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The December edition of Arrive’s Freight Market Update is here. This month, David Spencer, Arrive’s VP of Market Intelligence, shares that capacity is exiting the market more slowly than predicted, potentially driving rate recovery further into the new year. Read more about the current market below and let us know your predictions in the comments. #ArriveInsights #SupplyChain #Logistics https://lnkd.in/g26DBKsd

🛫 Air cargo usually suffers from excess wide-body capacity due to so many airlines adding international flights (think USA-Europe) and at the same time, a typical lull in manufacturing and often retooling of plants causing cargo demand to suppress in June, July and August. These opposite factors, an increase in supply and a decrease in demand usually spell trouble for air cargo carriers in the summer months with yields falling to their lowest levels of the year, and freight-forwarders usually trying to capitalize and renegotiate contract rates at this time to prepare for the fall months uptick in demand. So what's different about this year in particular? I believe that the increase in economic activity is perhaps a final rush in production before many elections take place. 2024 is by all means an election year in so many countries, not just the US (https://lnkd.in/gmEXJ-Yz). 8 of the 10 largest world economies will be voting this year. So the uncertainty of the future and the new world order, is almost a hedging that goods and products must be shipped now to get to where they need to be while the market remains "predictable", especially ahead of the holiday season. Already we've seen how countries, like the US and EU, are implementing tariffs against Chinese goods due to trade distortions. In addition, the near-shoring of production to 'safer', closer countries like Mexico is already causing the trade flows between Mexico and the US to hit their highest levels ever. So essentially one could argue that the supply chain in it's current form is about to be re-invented. What do you think? Are we on the precipice of change in the world supply chain? 👍 - YES 👏 - NO 💡 - Unsure

January’s Freight Market Update has arrived! Holiday season freight trends followed typical seasonality. Meanwhile, capacity continues its slow march out of the market, and declining fuel prices could further extend downcycle. Read the full report to get the details plus the latest on rates, volume, multimodal markets, and other critical trends to watch. #ArriveInsights #SupplyChain #Trends https://lnkd.in/g7BbPs4t

The April edition of the Arrive Freight Market Update is available now! Soft market conditions continued in March due to slow capacity exits, flat demand and no significant disruptions. But with produce season ramping up and the 100 Days of Summer fast approaching, we’re expecting some regional volatility, with rates potentially increasing. Read the full report and get up to speed on everything you need to know regarding the future state of freight market. https://lnkd.in/ghzujJR2 #ArriveInsights #MarketUpdate

Riding the wave of change: Uncover the silver lining in soaring ocean freight rates Ocean freight container spot prices on the world's main trades have climbed dramatically since the beginning of May, raising the prospect that the peak season has come early in 2024. There are several explanations for these rate rises, and the rate at which they have occurred has prompted market concern. Demand hit record highs in Q1 2024, up 9.2% from Q1 2023, and comes at a time when the Red Sea crisis is putting further strain on shipping capacity. But more importantly, this is happening while shippers are still remembering the turmoil of port congestion and a lack of available capacity during the Covid-19 outbreak. Come hell or high water, we’ve got to deal with this situation. Here are some tips that A Plus can recommend for you to manage freight costs and shipping efficiencies: 1. Ship on off-peak days: Shipping on off-peak days might result in considerable savings. For example, Fridays are often slower days for delivering consumer items since most shops want to have their products on shelves before the weekend. Similarly, Mondays are less busy for carriers, so they may be more willing to negotiate pricing. 2. Offer later pick-up times: Allowing carriers to pick up your freight after most other shippers have closed for the day, like between 6 and 12 p.m., gives them the opportunity to convert your cargo into a backhaul. This means they may load your freight onto their vehicle after finishing another delivery, rather than making a separate journey. It's a win-win situation since it lets the carrier optimize their assets while saving you money. 3. Maximize your carrier capacity: Consider how you package and show your freight to transporters. By making changes to the loading and handling operations, you may assist the carrier in maximizing the capacity of their trucks and perhaps cutting expenses. For example, if you transport delicate items that require specific pallets, you will be charged for extra room in the carrier's van. Consider the general design of your pallets; ensure they are uniformly packed to allow for effective stacking. Just keep in mind that the above recommendation works depending on the cargo and the carrier’s schedule. A Plus do hope that this post can give you a hand to overcome this tough break. If you have other opinions, please feel free to share your thoughts in the comments below. How is your business adapting to the changing face of international commerce so far? #aplus #InternationalTrade #FreightIncrease #Sustainability

💡 Sharing a pro tip today! 🌟 One thing I've learned from my time in the logistics and air cargo industry is to always stay prepared for the peak season surge. The growing e-commerce industry combined with rising global trade volumes has significantly increased air cargo demand, especially during peak season. This means more pressure on supply chains and potentially higher costs. This simple yet effective strategy of planning ahead and staying prepared for the surge has helped me ensure smooth operations and customer satisfaction even during the busiest times of the year. #AirCargo #Logistics #PeakSeason #SupplyChain https://lnkd.in/g7m9D5NN

The air cargo market has seen a significant surge in the early months of 2024, fueled by e-commerce demand from Asia and disruptions in ocean freight routes due to the #RedSea conflict: https://lnkd.in/eDaTrfvd Despite previous industry lows, this increase, including a notable 13% rise in shipping demand, has been propelled by extended transits for ocean freight and robust e-commerce volumes. COGISTICS Transportation offers tailored logistics solutions to meet the shifting demands driven by e-commerce growth and manufacturing needs. With our expertise, we ensure efficient and timely deliveries, optimizing #expedited air freight strategies to adapt to current trends and uncertainties. https://lnkd.in/gPtfzJTx

Air logistics companies are grudgingly writing off the traditional peak season as weak macroeconomic conditions drag out the freight downturn longer than expected. Low rates will carry over into next year, even if demand eventually picks up, because many businesses are negotiating contracts to lock in low prices instead of shopping for one-time quotes when ready to ship, analysts say. Read on to learn more! https://hubs.la/Q0229Z910

The current surge in air cargo demand, driven by e-commerce and maritime constraints, may not translate into expected peak season growth. Many shippers are advancing their orders to avoid delays, potentially reducing peak season activity. This increased reliance on air cargo, amid tight capacity, is already driving up costs. For a supply chain director, this trend indicates a need for strategic planning to mitigate higher logistics costs and secure capacity for critical shipments during the upcoming peak season. Anticipating and managing these cost pressures will be crucial for maintaining supply chain efficiency. #supplychain

"As anticipated, the summer peak season created spot market volatility without much disruption to contractual service levels," said Arrive's VP of Market Intelligence David Spencer. "The gap between spot and contract rates is still large and driving downward pressure on contract rates." The August 2023 edition of the Arrive Market Update is here! David Spencer shares his insights on recent market trends to help our transportation partners better manage their freight. #ArriveInsights #Logistics #FreightBrokerage