Logistics Market Update April 2024

logistics market update april 2024

Monthly Highlights

Global Air Freight Volumes Blooming as Flower Shipments Take Off

Global air cargo rebounds, driven by flower exports, but Middle East countries still facing a post-Ramadan slowdown.

Source: https://theloadstar.com/global-airfreight-volumes-blooming-as-flower-shipments-take-off/

China’s Cargo, Container Throughputs At Ports Log Steady Growth in 2023

China’s port cargo and container throughput experienced consistent growth in 2023, with foreign trade cargo and container volumes also increasing significantly.

Source: https://www.hellenicshippingnews.com/chinas-cargo-container-throughputs-at-ports-log-steady-growth-in-2023/ 

Temu Aims to Triple Sales to $60 Billion Globally in 2024

Temu, a Chinese e-commerce platform, aims to triple its sales to $60 billion this year, rivaling Shein’s aggressive growth target of $63 billion.

Source: https://technode.com/2024/04/29/temu-aims-to-triple-sales-to-60-billion-globally-in-2024-report/ 

Key Takeaways

  • 15% of commercially important ships can pass through the Port of Baltimore both incoming and outgoing thanks to the Fort Carroll Temporary Alternate Channel.
  • The nation has opened the “Multimodal Dry Canal,” which will move goods between the Pacific and Atlantic seas via roads, railroads, port facilities, airports, and free zones in reaction to low water levels in the Panama Canal. 
  • Air freight demand rose in the first few months of 2024 as Chinese eCommerce behemoths Shein, Temu, and Alibaba transferred significant amounts of air freight out of China and Hong Kong. The discrepancy from last year has closed and shipping costs are rising as demand exceeds supply.

Ocean Freight Market Update

  • The January seven-month high in JPMorgan’s Global Composite PMI suggested possible future economic improvement.
  • The demand from Red Sea diversions and the Far East market’s revival following Lunar New Year holidays is driving down idle containerships.
  • Up to now, freight rates have decreased by -10% in March, or 21% since their peak in January. Mid-March carriers failed to raise rates, but April rises are anticipated as AP-EU futures recover by 10% to 15%.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

  • The worldwide container ship fleet will gain one million TEUs from South Korea’s $4 Billion USD investment. The investment intends to raise national ocean shipping corporations’ eco-friendly vessel fleet to 60% by 2030. 
  • Pacific International Lines will add weekly South American trips. On May 10 and 24, East Coast Service 1 and 2 will connect China and Singapore ports to east coast South American ports weekly.
  • Blank sailings on Asia-North Europe, Asia-North America East Coast, and Asia-Mediterranean commerce routes have decreased despite lowering spot prices. These adjustments let ship liners take advantage of high rates, but they may lower rates later.

North America

  • According to Port of Baltimore captain David O’Connell, the Fort Carroll Temporary Alternate Channel allows 15% of commercially critical ships to pass inbound and outgoing.

Air Freight Updates

  • Led by the consumer and fashion industries, the e-commerce boom propels an increase in air freight volume.
  • Trade lanes have quite different capacity growth rates, which are impacted by changes in production, e-commerce, and closures of airports.
  • Chinese airlines are granted a 45% weekly increase in flights to the US by the US Department of Transportation.

Asia

  • Air cargo demand has increased in the first few months of 2024 as Chinese eCommerce giants Shein, Temu, and Alibaba transfer substantial volumes of air goods out of China and Hong Kong. After double-digit growth in the previous two months, Xenata reported 11% year-over-year growth in March.
  • Incheon International Airport, Sharp Technics K (STK), and Israel Aerospace Industries (IAI) have begun building a passenger-to-freighter conversion facility. The facility will convert Boeing 777-300ERs and open later this year.

North America

  • Shelter and energy costs drove the 3.5% YoY March 2024 CPI increase. March energy costs jumped 2.3% from February. Inflation still affects US consumer purchases and firm freight resource allocation and budgeted spend.
  • WestJet Cargo extended Calgary-Paris flights to five weekly winter and daily summer flights. The company will deploy Boeing 787-9 Dreamliner planes to make Paris a European hub as they develop.

Freight Market and Amazon News

How Amazon is Using AI to Ensure Authentic Customer Reviews

Amazon utilizes advanced AI to detect and prevent fake reviews, ensuring a trusted shopping experience for millions of customers worldwide.

Source: https://www.aboutamazon.com/news/policy-news-views/how-ai-spots-fake-reviews-amazon 

Amazon Says More Packages are Arriving in a Day or Less After Hefty Investment in Speedy Fulfillment

Amazon is increasing the number of packages delivered to customers within one day or sooner, aiming to maintain its edge in online shopping amid rising competition.

Source: https://www.cnbc.com/2024/04/29/amazon-says-60percent-of-prime-orders-are-arriving-same-day-or-next-day.html

AWS Plans to Invest $11 Billion in Indiana, the Largest Capital Investment in the State’s History

Amazon Web Services (AWS) is investing $11 billion in Indiana, creating 1,000 jobs and marking the largest capital investment in the state’s history, with plans for new data centers and community support initiatives.

