Global Outlook
- Composite PMI Output: Global Composite PMI Output climbs to 52.1 in February, up from 51.8 in January, marking its highest point since June 2023.
- Sector Growth: Manufacturing and services sectors both see growth, reaching their 9th and 7th highest levels respectively.
- US Consumer Price Index: Surge in US Consumer Price Index prompts the US Federal Reserve to delay anticipated rate cut from the second quarter to the summer months.
Air Freight Outlook
- Soaring Demand: Air freight market sees significant growth fueled by eCommerce shipments flooding South China's airports and expanding across other gateways in China.
- European Challenges: Ongoing Red Sea crisis and labour strikes at Lufthansa in Germany lead to heightened freight rates and limited capacity in the European market.
- BSAs Sold Out: Airlines finalize 2024 Block Space Agreements (BSAs), with all agreements to the United States and European destinations reported as sold out.
Ocean Freight Outlook
- TPM24 Conference Insights: Key discussions at TPM24 conference focus on long-term fixed-rate Service Contracts, FAK floating-rate Service Contracts, and rate disparities.
- Rate Disparities Widening: Disparity between FAK floating rates and fixed rates exceeds USD 2000/FEU for certain routes, leading to cautious negotiations among carriers, BCOs, and NVOCCs.
- Shipping Dynamics: Carriers adjust blank-sailing strategies post-Chinese New Year to address lower container filling rates, optimize fleet deployments to accommodate pre-festival cargo demand.
There's a lot more happening in the global freight market. Find out more in our monthly report.
