Freight demand and rates promising, despite economic tensions
As we enter the third week of January 2025, competing forces on the global economic landscape are gaining steam, stirring both challenges and opportunities in the global economy and the logistics landscape. From India's unexpected economic slowdown to the cautious recovery in Europe overshadowed by tariff threats, these stories highlight the interconnected nature of the global economy, where policy decisions in one region reverberate across continents.
Logistics and trade are also experiencing shifts that demand close attention. From Türkiye's ambitious railway modernization to mitigate reliance on Russian routes to the WTO's stark warnings about the consequences of trade wars, the industry faces a delicate balance between growth and geopolitical risks. Meanwhile, sustainable innovation continues to lead transformations, as seen in Riege Software's integration with CargoAi and Nikola's strides in hydrogen-powered freight transport.
At Ranon Logistics, we remain committed to equipping you with the insights to navigate these trends confidently. Whether it's keeping up with the latest freight rate changes, understanding inventory dynamics, or embracing innovative tools to streamline operations, we're here to help you adapt and excel in this evolving landscape. Thank you for trusting us as your partner in logistics and strategy.
Economic News
The UK’s Not Out of the Woods. It’s Heading in Deeper
Chancellor of the Exchequer Rachel Reeves might be breathing a sigh of relief that 10-year gilt yields have fallen 25 basis points since last Tuesday, but that would be premature. The near-term risks may have abated, but the bigger picture is more frightening…
India’s Economy Slows Down Just When It Was Supposed to Speed Up
Industrial growth, the stock market, and the rupee are sinking, and most consumers earn too little to buoy them, stymieing India’s drive to become a developed economy…
Gaza Truce Brings Aid, but Economic Struggles Persist
The ceasefire between Israel and Hamas has brought some relief to Gaza's devastated economy. Prices have drastically dropped, bringing temporary relief to displaced Palestinians. However, Gaza faces an immense challenge in rebuilding its economy…
Ursula von der Leyen Warns on ‘Fracturing’ Global Economy After Trump Tariff Threat
European Commission President Ursula von der Leyen has warned that the world economy has “started fracturing along new lines” after Donald Trump threatened sweeping tariffs on the bloc.
"If we have tit-for-tat retaliation, whether it’s 25% tariff (or) 60%, and we go to where we were in the 1930s, we’re going to see double-digit global GDP losses. That’s catastrophic. Everyone will pay," said Ngozi Okonjo-Iweala, Director General, World Trade Organization.
Europe’s Cautious Rebound Overshadowed by Trump Tariffs
Europe’s economy likely started 2025 less weakly than it ended 2024, according to business surveys. However, the threat of higher U.S. tariffs tempers hopes that lower borrowing costs will help fuel a pickup as the year advances…
China’s Economy Loses Momentum Ahead of Major New Year Holiday
China’s factory activity unexpectedly slowed ahead of the Lunar New Year holiday, and the services sector cooled—signs stronger fiscal support is needed even after a recent stimulus push…
US Economy on Solid Footing Set to Back Fed’s Interest-Rate Hold
The US economy remained at a comfortable cruising speed in the final stretch of 2024, powered by healthy consumer spending, creating even more separation from its global counterparts…
Trade Wars Would be ‘Catastrophic’ for World Economy: WTO
Tit-for-tat trade wars would have catastrophic consequences for global growth, the head of the World Trade Organization warned on Thursday…
Industry News
Dry Bulk Freight Rates Hit 23-Month Low
According to rates published by the Shanghai Shipping Exchange (SSE), rates for 180,000 dwt Capesize on the China/Japan Pacific round voyage stand at just $5,089 per day. Rates for iron ore from Brazil to China stand at $17.60 per ton…
Baltic Exchange Freight Index Hits Lowest Since June 2023
The Capesize index nearly hit a two-week low at 1,284 points, and daily earnings fell to $10,647. Although iron ore futures rose for a ninth day, new US tariff uncertainties affect investment choices…
Inventory Levels Suggest Demand Will Not Be a Concern in Early 2025
The Logistics Manager’s Index (LMI)… suggests that companies accurately forecasted demand for the holiday season. However, a closer look reveals a divergence between upstream and downstream inventory, suggesting significant freight movement in early 2025.
North American Transborder Freight Was Unchanged at 0.0% in November 2024 vs. 2023
Total transborder freight: $131.0 billion of transborder freight moved by all modes of transportation. Freight between the U.S. and Canada: $61.8 billion, down 5.2% from November 2023…
"Trump is billing his trade policy as America First, but the people it is hurting the most right now are US shippers… Shippers want to take decisive action against these geopolitical threats. In the short term, that may mean building up stock inventories if they know when tariffs are coming into effect and the goods within scope," said Peter Sand, Chief Analyst at Xeneta.
Trump’s Trade Policy Uncertainty Could Send Ocean Freight Rates Higher, Xeneta Warns
President Trump‘s potential revival of sweeping import tariffs is creating widespread uncertainty in US shipping markets, with industry experts warning of possible supply chain disruption and skyrocketing freight rates…
Türkiye Launches Railway Upgrades to Bypass Russia, Boost Europe-Asia Freight Trade
Türkiye is undertaking a $60 billion railway modernization project, aimed at creating a new trade corridor between Asia and Europe while bypassing Russian territory…
SGL Predicts a Bumpy Year for Air Cargo
The airfreight market is facing a bumpy ride in 2025 as geopolitical developments are set to take their toll on the market, but e-commerce and lower inflation are likely to support growth, according to Denmark-based freight forwarder Scan Global Logistics (SGL)…
DHL Group to Add 30% Freight Capacity in India
German logistics giant DHL Group will expand its freighter capacity in India by 30% in 3–5 years in anticipation of its business in the country doubling by then, said Pablo Ciano, Chief Executive of DHL eCommerce…
Sustainability News
Riege Software Partners with CargoAi to Expand Scope’s Digital Air Freight Capabilities
Riege Software, a global leader in Transport Management Systems (TMS), is launching its integration with CargoAi’s innovative Quote & Book API, empowering Scope users to instantly search for rates and book air cargo shipments with over 117 airlines directly within the TMS
Why Nikola’s Hydrogen Trucks Are Game Changers. Discover the Future of Freight Now
In a bold step towards reshaping the freight transportation industry, Nikola Corporation is diving headfirst into hydrogen fuel cell technology. By embracing this cutting-edge solution, Nikola aims to bring forth a future where zero-emission transport isn’t just an aspiration…
EU Reaches Agreement with Switzerland on Enforcing Rules Governing Road Freight Transport
After 200 meetings and eight months of negotiations, the two sides agreed on a broad package of agreements, some of which pertain to the road transport of goods