Source: https://www.aboutamazon.com/news/aws/aws-indiana-investment-11-billion

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 march

Monthly Highlights

Bridge Collapse Sends Exporters, Retailers Moving to Contain Business Fallout 

A bridge collapse near Baltimore disrupted trade, shut down a busy port, and forced the rerouting of shipments, impacting various industries and transportation routes.

Source: https://www.wsj.com/articles/bridge-collapse-sends-exporters-retailers-moving-to-contain-business-fallout-719734a2

How China Avoids US Tariffs

Chinese exporters utilize Mexico’s logistical advantages and U.S. tariff exemptions for sub-$800 imports to bypass tariffs, potentially fostering long-term economic benefits for the region.


Source: https://www.freightwaves.com/news/how-china-skirts-tariffs-into-the-us 

Panama Canal: Booking Slots Open Up At a Waterway On the Mend

The Panama Canal’s Miraflores Locks are beautiful, but drought has limited booking slots and draft limits, affecting shippers’ decisions. Water-saving programs have increased transportation capacity, but not pre-drought levels.

Source: https://www.supplychaindive.com/news/panama-canal-booking-slots-waterway-miraflores-locks/711251/ 

Key Takeaways

  • Powerless container vessel hit the Francis Scott Key Bridge in Baltimore, causing its collapse. According to Xeneta, a million import cartons reach the Port of Baltimore annually, which might disrupt the supply chain.
  • Heathrow Airport passport control workers decided to strike. None have been scheduled, but April 8 walkouts could impede airport travel. European airport workers struck in Frankfurt and Hamburg last month.
  • Boeing President and CEO Dave Calhoun will quit at year’s end over safety and quality difficulties. The board and management are reforming to soothe carriers and passengers and restore the airline.

Ocean Freight Market Update

  • The IMF expects the global economy to increase by 3.1% in 2024 despite the Red Sea crisis danger.
  • US inventory-to-sales ratio is falling as wholesalers reduce stockpiles. While retailers stock up.
  • Before the Lunar New Year, transpacific fares to the US West Coast were much higher than last year.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

  • Maersk has revealed plans to resume its Transpacific to US TP20 service. The weekly service will connect China to the US East and Gulf ports, with a launch date of April 21.

North America

  • The Francis Scott Key Bridge in Baltimore collapsed after a powerless container vessel hit it. Xeneta said a million import cartons reach the Port of Baltimore each year, which could significantly damage the supply chain.
  • Container vessel diversions to avoid Red Sea attacks can boost fuel costs by $300K USD each trip for Asia-Europe carriers. Current re-routings can add 15 days to trip time.

Air Freight Updates

  • After two months of double-digit demand growth and an increase in general freight spot rates, the global air cargo industry continued its surprising bullish start to 2024 in February.
     
  • After January’s 11% volume gain, February’s +11% YoY demand growth impressed airlines and freight forwarders.
  • After worldwide container transport volumes fell 4.0% in 2022 and climbed 0.2% in 2023, Accenture Cargo predicted them to grow 3.8% in 2024.

Asia

  • All Nippon Airways (ANA) has delayed their takeover of Nippon Cargo Airlines again. October 2023 saw the agreement pending, but July 2024 is scheduled to finalize it. Authorities are reviewing the transaction.
  • Cathay Pacific wants to reduce carbon emissions by 12% from 2019 to 2030 and reach net-zero by 2050. The strategy involves adding approximately 70 new and more efficient passenger and freighter aircraft to the carrier’s fleet.

North America

  • After many safety concerns in recent months, United Airlines may be unable to establish new routes. The FAA has banned United’s ability to certify pilots on new aircraft models and is exploring broader limitations that would limit its growth.
  • Boeing President and CEO Dave Calhoun announced he will resign at the end of the year due to safety and quality control issues. The board and management are restructuring to get the airline back on track and calm carriers and passengers.

Freight Market and Amazon News

Amazon Air Axes Smaller-Volume Routes While Boosting US Hub Flows

Amazon revamps the air network, reducing flights while increasing capacity with larger aircraft, focusing on core market hubs, amid shifts to ground transport and rising costs.

Source: https://theloadstar.com/amazon-air-axes-smaller-volume-routes-while-boosting-us-hub-flows/ 

Amazon’s Latest Brand Protection Report: How They bust Counterfeit Products

Amazon’s 2023 Brand Protection Report outlines efforts, including innovative technology and global collaboration, to combat counterfeits and ensure customer trust.

Source: https://www.aboutamazon.com/news/policy-news-views/amazon-brand-protection-report-2023-counterfeit-products

Refund Fraud Schemes Promoted on TikTok, Telegram costing Amazon & Other Retailers Billions of Dollars

Fraud ring uncovered at Chattanooga Amazon warehouse, involving employee scamming refunds in a widespread scheme, leading to lawsuits and significant financial losses for retailers.

Source: https://www.cnbc.com/2024/03/14/amazon-and-other-retailers-hit-by-refund-fraud-costing-them-billions.html 

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.

freight market update february 2024

Monthly Highlights

Water Level Projections Threaten Future Panama Canal Transits

Low water levels in the Panama Canal are affecting vessel throughput, especially for chemical tankers and liquefied petroleum gas carriers, causing delays and potential issues.

