Logistics Market Update May 2024

Logistics Market Update May 2024

Logistics Market Update May 2024

Monthly Highlights

Air Cargo Volumes Rise by 11% in April

Air cargo demand grew 11.1% year-on-year in April, marking the fifth consecutive month of double-digit growth, despite a 6.5% month-on-month decline.

Source: https://www.aircargonews.net/data/air-cargo-demand-rises-11-in-april/ 

Asia Pacific Cargo Maintains Momentum

Demand for consumer and intermediate goods drove a 13.7% increase in air cargo traffic in April, although available capacity expanded slightly faster, according to AAPA.

Source: https://www.aircargonews.net/airlines/asia-pacific-cargo-maintains-momentum/ 

Shippers Should Expect More Asia-Europe Blanked Sailings as Rates Rise

A sudden surge in demand and capacity reductions have caused disruption in the Asia-North Europe trade, leading to tight space and rising spot rates.

Source: https://theloadstar.com/shippers-should-expect-more-asia-europe-blanked-sailings-as-rates-rise/ 

Key Takeaways

  • Higher demand and limited capacity might cause months of very high rates and delays for shippers, although these disruptions and price increases may be less severe than the epidemic for several reasons. 
  • Asia-N. America spot rates to the West Coast are reaching $5,000/FEU, roughly their top when prices surged due to the Red Sea issue early in the year, and up over 70% from its April floor. 
  • The relentless, record-high demand caused epidemic interruptions. Demand swiftly outpaced vessel supply, overwhelming ports and causing record congestion that further limited capacity, increased delays, and raised rates.

Ocean Freight Market Update

  • Rising +9.3% YoY vs Jan’s 23, global maritime cargo demand is likely to rise still in the next months.
  • Due to the higher demand and load factors combined with equipment issues in more ports currently, carriers have announced notable rate increases on all Asia outbound corridors.
  • A fresh containership cargo propels a 9.6% annual fleet increase. Available supply is absorbed by vessel diversions and extra summer service deployments.

Global Schedule Reliability

Schedule reliability continues its upward trend.


  • Cosco started a new route out of China’s Port of Tianjin to visit multiple South America East Coast Ports, reducing transit time by 14 days. The new weekly service features 12 14K-TEU vessels from Cosco.
  • Chinese electric vehicle manufacturers are hurrying to export automobiles to Mexico and Brazil ahead of tariff hikes and other trade restrictions. The March activity will extend until June. Washington declared 100% tariffs on Chinese EVs, which are expected to be followed by other US and allied trade moves against Chinese EVs.

North America

  • Local 514 of Canada’s International Longshore and Warehouse Union (ILWU), representing over 700 workers, has postponed a strike notice during contract negotiations. However, officials continue to prepare for the West Coast strike, which would affect Port of Vancouver’s second-largest port.
  • The Pacific Merchant Shipping Association reported a decrease in dwell periods for import containers at Los Angeles and Long Beach’s San Pedro Bay ports for local truck or rail delivery. Average dwell time for truck and rail-destined containers reduced from 2.59 days in March to 2.50 days in April and from 7.02 days to 4.55 days in April.
  • Maersk has resumed AMEX and AGAS bookings in Baltimore. Transatlantic services and TP12 (Port of Baltimore exports) bookings must be reopened.

Air Freight Updates

  • Middle East crises combined with robust e-commerce demand helped YoY growth of the global air freight spot rate to turn positive for the first time since August 2022 rise +5%.
  • Based on Xeneta, the effect of “black swan” events—conflict in the Red Sea—persistent in April with volume growth reaching the fourth straight month of +11% rises in global air freight demand.
  • Apart from relieving the global air freight demand, the additional cargo capacity injected by airlines starting their summer plans helped to increase supply growth by +5% YoY in April.


  • Shippers on Asia-Europe trade routes are struggling with carriers to maintain weekly allocations because of an early peak season, port congestion in Asia, prolonged transit times in southern Africa, and equipment shortages. Carrier space allocations are becoming more flexible as demand rises.
  • First Boeing 737-800 freighter modification for ASL Airlines Australia. The jet will fly domestic and international flights, increasing the carrier’s freight network outside Eastern Australia. ASL will keep adding 737s to satisfy demand.

North America

  • Chinese import taxes increased by US President Joe Biden may harm US-China trade and costs. Levies hurt EV imports, semiconductors, and solar cells. If China responds, shippers may turn to Vietnam and Mexico, increasing pressure and diminishing volume.
  • President Biden signed the Federal Aviation Administration Reauthorization Act, allowing the GAO to investigate US air cargo operations and reduce truck delays and infrastructure inefficiencies. The FAA will get $105 billion USD over four years to improve US aviation.
  • The US Senate exempted the Boeing 767 from January 2028 carbon emissions limits. New efficiency limitations did not affect 767 freighters, extending their lifespan beyond 2028. Boeing may replace the 767 freighter to reduce emissions 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.

Freight Market and Amazon News

Walmart Responds to Amazon in the Competition for Fast Delivery

Walmart’s use of stores for same-day delivery competes well with Amazon’s fulfillment network, with both achieving significant volume in 2023.

Source: https://www.supplychaindive.com/news/walmart-amazon-same-next-day-delivery-volume/716519/ 

Amazon Drones Can Now Fly Farther and Deliver to More Customers Following FAA Approval

Prime Air receives FAA approval to expand drone delivery operations beyond visual line of sight, enhancing delivery capabilities and safety measures.

Source: https://www.aboutamazon.com/news/transportation/amazon-drone-prime-air-expanded-delivery-faa-approval

UPS & FedEx Battle Over Small Business Customers While Amazon Looms

UPS and FedEx intensify efforts to capture a larger share of small and medium-sized businesses amid market shifts, emphasizing tailored services and competitive pricing.

Source: https://www.supplychaindive.com/news/ups-fedex-small-medium-business-customer-volume/715677/ 

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.