Global Aperture

Delegates of the G7 nations met this week to discuss pressing regional issues from the Russia-Ukraine War to reshoring cooperation with China. The upcoming ASEAN and East Asia Summits will likely shed more light on inter-bloc trade and economic policy as EU and US leaders join in the conferences.

Trade analysts report slashes across the board for ocean freight capacity due to outright service suspensions. In a recent interview, Maersk CEO projected “plenty of dark clouds on the horizon,” alluding to future economic sentiment and consumer demand.

There’s (year-over-year) deflation in the air cargo market, says some industry data firms. Others say there may not be a peak season this winter. But softening volumes are more significant than they appear—outbound volumes ex-APAC to Europe and Americas pushed stronger in the second-half of October, notes data firm WorldACD.

Americas

Congestion on the East Coast and in Houston continue; the latter’s port authority will issue a container dwell fee this December if matters persist. The Mississippi stoppages spread from St. Louis to as far north as Ohio. Transpacific trade lanes get more than the usual trimmed sailings with over 1 million TEUs of boxship capacity benched, and three terminals at the Port of Oakland were held up on November 2 due to a standalone ILWU work stoppage.

The skies are open, but the region’s air cargo sector is bracing for a demand slump after new US data revealed a trade deficit of $73.3 billion for the month of September—widened by increases in consumer electronic imports, while the dollar’s strong exchange value petered exports.

In Brazil, the Bahia municipality approves a decision to construct three factories for a Chinese auto brand—intended to manufacture vehicle chassis in addition to processing lithium and iron phosphate.

Asia-Pacific

Due to strong headwinds and payload issues, Cathay Pacific may once again route long-haul flights through Russian airspace. The decision will cut return flight times by almost three hours. Gloomy outlook grounds the planned launch of a Vietnamese cargo airline.

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