Source: https://www.freightwaves.com/news/water-level-projections-threaten-future-panama-canal-transits

Lunar New Year On Leading Air Cargo Rates’ Lift Off

Major US airlines experienced cargo revenue declines in 2023 due to decreased rates and volumes amid ongoing challenges from the Covid-19 pandemic.

Source: https://www.aircargoweek.com/lunar-new-year-lift-off/ 

End of Red Sea Crisis Will Create Choppy Water for Carriers

A potential resolution of the Red Sea crisis may lead to a short-term decline in container shipping rates, affecting industry capacity and impacting Maersk’s performance in Q2.

Source: https://theloadstar.com/end-of-red-sea-crisis-will-create-choppy-water-for-carriers-says-maersk/ 

Key Takeaways

  • The Red Sea scenario is causing disruptions in Suez Canal trade, as carriers shift ships to avoid potential threats and delays. The crisis has increased demand for air cargo and air-sea solutions, as shippers look for ways to convey their products without delays or uncertainty.
  • As firms close for the Lunar New Year, shipping demand and rates from China and other APAC industrial hubs are increasing.
  • Strikes are predicted across Europe in 2024, a year when regional, national, and European elections will be held. Expect further protests, as well as traffic and logistics problems, leading up to the election.

Ocean Freight Market Update

  • The Red Sea Crisis continues to influence freight industry dynamics. Rates remain high.
  • Demand has been strong, and as the Lunar New Year approaches, ocean carriers are lowering freight costs due to a downturn in Asian demand.
  • Vessels and containers will have longer passage durations as a result of the rerouting through the Cape of Good Hope.

Global Schedule Reliability

Schedule reliability continues its upward trend.

Asia

  • New vessel added to Wan Hai Lines fleet. The new vessel, WAN HAI A13, can carry 13,100 TEUs at 22 knots and has various ecological technologies to save energy and fuel.

North America

  • The December 2023 Descartes Datamyne report showed a 0.4% increase in US box imports from the previous month, unaffected by the Panama Canal drought or Red Sea attacks.
  • A February Federal Maritime Commission hearing will assess the potential impact of Red Sea hostilities on supply chains and commercial shipping. The agency expects shippers and carriers to argue since companies swiftly implemented emergency fees in response to the issue.

Air Freight Updates

  • In early 2024, air cargo volumes are soaring much faster than before.
  • In the second week of January 2024, global air cargo tonnages rose 24%, bucking the end-of-year slump.
  • Tonnages from Asia Pacific and Middle East & South Asia increased to Europe without raising average costs, demonstrating a complex relationship between demand, capacity, and pricing in the global air cargo market.

Asia

  • Cathay Pacific plans to hire 5,000 people in 2024 to expand and rebuild. Cathay will use pilots, cabin personnel, and ground support to resume pre-covid operations. 
  • Dimerco Express and Yusen Logistics joined Cathay Pacific’s Corporate Sustainable Aviation Fuel (SAF) program. The corporations will increase SAF utilization and promote renewable energy in aviation.

North America

  • FAA to ground 737 MAX 9s for inspection data review after Alaska Air incident. The Alaska Air incident prompted them to commit more supervision and safety measures to address quality control concerns.
  • A San Francisco International Airport main runway is closed for up to five months for taxiway safety improvements. The FAA and airport will work together to minimize delays and disruptions, but the airport has cautioned that one-third of flights may experience minor delays, especially during peak demand hours.
  • Better cargo handling at Vancouver Airport will cost $54.9 million. Modifications will boost airport freight capacity by 160,000 tons, parking, and efficiency.

Freight Market and Amazon News

Amazon Bedrock Adds Mistral AI Models, Giving Customers More Choice

Amazon Bedrock will expand its range of foundation models with Mistral AI’s cutting-edge models, offering customers greater flexibility for generative AI applications, including text summarization, structuration, question answering, and code completion.

Source: https://www.aboutamazon.com/news/aws/mistral-ai-amazon-bedrock 

Amazon Fresh Launches “Recurring Reservations” for Online Shopping

Amazon introduces Recurring Reservations feature nationwide, allowing customers to schedule their preferred pickup or delivery times each week for a more convenient shopping experience.


Source: https://www.retaildive.com/news/amazon-fresh-recurring-reservations-feature-online-grocery-shopping/708398/ 

Amazon’s AWS to Invest Over $5 Billion to Boost Cloud Computing in Mexico

Amazon Web Services Mexico (AWS) plans to invest over $5 billion to establish a cluster of data centers in Queretaro, Mexico, over the next 15 years, responding to the increasing demand for cloud services.

Source: https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/amazons-aws-invest-over-us5-billion-boost-cloud-computing 

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.

January 2024

Monthly Highlights

Impact of The Red Sea Crisis On Ocean Freight Shipping is More Rapid than Covid-19 

Ocean freight rates surged over 200% in the first 52 days of the Red Sea crisis, surpassing early pandemic increases, causing disruptions as carriers struggled to honour contracts.

Source: https://www.hellenicshippingnews.com/impact-of-red-sea-crisis-on-ocean-freight-shipping-is-more-rapid-than-covid-19-as-tensions-run-high-across-the-industry/

US Carriers See Cargo Revenues Slide in 2023

Major US airlines experienced cargo revenue declines in 2023 due to decreased rates and volumes amid ongoing challenges from the Covid-19 pandemic.

