Did You Know That…

• Asia-Europe Container Rates on the Rise: Spot rates on Asia-Europe lanes have surged nearly a third in three weeks, coinciding with 2025 annual contract negotiations. While rates remain high, carriers are planning another general rate increase mid-month.

• Market Update from FS International (Shanghai): Despite November’s rate hikes, carriers quickly reduced prices due to weak cargo volumes. Rates currently range between USD 4,000–4,200 per 40HQ container. Another hike may be attempted in December, though limited cargo volume could make it unsustainable.

• FS South China on Rising Rates: The upcoming peak season in Europe and the U.S., along with “Black Friday” inventory replenishment, is driving freight rates upward. Geopolitical issues and disruptions in shipping lanes further fuel the increases. Multiple carriers, including MSC, HPL, CMA, and MSK, have announced rate hikes on various global routes.

• Transpacific Weakness Slows Rebound: Asia-US west coast spot rates dropped 12% this week, reflecting weak demand despite cargo frontloading. Asia-Europe rates also faltered earlier but saw gains on Friday following a mid-month rate increase.

• Port Strikes and Tariff Concerns Boost US Imports: Importers are frontloading cargo due to potential port strikes and tariff fears. The National Retail Federation has raised its U.S. import forecast for Q4 2024.

• East Coast Port Strike Threat: Talks between the ILA and USMX broke down over automation disputes, raising the risk of a January strike. Automation remains a contentious issue in labor negotiations.

• China Faces Economic Pressure: With a fragile property market and low consumer confidence post-COVID, China is grappling with trade war threats and economic deflation. Factory-gate prices have dropped for 25 consecutive months.

• Latin America’s New Gateway: Cosco Shipping has begun operations at Peru’s Chancay Terminal, the first Chinese-operated green and smart port in Latin America. It strengthens trade ties under the Belt and Road Initiative.

• New Cargo Airport in Azerbaijan: Silk Way Group unveiled plans for a new cargo airport in the Alat Free Economic Zone during COP29.

• Milestone for China-Europe Freight Trains: The 100,000th China-Europe freight train is en route, carrying diverse goods including electronics and auto parts.

• Montreal Port Operations Resume: Following a labor dispute and government intervention, port operations are set to resume Saturday after a lockout halted services.

• German Economy Weakens Hamburg Trade: A sluggish economy and geopolitical conflicts have led to a 3% decline in Hamburg’s seaborne trade through the first nine months of 2024.

• Schneider’s New Intermodal Service: Starting December, Schneider will link Mexico, Texas, Florida, and Georgia markets through a new train lane developed in partnership with CSX and CPKC.

• CMA CGM’s Revenue Growth: The company reported a 38.5% revenue increase in Q3, benefiting from high volumes on major shipping routes.

• London Gateway’s Expansion: DP World launched a GBP 350 million all-electric fourth berth, advancing sustainable logistics.

• Hapag-Lloyd’s Gemini Network Adjustments: The new Maersk-Hapag-Lloyd alliance has excluded Felixstowe, opting for London Gateway instead to ensure reliability and speed.

• Indian Importers Face Rate Hikes: Container freight rates on Asia-India routes have more than doubled recently due to volatile market conditions.

• DP World Expands in Australia: The acquisition of Silk Logistics for A$174.5m strengthens DP World’s footprint in Asia-Pacific.

• Tesla and Trump’s Economic Impact: Companies across industries—from EVs to oil stocks—are thriving despite contrasting market forces under Trump’s policies.

• China Merchants Group’s ESG Standards: Amid turbulence, the group emphasizes reform and sustainability while expanding its Hong Kong presence.

• Amazon Drone Delivery in Arizona: Amazon has begun Prime Air drone deliveries in Phoenix’s West Valley area.

• BYD Surpasses Tesla in Quarterly Revenue: BYD reported $28bn in sales for Q3, overtaking Tesla’s $25bn.

• ByteDance Founder Becomes China’s Richest Man: Zhang Yiming’s wealth is estimated at $49bn, placing him atop China’s rich list.

• Saudi Arabia’s Mukaab Skyscraper: Construction has begun on the world’s largest building in Riyadh, a cube-shaped architectural marvel.

• Odd Facts:

  • Three out of five people lie at least once during a ten-minute conversation.
  • In India, opium-addicted parrots are raiding farmers’ poppy fields.

Have a great second half of the week ahead.