Market Updates - Forceget Digital Freight Forwarder

Freight Market Update: August 2023

Monthly Highlights

Lower The Panama Canal Authority is Imposing Greater Water RestrictionsFreight Rates Entail Carriers Doing More With Less

Due to climate conditions such as El Nino and poor rainfall, the Panama Canal Authority has stepped up water limitations and draught limits. This saves water and keeps canal levels stable, which is critical for worldwide marine trade. By impacting maritime routes, vessel capacity, and transit times, extended limitations may boost shipping costs and disrupt supply chains. Climate change makes critical trade routes vulnerable, requiring maritime logistics adaptation.

Source: https://www.freightwaves.com/news/panama-canal-authority-extends-water-restrictions

Trans-Pacific Container Shipping Rates Have Been Halted.

Trans-Pacific container transit rates have ceased to rise. Following large increases, container transportation rates have come to a halt. This halt in rate growth is the result of decreased demand, supply chain interruptions, and vessel capacity changes. The container shipping industry is dynamic and complex, which affects prices and causes problems for shippers and carriers.

Source: https://www.freightwaves.com/news/rebound-in-trans-pacific-container-shipping-rates-has-stalled

MFN Hedge Fund Demands Equity Share in Yellow’s Bankruptcy

In Yellow Corporation’s restructuring, the hedge fund MFN wants more equity and influence in decision-making. MFN Partners is using this method to preserve its interests and enhance earnings during bankruptcy. The incident shows how struggling corporations and their stakeholders, including hedge funds, interact during bankruptcy and reorganization.

Source: https://www.wsj.com/articles/hedge-fund-mfn-pushes-for-equity-voice-in-yellows-bankruptcy-78455b9f

Key Takeaways

The current drought is expected to have a substantial impact on the amount of traffic passing through the Panama Canal, causing delays and disruptions in ocean volume.
US East Coast ports continue to perform well, as shippers have found the additional options beneficial following the lengthy West Coast port issues.
Northern Europe has seen year-on-year growth in containerized import volume as sea shipping has become a viable option for many EU importers.
New routes and more airlines are expanding the capacity and alternatives available to shippers entering and exiting Africa and the Middle East.

Ocean Freight Market Update

Capacity remains stable. To stabilize the market, the main carriers are prioritizing trade routes and planning July blank sailings. Freight rates are constant with small increases on some trade channels. Since April 2022, China-US West Coast rates have grown by 20%, while East Coast rates have dropped by approximately two-thirds.

Global schedule reliability rose 1.7 percentage points to 64.2 percent in April, 29.9 percentage points better than last year. New ships will boost capacity and maintain demand. This may lower rates in the second half. However, the Ukraine crisis, inflation, and supply chain interruptions could affect the market.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

The Kaohsiung Port in Taiwan now has a completely automated terminal. Among other advances, the new terminal employs artificial intelligence and driverless cars to significantly improve operational efficiency. It can also handle four 24K TEU cargo ships at the same time.

North America

According to the most recent Sea-Intelligence statistics, yearly growth in North American East Coast imports volume has increased compared to 2019. However, loaded cargo volumes to North America’s West Coast have been declining since September of last year.

In July, the Port of Savannah reported a 17% rise in volume. Even while the volume in July was 17% higher than the previous month, it is still 16% lower than the number in July last year, when the port handled its greatest volume ever, according to the Georgia Ports Authority.

Air Freight Update

In August 2023, air freight rates fell after rising sharply in previous months. Air freight demand remains low due to increased inflation and supply chain interruptions. Air freight market capacity is sufficient to fulfill demand, although the forthcoming peak season may strain capacity. Air freight is expected to fall 28% in 2023, but demand could rise in the second half. In August 2023, the air freight market is projected to remain tough, so shippers should carefully assess their alternatives and prepare ahead to avoid high rates and restricted availability.

Asia

Cathay Group has announced a fresh order for 32 Airbus A320 aircraft as part of its ongoing efforts to expand and upgrade their fleet. The latest additions to the fleet will most likely serve destinations on the Chinese mainland and elsewhere in Asia-Pacific.
Beginning in November 2023, China Southern Airlines will resume service between Guangzhou and Brisbane. The airline will fly the route four times per week with the goal of enhancing tourism between the two cities and capitalizing on the revival in air travel demand.

North America

Silk Way West Airlines is broadening its US network by flying from Baku to Los Angeles on a weekly basis. This adds a fourth US station to the newly launched Houston route, as well as existing lines to Chicago and Dallas.
United Airlines revealed that it will commence daily service from San Francisco to Shanghai in October. They will also resume daily service from San Francisco to Beijing in November. More capacity for freight is expected.

Freight Market and Amazon News

Amazon Shipping Relaunches, Offering Sellers Delivery On Outside Channels

Amazon has reintroduced a ground shipping solution named Amazon Shipping, catering to sellers on its platform. This service facilitates the delivery of packages weighing up to 50 pounds for Amazon sellers within the contiguous U.S., ensuring delivery within two to five business days, encompassing weekends. The service leverages the U.S. Postal Service to comprehensively cover all delivery destinations. While specific shipping rates are not disclosed on Amazon’s website, the service notably exempts sellers from residential fees and weekend delivery charges.

Source: https://www.supplychaindive.com/news/amazon-shipping-relaunches-offering-sellers-ground-delivery/691345/

Amazon’s Peak Season Fulfillment Service Fee Returns Oct. 15

From October 15 to January 14, Amazon will implement higher Fulfillment by Amazon (FBA) fees for the peak holiday shipping season, ranging from 20 cents to $2.50 extra per unit based on item size compared to regular charges. These peak season fees are the same as in 2022. Furthermore, Amazon will add a 2% fee to products sold by businesses using the Seller Fulfilled Prime program, which offers one or two-day Prime delivery while allowing sellers to handle their own fulfillment.

Source: https://www.supplychaindive.com/news/amazon-2023-peak-season-fba-fulfillment-fee-charge/691213/

Amazon Seeks Boxless Orders; Customers Worry While Psychology Suggests It May Decrease Fraud

Amazon aims to ship certain orders without boxes, a move to cut packaging waste and boost efficiency. Despite concerns about increased package theft, psychologists believe this approach could deter theft. Surprisingly, boxed deliveries are more prone to theft due to visibility, while unboxed ones are less conspicuous and thus less likely to be stolen. Moreover, this initiative applies mainly to shipping small, lower-value items, reducing the likelihood of valuable contents.

Source: https://finance.yahoo.com/news/amazon-wants-ship-orders-without-203352596.html

Forceget Digital Freight Forwarder 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.

Freight Market Update: July 2023

Market Updates

Monthly Highlights

Lower Freight Rates Entail Carriers Doing More With Less

Since 2021, global container freight rates have plummeted, and carriers are doing more with less. As airlines cut expenses, liner consolidation has increased. To focus on profitable routes, several carriers are decreasing services. Due to prolonged loading and unloading times, some ports are congested. It also reduces container capacity, which raises freight charges. Container freight rates are unpredictable, but carriers face a difficult climate.

Source: https://theloadstar.com/carriers-doing-more-for-less-as-lower-freight-rates-take-their-toll/

Yellow, the Third-Largest Trucking Company, Is Preparing For Filing Bankruptcy

US third-largest transportation firm “Yellow” is filing for bankruptcy. Due to financial instability, clients have been leaving the company. The Teamsters union is suing Yellow for higher salaries. Yellow’s bankruptcy would be trucking’s largest since 2001.