Source: https://www.aircargonews.net/airlines/us-carriers-see-cargo-revenues-slide-in-2023/

In Panama Canal droughts, CPKC sees intermodal opportunity

Canadian Pacific Kansas City (CPKC) sees growth opportunities in Panama’s intermodal business as shippers, facing drought conditions in the Panama Canal, turn to rail services to maintain container flow, with Maersk already choosing the Panama Canal Railway to safeguard supply chains.

Source: https://www.supplychaindive.com/news/cpkc-ceo-sees-intermodal-growth-opportunity-in-panama/705113/

Key Takeaways

  • Conflict in the Red Sea affects 2024 container shipping plan. Recent US and Allies intervention hopes to reduce such attacks, but carriers are exploring alternative routing and shippers are seeking for ways to deliver goods on time.
  • After an Alaska Airlines flight’ door plug failed, Boeing 737 MAX 9s were grounded. Airlines
    employing the 737 MAX 9 may lose cargo capacity as they switch to other aircraft.
  • Drought has lowered Panama Canal water levels. This has cut canal transits from 29 to 25 daily.

Ocean Freight Market Update

  • The Red Sea Crisis continues to influence freight industry dynamics. Rates remain high.
  • Demand has been strong, and as the Lunar New Year approaches, ocean carriers are lowering freight costs due to a downturn in Asian demand.
  • Vessels and containers will have longer passage durations as a result of the rerouting through the Cape of Good Hope.

Global Schedule Reliability

Asia

  • New vessel added to Wan Hai Lines fleet. The new vessel, WAN HAI A13, can carry 13,100 TEUs at 22 knots and has various ecological technologies to save energy and fuel.

North America

  • The December 2023 Descartes Datamyne report showed a 0.4% increase in US box imports from the previous month, unaffected by the Panama Canal drought or Red Sea attacks.
  • A February Federal Maritime Commission hearing will assess the potential impact of Red Sea hostilities on supply chains and commercial shipping. The agency expects shippers and carriers to argue since companies swiftly implemented emergency fees in response to the issue.

Air Freight Updates

  • In early 2024, air cargo volumes are soaring much faster than before.
  • In the second week of January 2024, global air cargo tonnages rose 24%, bucking the end-of-year slump.
  • Tonnages from Asia Pacific and Middle East & South Asia increased to Europe without raising average costs, demonstrating a complex relationship between demand, capacity, and pricing in the global air cargo market.

Asia

  • Cathay Pacific plans to hire 5,000 people in 2024 to expand and rebuild. Cathay will use pilots, cabin personnel, and ground support to resume pre-covid operations.
  • Dimerco Express and Yusen Logistics joined Cathay Pacific’s Corporate Sustainable Aviation Fuel (SAF) program. The corporations will increase SAF utilization and promote renewable energy in aviation.

North America

  • FAA to ground 737 MAX 9s for inspection data review after Alaska Air incident. The Alaska Air incident prompted them to commit more supervision and safety measures to address quality control concerns.
  • A San Francisco International Airport main runway is closed for up to five months for taxiway safety improvements. The FAA and airport will work together to minimize delays and disruptions, but the airport has cautioned that one-third of flights may experience minor delays, especially during peak demand hours.
  • Better cargo handling at Vancouver Airport will cost $54.9 million. Modifications will boost airport freight capacity by 160,000 tons, parking, and efficiency.

Freight Market and Amazon News

Amazon Captured 29% of Online Orders Before Christmas

Amazon’s share of online orders surged in the final days of the holiday season, reaching 29% of global order volume, as their investments in speedy delivery proved successful with last-minute shoppers seeking a wide product selection.

Source: https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/amazon-captured-29-online-orders-christmas

Amazon Introduces Consult-a-Friend, a New Mobile Experience

Amazon introduces Consult-a-Friend, a collaborative shopping feature allowing users to seek and manage feedback from friends and family within the Amazon Shopping app, now available in select countries.


Source: https://www.aboutamazon.com/news/retail/amazon-introduces-consult-a-friend-mobile-shopping-experience

Amazon Delivery Gets Faster, with 65% Jump in Number of Same-day and Overnight Items in U.S.

Amazon boosts same-day and overnight deliveries by over 65% year-over-year, reaching record global speeds with more than 7 billion units, plans to enhance speed further in 2024.

Source: https://www.geekwire.com/2024/amazon-delivery-gets-faster-with-65-jump-in-number-of-same-day-and-overnight-items-in-u-s/

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.

Logistics Market Update November 2023

Monthly Highlights

Biden To Convene New Supply Chain Council To Strengthen US Logistics

President Joe Biden will convene the first meeting of his supply chain resilience council, announcing 30 actions to enhance the production and shipment of goods, address issues such as access to medicine and economic data, and aim to reduce prices for American consumers and enhance supply chain resilience for the future.

