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.
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.
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.
- 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
Schedule reliability continues its upward trend.
- 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.
- 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.
- 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.
- 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 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.
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.
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.
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.