Freightos

Trump’s plans for day-one 25% tariffs on Mexico and China is adding even more uncertainty for N. American trade and logistics. ??Here are the key insights from this week’s Freightos Weekly Update: President-elect Trump increased shipper concerns over tariff hikes this week by announcing he will impose a 25% tariff on all imports from Mexico and Canada his first day in office. The trade acts he used to introduce tariffs in his first administration require processes that prevent immediate tariff introductions, making January 20th changes unlikely. But his announcement will likely lead to an increase in cross-border road and rail rates as importers rush to beat tariff hikes. If these tariffs are introduced they will result in higher costs for importers that could be passed on to consumers, especially for goods where large shares of US imports come from Mexico and Canada like vehicles and auto parts. Transpacific ocean rates – that typically fall in November – have remained level and elevated above the $5,000/FEU mark since mid-October, with rates to the East Coast climbing past the $6k/FEU mark so far this week. This rate strength likely points to some frontloading by importers ahead of a possible ILA strike in January as well as likely tariff increases next year. Asia - Europe ocean rates increased 30% on early November GRIs but have remained at about that level since. Despite some carrier reports of a volume rebound, an increase in blank sailings, and an early Lunar New Year, many are skeptical that December GRIs aiming to push rates past the $6k/FEU mark will succeed. Some carriers announced that new EU emissions regulations will lead to Asia - Europe rate increases next year. Ex-China air cargo rates remain level despite expectations that this year’s peak season would push rates – already elevated by e-commerce demand – up to possibly extreme highs. #freightrate #airfreight #oceanfreight

See your data in a new light (literally!) ?? We've just launched 'Light Mode' on Freightos Terminal! Now, you can analyze rates and track trends in a light, bright and fresh view. #LightSideOfData #SupplyChain #Shipping

?? Today's press release: “Our strong third-quarter results highlight the transformative impact our platform is making in freight digitalization. We saw impressive growth in transaction volumes, driven by our expanding network of engaged buyers and sellers. The addition of Shipsta has further strengthened our solution portfolio and our customer base of enterprise shippers. We continued releasing product features at a high rate including AI-powered features that leverage our significant industry traction. These innovations underscore the growing reliance of the industry on digital solutions to bring transparency, efficiency, and resilience to global freight, a shift in which Freightos plays a pivotal role.” Zvi Schreiber, CEO of Freightos. Read the full press release here: https://lnkd.in/d7eCBcDP

?? Freightos LogTech updates- November 2024 Logistics professionals face unique challenges every day—from managing intricate supply chains to navigating market complexities. These hurdles continue to inspire groundbreaking innovations in logistics tech. In a recent article, Christian Wilhelm, Founder of Shipsta by Freightos, delves into the intricacies of logistics management and highlights how tailored freight procurement platforms are rising to meet the needs of the industry. Explore the article and other exciting tech developments driving the future of logistics here: https://lnkd.in/d72DYgAS

?? “Integrating the WebCargo by Freightos platform into our TMS helps forwarders to work smarter. With real-time access to dynamic rates and the ability to instantly book air cargo, they can focus on what matters most—getting shipments to customers on time, without the hassle.” Pawan Joshi, EVP, Products and Strategy at e2open

This year’s much-anticipated – and possibly extreme – air cargo peak season rush has still not materialized, while concerns grow over a January ILA strike as renewed negotiations quickly collapsed last week.? Here are the key insights from this week’s Freightos Weekly Update: Operations resumed at locked out Canadian container ports on both coasts last week as the government ordered the ports reopened and the parties to binding arbitration. The union in British Columbia plans to file a challenge to the order. Post-peak season transpacific ocean rates have leveled off at about $5,400/FEU to both coasts – well above the previous lows for the year in April – as shippers may be frontloading ahead of possible tariff increases next year and an ILA strike at East Coast and Gulf ports if they don’t approve a new contract by January 15th. ILA -USMX negotiations restarted last week – for the first time since June – and quickly collapsed as the sides remain far apart on the role automation will play at these ports, adding to concerns over a January strike.? Asia - Europe ocean rates – which had fallen back to April levels –? increased by 30% to start the month on GRIs and have stayed elevated. Some carriers also announced December GRIs to push rates to $6,000/FEU when the early Lunar New Year rush may begin. Middle East - N. America air cargo rates have climbed 22% in the last three weeks to $3.78/kg, a high for the year, possibly on a peak season bump, including some shippers opting for sea-air instead of direct Far East air shipments. ?China - N. America air rates have increased 17% to $7.00/kg – a high for the year – since late October. But many expected prices to spike much higher by now as e-commerce volumes continue to take up capacity. More carriers and forwarders are skeptical this surge will materialize as many shippers adjusted and planned ahead to avoid a chaotic peak season. Transatlantic air rates increased 45% since mid-October to $2.60/kg, their highest level since early 2023, reflecting a reduction in capacity as carriers introduced winter passenger schedules as well as some shift of freighter capacity to ex-Asia routes. You can read this week's full update by following the link in the first comment below.