Source: https://www.wsj.com/articles/trucker-yellow-prepares-to-file-for-bankruptcy-as-customers-flee-281151a6

Shipping Industry Loses Billions To Bunkering Fraud During 2022

A fresh study says bunkering fraud robbed the shipping industry nearly $5 billion and damaged 600 ships last year. FuelTrust revealed that 39% of bunker fuel worldwide has “quality discrepancies.” This signifies the fuel is tainted and can harm ships. The report also identified “endemic lack of transparency, fraud and insufficient supply chain control” within the bunkering sector. Fraudsters are hard to find and discipline.

Source: https://theloadstar.com/bunkering-fraud-cost-5bn-and-disabled-600-ships-last-year/

Key Takeaways

As shippers seek options to minimize delays, ongoing Canadian port strikes may increase air freight flow to US and Canadian airports.
Increased carrier frequencies and new routings into and out of US locations should improve air cargo capacity to Asian and European destinations.
Carriers operating in Asia are continuing to recover and engage in intra-Asian and global growth, offering greater capacity in the coming months and through 2024.
Talim, a category T8 typhoon, made landfall in China on July 17, forcing the closure of several box ports in Hong Kong and China.

Ocean Freight Market Update

Capacity remains stable. To stabilize the market, the main carriers are prioritizing trade routes and planning July blank sailings. Freight rates are constant with small increases on some trade channels. Since April 2022, China-US West Coast rates have grown by 20%, while East Coast rates have dropped by approximately two-thirds.

Global schedule reliability rose 1.7 percentage points to 64.2 percent in April, 29.9 percentage points better than last year. New ships will boost capacity and maintain demand. This may lower rates in the second half. However, the Ukraine crisis, inflation, and supply chain interruptions could affect the market.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

On July 17, category T8 typhoon Talim hit China, shutting down several Hong Kong and Chinese box ports. Talim will cause port congestion and delays.

Canadian port strikes have raised transpacific shipping rates. Asia-US West Coast and Asia-US East Coast SCFI (Shanghai Containerized Freight Index) increased 26% and 12%, respectively. US port rates may rise further if a new agreement is delayed.

Air Freight Update

The performance of the North America-Europe trade lane also affected European airlines, which faced a 16.1% YoY decline in air cargo demand within Europe. Although these route areas experienced double-digit contractions in April, the robust growth of air cargo traffic on the Europe-Asia route area (up 3.4% YoY) helped mitigate the overall decline in demand for the region.

Asia

Korean Air is reactivating Covid-19 routes. The carrier resumed three Chinese and multiple Japan destinations recently. Korean Air is growing throughout Intra-Asia and EU destinations, reaching 82% of its pre-pandemic capacity.
HNA Group wants to have 1,000 planes by 2029. HNA has about 800 aircraft and 100 regional jets on order, with more expected.

North America

San Francisco-Manila and Los Angeles-Tokyo and Hong Kong-Hong Kong routes have been announced by United Airlines. United Airlines will also fly San Francisco to Tapei twice a day.
Virgin Atlantic is expanding its A330 destinations. London-New York City-Atlanta-Tampa flights are now offered by Virgin. The two regions should boost cargo capacity.
As Canadian port strikes continue, officials expect cargo volume to shift to air freight to avoid bottlenecks and delays. If discussions stall and strikes persist, Canadian and US airports may experience more traffic.

Freight Market and Amazon News

Amazon One Palm Payment Technology Coming to All 500+ Whole Foods Market Locations in the US

Amazon revealed “Amazon One” palm scanning technology at Whole Foods Market stores, allowing customers to link their palm identification to their payment methods for a safe and efficient payment process. The method aims to speed up transactions, protect user privacy, and spread its use to a variety of non-Amazon sites, giving customers a novel biometric payment option.

Source: https://www.aboutamazon.com/news/retail/amazon-one-whole-foods-market-palm-scanning

Amazon Introduced a New Page to Share Recalls and Product Safety Notifications With Users Through Their Accounts

Amazon provides a new web page for recalls and safety alerts. “Your Recalls and Product Safety Alerts” is in a customer’s “Your Orders” section. Amazon customers will get a customized email with recall data and an alert banner on their “Your orders” section when a product is recalled. The “Your Recalls and Product Safety Alerts” page lists all Amazon product recalls and safety alerts. This page expands Amazon’s commitment and transparency to safe and trustworthy buying.

Source: https://www.aboutamazon.com/news/how-amazon-works/amazon-creates-new-page-to-share-recalls-for-customers

Amazon Deliveries Made by Rivian EVs Surge to 150M

Since last summer, Amazon has stationed over 5,000 Rivian electric vans around the United States, delivering over 150 million parcels. The business intends to have all 100,000 EVs ordered from Rivian on the roads by 2030, saving millions of metric tons of carbon each year. Amazon’s collaboration with Rivian is part of the company’s broader sustainability aims, which include reaching net-zero greenhouse gas emissions by 2040.

Source: https://www.supplychaindive.com/news/amazon-deliveries-made-by-rivian-evs-surge-to-150m/686157/

Forceget Digital Freight Forwarder 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.

Freight Market Update: June 2023

Market Updates

Monthly Highlights

Retailers Are Attempting To Adjust Their Supply-Chain Projections.

Retailers are actively striving to enhance supply chain forecasting in order to reduce disruptions and better satisfy customer needs. Traditional forecasting approaches, which are frequently based on historical data and linear forecasts, have proven insufficient in the face of unexpected occurrences like the epidemic.

To make accurate predictions, retailers are now using more sophisticated systems that blend real-time data, advanced analytics, and machine learning algorithms. Retailers hope to improve inventory management, optimize distribution networks, and reduce stockouts or surplus inventory by employing technologies such as artificial intelligence. The ultimate goal is to increase supply chain agility and resilience, allowing retailers to respond quickly to market shifts and give customers with a smooth shopping experience.

Source: https://www.wsj.com/articles/retailers-are-trying-to-fix-their-supply-chain-forecasts-82b6818b

US Business Logistics Costs Rose In 2022

According to a study, logistics costs for US businesses will rise significantly in 2022. Rising costs were ascribed mostly to issues such as labor shortages, capacity bottlenecks, and greater transportation costs. According to the analysis, total logistics expenses will rise by 12.6% in 2022, exceeding the entire economy’s growth rate.

Notably, transportation costs alone increased by 18.4%, owing to rising fuel, trucking, and shipping costs. The labor shortage also contributed to higher expenses, leading to increased wages and difficulties in finding qualified workers. These rising logistical costs pose issues for firms, affecting profitability and potentially contributing to higher consumer pricing. To offset the impact of rising prices, the research underlines the importance of organizations finding creative solutions and optimizing their supply chain processes.

Source: https://www.freightwaves.com/news/us-business-logistics-costs-soared-in-2022-report-finds

Robots Are Looking to Bring a Human Touch to Warehouses

The essay delves into how robots are being designed to offer a human touch to warehouses, so altering how fulfillment centers operate. Robots have traditionally been used to automate monotonous and physically demanding jobs. However, technological improvements now allow robots to execute increasingly complex procedures that need human-like dexterity and perception. These sophisticated robots can manipulate fragile products, recognize objects, and communicate with humans and other machinery in the warehouse.

