Freight Market Update: November 11, 2024

AIR FREIGHT

Europe and Americas record air cargo sales declines in 2024, while Asia, Middle East and Africa see strong growth

• In the first nine months of this year, all six major air cargo regions experienced year-on-year (YoY) growth in outbound chargeable weight, but Europe and North America saw declines in overall air cargo sales.

• North America reported a 12% drop in sales despite a 4% increase in chargeable weight, due to a 15% decrease in average rates. Europe faced an even sharper 16% decline in sales, despite an 8% increase in weight, driven by a 22% drop in rates. Conversely, regions like the Middle East & South Asia (+62%), Asia Pacific (+23%), and Africa (+9%) enjoyed significant sales growth, attributed to rising tonnages and rates.

• In September, general cargo air tonnages grew by 13% yoy from January to September, outpacing special cargo's 10% growth, driven mainly by a surge in cross-border e-commerce. Special cargo made up 35% of the total market, with Asia Pacific contributing 71% of global YoY growth in this category.

Source: WorldACD​_________________________________________

OCEAN FREIGHT​

US export market navigating ‘disruptive’ peak season amid ag shipment growth

• The U.S. export market is encountering operational challenges during the peak season for agricultural commodities, with delays at ports and inland hubs complicating equipment availability and berthing schedules. Shippers are reporting increased slowdowns at key inland gateways like Minneapolis and Omaha, attributed to seasonality, labor disruptions, and carrier practices such as blank and slower sailings.

• Despite these issues, agricultural export volumes have recently grown, with a 12.5% yoy increase in containerized agricultural exports reported for August. However, trans-Pacific westbound shipping reliability dipped slightly from 64.8% in August to 63.6% in September, the first decline since April. Exporters are particularly concerned about congestion at the ports of Los Angeles and Long Beach, where rail service issues and unstable sailing schedules are exacerbating delays.

• Additionally, average dwell times for rail-bound containers at these West Coast ports reached 9.25 days in September, the highest since October 2022. Meanwhile, export rates from the East Coast to North Asia have softened, down 11% as of the week 24th Oct compared with the previous week. West Coast rates remained. stable

• Although shipping schedules disrupted by a recent strike at East and Gulf Coast ports are expected to normalize, this recovery hinges on East Coast exports rebounding to pre-strike levels while West Coast ports work through existing backlogs.

The spot rate trend for USEC/USWC to North Asia

Source: JOC