Freight Rate News November 2015
Wouldn’t it be amazing if someone could cut through the hype and summarize the key freight and logistics trends every month?
Thought you’d never ask. That’s exactly what Freightos has been doing. We’ve split the trends into the sections on the right.
If you prefer to find the news yourself, head over to our free roundup of nearly 100 digital logistics and supply chain news sources. Prefer the summary? Keep reading.
Carriers & Cargo
November 2015 freight and logistics trends that rate
1. SHORT TERM GROWTH JITTERS
China’s slowing economy is generally bad news for the freight industry. But for some, like LTL drivers and Singapore, it’s not so bad. There have been plenty of news items too on the booming U.S. domestic economy (or is it busting?). A looming shortage of truckers. Or is there?
As we noted last month, most articles are rightly focusing on the negative. But in reality, world trade has never been so good. If China’s economy only grows by 5% this year, instead of the regular (read “phenomenal”) double digit annual growth of the last two decades, it is still impressive year on year growth, and comes off its largest ever base.
We liked Kevin O’Marah’s (SCM World) take on underlying trends in this Forbes article. The types of jobs created by China’s moving toward a consumer economy are harder to measure, so job growth and its knock-on economic growth is under-reported. Irrespective, China has always valued stability and unity beyond all else. He surmises “I’m happy to see China focused on the long game even if it means fudging the numbers along the way”.
2. MEDIUM TERM THE PACIFIC TRADE DEAL
The Pacific Trade Deal, a freer trade treaty between 12 Pacific Rim countries, including Japan and the U.S, looks good news for world trade. Its taken years, and there are still some hurdles to jump, but now that it’s been announced, other countries are now scrambling to join.
Nothing but good news ahead.
3. SPECIAL FEATURE GREAT ARTICLE SHOWING HOW TRENDS INTERCONNECT
The underlying trends in freight industry are often interconnected, as a number of articles about slow-downs at major ports, including USLGB, show.
A reader with only passing interest in the future of west coast ports will still be intrigued. This article connects the dots linking some of the broader trends impacting freight forwarding. The ramifications of the restructuring of China’s economy, freight innovation, re-shoring, widening the Panama Canal, and the new super-size ships are all covered.
4. CARRIERS & CARGO BRAVE NEW ROUTES
New carrier routes that will benefit the freight industry include the trans-Eurasia rail and the Northern (Arctic) sea route. Great opportunities abound, with some cause for concern in the traditional China-Europe channels of air and sea cargo.
Last month’s carrier story was somewhat cynical: global box ship fleets topping 20 million TEUs, driven by carriers trying to escape ramifications of UN emissions regulations. This month’s carrier story is much more strategic and positive.
5. INNOVATION ONLINE MASTERS OF SUPPLY CHAIN MANAGEMENT
The prestigious MIT is now offering a low-cost Masters of Supply Chain Management (mostly) online.
Innovation isn’t just about robots. System, process and people-focussed innovation have and will change the industry, and the way we do business, for the better. This academic innovation is nod to the importance of the industry and it’s increasing sophistication. Logistics managers of tomorrow will need to be more skilled.
6. FREIGHTOS FOCUS HOW AN INDUSTRY LEADER MANAGES INNOVATION
At the eft conference in Venlo last month, we caught up with Joeri Kuik, DHL Global Forwarding’s Chief Innovation Officer, to find out how the industry giant, a leading innovator, encourages and manages innovation.
It’s a fascinating interview for anyone wanting to pick up some tips from the master.
❤ OUR FAVOURITE CANOE CARGO
A Fijian canoe paddled 1 tonne cargo of cocoa beans all the way from Papua New Guinea to New Zealand. The small crew spent 29 days on the Solomon Islands to New Plymouth NZ leg alone, battling 6 metre swells and 40 knott winds in open seas. It started as a dare. Sustainable shipping! True grit! Chocolate! No wonder this is our favourite story from last month.
GET INSTANT INTERNATIONAL FREIGHT QUOTES
Compare and book international air or ocean freight rates from top forwarders, all in seconds.