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Freight Market Update: October 4, 2023

Updates from the global supply chain and logistics world | October 4, 2023

Freight Market Update: October 4, 2023

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Trends To Watch

  • [Weather - Asia] Typhoon Koinu is currently centered east of Southern Taiwan and is forecast to move west-northwest over the next several days. The typhoon is forecast to make landfall in southern Taiwan by the morning of Oct. 5 and continue to move westward across the Southern Taiwan Strait through Oct. 8 while weakening to a tropical storm. Air impacts: Starting on the night of Oct. 4 there will likely be flight delays and cancellations across Taiwan as the typhoon approaches, these delays will persist through Oct. 5 as the system moves westward over Southern Taiwan. Ocean impacts: Starting on Oct. 4 there will likely be vessel delays, especially in the south of Taiwan, with port closures likely at Kaohsiung. These delays/closures will persist through Oct. 5 before conditions return to normal as the system continues westward. As the storm moves westward across the Southern Taiwan Strait between Oct. 5-7 vessels transiting north/south along East China could be impacted.
  • [Ocean - FEWB] EUR trade: With soft demand and Golden Week impact, rates continue to drop. Ocean Alliance has announced 5 more void plans for Nov, the other alliances may still announce their own void plans even full service take-out over the rest of year. MED trade: demand has become weak, matching North Europe and there have been blank sailing announcements from all 3 alliances. Rates keep dropping and the spot rate is open again for WMED.
  • [Ocean - TAEB] New blank sailings across the trade and further reduction of contract rates is demonstrating the widely available capacity from U.S. coastal ports and Midwest rail ramps.
  • [Ocean - LATAM] Due to the ongoing drought situation in the Amazon region, ocean carriers have announced a Low Water Surcharge for all cargo going in and out of the Port of Manus in Brazil. Other carriers have pulled their service completely. Rio Negro’s water level fell by an average of 30 centimeters (11.8 inches) a day since mid-September and stood at 16.4 meters (54 feet) last week, approximately six meters below its level the same time last year.
  • [Air - Global] While general air cargo tonnage has seen a decline year-to-date, special air cargo product verticals have experienced growth according to WorldACD Market Data analysis. Despite a 7% drop in total worldwide chargeable weight from January to August 2023 compared to the same period in 2022, specific product categories such as vulnerable/high tech, live animals, perishables, and valuables have shown notable growth, with special cargo products overall growing by 3%.

N. America Vessel Dwell Times

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Upcoming Webinars

North America Platform Demo | Weds, October 11 @ 12:00 pm PT / 3:00 pm ET

North America Freight Market Update Live | Thurs, October 12 @ 9:00 am PT / 12:00 pm ET

The Week In News

[VIDEO] Watch: How COVID Changed the Shipping Industry — Forever

Innovations developed during the height of the pandemic are helping ecommerce logistics stay attractive to consumers who became accustomed to package tracking, easy returns, and more. This according to Jakki Krage Strako, Chief Commerce and Business Solutions Officer with the U.S. Postal Service. Consumers have taken their expectations back to the office and remain loyal to companies who provide the best support and service.

FMCSA Will Award $44M To Improve CDL Processes

The money is intended to help streamline the process of training and onboarding badly needed new drivers by increasing staffing at Commercial Driver License (CDL) training centers, improving cross-state reporting, and other moves to help bolster the supply chain. According to Transportation Secretary Pete Buttigieg, “With these grants, we are helping states bring more well-trained drivers into this essential field, strengthening our supply chains for years to come.”

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