These robots aim to improve efficiency, accuracy, and production in fulfillment centers by merging artificial intelligence, machine learning, and sensory capabilities. By enabling faster order fulfillment and improved inventory management, the integration of robots with human labor is intended to streamline operations, decrease errors, and improve overall customer experience. This developing trend highlights the ability of humans and robots to effectively work in the warehouse industry, opening up new opportunities for enhanced efficiency and flexibility.

Source: https://www.freightwaves.com/news/us-business-logistics-costs-soared-in-2022-report-finds

Key Takeaways

IATA has stated that a global regulatory framework is required to encourage increasing investment in sustainable fuel generation. This is required if present carbon-neutral cargo movement targets are to be met.
The most recent disruptions caused by labor stoppages at US West Coast ports have dimmed recent optimism that an agreement was close; As the one-year anniversary of the negotiations approaches, shippers will almost certainly continue to explore non-West Coast port possibilities.
Strikes and wage conflicts continue to have an impact on airports around Europe. Actions may continue throughout the summer, causing additional disruptions and delays.
A harsh dry season has reduced the volume of containers and ships passing through the Panama Canal.
Airlines in the Middle East continue to invest in new routes and services, expanding connectivity into and out of the area.

Ocean Freight Market Update

May 2023 container import volumes in the United States climbed 3.8% from April 2023 to 2,097,313 Twenty-foot Equivalent Units (TEUs). TEU volume was down 20.0% compared to May 2022, but up 0.5% compared to pre-pandemic May 2019. As with the first four months of 2023, import volume increase in May continued to track 2019 numbers, with a 1.3% difference for the same period in each year.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

According to the most recent statistics from FourKites, the average export box dwell time in China has dropped to 4.8 days, a 62% decrease, as shippers continue to explore for alternatives in India, Southeast Asia, and other nations.

The Covid-19 epidemic has slowed the recovery of Hong Kong’s container volumes. Much of the throughput traffic has transferred to neighbouring Chinese ports as a result of severe limitations on trucking and barge transit imposed during the outbreak. While volumes have returned to pre-pandemic levels, the current monthly containers are only at roughly 62%.

Europe

Demand remains under stress as a result of shifting consumer habits. Some sectors are showing signs that production could increase again, but overall output has yet to catch up with projections. Coasts stay clean, and keeping to schedules keeps getting better.

North America

Union Pacific and the BLET (Brotherhood of Locomotive Engineers and Trainmen) have reached an agreement allowing for up to a week of paid sick time for engineers. Union Pacific and the workers’ sick leave agreements would increase by almost 68% thanks to this new arrangement. According to the Pacific Maritime Association, last Friday’s ILWU work actions had an effect on the terminals in the Los Angeles/Long Beach Port complex, forcing some of them to cease operations. The conversations have turned due to a disagreement in salary expectations.

Air Freight Update

The performance of the North America-Europe trade lane also affected European airlines, which faced a 16.1% YoY decline in air cargo demand within Europe. Although these route areas experienced double-digit contractions in April, the robust growth of air cargo traffic on the Europe-Asia route area (up 3.4% YoY) helped mitigate the overall decline in demand for the region.

Asia

Korean Air’s CEO has stated that his airline will not back out of its merger with Asiana. Regulators from throughout the world have spoken out against the $1.4 billion agreement announced in 2020 on antitrust grounds. The top brass is willing to compromise on the global stage in order to seal the agreement.

Hong Kong Airlines has stated that they will be expanding their services to other cities in Mainland China in response to rising demand. The airline will begin operating 10 weekly flights to Hangzhou, in addition to their daily service to Chongwing and Sanya, beginning in the month of June.

In response to the introduction of stricter requirements for truck drivers in Japan, Yamato and JAL have declared their intention to form a joint domestic freighter network. To support the new domestic cargo network, JAL has also started converting older passenger A321s into freighters.

North America

American Airlines intends to file an appeal to the federal verdict that found their partnership with JetBlue violated antitrust rules. The airline contends that there is no evidence of consumer harm as a result of the alliance and hopes that the appeal will allow them to proceed with the regional collaboration. Shippers in the United States have been warned that harsher cargo security standards will go into force in October 2023. Shippers whose cargo cannot be screened due to size or volume restrictions must enroll in one of the TSA’s authorized security programs. The TSA established these criteria in 2021, and they have declared that there will be no further extensions, so forwarders must be cautious to be in compliance moving forward.

Freight Market and Amazon News

Amazon Turns to AI to Weed Out Damaged Goods

The article describes how Amazon is using AI to address damaged goods in its huge fulfillment network. Machine learning algorithms are identifying broken product patterns for the company. Amazon hopes to improve its quality control and avoid sending customers damaged products. The AI system can detect damage like dented packaging or broken parts and decide if a product is salvageable. This technology helps Amazon optimize operations, eliminate waste, and satisfy customers by shipping only high-quality merchandise. This supply chain segment shows how AI can improve quality assurance and e-commerce efficiency.

Source: https://www.wsj.com/articles/amazon-turns-to-ai-to-weed-out-damaged-goods-8572508d

Disputes And Terms Are Delaying Investments from Amazon’s $1 Billion Logistics Fund.

In April of 2022, Amazon established the Amazon Industrial Innovation Fund, a $1 billion logistics fund dedicated to investing in businesses that leverage warehouse automation, robots, and transportation to enhance customer service and worker satisfaction. Sources claim that disagreements over who gets to make decisions and unattractive terms for possible investments have slowed the fund’s deployment to around $110 million so far. Amazon claims that internal politics have not stifled the fund’s growth and that its investments are on pace with those of other, comparable industry funds. Meanwhile, both Amazon and Walmart are investing heavily in fulfillment and delivery infrastructure, with Amazon using artificial intelligence to detect damaged goods and Walmart establishing new Market Fulfillment Centers run by their own in-house storage and retrieval system, Alphabot.

Source: https://www.pymnts.com/amazon/2023/report-most-of-amazons-1-billion-logistics-fund-remains-untouched/

91% Of Manufacturers Intend to Raise Prices In The Second Half Of 2023, A New Poll Finds.

According to a recent survey of manufacturing executives conducted by Forbes, Xometry, and Zogby, 90% of manufacturers intend to raise prices in the second half of 2023. In addition, the survey reveals support for President Joe Biden’s manufacturing policies, as well as increased investments in artificial intelligence and facility reshoring. While optimism is rising, concerns regarding international trade disruptions and inflation remain.

Source: https://www.forbes.com/sites/amyfeldman/2023/06/14/91-of-manufacturers-intend-to-raise-prices-in-the-second-half-of-2023-a-new-poll-finds/?sh=5d64b74d5a8c

Forceget Digital Freight Forwarder 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.

Freight Market Update: May 2023

Market Updates

Monthly Highlights

Growing Freight Fraud is Peeling Millions From the U.S. Shipping Market

Millions of dollars are being lost every year due to freight fraud in the United States shipping market. False pickups, falsified paperwork, and identity theft are on the rise, and these crimes cost shippers, carriers, and customers a lot of money. As fraudsters have access to more sophisticated methods, it has become more difficult to detect these misleading practices.

To counteract this evolving danger, we need better safeguards and cutting-edge technologies. Freight fraud prevention and detection solutions need to be a top priority for industry players. The integrity of the U.S. shipping market and the financial interests of those involved in the supply chain necessitate immediate action.

The shipping business can reduce the risk of financial loss and keep its stakeholders’ faith by implementing security standards and taking advantage of cutting-edge technologies. Maintaining the financial security and dependability of the U.S. shipping business requires a concerted effort to address this issue.

