Market Updates for Logistics Industry – October 2022
ME – North AmericaDue to the Golden Week demand, the rates are expected to remain soft with an open space and open capacity (except in a few pockets). The port and inland conditions are improving and transit time is also getting better over time. Local Rates – Soft rates Local Space – Open Local Capacity/Equipment – Open (except a few pockets) Note – Make sure to book 2 weeks prior to the Cargo Ready Date (CDR).
ME – Europe
ME – Mediterranean MED
The vessel congestion continues, which is causing delays in both origin and destination ports. The demand is getting soft and competitive spot rates are slightly increasing.
Local Rates – Competitive spot rates Note – Delays are expected in some ports due to congestion.
North America – ME
Europe – ME
Air Freight Market Updates
The Middle East and Air Carriers MEBased on the findings of IATA, the traffic of Middle East Airlines has increased 193.1% over the last year. The carriers in the area have successfully overcome the COVID challenges with a few changes in their business model and increased use of freighters for maximizing the revenue. In the coming years, the fleets in the region are expected to go up to 3,400 airplanes for passenger traffic as well as cardo demands.
Local News from United Arab Emirates – October 2022
Factory Output News October 2022
In the last week of September 2022, the World Container Index (WCI) has reduced by 10%. The WCI for 40-foot containers is 61% below after the peak of last year and the value has come down to $4,014. This decline is due to the 19% drop in the freight rates from Shanghai to Genoa, and a 13% fall in the spot rates on Shanghai to Los Angeles. Similarly, the spot rates have decreased by 10% and 5% on Shanghai to Rotterdam and Shanghai to New York, respectively.
In the Euro Area, the manufacturing activities are slightly shrinking. During September, the manufacturing PMI was recorded at 48.4, which is less than in the previous months. This fall also indicates the biggest factory contraction since June 2020. The slide is also noted in output and the new orders due to high energy prices.
The PMI of China is at the lowest in three months; the major reason being the new wave of COVID and energy shortage due to droughts. Apart from this struggle, the private sector seems to be growing more in comparison to the manufacturing sector as the new orders were affected by the increase in business of service providers.
United Arab Emirates
The PMI of UAE has dropped to 56.1 due to the risks included in global recession. In comparison to August 2022, the growth of new orders has reduced. However, the sales to abroad have increased, which has increased employment further. Luckily, overall confidence has increased since June and can end up in more order books.