Source: https://www.maritimegateway.com/biden-to-convene-new-supply-chain-council-to-strengthen-us-logistics/

TikTok Adds Logistics to the E-Commerce Dance

TikTok integrates logistics into e-commerce. The integration shows the platform’s rising influence and impact on consumer engagement and sales through new logistics solutions. TikTok’s move into e-commerce and logistics shows how social commerce is changing supply chain dynamics.


Source: https://www.wsj.com/articles/tiktok-brings-logistics-to-the-e-commerce-dance-b43d884d

Shippers Urged to Commit to Longer-Term Air Cargo Contracts as Favorable Conditions Persist

Xeneta advises shippers to arrange longer-term contracts to take advantage of lower first-quarter airfreight prices and market stability. Xeneta’s chief airfreight officer, Niall van de Wouw, suggests forwarders switch to short-term contracts to eliminate spot market procurement and stabilize the sector.

Source: https://theloadstar.com/good-time-for-shippers-to-commit-to-longer-term-air-cargo-contracts/

Key Takeaways

  • The US GDP rose 4.9% in Q3. Third-quarter consumer spending, imports, and exports grew. Private home investment was steady and inventories grew.
  • September truckload demand rose 0.75% for the third month. In Q3, demand grew 0.4% and supply declined 0.3%.
  • September saw a broad improvement in freight demand indicators due to increases in manufacturing, real consumer spending, and wholesale sales.
  • Dry van spot prices were mostly constant and 12% lower y/y in October. As projected, linehaul rates fell 2 cents/mile from September. The normal seasonal increase is 4 cents/mile in November and 9 cents/mile in December.

Ocean Freight Market Update

  • Moderate rise in demand after the October vacations associated with Chinese Golden Week.
  • After Golden Week, a massive blank sailing campaign was put into place, which caused capacity difficulties on various outward lanes from Asia.
  • The Emission Trading System (ETS) of the European Union will go into operation on January 1, 2024, with costs estimated to be between $9 and $10 billion.



Global Schedule Reliability

Logistics Market Update November 2023

Schedule reliability continues its upward trend.

Asia

  • ONE (Ocean Network Express) launched its Thailand-Singapore Express (TSX) service to speed up Asia-Europe travel. The new service begins November 14.
  • India and the US will build Sri Lanka’s new Colombo West International Terminal. Due to Colombo Port’s large transshipments, the new terminal, which can carry 3.5 million TEUs, is needed.

North America

  • The US East Coast dockworkers’ union, the International Longshoremen’s Association (ILA), is giving serious thought to the prospect of a 2024 October strike by its members. The strike action may seriously affect supply chain operations and would extend coast to coast.

Air Freight Updates

  • The demand for air cargo is flat year over year and continues to be stable, with a little increase MoM.
  • A robust increase of +19% in belly capacity over November 22 has resulted in an increase in air cargo capacity of 11% over same month.
  • The demand for air cargo is flat year over year and continues to be stable, with a little increase MoM.

Asia

  • Asiana Airlines and Korean Air will unite. European officials’ concerns about air freight and passenger routes to and from Europe delayed the deal. The merger awaits US and Japanese clearance by the end of January. Asiana will sell its cargo division to a South Korean carrier.
  • Hong Kong International Airport operator AAHK is partnering with China’s Dongguan Port Group to build a sea-air multimodal transport terminal. The logistics park will be the first to link sea-air intermodal transshipment to airport airside environments. The facility will highly digitalize and automate facilities and equipment to reduce transshipments between the two groups’ cost and time.

North America

  • The capacity constraint at Schiphol Airport in Amsterdam affected many airlines, including JetBlue & KLM. The DOT authorized JetBlue’s lawsuit against the EU and Netherlands, stating that it breaches the IUS-EU Air Transport Agreement. JetBlue will not fly into Amsterdam for the 2024 summer season, which will affect KLM operations out of their main hub.
  • As sustainable aviation fuel (SAF) gains popularity, regions invest in its manufacturing infrastructure. Recent projections predict that North America will produce 2.4 million gallons per year by 2030, followed by Europe and Asia at 1.2 and 0.9 mmgy, respectively.
  • Southwest Airlines pledged to purchase 680 million gallons of sustainable aviation fuel. Southwest Airlines can buy SAF in 2028 from USA BioEnergy for 20 years, reducing carbon dioxide emissions by 30 million metric tons. As new production plants operate, Southwest can acquire 180 million gallons of SAF annually.

Logistics Market Update November 2023

Freight Market and Amazon News

17 Best-Selling Items on Amazon During Black Friday & Cyber Monday

Amazon announced its 2023 Black Friday and Cyber Monday best-sellers. This list shows which Amazon items sold best during various important shopping occasions, revealing consumer preferences and trends. It illustrates e-commerce’s changing landscape and holiday shoppers’ favorite products.

Source: https://www.aboutamazon.com/news/retail/amazon-best-sellers-black-friday-cyber-monday-2023

Project Kuiper to Provide Private Connectivity into AWS, Enhancing Flexibility and Data Control for Customers

Airfreight charges on important trade routes rose in November due to weather, e-commerce demand, and capacity concerns. E-commerce demand on Black Friday and Cyber Monday, capacity challenges, and poor weather all contributed to the increase, but cargo volumes are still modest and peak season demand is lower than expected.

