Surging air freight, blank sailings, and the impending strike on the USA East Coast are all part of the impending disruptions that customers should be aware of.
This is the gist of the October 2024 – Asia-Pacific Monthly Freight Report released by Dimerco, a leading global logistics and supply chain provider.
The report provides crucial insights into the evolving freight market dynamics across the Asia-Pacific region and beyond covering economic conditions, air and ocean freight outlooks, and major challenges that will shape global trade as 2024 enters its 4th Quarter.
As global supply chains continue to struggle under economic strain, the report offers a critical analysis of the challenges that will likely shape the freight landscape in the coming months.
From blank sailings in ocean freight to the ripple effects of potential dockworker strikes in the East Coast of the USA, businesses around the world must prepare for a period of uncertainty as peak shipping season approaches.
Key Insights from the Report:
- Global Manufacturing Contraction:
The Global Manufacturing PMI declined to 49.5 in August, continuing its contractionary trend. The decline reflects weakening demand and a broad slowdown in both developed and emerging markets, with China’s export figures falling for the first time in 2024. - Air Freight Surge Expected:
Air freight volumes are set to surge, driven by preparations for major online shopping festivals and a potential USA dockworker strike on October 1. The report anticipates tightening capacity across Intra-Asia routes, with air freight expected to absorb much of the overflow from ocean freight in response to labor disruptions. - Ocean Freight Disruptions and Falling Rates:
Blank sailings (canceled voyages) are set to disrupt shipping, with a 1.5x increase in cancellations between late September and October. However, ocean freight rates, particularly on Trans-Pacific Eastbound (TPEB) and Europe-bound routes, are dropping as carriers deploy extra loaders to handle early shipments ahead of China’s Golden Week. The potential East and Gulf Coast port strike in the USA is further accelerating cargo movements. - Spotlight on Southeast Asia and China:
Southeast Asia and China are expected to experience significant freight shifts during Golden Week, with tight capacity anticipated on both air and ocean routes. Taiwan’s high-tech sectors continue to drive exports, despite slowing eCommerce demand and broader economic pressures. - Potential USA East Coast Labor Strike:
The potential International Longshoremen’s Association (ILA) strike on the USA East and Gulf Coasts looms large. A strike could impact up to 49% of USA imports. In response, companies are rerouting shipments to the West Coast to preempt disruptions - The report provides insights into how these contingency plans are unfolding as global trade braces for the potential impact.
Dimerco’s Perspective & Solution
“As we approach the final quarter of 2024, the freight market is showing signs of increasing volatility,” said Kathy Liu, VP of Global Sales and Marketing at Dimerco Express Group.
“Our October report highlights the surge in air freight demand expected in the coming weeks, driven by peak season preparations and the potential disruption from U.S. port strikes.
Capacity across intra-Asia routes will tighten, and shippers must act swiftly to secure space, especially for high-value or time-sensitive cargo. Those who delay may face significant challenges as we head into the busiest period of the year.”
To assist customers in mitigating these risks, Dimerco Express Group is proactively offering a two-pronged solution that includes a dedicated Air/Truck service option and a Transloading & Trucking option. Further details of these options are available in Dimerco’s Strike Preparation Page.
Download the full report here
