Freight and Logistics News and Market Update

Air

• Logistics experts expect the air cargo sector’s busy season for cross-border shipping to continue in the first quarter of 2025. Historically, after the holiday rush is a period when volumes recede in the retail industry. However, recent Purchasing Manufacturing Index data indicates a global manufacturing slowdown and is elevating worries of weakening demand and renewed destocking. Nevertheless, economic factors remain somewhat favorable for air cargo, thanks to subdued inflation that is allowing a majority of regions and principal economies to avoid a recession.
• Lufthansa Cargo is expanding its transpacific network by introducing a direct freighter service from Vietnam to Los Angeles. This addition is part of broader carrier network updates aimed at increasing freighter capacity in the APAC export market, driven by rising eCommerce demand from Vietnam and other APAC hubs.
• Alaska’s Ted Stevens Anchorage International Airport (ANC) has announced five new cargo carriers operating with ANC as a transit hub. Awesome Cargo Airlines, Central Airlines, ASL, Aerologic and CMA CGM are the new additions, serving various North American destinations from a variety of APAC hubs including China, Hong Kong and South Korea.

Ocean

• In February 2025, Zim will restructure its cross-Atlantic routes by adding two weekly services. One service will link the Mediterranean to Canada and the US East Coast, while the other will connect Latin America and the Caribbean via Kingston, Jamaica. This change aims to enhance reliability and efficiency while meeting the increasing demand.
• Starting in February 2025, ONE will include Jacksonville in its EC2 service, establishing a direct connection to key Asian ports. Recent upgrades at JAXPORT, such as a deepened channel and expanded terminal capacity, enhance its position as a major logistics hub for the southeastern United States.
• Montreal unionized dockworkers will begin a partial strike on Thursday due to pay and scheduling issues. This could potentially cause delays during the holiday season. The Canadian Federation of Independent Businesses is urging government intervention to keep the port operational.

Air

• United Airlines is resuming its daily flights from Houston (IAH) to Santiago (SCL) at the end of October. The route is expected to meet the high demand of seasonal travel to South America as the summer season approaches.
• LATAM Airlines has announced a new order for ten Boeing 787-9 aircraft with the option for five additional jets. The increase will grow LATAM’s fleet of 787s to 52 aircraft by the end of 2029 across the group's subsidiaries in South America.

Ocean

• The UN predicts modest growth in maritime trade this year, as well as an uncertain future due to disruptions caused by conflict and climate change, such as the Panama Canal drought.
• MSC announced the acquisition of Wilson Sons in Brazil. Wilson Sons, a large port and maritime logistics operator, will help MSC to strengthen its presence in Brazil and the region more broadly. The deal is expected to be completed in the second half of 2025.

Air

• Air freight out of the APAC region remains strong during the standard peak season. Global manufacturing PMI numbers dipped below last year's levels for the first time in September, but ongoing eCommerce volume and new product launches have kept space tight, and rates elevated on APAC to North American and European routes.
• Hong Kong-based Cathay Pacific has announced an increase in cargo tonnage in September of +7% from 2023 as they predict a strong peak season ahead. Additionally, Hong Kong International Airport saw growth in September with a +10.2% increase year-over-year. Shipments between Hong Kong and Europe, Southeast Asia and the Middle East are contributing to the ongoing growth of the busiest cargo airport globally.

Ocean

• Intra-Asia shipping rates have surged recently due to blank sailings, increased post-holiday demand and typhoon-related congestion. Rates for key routes, like China to India, have tripled since early September. Major carriers, such as CMA CGM and Maersk, are capitalizing on this tighter market with peak season surcharges of $100 to $1,500 per container on various Asia routes.

Air

• A new cargo route connecting Zhengzhou Airport in China and Liège Airport in Belgium has been established, with four weekly Boeing 767-300 freighter flights. This route strengthens China-Europe connections, complementing its supply chain links across Asia, Europe and the US.
• Supply chains are facing disruptions following incidents in the UK and Germany, where incendiary devices were placed in parcels. Anti-terror investigations are underway, and countries like the US, Canada and Australia have tightened air cargo security regulations. Brandon Fried from the Airforwarders Association highlighted the potential for widespread delivery delays, particularly during the holiday season, and emphasized the need for collaboration within the freight industry to protect critical shipments, such as vaccines.
• The winter schedule for all the airlines started last week, showing airplanes reallocation on various trade lanes around the world. It leads to capacity reduction on flights over the transatlantic as capacity is being moved to APAC to support eCommerce growth.