Source: https://www.wsj.com/articles/growing-freight-fraud-is-peeling-millions-from-the-u-s-shipping-market-8a6cfb90

SAP Launches AI Solutions for ‘Future-Proofing’ Supply Chains

SAP made waves in May of 2023 when it introduced artificial intelligence (AI) solutions to secure supply chains for the long term. These methods make use of cutting-edge AI technologies in an effort to address the increasing complexity of supply chains. SAP’s goal is to aid businesses in areas such as decision making, risk mitigation, and operational efficiency through the use of machine learning and predictive analytics.

SAP’s newly released AI solutions for supply chain management aim to increase transparency, streamline processes, and refine decision-making. Artificial intelligence (AI) skills enable businesses get visibility into their supply chains, allowing them to make educated decisions and swiftly respond to market shifts. Proactive risk management made possible by real-time monitoring helps firms avoid disruptions and keep operations running smoothly.

Source: https://www.freightwaves.com/news/sap-launches-ai-solutions-for-future-proofing-supply-chains

Is the Hybrid Carrier the Future of Freight Transportation?

According to a recent post published on FreightWaves, hybrid carriers are being considered as a viable option for the future of the freight transportation industry. To maximize productivity and adaptability, hybrid carriers incorporate aspects of both asset-based carriers and digital freight brokers. These transport companies provide integrated logistics services by combining technological and physical assets.

Hybrid carriers use digital platforms and data-driven technology to create 360-degree views of the customer journey, automate business processes, and enhance service quality. In order to improve freight matching, real-time tracking, and open communication all throughout the supply chain, hybrid carriers can use digital tools. Carriers can quickly respond to changes in the market and client preferences by using this hybrid strategy.

With established carriers embracing digital transformation to stay competitive, the emergence of hybrid carriers may signal a shift in the freight transportation environment. The paper stresses the importance of carriers investing in technology and working together to meet the challenges of this dynamic market. The hybrid model can improve freight transportation’s future by making it more efficient, flexible, and customer-centric.

After three months of flat performance, February saw a sharp uptick in global schedule reliability of 7.7 percentage points, to 60.2%. There was a 26 percent increase in dependability between the previous year and this one.

The global economy and new technologies will require further adjustments to logistics practices in 2023. For effective supply chain management, the logistics industry will increasingly prioritize automation, the lack of available labor, and real-time tracking.

Source: https://www.freightwaves.com/news/is-the-hybrid-carrier-the-future-of-freight-transportation

Ocean Freight Market Update

While global supply networks are gradually making a comeback from the epidemic, ongoing concerns about price fluctuations and rising costs persist. There has been a minor uptick in port congestion this March, which was considerably worse in the middle of the pandemic.

The circumstances in ports across the world, including the United States and Europe, have normalized. We anticipate certain effects on terminal operations in China due to the forthcoming fog season. In 20 years, equipment will become scarce, especially in northern China.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

There is adequate room between Asia and North America, but the USEC network is significantly unbalanced. We are keeping a careful eye on the productivity situation at the Los Angeles and Long Beach terminals in light of the potential for a labor shortage. The terminal seems to be functioning normally so far.

In April, there was a significant rise in the price of both ECSA and WCSA due to high demand.

March saw an increase in demand across all destination markets in Europe, portending continued expansion in Q2 and a return to typical summer peak seasons.

Europe

Demand remains under stress as a result of shifting consumer habits. Some sectors are showing signs that production could increase again, but overall output has yet to catch up with projections. Coasts stay clean, and keeping to schedules keeps getting better.

North America

Carriers continue to price in order to win business, even though demand is low and there isn’t a real peak season. Rate cuts have slowed on the U.S. West Coast (USWC), while the U.S. East Coast (USEC) is still seeing more rate cuts.

Overall, there is room on both sides because capacity has been steadily going up and demand has stayed below what it was in 2021 and 2022. Now that there are more ships and carriers on the market, there is a lot of supply, and shipping lines are looking for more goods to fill the extra space. You can expect the situation to continue past Q2 2023.

Air Freight Update

Low demand volumes stayed the same.

The global PMI index is low, but the index for emerging countries is high.

Capacity is still enough, even though passenger numbers are low right now; belly space has grown along with passenger travel.

Most trade lanes have a competitive spot market; ad hoc and charter rates have gone up a little.

Long-term rates should become more stable by the middle of 2023.

Asia

Freighter capacity is being cut back, especially on the Transpacific, because low sell rates and high fuel costs make them lose money. This will keep going on if the rate and cost of fuel don’t go down. In Q3, when new products come out and the economy gets better, demand is likely to rise again.

North America

The market keeps getting weaker in both ways, and demand keeps going down. US airlines will add a lot of seats to their summer schedules. Demand is expected to pick back up in Q3, thanks to new product launches and a better economy, which will cause both volume and prices to rise.

Freight Market and Amazon News

Amazon Plans to Generate Photos and Videos for Advertisers Using AI

Amazon plans to automate the production of visual content with the help of AI so that it can supply advertisers with unique and interesting materials for use in their ads. Amazon is committed to enhancing its advertising capabilities and providing a more streamlined and tailored experience for its advertising partners, as seen by this new initiative.

Source: https://www.theinformation.com/articles/amazon-plans-to-generate-photos-and-videos-for-advertisers-using-ai

Amazon Overhauls Delivery Network to Dispatch Packages Faster, More Cheaply

Amazon has implemented a comprehensive overhaul of its delivery network to achieve faster and more cost-effective package dispatch. The company’s extensive revamp involves streamlining operations, leveraging technology, and optimizing logistics processes. By making these changes, Amazon aims to improve its overall delivery speed and reduce costs, ensuring a more efficient and affordable experience for its customers.

Source: https://www.wsj.com/articles/amazon-overhauls-delivery-network-to-dispatch-packages-faster-more-cheaply-c10be8b9

Forceget Digital Freight Forwarder 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.

Freight Market Update: April 2023

Market Updates

Monthly Highlights

Chatbots Are Stepping Toward Supply Chains

Chatbots are increasingly used in supply chain management because they allow businesses to have an automated way of communicating with their suppliers, saving both parties time and money. Chatbots can do a wide variety of tasks, including providing real-time updates on order status, tracking shipments, and invoicing processing. Chatbots are part of a larger digitization movement in supply chain management that has the goal of saving businesses time and money.

Despite their usefulness, chatbots are not a panacea; in order to reap their rewards, businesses need to devote resources to training and upkeep. Chatbots can facilitate faster processing times, manage enormous volumes of data, increase accuracy, and eliminate errors. But before introducing chatbots into supply chain management, we need to handle possible dangers like data breaches and mistakes.

Supply chain management chatbot implementation requires careful planning, including risk assessments, staff training, and regular upkeep. Chatbots, despite their inherent dangers, have quickly become an indispensable resource for businesses moving toward fully digital supply chain management. If implemented correctly, chatbots have the potential to significantly improve supply chain management and increase efficiency and effectiveness.

Source: https://www.wsj.com/articles/chatbots-are-stepping-toward-supply-chains-5661039a

Container shipping sees signs of a bottom

According to FreightWaves, the container transport industry appears to have bottomed out. The Drewry World Container Index shows that container shipping rates have increased by 360% since touching bottom in the middle of 2020. Although the market is still turbulent, many analysts feel that container shipping has survived the brunt of the pandemic’s effects, with demand for products remaining high.

