CARM: What all importers need to know about CARM

Universal Logistics - Take The Right Route Logo with 70 Years Badge

Route Article

Ocean & Air Freight market update

Ocean Freight Market Update - Route Newsletter: September 2023

Ocean Freight:

The Asia Pacific market continues on its decline, with demand slipping further in advance of China’s Golden Week holiday during the first week in October.  Ocean carriers are being forced to cancel sailings from Asia with little or no notice.  At the end of August, carriers had cut just 3% of capacity during the four-week period that comprises Golden Week and the three weeks that follow.  However, in the last two weeks, carriers have announced an additional 29 blank sailings.

In recent years, lines have become increasingly dynamic in how they stop rates from plunging, using blank sailings (announcing cancellations much closer to the voyage date than in the past), as well as slow steaming (decreasing speed of vessels to conserve fuel) and suspending services.

As of mid-September, THE Alliance is suspending one of their transpacific loops (PN3 – from Asia to the West Coast of North America) effective October 1st, in order to balance supply with decreasing demand.  This takes approximately 11,400 TEUs of space out of the market.  Many carriers are also expecting deliveries of new ships expected to be phased into usage towards the end of the year, which is making issues worse, forcing carriers to cut capacity even more aggressively.  There are no meaningful indicators in the market that there will be a peak season this year.

The Europe to North America market continues in a similar trajectory.  Rates are now below pre-pandemic levels and there is still no signal from the market that this is going to change.  Space and equipment continue to be fluid, however, if the downturn continues, carriers will have to be creative in how they try to keep rates from slipping.

Air Freight Market Update - Route Newsletter: September 2023

Air Freight:

The air cargo market continues to be stagnant and due to the global economic downturn, there are no indications that there will be a strong peak season in Q4.  Industry analyst CLIVE Data Services said that of the 10 major trade lanes assessed in the past month, only China – U.S. and Southeast Asia – U.S. recorded growth, with air cargo spot rates up 3% and 4% on these corridors.  Rates out of China may rise slightly mid-October, with electronics giants such as Apple and Hewlett-Packard shipping in volume into North America.

For more information, contact Debbie McGuire, Director – Freight Solutions or Cathy Fong, Director – Freight Pricing.

Quick Tip #24
Are you using the latest Incoterms?

Make sure your contracts of sale include the appropriate trade term in conjunction with the words “Incoterms 2010”, which came into effect January 2011.

Switch to a Logistics
Partner Who Cares

Click the button below to find out why we’ve been Canada’s most trusted freight forwarder and customs broker for over 75 years.

Professional business people team meeting and working in corporate office concept

Register now to learn more about our

101 Logistics Quick Tips

Available exclusively from Universal Logistics