Recent changes in China-U.S. trade policies have led to a dramatic increase in trans-Pacific freight volume, causing concerns among surveyed small and medium-sized enterprises. Despite a recovery in the market, container shipping rates continue to rise, and foreseeable policy adjustments pose challenges for the future of the shipping market.
In August and September, a large influx of containers from Asia is expected to flood Nordic ports, leading to severe congestion. Strong import demand will continue to drive shipping volume growth, increasing pressure on operational timelines. Ports and shipping companies need to proactively respond and adjust their strategies to mitigate this challenge.
Due to the impact of maritime pre-transport, the trans-Pacific air freight market is facing challenges of shrinking demand and low freight rates. In the coming months, it is expected that both air freight volume and rates will struggle to recover. The industry needs to reassess market strategies to tackle these challenges.
Container Freight Station (CFS) charges are crucial costs in international logistics for handling LCL shipments. These charges pertain to the consolidation of goods at the point of origin and the deconsolidation process at the destination. They are based on the volume of the cargo and have a direct impact on international shipping costs.
A ShipMatrix report indicates that FedEx, UPS, and USPS performed strongly during the peak online shopping week. The three major logistics providers efficiently handled the surge in parcel volume, ensuring a superior delivery experience for consumers. The report instills confidence in the e-commerce industry regarding logistics capabilities during high-demand periods.
Freight rates on US routes continue to decline, with the SCFI index falling for three consecutive weeks. The oversupply situation has made companies cautious about shipping, leading to concerns among industry insiders about future rate drops. Despite pressures from the global trade landscape, the market still hopes for a rebound in rates with the arrival of the traditional peak season.
In July 2024, China's export container transportation market showed stable improvement with an overall increase in freight rates, as the freight index for major routes generally rose. Despite ongoing challenges affecting the European and North American markets, port throughput has been trending upwards, and the ship leasing market remains active, demonstrating the resilience and potential of the container shipping market.
U.S. non-manufacturing activity moderated slightly in September, but the NMI index remained above the expansion threshold, marking 116 consecutive months of growth. Thirteen industries expanded, while employment growth slowed. Imports and exports presented a mixed picture. Experts suggest there's no need for excessive concern, emphasizing the importance of monitoring trade and employment. They anticipate growth in the fourth quarter.
Bank of America's Q2 Freight Payment Index reveals a continued decline in US freight volumes and spending, but the rate of decrease is slowing, potentially signaling a market bottom. Key influencing factors include shifts in consumer spending, debt pressures, and fuel prices. Looking ahead, attention should be paid to macroeconomic conditions and capacity adjustments. Freight companies should remain flexible to navigate market changes.
The Non-Manufacturing Index (NMI) reached a robust 59.1 in October, significantly exceeding the expansion threshold, indicating strong growth. Key indicators such as business activity/production, new orders, and employment all performed well, demonstrating strong market confidence. Experts predict a solid finish to the fourth quarter with substantial growth potential. Now is the prime time to seize opportunities and accelerate performance!
