazon-dicount-store-temu-app-b2569786.html

Amazon Hits Record Delivery Speeds for Prime Members

Amazon set a new record for Prime delivery speeds, delivering more than 5 billion items globally this year on the same or next day, a 30% increase over last year.

Source: https://www.aboutamazon.com/news/retail/amazon-prime-same-day-delivery-speed-2024 

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