What’s happening with Asia-Pac freight this month?

The Global PMI Composite Output Index improved slightly from 50 in October to 50.4 in November, driven by growth in the service sector while manufacturing continued to contract.

The US Consumer Price Index dropped to 3.1 in November, signalling positive developments. However, concerns arise from near-stagnant employment growth, potentially offsetting the lower CPI's positive impact. Geopolitical events, including conflicts, may influence global economic conditions in 2024.

E-commerce air freight demand has slowed since mid-December, particularly for shipments to the United States and Europe.

Recent Red Sea disruptions may lead to increased ocean freight rates and potential shifts to air freight, especially for EU and US East Coast destinations.

Volcanic eruption in Iceland may impact air freight to Europe, with carriers expected to reduce payload or potentially cancel flights, causing tight capacity and higher rates.

All Water routes to the US East Coast face more stringent space constraints due to the Panama Canal's low-water level issue.

Major shipping alliances temporarily halted voyages after a missile attack, affecting THE, 2M, and Ocean Alliance, raising awareness about potential consequences of a Suez Canal blockage.

DP World Terminals in Australia face prolonged industrial action, causing challenges in schedule integrity, space constraints, and elevated rates, extending beyond the initial anticipation.