The air cargo space between China and North America is in short supply due to strong e-commerce demand, surpassing the impact of the slow return of passenger flights and the important abdominal cargo capacity they have added to the eastbound route.
According to the Baltic Air Freight Index (BAI), due to tight space, the freight rates between China and North America increased by 15% in the first three weeks of October, reaching the current level of $5.42 per kilogram. Air freight analysts from the benchmark platform Xeneta stated that in the first two weeks of October, the passenger capacity of the Trans Pacific route departing from China was 89%, which means that the available space on the route is basically full.
Drewry's latest outlook for the consolidation market states that, The prospects for the consolidation market to reach equilibrium in the coming years are becoming increasingly bleak, It is expected that the entire industry will lose $15 billion next year.
Simon Heaney, Senior Research Manager of Drewry Container Transportation, gave a "pessimistic" outlook for the container transportation industry, predicting that the global average freight rate (calculated by combining spot and long-term freight) will decrease by 60% this year and 33% by 2024.
Recently, the Amazon region in Brazil has experienced severe drought, with water levels in multiple rivers reaching historic lows, logistics being hindered, and the lives of urban residents along the rivers have been greatly affected. Due to the low water level, some tributaries of the Brazilian "mother river" - the Amazon River have been cut off, The freight capacity of some major tributaries has also significantly decreased. The Amazon River, located in northern South America, is the second longest river in the world, It is the river with the largest flow and the most tributaries in the world.
Herbert announced the formation of a new joint venture with the Brazilian shipping and waterway logistics company Norsul - Northeast.
Based on a 50-50 partnership, Northeast plans to begin providing container coastal transportation and feeder services at Brazilian ports in the first quarter of 2024.
Northeast will leverage the advantages of its two parent companies to operate independently in the region.