Source: https://www.aircargonews.net/airlines/rates-continue-to-rise-in-november-despite-muted-demand/

5 Ways Amazon is Using AI to Improve Holiday Shopping & Deliver Packages Faster

Amazon uses AI throughout the customer journey, from Supply Chain Optimization Technology (SCOT) demand forecasting to a vast fleet of mobile industrial robots in fulfillment facilities. Generated AI helps optimize routes and solve last-mile delivery issues, while AI-driven robotics improve sorting, packing, and efficiency.

Source: https://www.aboutamazon.com/news/operations/amazon-uses-ai-to-improve-shopping

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.

logistics market update october 2023

Monthly Highlights

Logistics Companies Grow Cautious on Holiday HiriCargo Consolidators Shift to FCL Amid Changing Global Market Dynamicsng

Cargo consolidators are shifting their focus to Full Container Load (FCL) services as global market dynamics change. Shippers benefit from greater flexibility and control with FCL services, which address supply chain disruptions and changing trade patterns. This strategic pivot by cargo consolidators emphasizes the need for adaptation in the ever-changing landscape of global logistics and trade.
Source: https://theloadstar.com/cargo-consolidators-turn-to-fcl-as-global-market-dynamics-change/

Shipping Giant Maersk Unveils World’s First VesIsrael’s Import Demand Surges Amidst Escalating Conflictsel Using Green Methanol

The current conflict is leading to a surge in demand for imported goods in Israel. It underscores the influence of geopolitical events like the war on a country’s trade dynamics and supply chain requirements.
Source: https://www.freightwaves.com/news/war-increases-israels-demand-for-imports 

Freight Brokerage Bubble Bursting as Freight Markets Brace for Long Winter

The freight brokerage industry is experiencing a shift as freight markets face what’s described as a “long winter,” according to this article. The industry, which previously enjoyed rapid growth, is now undergoing a correction phase. This development highlights the cyclical nature of the logistics and transportation sectors and underscores the need for brokers to adapt to changing market conditions and navigate the challenges of the current freight landscape.
Source: https://www.freightwaves.com/news/freight-brokerage-bubble-bursting-as-freight-markets-face-long-winter

Key Takeaways

  • Israel’s conflict with Hamas causes difficulties in air and maritime freight shipping. Labor shortages, canceled flights, and increased security are delaying foreign and domestic goods movement.
  • Schiphol Airport adopts digital innovation to enhance cargo operations. The airport is going digital to boost productivity and minimize cargo processing delays.
  • Air India Group plans to buy one aircraft every six days till 2024, resulting in about 500 aircraft deliveries.
  • Port congestion, vehicle terminal capacity limits, and driver delays are reducing Europe’s cargo handling capacity by 5-10%, according to industry sources.

Ocean Freight Market Update

October ocean freight demand is flat on most trade lines. Global fleet capacity grows. The global fleet received 1.2 million TEUs of new Alphaliner boats from January to July 2023, scrapping less than 80,000. TEU additions may reach 1.2 million by year-end. Former yearly growth record was 1.7 million TEUs in 2015.

Having more ships than demand prevents long-term rate hikes. Steamship lines will cancel and slow sailing. Using more vessels per service saves bunker. Transatlantic TA2 is severely reduced, while Trans-Pacific PS5 and PN3 are suspended. Thus, head haul route delays, cargo rollover, and empty equipment congestion at backhaul origins are escalating.



Global Schedule Reliability

logistics market update september 2023

Schedule reliability continues its upward trend.

Asia

  • Hapag-Lloyd, Yang Min, One, and HMM, members of THE Alliance (THEA), have decided to make improvements to their Transpacific-East Coast routes in order to improve service coverage.
  • 700,000 Hapag-Lloyd boxes have tracking devices fitted. The installation of the real-time trackers is part of Hapag-Lloyd’s Smart Container Fleet project, which aims to outfit the carrier’s entire dry container fleet with solar-powered trackers that will considerably improve container location visibility.

North America

  • According to statistics from the Los Angeles/Long Beach port complex, consumer spending strength is benefiting southern California ports, with container volume increases likely to continue as we reach the end of 2023. Even though their aggregate year-to-date tonnage is down 20% from last year, September was a positive month, with Long Beach having its busiest September on record.

Air Freight Updates

According to a recent IATA report, monthly air freight demand has increased year over year for the first time in 19 months. Global freight ton-kilometres (CTKs) were still slightly lower than pre-pandemic levels in 2019, but had recovered compared to previous years, owing mostly to a 30% increase in belly capacities. This increase can be due to numerous airlines increasing their capacity during the high summer travel season. Furthermore, the transferred tonnage between North America and Europe has increased by about 6% in both directions.

Asia

  • The Hong Kong government has unveiled plans to increase transportation infrastructure and tourism to boost its aviation hub status. Hong Kong International Airport added runway capacity and formalized a plan to promote Sustainable Aviation Fuel (SAF).
  • Qantas and China Eastern withdrew from a joint business venture extension application after regulators threatened to stop their partnership. Regulators have opposed any further Qantas-China Eastern agreements, citing price increases and competition issues.