The shortage of containers and port congestion are just two of the issues causing shipping delays and expense increases, as the report points out. Some industry members, however, are certain that these problems may be solved eventually, leading to more efficient operations and more profits.

The bulk of commodities are still delivered by sea, making the container shipping business crucial to global trade despite the difficulties. Even while the market is still highly volatile, the industry’s efforts to adjust to the challenges posed by the pandemic and other disruptions are beginning to bear fruit.

Source: https://www.freightwaves.com/news/container-shipping-sees-more-signs-of-a-bottom-at-least-for-now

Slowdown Dents Warehouse Construction and Forces Automation

According to The Loadstar, developers are shifting their focus from new warehouse construction to automation as demand drops due to the worldwide downturn in commerce. Companies in the logistics sector are increasingly turning to automation as a means of raising productivity while simultaneously lowering expenses, as noted in this article.

The essay argues that automation can help the logistics industry deal with issues including labor shortages, price increases, and the growing need to fulfill online orders. Robotics, AI, and self-driving cars are just a few of the increasingly common forms of automation technology.

The essay acknowledges that while automation has numerous advantages, it also has drawbacks, such as the necessity for large initial investments and the possibility of job displacement. Some professionals, however, argue that the potential for enhanced efficiency and profitability more than outweighs the hazards of automation.

Companies in the logistics sector are increasingly turning to automation in an effort to adapt to the industry’s fast-paced environment and remain competitive. While a drop in warehouse building is cause for concern, it does present an opportunity for businesses to future-proof themselves by putting money into automated systems.

Source: https://theloadstar.com/slowdown-dents-warehouse-construction-and-forces-automation/

Ocean Freight Market Update

Demand is still quite modest, in part because of Ramadan, which is currently taking place.

Even with the implementation of blank sailings by carriers in an effort to more effectively manage freight costs, there is still a significant amount of capacity available.

The carriers have reported record results for the year 2022, but the market is expected to look significantly different in 2023.

Asia

As a result of Ramadan’s effects, the Middle Eastern and Red Sea Market has seen a decline in prices. But beware; if more flights are canceled by airlines, prices may rise to pre-Covid levels.

Europe

The blank sailing program continues to strike a balance between supply and demand, which will result in vessels operating at full capacity in the weeks to come.

North America

The port situation is stable on both the East Coast and the West Coast, and as a result of a decline in demand, vessel dwell times are getting shorter from week to week. The GRI that was supposed to take place on April 1 has been moved to April 15 due to a decrease in customer demand.

Air Freight Update

Recent labor disruptions at West Coast Ports have shut down the port and are expected to have lasting effects on traffic via the ports of Los Angeles, Long Beach, and the rest of the West Coast.

There is evidence of advancement in the nearshoring trend in the first quarter of 2023 at Mexico’s ports, and this positive trend may continue throughout the year.

As the busy summer season approaches, new air services and expanded routes should provide additional cargo capacity to and from the United States.

Asia

Hong Kong International Airport is the busiest cargo airport in the world, with 4.2 million metric tons passing through in 2022 despite a 16.4% decline in cargo throughput owing to COVID and personnel limits.

China’s Ezhou Huahu Airport, which opened in 2022 and specializes in cargo, has recently introduced its first international lines, with two weekly round-trip flights between China and Europe. By the end of 2023, the airport projects that it will offer 40 domestic destinations and four international routes.

North America

Compared to their summer schedule in 2022, American Airlines has increased its widebody flights by more than 400 per month for the upcoming summer. Increasing the frequency of service on existing routes and introducing new routes fall under this category. It’s projected that the cargo space will expand.

The New York/Boston area will soon have direct international flights on JetBlue to Schipol Airport in Amsterdam. After London in 2021 and Paris later this year, this will be the American airline’s third transatlantic destination. It is anticipated that freight capacity will grow.

The weekly direct freighter service between Bogota, Colombia, and Dallas-Fort Worth Airport is provided by Qatar Airways Cargo. As part of Qatar Airways’ ongoing commitment to the Americas, the airline is launching a new freighter service with a cargo capacity of approximately 100 tons.

Freight Market and Amazon News

Amazon’s ACX helps retailers identify and track counterfeit products to combat organized crime and fraud.

Amazon (AMZN.O) established its Anti-Counterfeiting Exchange (ACX) to enable retail shops to identify and monitor marketplace counterfeits to combat organized crime on its platform. US online marketplaces have counterfeiters and fraudulent goods in their warehouses. The new tool replicates credit card data sharing platforms to identify crooks and their methods.

Source: https://www.reuters.com/business/retail-consumer/amazon-launches-program-identify-track-counterfeiters-2023-04-20/

May 2 and 3, Amazon Pet Day will offer 48 hours of pet savings.

Amazon is commemorating National Pet Month by reintroducing Amazon Pet Day, a 48-hour event that has thousands of pet-related goods for sale, ranging from treats and toys to habitats and supplies. The event begins on Tuesday, May 2, at 12:00 a.m. PDT and finishes on Wednesday, May 3, at 11:59 p.m. PDT. It features discounts such as 20% off select Purina pet food and treats and 30% off Furbo dog cams, among other things. Amazon Pets is also providing $100,000 to local animal welfare charities, and PetIQ will provide free vaccines for dogs in certain local areas. Every day, Prime members can save even more on pet supplies, including free shipping and free streaming of pet movies and shows on Prime Video.

Source: https://www.aboutamazon.com/news/retail/what-is-amazon-pet-day

Customers will be charged a fee by Amazon for select UPS returns.

Amazon is taking additional tactics to discourage the large number of customer returns, such as charging a $1 fee for returns to UPS locations when a Whole Foods, Amazon Fresh food store, or Kohl’s is closer to the delivery address. To avoid the cost, the business has also added a badge to product listings for goods with a high return rate and urges shoppers to return things to Whole Foods, Amazon Fresh, or Kohl’s. Other stores, such as Zara and H&M, are instituting surcharges or shortening return windows in order to counteract high return rates, which cost merchants billions of dollars each year and frequently result in returned items ending up in landfills.

Source: https://edition.cnn.com/2023/04/12/business/amazon-returns-ups-store-fee/index.html

Forceget Digital Freight Forwarder 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.

Freight Market Update: March 2023

Market Updates

Monthly Highlights

Cargo Growth Forecasts Drastically Reduced By Freightos

Freightos, the Israel-based online freight booking platform, has slashed its growth forecasts due to declining cargo volumes and freight rates, with revenue expected to grow between 15% to 21% this year, down from an earlier forecast of 87% growth. CEO Zvi Schreiber cited global economic conditions and lower trade demand as substantial headwinds, with revenues for 2023 predicted to be $22.3 million to $23.6 million, a steep reduction from the initial forecast of $39.5 million. Despite this, Freightos officials say the platform is insulated from some of the wider industry pressures due to continuing carrier additions and new shipping customer sign-ups.

New Report From ShipStation Reveals 72% of Surveyed Merchants Plan to Cut Shipping Costs To Grow This Year

ShipStation’s 2023 Consumer and Merchant Benchmark Report reveals that consumers are becoming more price-conscious, prioritizing cost of delivery over speed, and valuing a smooth returns process. In response, the report urges merchants to optimize pre- and post-purchase experiences amid economic uncertainties. Key findings show that 64% of US consumers see inflation as their biggest financial concern, 61% are less likely to shop with a brand with high shipping costs, and 44% avoid brands with a difficult returns process. The study suggests merchants should focus on enhancing the customer experience, streamlining operations, and expanding their reach to ensure growth.

