2-minute rundown on what’s happening with Asia-Pac freight this month

Global PMI New Export Orders Index dropped from 48.5 to 48.3 in December, indicating reduced trade across manufacturing and service sectors.

Manufacturing export orders declined for 22 consecutive months, while services trade slightly worsened for the fourth month. Despite rate cut expectations, demand for goods remains low due to past inflation concerns.

EU, especially France and Germany, saw a decline in new orders, while major emerging markets (India, China, Russia, Brazil) performed positively. India stands out with improved trade conditions, reaching a three-month high in overall new orders in December.

Air freight market slows ahead of Chinese New Year, with limited shifts from ocean to air freight and sluggish demand.

Airlines anticipate flight cancellations during the Chinese New Year holiday due to reduced cargo volumes, posing challenges for the industry.

Some manufacturers take an early holiday starting February 1 due to declining orders in China, impacting the export market rhythm in February.

Maersk and Hapag-Lloyd form "Gemini Cooperation" alliance, debuting in February 2025 with a fleet pool of 290 vessels and a capacity of 3.4 million TEUs. Maersk commands 60%, Hapag-Lloyd 40% of the alliance, causing industry experts to anticipate potential disruptions in THE alliance.

Carriers deploy extra vessels before the Chinese New Year cargo rush to counter forced blank sailings, but a 35% capacity withdrawal looms during CNY weeks 8, 9, and 10.

Red Sea blockade continues, prompting carriers to avoid the Suez Canal route, leading to surcharge surges on Asia-USA shipping routes until at least the Lunar New Year rush.