North America

  • American Airlines will add roughly 7,000 widebody trans-Atlantic routes this winter. They are also adding frequencies and routes to Tokyo and Auckland and increasing capacity to Buenos Aires from Miami, JFK, and DFW. The expanded routes and increased frequency aim to give shippers more room and options on some of the world’s most significant routes.
  • Two major Canadian facility improvements were done by Envirotainer. The Montreal (YUL) plant has been renovated to accept Releye® containers, increasing productivity and reducing customer risk. The company now has over 40 global Releye support stations. Envirotainer also moved to a larger Toronto location, increasing storage and container capacity by 40%.
  • One more 737-800 freighter is being converted in Canada for Alaska Air Cargo. In the next months, the freighters will serve Alaska and other destinations as the company expands its air cargo network.

freight market updates october 2023

Freight Market and Amazon News

Amazon’s Prime Days Were the Company’s Largest October Holiday Kick-off Event Ever

Prime members reaped savings surpassing $1 billion as they eagerly purchased millions of items, with the fastest delivery clocking in at just 54 minutes. Among the highly sought-after products were Alexa-enabled devices, Apple AirPods Pro, and the efficient BISSELL Little Green carpet cleaner. Additionally, an impressive volume of over 150 million items was ordered from independent sellers during the event.

Source: https://press.aboutamazon.com/2023/10/amazons-prime-big-deal-days-was-the-companys-largest-two-day-october-holiday-kick-off-event-ever

Amazon Implements New FBA Capacity Limits

Amazon has limited the amount of inventory that sellers can send to their fulfillment centers due to continued supply chain difficulties and growing demand. This restriction has substantial ramifications for e-commerce enterprises that rely on FBA services, necessitating the adaptation of tactics and inventory management to effectively negotiate these new limits.

Source: https://www.ecomengine.com/blog/fba-capacity-limits 

Amazon Integrates Drones into Fulfillment Network to Enhance Delivery Speed

Amazon is enhancing its delivery capabilities by integrating drones into its fulfillment network for swifter package deliveries. After years of testing, Amazon is extending its drone delivery program to serve a broader customer base. The drones employed by Amazon can efficiently transport packages weighing up to five pounds within an hour or less. Utilizing the MK30 drone, which boasts an extended range and increased capacity to navigate challenging weather conditions, Amazon aims to annually deliver millions of packages via drone.

Source: https://www.supplychaindive.com/news/amazon-integrates-drones-fulfillment-network-faster-delivery/697181/ 

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.

logistics market update september 2023

Monthly Highlights

Logistics Companies Grow Cautious on Holiday Hiring

Logistics businesses are approaching holiday employment with caution. Because of worries regarding labor shortages and supply chain disruptions, many organizations have taken a more cautious approach to seasonal employment. This cautious posture reflects the logistics industry’s present issues and emphasizes the importance of flexibility and agility in satisfying Christmas expectations while navigating ongoing interruptions.
Source: https://www.wsj.com/articles/logistics-companies-grow-cautious-on-holiday-hiring-700d9c0f

Shipping Giant Maersk Unveils World’s First Vessel Using Green Methanol

The brand-new ship possesses two motors: one that runs on regular marine fuels and the other that runs on green methanol. This is the first of 25 similar ships that Maersk has bought and will get by 2024. This is part of the company’s plan to update its existing fleet of 700 ships and become carbon-neutral by the year 2040.
Source: https://www.cnbc.com/2023/09/14/shipping-giant-maersk-unveils-first-vessel-operating-on-green-methanol.html

FedEx Testing AI-powered, Trailer-Loading Robots

FedEx is testing AI-powered trailer-loading robots made by Dexterity AI. These cutting-edge robots are intended to improve efficiency and accuracy in putting products onto trailers, thereby alleviating manpower shortages and improving the logistics process. This move highlights the logistics industry’s continued efforts to use automation and artificial intelligence to enhance operations and satisfy changing supply chain demands.
Source: https://www.supplychaindive.com/news/fedex-testing-ai-powered-trailer-loading-robots-dexterity-ai/694837/

Key Takeaways

  • After being reduced in 2021, Mexico now has FAA category one classification. The reform will allow Mexican carriers, including as Aeromexico, to operate 101 weekly US flights as a result of the shift.
  • Asian airlines, such as Korean Air and All Nippon Airways, are extending sustainable aviation fuel (SAF) programs to give shippers the option of using sustainable aviation fuel in their cargoes.
  • New trade agreements between the United States and Vietnam continue to establish ties with prospective manufacturing and supply hubs outside of China, reducing the United States’ reliance on China as a single source supplier.
  • The Panama Canal remains restricted, with no end in sight as the drought continues to damage water supplies supplying the canal.

Ocean Freight Market Update

Annual growth in the United States has been revised upward, although a significant slowdown is still projected. Forecasts for US real GDP growth in 2023 and 2024 in September are slightly higher than in August, at 2.3% and 1.5%, respectively. This is partly due to surprisingly high consumer spending through July, which raises the annual growth rate for next year due to “carry over” effects. Nonetheless, growth in the United States is predicted to remain significantly below trend in the fourth quarter of 2024. The Federal Reserve (Fed) is projected to keep interest rates unchanged later this month, but S&P Global Market Intelligence predicts another hike in November and no rate cuts until spring 2024.