Lockdown in Shanghai from March 28 up until April 5

Shanghai’s lockdown, conducted in two phases, has led to significant disruptions in the logistics process. Employees and local airline and shipping staff are working from home, causing potential delays in cargo handling and documentation. Airfreight imports and exports face limitations and delays, while sea freight imports for FCL remain largely operational. LCL cargo, however, cannot currently enter the Shanghai port, with Ningbo as an alternative gateway. Teams are working on alternative solutions and continue to coordinate freight operations, but customers should expect delays and disruptions in the logistics process during the lockdown period.

Ocean Freight Market Update

Asia

Transpacific Eastbound (TPEB) carriers are eyeing general rate increases (GRI) for April 1st amid a low-volume market. Capacity and demand are expected to remain stable through the end of March, with routine blank sailings persisting. Vancouver sees stable vessel dwell counts and berthing delays. Rates are soft, and space and equipment are open. It is recommended to book at least 2 weeks prior to the cargo ready date (CRD) and consider upcoming blank sailings.

In Asia → Europe (FEWB), demand and supply are more balanced after blank sailings following the Lunar New Year (LNY). Booking intake is gradually improving, but rates remain under pressure. Around 10-20% blank sailing average is expected in the coming weeks as carriers adjust for decreased demand. To accommodate anticipated congestion and delays, it is recommended to allow flexibility when planning shipments.

Europe

Europe to North America (TAWB) sees low demand and widely available space, with capacity outstripping demand expected to continue. Rates are dropping as vessel utilization has decreased to 65-70%, and easing congestion is making space available for the U.S. East Coast (USEC) and U.S. West Coast (USWC). Equipment availability is improving as congestion lessens, and low empty stacks at inland depots are also improving in some areas. It is recommended to book 2-3 or more weeks prior to CRD and request premium service for higher reliability and no-roll.

North America

1 . Capacity is currently available across all major services, with no significant space constraints on routes to the Asia Pacific (APAC) region. North American container yards have mostly cleared congestion, and equipment is readily available in most major markets. As Q1 comes to a close, existing capacity is expected to remain largely in place, with carriers making minor adjustments to vessel capacity across trades.

Rate pressures are trending slightly downward on certain lanes from coastal ports to Asia base ports, with carriers seeking volume opportunities. Capacity and equipment remain stable, but inland shippers should monitor IPIs for potential low chassis availability. It is recommended to book 1-2 weeks prior to CRD on coastal to Asia-based port lanes and 2-3 weeks prior to CRD on inland to Asia and feeder port lanes.

2. Capacity from the USEC is available, with services from the USWC and Gulf remaining tight but stable. Most USEC to N. Europe (NEU) and Mediterranean (MED) services have low capacity utilization levels and no space constraints. Gulf Coast to NEU and MED services have medium to high utilization levels due to the reintroduction of capacity, while USWC to NEU and MED services have limited options and high utilization levels. Rates have trended slightly downward QoQ on USEC to NEU lanes, remaining flat after early Q1 adjustments. Gulf and USWC rates have not been adjusted in Q1, but carriers are open to deals for USEC opportunities.

Space is open from the USEC, manageable from the Gulf, and limited from the USWC. There are no major capacity changes or equipment hurdles in the US market, aside from potential chassis issues in IPIs. It is recommended to book 2 weeks prior to CRD on all EC to NEU and MED lanes, 3 weeks prior to CRD on all Gulf to NEU and MED lanes, and 4 weeks prior to CRD for all PSW to NEU lanes.

Air Freight Update

Despite the erratic market conditions of the past few years, analysts anticipate sustained expansion in the air freight industry. Forecasts from market researchers indicate that the sector will expand at a CAGR of 5.7% between 2023 and 2028, resulting in a market size of $413 billion in 2028, an increase of $125 billion from 2023.

Asia

In Northern China, TPEB demand and rates are decreasing, while the FEWB market experiences increased demand and rates. Southern China sees a tight TPEB supply with increasing demand and rates, while the FEWB market follows a similar trend but at a slower pace. In Taiwan, the market picks up with increasing rates and tighter capacity. Korea experiences stable rates and demand, while Southeast Asia witnesses increasing TPEB demand and rates in northern Asia, tightening hub capacity, and a stable FEWB market.

North America

TAWB demand fluctuates between point pairs in the EU and UK, causing rate levels to increase and decrease week over week. Although sufficient capacity is available in the market, longer lead days for direct routing are expected, with indirect options via secondary hubs offering shorter lead days and better rates. No operational disruptions have been reported in the EU or UK. For all lanes, it is recommended to place bookings early to secure the best uplift options and routings and to consider deferred options via secondary hubs for potential lower rate levels.

Amazon News

Amazon will spend $200 million on safety technology across its transportation network in 2023

Amazon and Amazon Freight are putting money into safety technology to make crashes less common and less dangerous. This includes features such as automatic emergency braking, forward collision warning, stability control, lane-departure warning, side object detection, and more. Amazon has consistently led the way in safety advancements. Amazon sellers will be able to request higher limits based on a “reservation fee.”

Amazon Will Lay Off 9,000 More Employees In Addition To Previous Reductions

Amazon is laying off 9,000 workers across AWS, Twitch, advertising, and human resources, citing the uncertain economy and the need to streamline costs and headcount, according to a memo from CEO Andy Jassy. This follows a previous round of layoffs totaling 18,000 people last year and in January. The news comes shortly after Twitch CEO Emmett Shear resigned from his position, with 400 Twitch employees affected by the cuts as the platform faces challenges in user and revenue growth.

Forceget Digital Freight Forwarder 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.

Freight Market Update: February 2023

Market Updates

Monthly Highlights

The US East Coast is still as popular as last year, despite a bit of shifting away from it because of the release in Covid-related port congestion on the US West Coast. Prices have gone down a bit, but they reached the same level before the pandemic for Europe-USEC trips and more than that for Asia-USWC trips.

Earthquake in Turkey and Syria Prompts Shipping Disruption

The recent 7.8 magnitude earthquake that struck Turkey and Syria has caused significant damage and is anticipated to cause disruptions in shipping and supply chains on a global scale, as reported by The Loadstar. The Iskenderun Port in Turkey has suffered extensive damage, including the collapse of its docks, and experts in the industry predict that power outages will likely impact operations in other ports as well.

The Port of Los Angeles still has chance for a comeback in the second half

As per FreightWaves, Gene Seroka, the Executive Director of the Port of Los Angeles, forecasts that the port’s volumes will continue to be low for the remainder of the first quarter and all through the second quarter. He expects the second half of 2023 to be stronger as a result of labor negotiations and a shift from East Coast to West Coast ports that will compensate for the reduced volume. According to Loadstar, the ten largest container ports in the United States experienced a decline of 17.9% in January import volumes compared to the record throughput of January last year, with the most significant decreases occurring at the west coast ports.

