AIR

The traditional December peak shipping season is almost here as last-minute shipments are rushed to their destination in time for the holidays.

• Capacity increases, driven by the demand for more passenger flights, bring extra cargo belly space to the market. Backlog pockets exist for freight from Asia to the USA, mildly increasing hot-lane transit time.
• Demand is weaker than the previous year, caused by multiple factors, including higher inventory levels and competitive ocean market pricing.
• Delays are minimal.
• Jet fuel prices remain higher than usual, suffering from the volatility of the Ukraine/Russia war, and the Israel/Gaza conflict.

TIP

If your delivery deadline is tight & fixed, plan to ship as early as possible to secure air cargo space.

OCEAN

• Carriers are closely observing the market demand, which has yet to recover, and blank sailings continue. U.S. inventories, particularly for wholesalers, are decreasing, while retailers still maintain high inventories. This development is hopefully indicative of a forthcoming positive shift in demand. In the Far East Westbound (FEWB), the E.U. trade market remains stagnant, but there will be a slight impact on capacity due to changes or suspensions in vessel deployment.
• In the ocean freight industry, adverse effects are becoming evident, such as layoffs. There are reports that Maersk plans to cut around 10,000 jobs, reflecting the challenging container trade environment. (Source: Shipping company Maersk to slash 10,000 jobs, citing the difficult container trade environment | Watch (msn.com))
• The Panama Canal Authority (PCA) is implementing significant measures to address water scarcity caused by the persistent El Niño weather pattern. Passage restrictions will be imposed to conserve water, limiting booking slots to 49 daily starting November 3. These slots will gradually decrease over the next three months, reaching 18 slots per day by February 1, 2024.
• Trans-Pacific East Bound (TPEB) services to New York are experiencing delays, primarily attributed to substantial reductions in daily ship crossings through the Panama Canal.

Click on the link below for more information on ocean!

November U.S. Port and Rail Status Update