Air

• The International Air Cargo Association (TIACA) and Saudi Arabia’s King Salman International Airport (KSI) have signed a strategic memorandum of understanding to promote and enhance the air cargo industry in Saudi Arabia. This will include training programs, innovation and sustainability for cargo leaders. The membership marks Saudi Arabia’s commitment to positioning itself as a leading logistics player globally.
• Qatar Airways Cargo and Qatar Postal Services Company, or Qatar Post, have signed a strategic agreement to provide efficient services to Qatar Post customers. The agreement includes competitive rates for shipments handled by Qatar Airways Cargo to Qatar Post. The strategic move focuses on bolstering Qatar Post’s logistics infrastructure with improved track and trace capabilities.
• Emirates SkyCargo has announced the addition of five Boeing 777 freighters to its air cargo fleet. Emirates is committed to meeting the growing global air cargo demand and develop its cargo capacity. The Five Boeing 777 freighters are scheduled for deliveries between 2025 and 2026.

Ocean

• Saudi Port Authority (Mawani) and Hamburg Port Authority have signed a memorandum of understanding to build sustainable ports equipped with advanced technologies, including technology digitalization and intelligent port solutions. The MoU will facilitate the sharing of knowledge and best practices to manage port operations and increase overall port efficiency.
• India’s Vizhinjam trans-shipment port has been integrated with new state-of-the-art technology, including modern radar systems and artificial intelligence (AI) technologies to optimize maritime operations and reduce turnaround times. An interconnected network of technology systems will monitor vessel movements in real-time. Vizhinjam port is aligned with India’s broader goals to promote and develop indigenous technology solutions to transform port operations.

Ground

• Easy Lease, a mobility solutions company, reported it has acquired a 51% stake in Gallega Global Logistics in the UAE. The acquisition provides Easy Lease with access to UAE’s logistics market and access to Gallega’s logistics infrastructure, which spans 3.5 million square feet to cater to the demands of the market.

• The Consumer Product Safety Commission (CPSC) has announced a final rule establishing mandatory performance and labeling standards for nursing pillows, set to take effect 180 days after October 25, 2023 (around April 25, 2025). This rule covers all nursing pillows designed to support infants during breastfeeding or bottle feeding. The CPSC clarified that slipcovers sold with nursing pillows are included under this rule, but soft infant and toddler carriers are not. The new regulations will require nursing pillows to meet product registration, testing and certification standards for durable infant or toddler products.
• Global Affairs Canada is seeking stakeholder views on additional measures to strengthen Canada’s import ban on all goods mined, manufactured or produced, wholly or in part, by forced labor.These measures aim to strengthen the requirements for proving transparency and traceability of goods, as well as to provide tools for robust enforcement, increasing the effectiveness of the current import prohibition regime in tackling exploitation in global supply chains. Learn more on the consultation and the participation details at international.gc.ca.
• Customs and Border Protection (CBP) has revamped its Forced Labor website, introducing significant upgrades.The site now includes a dedicated Forced Labor enforcement page that features statistics, dashboards and details on CBP’s enforcement actions, including the Uyghur Forced Labor Prevention Act (UFLPA), Withhold Release Orders (WRO) and the Countering America’s Adversaries Through Sanctions Act (CAATSA).
• Under specific circumstances, the Government of Canada will provide relief from the payment of surtaxes, or the refund of surtaxes already paid, on imports from China of the following products:
  • Electric Vehicles, effective October 1, 2024
  • Steel and aluminum, effective October 22, 2024.
  The federal government will also consider the appropriate duration of remission, with the intent to provide it on a transitional basis only in most cases. Remission may also be applied retroactively to the date of implementation of the surtaxes. Any request for remission shall be addressed to remissions-remises@fin.gc.ca, and will be assessed by the Department of Finance in consultation with other relevant federal departments.