Starting from March 18, 2023, the U.S. Customs Border Protection (CBP) is introducing a new requirement that a “postal code” and the “manufacturer identification code” (MID) be included on entries from China. The CBP will perform three new validations when the country of origin is China, and it will include an automated UFLPA detention system with a new public site for trade to upload documentation and submit for CBP review. If you import from China, it’s important to work with your suppliers to ensure that the full name and address (with Chinese postal code) of the actual Chinese manufacturer is shown on shipping documents. Source: JDSUPRA

Ocean Freight Market Update

Asia

The current status of the global shipping sector is complex, as contract rates approach spot rates and container rates decline significantly. Several regions exhibit this pattern, including China and Southeast Asia. Despite the reduction in container rates, shipping demand remains low due to worldwide inflation and restricted demand, resulting in a significant decline in freight prices. The global shipping industry is coping with a difficult situation characterized by falling container prices, weak demand, and a shift in trade routes. Although a revival of the shipping industry is possible in the future, the current picture remains dubious.

Europe

The primary headline in the ocean industry for February 2023 is the earthquake that struck Turkey and Syria, which has had an impact on the industry’s network. Since the Port of Iskenderun has halted operations, we are not accepting any bookings at the terminal until further notice. Additionally, there is an anticipation that supply chains in Europe will be reconfigured through near-shoring and diversification of sourcing this year.

North America

Descartes Datamyne says that the knock-on effect from China is still causing cargo volumes at US ports to go down. In December 2022, just under 2 million 20-foot containers came into the ports. This was 1.3% less than in November. The volume in December dropped by 19.3% compared to the same month last year. This is about the same as the volume in December 2019, when the COVID-19 lockdowns were just starting. During the pandemic, it was hard for supply chain planners to change network schedules during times of high activity because the networks were already at full capacity. Now, though, things are different.
The reduced cargo volumes have resulted in lower congestion and shorter container dwell times at major depots and terminals in US ports. We have observed some shortfall locations in Ohio Valley and Houston, but we are actively working on repositioning empty containers within the US and Canada to meet the demand. The existing rail and truck networks are showing lower congestion, enabling us to easily reposition the empties. Consequently, waiting times at some major North American ports are minimal or non-existent, with many terminals now operating at zero waiting time.

Air Freight Update

The air freight industry is experiencing a decline in growth due to the global rise in inflation rates and decreased consumer demand. Given the continued unpredictability, we anticipate that the volume of the European market will remain stagnant in the upcoming weeks. According to reports, there will certainly be more strikes around Europe in February, especially in France and Spain. It is anticipated that the elimination of COVID-19 travel restrictions in China, refinery outages in the United States, and a European Union prohibition on Russian-refined products will all contribute to an increase in jet fuel prices. Nonetheless, given current capacity levels and demand, we do not anticipate large rate increases.

Asia

After an apparent uptick during the Lunar New Year, the situation in North China looks to be leveling down. Cross-border travel, however, has resumed when mainland China loosened restrictions on Covids in the south. After the holidays, the demand for cargo going east in the Korean market has increased, whereas the demand for cargo going west has not yet recovered. At the moment, demand is low and capacity is plenty in Southeast Asia, with the exception of Hanoi, where there was a rush towards the end of last month.

North America

In general, the US market is stable, with airports operating as usual and even expanding their capacity, particularly in Europe. Prices appear to be stabilizing week after week. Nonetheless, there is a growing surplus of capacity, especially in Europe.

Amazon News About Freight Market

Amazon Takes a 50% Cut of Seller’s Revenue

Over the past five years, Amazon’s share of the money that sellers make has increased significantly, now accounting for more than half. This is due to a rise in fulfillment fees and the introduction of advertising fees, which means that sellers are now paying more to use the platform. A typical Amazon seller can expect to pay a 15% transaction fee (referred to as a referral fee by Amazon) as well as Fulfillment by Amazon fees of between 20-35%, which cover storage and other costs. On top of this, sellers may also pay up to 15% for advertising and promotions on the platform. The exact fees will depend on factors such as the product category, price, size, weight, and how the seller chooses to operate their business on Amazon.

Amazon FBA fulfillment accounts for 30% of Amazon FBA sellers’ revenue.

Please keep in mind that the information in our publications has been assembled from a number of sources and is based on the information we had at the time. This content is provided to our community and partners for informational purposes only, and we don’t expect them to rely on it or hold us accountable if they do.

Forceget Digital Freight Forwarder 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 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.

Freight Market Update: January 2023

Market Updates

Monthly highlights:

As a result of the high demand and effect of the Chinese New Year, air freight rates have increased around by %10. After the Chinese New Year period air market returns to a slack condition.
The Chinese government has recently begun to relax its strict zero-Covid policy that it has implemented for almost three years. This has led to a spike in cases, with a more than 60% increase in the number of reported COVID-19 cases in China. This in turn has resulted in challenges for factories as they face difficulties in maintaining normal production schedules due to staff shortages.
The pickup rates from factories have seen a significant increase, in some cases reaching ten times more than usual, due to both the ongoing COVID-19 pandemic and the Chinese New Year.
In most shipping line, demand for ocean freight continues to fall or remain flat, with shipping rates following the same pattern.

Ocean Freight Update

The Chinese New Year, which typically sees an increase in demand for spring commodities and a corresponding increase in volumes and rates, is shaping up to be quite different this year. Market demand remains uncharacteristically soft, and there have been no significant increases in volume or rates for trades in and out of Asia. This means that the typical “frontloading” effect, where shippers bring forward their shipments to beat the holiday rush, is not expected to happen this year.

To slow or stop price drops, steamship lines continue to streamline their services and use blank sailings to match their capacity to demand. At the moment, the reliability of schedules around the world is 50%, but it could be better to reach the more typical range of 70% to 90%. Carriers are also continuing to remove trade capacity with blank sailings. Key trade lanes use their capacity in different ways. Asia-Europe is full (because capacity has been taken away), but the rest of the trade is still open.

Global Schedule Reliability

*Schedule reliability continues its upward trend.*

Asia

Several shippers are waiting to negotiate contracts until after the holidays, so shippers can expect more rate cuts after the Chinese New Year. Blank sailings are also expected to increase during the holidays, as some shippers are closed and will stay closed longer. Export space availability is improving at North Asia ports, particularly in China and Japan, especially with respect to direct export services from U.S. West Coast (USWC) ports. However, due to expected lower demand on the transpacific eastbound trade, vessel capacity may be cut by up to 50% on this trade after the Chinese New Year.

Europe

The congestion at European ports is gradually improving as the volume of shipments decreases due to a decline in consumer demand. This drop in volume is expected to result in smoother operations at ports during the first quarter of 2023. However, carriers may opt for more blank sailings on these trades if the fall in demand continues to escalate.

North America

Inflation and normalizing demand from the largest importers, such as retail, furniture, electronics, and home improvement, which account for more than half of U.S. imports, keep imports low from one year to the next.

Ports and rails in the U.S. are less crowded now, but Houston and Savannah ports, as well as Omaha and Santa Teresa rails, are still having trouble. On the USWC, congestion at the Los Angeles/Long Beach port is improving, with less than 10 vessels on average waiting outside to berth. The current congestion level is expected to remain stable.

Air Freight Update

Due to the high demand leading up to the Chinese New Year, air freight rates have experienced a 10% increase. However, after the holiday period, the air market is expected to return to a less active state. Many important factories will close for a short time in the middle of January and start making things again in early February. This may be one reason why demand is falling. Even so, rates are likely to stay the same, and there are no major capacity problems right now, other than the usual flight cancellations around Chinese New Year. Now that restrictions on passenger travel have been lifted, demand for passenger flights is expected to slowly rise over the next few months. This will lead to more passenger flights and more capacity. Additionally, restrictions on crossing the South China/Hong Kong border have been greatly reduced, and cargo is flowing smoothly.

