The global freight landscape faces a dynamic month ahead as economic shifts impact different regions. In Europe, the contraction of the German economy in Q3 contributes to concerns about freight rates and volume, while the UK experiences a notable 3.3% monthly increase in road freight rates. China’s economic growth surpassing forecasts, driven by strong retail sales, suggests a positive influence on global freight.

However, the Middle East conflict poses a threat, with potential disruptions to shipping and spikes in freight rates. The USA sees a boost in retail sales, signaling increased freight volume. Despite Nigeria’s cargo imports dropping by 65% due to foreign exchange instability, global air cargo demand records growth for the first time in 19 months. Long-term air freight commitments rise globally in September, reflecting heightened shipper confidence. On the flip side, J.B. Hunt’s earnings decline in the USA underscores challenges in the freight sector, emphasizing the complex interplay of economic factors on a global scale.

Weekly Highlights

Charting the Global Economy: China’s Economy Gains Momentum

Middle East Conflict Threatens Global Growth

German economy likely shrunk in Q3 – Bundesbank

Long-term air freight commitments rise in September

Economic News

Europe: German economy likely shrunk in Q3 – Bundesbank

Germany’s economy likely contracted in the third quarter, the Bundesbank said in a monthly report on Monday, amid declining industrial production, a shrinking construction sector and weakening consumption… Read more

China: Charting the Global Economy: China’s Economy Gains Momentum

Economic growth in China exceeded forecast, helped by stronger retail sales at the end of the third quarter and bolstered by government stimulus efforts… Read more

World: Middle East Conflict Threatens Global Growth

Oil prices climbed again on Friday as armed clashes intensify in Israel and, increasingly, beyond… Read more

USA: Retail sales rose 0.7% in September, much stronger than estimate

Retail sales rose 0.7% on the month, well above the 0.3% Dow Jones estimate. Excluding autos, sales were up 0.6%, also well ahead of the forecast for just 0.2%. Sales gains were broad-based on the month, with the biggest increase coming at miscellaneous store retailers, which saw an increase of 3%. Online sales rose 1.1%… Read more

Industry News

World: Air cargo demand records first growth in 19 months

The International Air Transport Association (IATA) released data for August 2023 global air cargo markets, showed that year-on-year air cargo demand grew for the first time in 19 months… Read more

Middle East: Israel-Hamas war could disrupt shipping, spike freight rates

Container shipping ports in Singapore have so far not been impacted by the conflict between Israel and Hamas, despite reports of congestion and a backlog of cargo at the Israeli ports of Haifa and Ashdod, as well as the closure of smaller ports around the coastal Gaza enclave… Read more

Nigeria: High Exchange Rate: Cargo Import Drops To 65% At Seaports

Importation into Nigeria’s seaports dropped down to 65 per cent in the last two weeks, due to instability of foreign exchange and devaluation of Naira… Read more

Europe: UK hauliers see biggest freight rate rises in almost a year

Road freight rates in the UK have seen their biggest increase in almost a year – a marked contrast to the situation in mainland Europe, where there are worries that rates have yet to find their floor. UK rates climbed 3.3% , month on month, in September – the sharpest rise since December 2022… Read more

World: Long-term air freight commitments rise in September

The number of shippers committing to air freight contracts of six months or more in Q3 stood at 34% September, up from 28% in the previous three months. The increase comes as shipper confidence in the global air freight market stabilizes, according to Clive Data Services… Read more

USA: J.B. Hunt Earnings Tumble on Falling Freight Rates

J.B. Hunt Transport Services’ profit sank in the third quarter, sending a warning sign across a freight sector coping with slack demand and weak pricing… Read more

Technology Updates 

CS X and Siemens Mobility to Deploy Digital Solutions for Freight Rail

North American Class I freight railroad company, CSX has expanded its partnership with Siemens Mobility to implement digital solutions for freight rail… Read more