?? Expectations are high that the incoming Trump administration will significantly increase tariffs. What was the impact of the tariffs enacted in Trump’s first presidency and what can we expect this time around?? In our recent Freightos Freight Market Outlook, we posed these questions to our guest, Jason Miller, professor of Supply Chain Management at Michigan State University who argued that, ultimately, Trump era tariffs did not achieve their goals of reducing reliance on China or on stimulating manufacturing growth domestically and often increased costs for US businesses and consumers while also hurting US exporters including manufacturers. He shared that Trump era tariffs did result in a decrease in Chinese imports. But China’s share of trade in value added – their contribution to goods imported to the US – declined far less as alternative sourcing partners like Vietnam or Mexico significantly increased imports of Chinese components and materials. Miller reported there’s not much evidence that industries protected by tariffs increased hiring as a result. And in cases like washing machines where tariffs did result in US job creation, the increased costs to consumers from tariffs outweighed the economic benefits of the new jobs. Last time, retaliation by China – like tariffs on US exports or shifting purchasing to other countries – hurt US exporters, especially in the agriculture sector. And manufacturers that saw the biggest cost increases from tariffed components also saw a sharper decline in their export growth, contributing to a net decline in manufacturing jobs and negatively affecting some of the largest US manufacturers. And as 25% of the total product supply of goods to the US is imported, Miller estimates that a 10% global tariff next year could roughly increase costs to consumers by 2.5%. ?? Watch the full interview as well as our monthly run through of the latest trends in international ocean and air volumes and freight rates: https://lnkd.in/dx7xdsFK Judah Levine #shippingcosts

?? Freightos Group Visits JCtrans: A Meeting of Logistics Minds! We were thrilled to host Ms. Joyce Tai, Executive Vice President Worldwide Partnership at Freightos Group, to JCtrans! This inspiring visit allowed both teams to connect, share insights, and exchange ideas on the latest trends shaping the world of digital logistics. JCtrans Chairman and CEO Jacy Qiu, along with our leadership team, welcomed the Freightos Group delegation for a lively discussion on the evolving landscape of global logistics. As we look to the future, we look forward to exploring new possibilities with Freightos Group, championing innovation and connectivity in the industry to drive global logistics forward. ??? #JCtrans #FreightosGroup #Logistics #Innovation #GlobalLogistics

Transpacific ocean rates have fallen by more than 30% post-peak season from their highs back in July. But while Asia - Europe container prices fell all the way back to their low for the year by October, transpac rates leveled off and remain $1k - $2k/FEU higher than their 2024 floor reached post-Lunar New Year demand back in April. The reasons? This discrepancy could point to two factors unique to the US right now and causing some American importers to pull forward some freight demand and keep rates elevated:? The first is the good chance that tariffs will increase significantly at some point after Donald Trump takes office in January. The second is the looming January 15th deadline for ILA port workers and the USMX to agree on a new contract or face another strike at East Coast and Gulf of Mexico ports. And the renewed face to face negotiations collapsed almost as soon as they started this week… You can check out more insights from this week's Freightos Weekly Update via the link in the first comment below.

A looming East Coast port strike (again) and anticipation of tariff hikes from the incoming Trump administration may be pushing shippers to frontload for the second time this year. Here are the key insights from this week’s Freightos Weekly Update: The National Retail Federation has increased its projections for US ocean imports in Q4, suggesting that many importers are frontloading shipments ahead of a possible East Coast port strike in January and anticipated tariff increases by the Trump administration next year. This relative volume strength may explain why transpacific ocean rates which had fallen sharply in early October have been about level around the $5,000/FEU mark since then. And with LNY starting at the end of January this year, rates may face some additional pressure starting in late December. In two separate labor disputes in Canada, port operators have locked out union workers in Montreal and the ports of Vancouver and Prince Rupert halting container operations there. Government mediation has so far failed in British Columbia. An extended lockout will lead to a significant backlog at these ports and diversions could cause congestion and delays at alternatives like Seattle-Tacoma. Asia – Europe rates increased by about 20% to $4,500/FEU on early-month GRIs and so far have remained at that level. Maersk reports a demand rebound, together with European port congestion and blanked sailings, is supporting higher rates.? Demand will likely increase further – and earlier than usual due to Red Sea diversions – ahead of Lunar New Year. So far the much anticipated extreme air cargo peak season rate spikes and capacity crunch have yet to materialize. Some forwarders think frontloading to avoid peak season chaos in a market already stretched thin by massive e-commerce volumes may make Q4 much tamer than expected. You can check out the full weekly update via the link in the first comment below.