Inland Drayage Update

Asia

The lift of COVID-19 restrictions across China has led to a rapid increase in the number of infected individuals, resulting in labor shortages and the closure of some logistics parks towards the end of December. The less-than-truckload market is expected to shut down during the Chinese New Year. However, customs clearance between Shenzhen and China is improving for both imports and exports. Congestion in the Pingxiang port from China to Southeast Asia is currently at 2-3 days, and customs will be closed during the new year’s holiday.

North America

A new agreement between about 160 rail traffic controllers in Canada and the Teamsters Canada Rail Conference has been ratified. The agreement went into effect on January 1, 2023, and will expire on December 31, 2025.

Carriers in the Charleston market are facing challenges with finding open parking for their trucks. Although volumes have remained steady, congestion has moved to the areas surrounding the terminals. This could potentially lead to local capacity moving away from this market as drivers become more frustrated with the added cost and lack of space.

In Savannah, dwell times are still getting better, especially for larger Class II ships, where the average wait time has gone from seven days to four.

Partly because the port congestion surcharge went away on January 1, 2023, the amount of shipping in the Northeast has gone down. Port wait times in this region are now only expected occasionally rather than on every shipment. Even though there isn’t a lot of equipment, there may still be problems with refrigerated cargo, but standard cargo should have few problems.

Freight Market and Amazon News

Amazon announces a new streamlined FBA capacity management system, and here is a1 summary of the changes.

Starting March 1, no more weekly changing restock limits
There will be a new “Capacity Monitor” that will be announced every 3rd week for the following month.
Estimates will be given about future capacity up to three months out.
Amazon Sellers will be able to request higher limits based on a “reservation fee.”
Limits will be based more on cubic feet usage instead of number of units

Starting January 31, all U.S. merchants will have access to the “Buy with Prime” feature, which enables Prime members to shop on external websites, utilizing their stored checkout information and receiving Prime perks such as free shipping and returns. This option was initially introduced in April 2022 and was limited to select merchants by invitation only.

Please keep in mind that the information in our publications has been assembled from a number of sources and is based on the information we had at the time. This content is provided to our community and partners for informational purposes only, and we don’t expect them to rely on it or hold us accountable if they do.

Forceget Digital Freight Forwarder 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.

Freight Market Update: December 2022

Market Updates

Ocean rates on Asia – US West Coast lanes dip below 2019 levels

Monthly highlights:

US ocean import volumes have dropped to a level 12% lower than a year ago.
This lowered demand and easing congestion continue to lower shipping container rates.
The ocean carriers will schedule more blank sailings in Q1 2023, with the majority of them taking place one to two weeks before the Lunar New Year. The goal is to reduce excess capacity while also improving schedule dependability by reducing port/terminal congestion.

Asia-US and Europe rates for this month:

Asia-US West Coast 40GP container prices fell 26% to around $1,500. This rate is 90% lower than the same time month year
Asia-US East Coast 40GP container prices decreased 19% to $3,750, and are 78% lower than rates for this month last year
Asia-N. Europe prices fell 2% to $3,974/FEU, and are 73% lower than rates for this week last year

North American Vessel Dwell Times:

Air Freight Market Update

Asia

N. China: Market demand for TPEB is increasing, and this trend is projected to continue through the Christmas vacation. Rates have also risen from the previous week. Demand and pricing for Far East Westbound (FEWB) remain constant.
S. China: The market is heating up, and the room is becoming scarce. Bookings should be made as soon as possible to ensure a faster uplift. In response to growing demand, both the TPEB and FEWB rate levels have increased. Some freighter capacity has been canceled due to heavy snowstorms in Alaska. The Chinese government has announced a relaxation of COVID regulations, so cross-border traffic should restart gradually.

Europe

As expected in the run-up to the holidays, demand from Europe into major North American airports has increased marginally.
Due to increased demand for shorter travel times and arrivals before the Christmas break, capacity into major hubs is tighter.
Staff shortages, strikes, and bad weather conditions are predicted to cause terminal congestion and delays at Amsterdam (AMS), Frankfurt (FRA), and London Heathrow (LHR).

Freight Market and Amazon News

Three major central banks (the Fed, the ECB, and the Bank of England) raised policy rates by 50 basis points this week as they rushed to catch up with strong inflation. overt coordination. So, what does this all mean? It shows that inflation is a problem on both sides of the Atlantic, even though the causes are different, and the de facto coordination should make some of the recent changes in exchange rates less severe. High rates are unavoidable, but experts anticipate that they will begin to fall by the end of 2023.

A first in Amazon UK, hundreds of workers at a facility in Coventry, England, have voted to strike over the e-commerce giant’s 50 pence an hour pay offer, the General, Municipal, Boilermakers, and Allied Trade (GMB) union said on December 16th.

Please keep in mind that the information in our publications has been assembled from a number of sources and is based on the information we had at the time. This content is provided to our community and partners for informational purposes only, and we don’t expect them to rely on it or hold us accountable if they do.

Freight Market Update: November 2022

Market Updates

Ocean Freight Market Update

Asia to North America

Rates are expected to remain low for the foreseeable future.
- The U.S.’s Transpacific East Bound (TPEB) demand is still quite flat despite the planned blank sailings through Week 42, which will be when most of TPEB capacity gets removed. Port and rail congestion at major US gateways such as Houston or Baltimore for vessel dwell 17-20 days each are seen; there’s also some issues with Los Angeles/Long Beach due to how long trains stay stuck in one place while waiting on cargo shipments coming into those cities from elsewhere along their route line(s).

What We Recommend

It is always a good idea to book at least 2 weeks before your cargo ready date (CRD). You can also consider any upcoming blank sailings if needed!

Air Freight Market Update

Asia

North of China
- The Covid situation in Ningbo is causing some issues for the shipping industry, with restrictions being placed on both commercial and air operations. These measures have led to an increase of rates across all tradelines but are still at low levels overall due primarily because there has been little change when it comes down how much cargo moves between different destinations within China itself instead along its borders where most countries can reach without too much difficulty or delay while other sources explain this issue more specifically detail plague-wise mentioning that “some cities” imposed static management starting October 16th which encourages citizens stay home unless they’re sure their disease status isn’t contagious.”
South of China
- The mainland Chinese market has finally returned to normal after a long holiday, but that doesn’t mean things are getting any easier. Rates levels remain soft with decreased rates in Hong Kong.
Taiwan
- Despite the slack market, demand has increased slightly.
Korea
- The FEWB market demand is still soft, while TPEB has picked up some momentum.
Americas
- Export demand remains steady from all markets.
- The US airports are running at a normal pace.
- Capacity is opening up further, especially into Europe.

Freight Market News

USA

Southern California’s container ship backup has come to an end. The backlog of containers at the ports of Los Angeles and Long Beach, which reached a highpoint in February, has diminished to virtually nothing. According to the latest figures from the Marine Exchange of Southern California, there are only six containers waiting to be unloaded at the Port of LA and four at the Port of Long Beach. That’s down from a peak of more than 31,000 containers in February.

China

Ningbo, a port city in the east of China, is facing supply chain disruptions as a result of zero Covid policies. Many factories and businesses have been closed since the start of the year, leading to a severe shortage of workers. The lack of available staff has caused significant delays in freight shipments and an overall decrease in production. This is leaving many sellers struggling to source products or face long delivery times. As a result, it is becoming increasingly important to pay close attention to inventory levels and plan for potential disruptions.