Freightos

🚢 🛫 How Tariffs Impact Container Markets? In 2018, the Trump administration’s tariffs on Chinese goods caused a major shift in ocean freight rates. Importers rushed to beat the tariff deadlines, and Freightos data showed container rates from Asia to the US West Coast doubled. "If Trump wins the election, we are likely to see an immediate increase in import volumes as importers will want to fast-track some cargo in anticipation of new tariffs. Historically, this kind of demand spike has resulted in a sharp increase in freight rates." More from Judah Levine Head of Research's interview with CNBC's Lori Ann LaRocco is at the first comment

🔎 Market Snapshot: October Strike Threat Looms for U.S. Ports The rapidly approaching Sep 30th expiration of the current ILA port worker union’s contract with USMX port operators at East Coast and Gulf ports in the US and the possibility of a labor strike may be the top concern for many N. American supply chain stakeholders right now. This short video update provides  the latest on where things stands and the possible implications if a strike does happen, including: 🔹 Current negotiations status and sticking points 🔹 Possible impact of a strike on holiday inventories 🔹 How work stoppages could affect operations, congestion and freight rates on both coasts 🔹 Expectations for the recovery duration once a strike ends  🔹 Possibilities and likelihood of government intervention #freightrate #logistics #airfreight

Here are the key insights from this week’s Freightos Weekly Update: 🌊 Ocean rates from Asia to Europe are now 20% lower than in mid-July, likely signaling the early end to this year’s peak season. Container import volumes to the US likely peaked – a little earlier than usual and at a near record level – in August and are projected to dip slightly in September and significantly in October. This pull forward in demand was partly motivated by shippers trying to get ahead of a possible ILA port worker strike at East Coast and Gulf ports on October 1st. Ocean rates are likely to decrease significantly from Asia to the East Coast soon as it is too late to receive goods before the end of the month, but prices may be more buoyant to the West Coast as demand shifts there. The ILA and port operators are far apart on issues like wages and automation, and negotiations are suspended with just three weeks remaining. Significant front loading may mean a strike will not have a widespread impact on holiday season inventories. But a strike would strand containers, tie up capacity, create backlogs and lead to spiking rates and congestion at West Coast alternatives – all of which will get worse and take longer to unwind the longer the strike lasts. The ILA has hinted that West Coast unions may refuse to process diverted vessels out of solidarity, which would only make disruptions worse. Though the White House could order an 80-day cooling off period – unlikely in an election year – the ILA says it would deliberately slow operations if forced back to work. Last week’s typhoon is leading to ocean delays out of Vietnam, and rain closed some container terminals in Hong Kong over the weekend. ✈ In air cargo, Air Canada is bracing for disruptions from a possible pilot strike next week, and the e-commerce surge is now having an impact beyond China, with reports of congestion at other east Asian hubs. You can check out the full weekly update via the link in the first comment below.

Freightos founder & CEO Zvi Schreiber talks to CNBC's Frank Holland on the impact of a potential U.S. East & Gulf coast port strike this fall on shipping costs and the supply chain. Listen here: https://lnkd.in/dTXi9tJa #freight #supplychain #freightrate

We’re excited to share an article recently published on Aviation Pros: "How Connectivity and Technology Improve Cargo Logistics," by Mario Pierobon. This piece brings together insights from industry experts, including our own Chief Revenue Officer, Manuel Galindo, who highlights how network connectivity and real-time data exchange are key to boosting efficiency and service quality in logistics. As Manel puts it, "Connectivity all depends on speed: the faster different stakeholders can move information, the more efficient the market becomes, and the better service all parties receive—from the forwarder, to the forwarder’s clients, to the airlines." Link to the full interview is in the first comment

Just in - the latest on Typhoon Yagi from Freightos Head of Research Judah Levine.

Here are the key insights from this week’s Freightos Weekly Update: 🌊 Ocean rates out Asia eased last week across the major lanes. For volumes to N. Europe and Mediterranean, Red Sea diversions mean the window to ship and receive goods before the holiday season is closing, likely leading to decreasing demand and rates that are 10% and 19% lower than their July peaks, respectively. Demand that is likely past its peak for the year, as well as increases in capacity have prices to the US West Coast 15% lower than in July. But a shift of volumes from the East Coast in anticipation of a possible port worker strike in October is keeping West Coast logistics busy nonetheless, with some carriers even adding sailings in the coming weeks. Improving ocean logistics conditions out of India’s west coast faces new challenges from last week’s floods, leading to new backlogs in Mundra. 🚢 Port congestion is still above normal levels at some East Asian hubs. But better distribution of transhipment volumes that caused severe congestion back in May is one factor leading to more manageable wait times. 🛫 Cross-border e-commerce volumes continue to be a major driver of air cargo demand and elevated rates. Prices out of China were $5.12/kg to N. America last week and $3.61/kg to Europe. You can check out the full weekly update by clicking on the link in the first comment below.

"E-commerce needs shared trust, responsibility across supply chain" An article by Libin Chacko Kurian in STAT Times Magazine, explores the rapid growth of the global air cargo market, particularly fueled by e-commerce. As this sector continues to expand, the industry is under increasing pressure to enhance logistics and customs operations, highlighting the need for greater maturity and shared responsibility across the supply chain. With July 2024 marking the eighth consecutive month of double-digit year-on-year growth, the market shows no signs of slowing down as it heads into peak season, according to International Air Transport Association (IATA). Judah Levine, Head of Research at Freightos, sheds light on the implications of this growth for traditional shippers and forwarders. “There is concern that the mid-sized forwarders were going to be squeezed out of the contract market or the contracts that they had won't be honoured when capacity gets tight,” Levine stated. He also highlighted that air freight rates have stayed high throughout the year, as e-commerce giants like Temu and Shein secure large amounts of capacity, creating challenges for other players in securing space and maintaining profitability. Link to the full article is in the first comment #aircargo #freightrate

🎾 What’s the connection between Wimbledon and global shipping? More than you might think! In his latest blog, Ian A. Arroyo, Freightos' Chief of Strategy, draws a powerful analogy between the evolution of tennis and the urgent need for modernization in ocean freight. Just as wooden rackets gave way to carbon fiber, ocean carriers must trade outdated tools for digital solutions to stay competitive in today’s fast-paced market. Explore how the right tools can change the game for ocean freight, just like they did for tennis. The link to the blog post is in the first comment. #SupplyChain #Logistics #OceanFreight

📝 Poll: Are container freight contract derivatives the answer to managing market volatility? Freightos' Head of Research, Judah Levine, recently discussed with @Helen Atkinson, Managing Editor at SupplyChainBrain how bulk shipping shifted to floating contracts back in 2008. "Parties can decide how much rate exposure they want to take on through contracts and how much they want to hedge with derivatives," Judah noted. However, these markets take time to mature, and reliable price discovery is crucial to avoid disputes over rate settings and hedging strategies. This underscores the importance of attaching contracts to reputable freight rate indexes like the Container Trades Statistics Limited (CTS) Statistics Index or the Freightos Baltic Index (FBX). Read more here: https://lnkd.in/dNVqCyBb Or watch our latest webinar, "Ocean Container Contracts: Perennial Flaws, and Potential Solutions," featuring Judah Levine and Peter Stallion from Braemar:  https://lnkd.in/diqPtjZy