CEO’s Notes: Resilience and Innovation Amidst Global Economic Uncertainty

As we approach the end of 2023, the global logistics industry finds itself on a downhill roll, navigating a complex web of economic challenges. The freight recession that has persisted throughout the year looks set to close the year, with minimal economic news to suggest otherwise.

The US economy, though chugging along slowly, faces concerns about fiscal strength and political division, as indicated by Moody's downgrade of its outlook. China's economic slowdown, as reflected in Moody's negative outlook, threatens a contagion over Sub-Saharan Africa. Europe, on the other hand, is bracing for a recession, as suggested by Mario Draghi. All taken together, economic news suggests a muted logistics market for the rest of the year.?

Despite these overarching challenges, there are glimmers of resilience in certain sectors. The air cargo sector's growth, as noted by IATA, suggests adaptability and innovation within the broader economic landscape. In the long term, the EU's proposal on sustainable freight reflects a broader trend towards environmental consciousness in policymaking.

In more concerning news, DP World's recovery from a cyber attack underscores the increasing threats to critical infrastructure in the logistics industry, highlighting the importance of robust cybersecurity measures.?

Weekly Highlights

Export Rebound Proves Elusive From China to Germany

Mario Draghi delivers downbeat outlook for EU economic growth

Credit agency Moody’s cuts outlook on US government to negative

The global freight recession will continue in 2024: CNBC Supply Chain Survey

Air Cargo Demand up 1.9% in September, Sustaining Moderate Growth Momentum

Economic News

Credit agency Moody’s cuts outlook on US government to negative

The credit ratings agency Moody’s reduced its outlook on the US government from stable to negative, citing division in Washington DC and risks to the nation’s fiscal strength. While Moody’s maintained the US’s current top-grade AAA rating, it raised the prospect that this may be cut... Read more

Mario Draghi delivers downbeat outlook for EU economic growth

Mario Draghi has delivered a downbeat view of EU economic growth, forecasting a recession by the end of this year, as he warned that the European project’s long-term survival depends on urgent political integration... Read more

Export Rebound Proves Elusive From China to Germany

Trade and factory activity in some of the world’s biggest exporting nations shows signs of weakness heading into the final stretch of 2023, underscoring how elusive a rebound in global commerce is proving to be... Read more

China’s Slowing Economy Will Hit Sub-Saharan Africa’s Growth

China has forged deep economic ties with countries in sub-Saharan Africa over the past 20 years, making it the region's largest single country trading partner. China buys one-fifth of the region’s exports—metals, minerals, and fuel—and provides most of the manufactured goods and machinery imported by African countries... Read more

Industry News?

Air Cargo Demand up 1.9% in September, Sustaining Moderate Growth Momentum

The International Air Transport Association (IATA) released data for September 2023 global air cargo markets, showing continuing demand recovery. Global demand, measured in cargo tonne-kilometers (CTKs*), increased by 1.9% compared to September 2022 levels (+6% for international operations)... Read more

Carrier profits plummet as market normalizes

French shipping major CMA CGM is the latest carrier to announce underwhelming third quarter results – reporting revenue of $11.4 billion, with a gradual rebalancing of contributions from the Group’s maritime shipping and logistics businesses... Read more

The global freight recession will continue in 2024: CNBC Supply Chain Survey

The global shipping industry has been mired in a freight recession this year and the challenging economic conditions will continue into 2024, according to a new CNBC Supply Chain Survey. High inventories and a pullback in consumer spending are reasons behind the bearish outlook... Read more

Hapag-Lloyd hit by downward spiral in freight rates

The collapse in freight rates pushed nine-month profits at Hapag-Lloyd down almost 80 per cent as the leading German container shipping group cut its full-year guidance on a continuing gloomy outlook... Read more

Technology Updates

Dubai Technology Company EANAN to Launch Unmanned Aircraft Fleet

EANAN, a UAE technology company is leading the next evolutionary step in transportation through advanced air mobility (AAM) with the launch of Dubai’s first unmanned aircraft, aiming to become the first commercially operating air mobility company in Dubai... Read more

Freight giant DP World recovers from cyber attack, but warns investigation and remediation is 'ongoing'

Shipping giant DP World Australia says its systems are working at its ports again, following a brief cyber attack which crippled the company's operations. The company moves about 40 per cent of the nation's freight, and it was feared that a prolonged cybersecurity breach would make life harder for importers, retailers and Christmas shoppers... Read more

European Commission adopts new proposal on combining transport modes for more sustainable freight

The EU’s new proposal on combined transport aims to make freight transport more sustainable by improving the competitiveness of intermodal freight – the transportation of goods using two or more transport modes – vis-à-vis road-only transport... Read more