Global Schedule Reliability

logistics market update september 2023

Schedule reliability continues its upward trend.

Asia

  • During the Chinese Golden Week holiday, blank sailing rates from Asia to North Europe, particularly the Mediterranean, are predicted to reach 16%. Earlier this year, during June and July, blank sailings rates were approximately 4%.
  • Hyundai Merchant Marine (HMM) has announced that its Intra-Asia Cross Network (ICN) service will be expanded to include a faster route from Busan, South Korea to Surabaya and Jakarta, Indonesia. The enhanced service will begin on October 9.

North America

  • The Port of Oakland handled roughly 135K TEUs in August, representing a 13.1% year-over-year drop compared to August 2022. However, port officials believe that comparing this year’s results to previous year’s would be impractical.
  • The Ports of Los Angeles and Long Beach have proposed a green shipping corridor. The transpacific green corridor concept intends to considerably reduce or even eliminate carbon emissions and pollution by 2030, with carrier partners deploying “green” boats along the corridor beginning in 2025.

Air Freight Updates

Global capacity in air freight is continuing to recover and proceed in the right direction. Capacity grew by 4.7% between January and July 2023, compared to the same time before the epidemic in 2019. Capacity on direct routes between Europe and Asia, in addition to the Transatlantic and Europe-Middle East lines, has virtually reached pre-pandemic levels in Europe, owing largely to an increase in belly capacity (freight delivered in the cargo holds of passenger airplanes).

Asia

  • Korean Air is expanding its sustainable aviation fuel (SAF) initiative to include cargo flights. Forwarders and shippers will be able to contribute to the purchase of additional SAF to reduce carbon emissions on their routes. Furthermore, All Nippon Airways (ANA) is expanding their SAF program to include shippers in the future. Shippers will be able to get emission reduction certifications through their present SAF service with the new offering.
  • Etihad Cargo is growing its operations in China. With two new direct routes from the UAE to Guangzhou, the carrier will add 30 tons of belly capacity. This follows the addition of a direct trip to Beijing in July, bringing Etihad’s total number of weekly flights between the two countries to fifteen.

North America

  • After downgrading Mexico in 2021, the US Federal Aviation Administration (FAA) has restored the country’s aviation safety status to category one. The modification now allows Mexican carriers to offer additional services and routes into the United States, resulting in a considerable boost in air connectivity between the two countries.
  • WestJet, a Canadian airline, has inaugurated a new cargo service to Havana, Cuba. One of the carrier’s Boeing 737-800 freighters will fly from Toronto to Cuba’s capital once a week. This move demonstrates WestJet’s continuous expansion in North and Latin America.
  • IAG Cargo has announced that their new constant climate station at Cincinnati International Airport has been approved. This takes the total number of permitted stations in the United States to 21, demonstrating the carriers’ preference for temperature-controlled vital cargo and pharmaceuticals. The new service will focus on the transportation of drugs from Ireland and India to US locations via London.

logistics market update september 2023

Freight Market and Amazon News

Amazon to Invest Up to $4 Billion in Anthropic as AI Arms Race Escalates

Amazon is planning to invest up to $4 billion in Anthropic, a premier AI research startup, in response to the rising AI arms race. This strategic move highlights the increasing rivalry in the artificial intelligence field as well as Amazon’s dedication to staying at the forefront of AI technology. The investment in Anthropic is anticipated to strengthen Amazon’s capabilities and accelerate innovation in AI-related disciplines, establishing the business as a vital player in the ongoing AI race.

Source: https://www.wsj.com/business/deals/amazon-to-invest-up-to-4-billion-in-anthropic-as-ai-arms-race-escalates-649dee22

AWS Announces Amazon Bedrock and Powerful New Offerings Accelerating Generative AI Innovation

Amazon Web Services (AWS) recently announced the general release of “Amazon Bedrock,” a set of generative AI advancements. Bedrock provides a variety of AI tools and capabilities, including text generation, picture synthesis, and data modeling, to assist enterprises in harnessing the power of AI for a variety of applications. This achievement demonstrates AWS’s dedication to expanding AI and making cutting-edge AI technology more accessible to enterprises, with the potential to disrupt industries by enabling them to efficiently construct AI-driven solutions.
Source: https://www.aboutamazon.com/news/aws/aws-amazon-bedrock-general-availability-generative-ai-innovations

Generative AI Helps Amazon Eliminate Checkout Lines and Enhance Shopping Experience

Amazon’s Just Walk Out Technology offers a cashier-less shopping experience, enabling customers to enter, shop, and exit without conventional checkout processes. Utilizing sensors and cameras, it monitors customers and their selected items. Shoppers initiate the process by scanning their Amazon app or palm print upon entry. Throughout their shopping journey, the technology records items picked up and put back. Upon departure, customers’ Amazon accounts are automatically charged for the items they’ve acquired, streamlining the shopping process.

Source: https://www.aboutamazon.com/news/retail/how-does-amazon-just-walk-out-work

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.

logistics 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

freight market updates august 2023

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 updates august 2023

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.


market update july 2023

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

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.

market updates table

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.


logistics update june 2023

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

logistics update june 2023

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.


logistics update june 2023

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

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