Introduction

As we approach the end of 2022, the global freight market continues to evolve, presenting both challenges and opportunities for businesses involved in international trade. In this comprehensive update, we’ll explore the latest trends across ocean freight, air freight, trucking, and customs regulations. We’ll also discuss how FreightAmigo’s digital logistics platform can help you navigate these changing market conditions efficiently.

Key highlights from recent market developments include:

• Softening rates and increased blank sailings in ocean freight
• Fluctuating demand and capacity in air freight
• Ongoing congestion issues at certain ports and rail hubs
• Anticipated trucking rate increases for 2023
• Extensions of Section 301 tariff exclusions

Ocean Freight Market Update

Asia to North America (Transpacific Eastbound)

The Transpacific Eastbound (TPEB) trade lane is experiencing significant changes as we move into the new year. Rates to the U.S. East Coast (USEC) continue to soften, while those to the U.S. West Coast (USWC) are showing signs of stabilization. Ocean carriers have announced more blank sailings for Q1 2023, particularly in the weeks leading up to Lunar New Year. This strategy aims to manage excess capacity and improve schedule reliability by easing port and terminal congestion.

For shippers using FreightAmigo’s Digital Platform, these market conditions underscore the importance of our real-time rate comparison and booking features. Our system allows you to easily identify the most competitive rates and available capacity, helping you make informed decisions in a fluctuating market.

Asia to Europe (Far East Westbound)

The Far East Westbound (FEWB) trade has seen a positive increase in demand and booking intake since week 48. Combined with a higher number of blank sailings, this has resulted in tighter space availability leading up to the pre-Lunar New Year period. While rates are still under pressure, they are not decreasing as dramatically due to a more balanced supply and demand situation.

FreightAmigo’s Digital Logistics Solution can help you navigate these changes by providing up-to-date information on available space and rates across multiple carriers. Our platform’s ability to compare door-to-door freight quotes for various modes of transport becomes particularly valuable in such a dynamic market.

Europe to North America (Transatlantic Westbound)

The Transatlantic Westbound (TAWB) trade is set to see a significant capacity increase, with an average growth of 30%. This expansion is primarily due to larger vessels entering the Northern Europe (NEUR) and Mediterranean (MED) market to the U.S. East Coast (USEC). New York and Savannah have been reinstated as weekly calls, which should help ease some of the congestion issues experienced in recent months.

As capacity increases and demand dips, rates are expected to decrease in the coming months. FreightAmigo’s automated shipment tracking and document management features can help you stay on top of these changes, ensuring your shipments are processed efficiently regardless of market fluctuations.

Air Freight Market Update

Asia

The air freight market in Asia is showing mixed trends across different regions:

• North China is seeing rising TPEB demand, expected to continue through the Christmas holiday, with rates increasing accordingly.
• South China’s market is picking up, with space becoming congested and rate levels increasing for both TPEB and FEWB.
• Taiwan’s market remains normal, except for capacity constraints to Los Angeles (LAX).
• Korea is experiencing a small peak in demand to USWC before the winter holidays, but the overall market remains soft.
• Southeast Asia’s export markets continue to be soft, with a trend of volumes switching back to ocean freight as reliability and rates stabilize.

FreightAmigo’s Digital Platform can help you navigate these regional differences by providing comprehensive visibility into air freight options across multiple carriers and routes. Our system allows you to compare rates and transit times, helping you make the most cost-effective and efficient choices for your shipments.

Europe

Demand out of Europe into main North American hubs has picked up slightly, as expected in the run-up to the holidays. Capacity into main hubs is tighter due to higher demand for shorter transit times and arrivals before the holiday break. Staff shortages, strikes, and unfavorable weather conditions in Amsterdam (AMS), Frankfurt (FRA), and London Heathrow (LHR) are expected to cause terminal congestion and delays.

In these challenging conditions, FreightAmigo’s 24/7 logistics expert support becomes invaluable. Our team can help you navigate potential disruptions and find alternative routing options when necessary.

Americas

Export demand remains steady from all markets in the Americas, with US airports running at a normal pace. Capacity is opening up further, especially into Europe, while rates remain stable week over week.

FreightAmigo’s Digital Logistics Solution can help you take advantage of this stability by providing easy access to competitive rates and available capacity across multiple carriers.

Trucking and Intermodal Update

Europe

The European trucking market is facing several challenges:

• Due to inflation and soaring operational costs, a General Rate Increase (GRI) of 10-15% is expected for 2023 (excluding fuel surcharge).
• Capacity remains fragile despite declining container volumes, caused by a continuous shortage of drivers and delayed delivery of newly ordered trucks.
• There’s an increasing interest among trucking carriers in alternative fuels (HVO, electric, and hydrogen) to decrease their CO2 footprint.

FreightAmigo’s Digital Platform can help you navigate these challenges by providing visibility into available trucking options and rates across Europe. Our system’s ability to compare different modes of transport becomes particularly valuable when considering alternatives to traditional trucking.

Americas

In the Americas, several trends are shaping the trucking and intermodal market:

• Congestion continues at Canadian ports and rail ramps, with high yard utilization in Vancouver.
• Memphis, Dallas, and Chicago are experiencing excessive rail dwell times and congestion (>14 days).
• Savannah, Houston, and Oakland are seeing increased congestion, vessel bunching, and multiple vessels at anchor.
• Highway diesel prices have dropped month-over-month across the board.
• US domestic truckload demand remains strong, despite talks of a freight recession.
• Spot truckload rates have fallen more than 40% since January’s high.

FreightAmigo’s Digital Logistics Solution can help you adapt to these market conditions by providing real-time visibility into trucking rates and capacity. Our platform’s ability to compare different routing options can help you find the most efficient and cost-effective solutions for your shipments.

Customs and Compliance News

USTR Extends 352 Section 301 Exclusions

The Office of the United States Trade Representative (USTR) has announced an extension of 352 Section 301 exclusions until September 30, 2023. This extension aligns with the ongoing comprehensive four-year review of the China Section 301 tariff actions.

FreightAmigo’s Digital Platform includes features to help you stay compliant with changing customs regulations. Our system can help you identify which of your products may be affected by these exclusions and adjust your shipping strategies accordingly.

FY23 Spending Bill Increases CBP Funding

The recently released omnibus spending bill for fiscal year 2023 includes increased funding for Customs and Border Protection (CBP). Notable provisions include:

• $101 million toward combating forced labor
• An additional $2.5 million to test implementation of blockchain and distributed ledger technologies to improve trade operations
• $20 million for innovative technologies

These investments in technology and enforcement are likely to impact customs processes in the coming year. FreightAmigo’s Digital Logistics Solution is designed to adapt to such changes, helping ensure your shipments remain compliant with evolving regulations.

Conclusion

As we navigate the complex and ever-changing global freight market, staying informed and adaptable is crucial. FreightAmigo’s Digital Platform is designed to help you do just that. By providing comprehensive visibility into rates, capacity, and routing options across multiple modes of transport, we enable you to make informed decisions that optimize your supply chain.

From comparing door-to-door freight quotes to automating shipment documents and providing 24/7 expert support, FreightAmigo’s Digital Logistics Solution offers the tools you need to thrive in today’s dynamic freight market. As we move into 2023, we remain committed to innovating and expanding our services to meet your evolving logistics needs.

Stay tuned for more updates, and don’t hesitate to reach out to our team for personalized assistance with your logistics challenges. Together, we can turn market fluctuations into opportunities for growth and efficiency.