Market Review: September

The global freight market in September continues to face challenges across all modes, with capacity constraints, geopolitical factors, and labour unrest driving rate fluctuations and schedule disruptions.

Global demand for freight services remains elevated, driven by strong trade volumes from Asia and seasonal peaks. However, labour disputes, regulatory changes, and capacity shortages are expected to cause significant volatility as 2024 moves towards its final quarter.

AIR
Demand remains robust, particularly due to strong eCommerce growth. Rising demand in the Asia-Pacific region is driving up spot rates, particularly on routes to Europe and North America. T

The peak season is expected to exacerbate these capacity constraints. Recent security measures introduced by the US and Canada have further pressured air carriers, requiring additional compliance and screening measures for incoming cargo.

– Global airfreight capacity increased by 8% year-on-year but remains constrained.
– Spot rates from China to Europe increased by 18% in early September, driven by strong demand.
– Rising trans-Pacific rates are putting pressure on capacity, particularly on routes into North America.
– Security protocols are causing delays, especially in European and North American trade lanes.

SEA
The ocean freight market continues to face significant challenges due to capacity constraints, equipment shortages, and industrial unrest. Strike action looms on the US East Coast, threatening to push up rates further as shippers rush to move goods. 

Despite these disruptions, strong demand from Asia continues to drive freight volumes, with rates stabilising, although still significantly above pre-pandemic levels.

– Canadian rail strikes and the threat of US port strikes add pressure to global supply chains.
– The Asia-to-Europe trade lane is experiencing sustained high demand, despite slight declines in rates.
– Equipment shortages, particularly in Brazil and India, are limiting the flow of goods.
– Global schedule reliability has dropped to 52%, with an average vessel delay of 5.24 days.

ROAD
The haulage sector saw a 3.5% month-on-month increase, driven by higher demand and operational costs. Despite these gains, ongoing labour shortages and fuel price volatility are adding pressure to the market, with further adjustments likely in the coming months.

– Haulage prices rose by 9.5% year-on-year due to increased demand and high fuel costs.
– Courier rates grew by 3% year-on-year, reflecting stable but growing demand.
– The haulage sector showed stronger momentum, particularly in long-haul transport.
Fuel costs and labour shortages continue to exert pricing pressure on the road freight sector.

We continuously monitor the evolving logistics environment, to share breaking news and developments, so that you can make the informed decisions that will protect your supply chain.

To discuss any of the issues highlighted here, or to discover the value that PSP Worldwide would bring to your supply chain, please EMAIL our managing director, Colin Redman.