[FFW News] Global trade gap at $2.5 trillion

Welcome back to Freight Weekly

We hope you had a great Labor Day and are ready for Q4! Now the news…

TODAY ON THE LOAD BOARD shippers need quotes for:...

🚢Grenada to Ghana: 2 barrels of books and personal clothing

🚢Guangdong Province, China to Maryland, USA: 10-12 CBM (exact dimensions at the time of pickup) LCL of flooring and cabinets. Need customs clearance and short-term warehouse space with truck dock access

🚢Cape Town, South Africa to Southampton, UK: Frozen fish and Seafood 12 tons (reefer)

Can you service these quotes? See the details on the FFS Load Board here.

📈 BY THE NUMBERS: Important numbers impacting freight and logistics

⛽ Diesel: $4.492 gal (⬆️from $4.475 last week) - Source: EIA

✈️ Air Cargo Index (July ‘23): 167.6 (⚖️ from $167.6 in June ‘23) - Source: FRED

🚢 Global Container Index: $1,527 - Source: Freightos

Logistics News for Sept. 6, 2023

✈️Air cargo demand strengthens reports IATA in latest data round

IATA cargo demand strengthens despite ongoing challenges and a year of concerns among carriers and forwarders. July air cargo demand was .8% from the previous year’s levels in 2022. Demand is now flat compared to last year, but this is an improvement over significant declines in global trade volumes and the concerns about China’s economy slowing. According to IATA, North American carriers showed the weakest performance in all regions, with a 5.2 percent drop in cargo volumes in July 2023 compared to July 2022. This is the fifth month in a row that the region has had the weakest performance globally. Read more

👍FAA grants longer drone flights for UPS parcel services

FAA has granted UPS and uAvionix permission to pilot longer drone flights outside the view of operators. Observers indicate that this decision will pave the way for more companies utilizing drone delivery to carry out parcels door to door and even assist small forwarding ops as the tech evolves. More here

💰Global trade finance gap at $2.5 trillion - a record

The Asian Development Bank announced that the global trade finance gap has reached a new record - a whopping $2.5 trillion. The bank’s findings come as global trade volumes in all sectors continue to disappoint. Additionally, trade is nearing the peak season ahead of the Q4 year-ending holidays like Christmas. Major ocean carriers are remaining cautious, despite the fear of a recession led by a slowdown in the U.S. economy. But, volumes are expected by depressed as the holiday season quickly approaches, impacting global trade. Read more

In similar news, the U.S. Trade Deficit only widened a little bit in July…

Data from the U.S. Commerce Department released on Sept. 6 shows that the shortfall in the goods and services trade only grew to $65 billion from $63.7 billion in the prior month. While the figures aren’t adjusted for inflation, the sum falls short of a $68 billion deficit, per the median estimate reached in a survey of economists conducted by Bloomberg. The value of exports rose by 1.6 percent, while imports increased by 1.7 percent. Increases in industrial supplies and autos exports were detected. Import climbs are reflected largely in cell phones. More

✅ILWU ratifies 6-year contract with Pacific Maritime Association employers

The ILWU ratified a six-year contract agreement with Pacific Coast port firms to put to rest a series of strikes and labor upheaval that impacted terminals at some of the largest ports in North America. The union, covering about 22,000 workers at 29 ports, voted 75 percent in favor of the tentative contract agreement that was reached in June after a series of work stoppages impacting trade. Read…

Other stories we think you should read…because knowledge is power💪

• “U.S. Stock Futures Slip as Higher Oil Prices Renew Inflation Fears” - Barron’s

• “The US broke global trade rules to try to fix climate change – to finish the job, it has to fix the trade system” - The Conversation

• “Maersk Makes More LatAm Investments Amid Nearshoring Boom” - Sourcing Journal

• “Retail Execs Brace For A Lean Holiday Season” - Forbes

Like what we’ve done with the place? New format, new title, new identity. Thank you for reading Freight Weekly❤️ Boxy & Michael

Compiled by Michael McGrady – news analyst and writer.

Do you have a tip? Feedback? Email him – [email protected]