Amid concerns of a potential economic downturn, Europe faces inflation and oil price risks, while the International Monetary Fund (IMF) adjusts growth forecasts for Sub-Saharan Africa, predicting a second consecutive year of economic contraction. In contrast, the IMF raised the U.S. growth projection for 2023, attributing it to robust business investment and consumption. Across the pacific, there are rising apprehensions about China’s economic trajectory, with analysts warning of a possible “Japanization” scenario marked by deflationary pressures and a real estate crisis, echoing Japan’s prolonged period of low growth and deflation after a burst bubble in the late 1990s.

In a challenging global freight market, Flexport has taken a strategic step by laying off 600 workers, constituting a 20% reduction in its workforce. This move aims to address financial losses and enhance the company’s agility. Simultaneously, Delta Air Lines is grappling with a 36% decline in cargo revenue for the second consecutive quarter due to slow freight demand, impacting total unit revenues despite an otherwise robust third quarter. In Nigeria, the Shippers’ Council anticipates significant economic benefits, projecting over $9.1 billion in freight revenue by establishing a national fleet. Meanwhile, Uber Freight unveils new solutions, including a revamped Transportation Management System (TMS) and extensive use of artificial intelligence.

These diverse global economic indicators underscore the complex and interconnected challenges facing different regions and industries.

Weekly Highlights

IMF hikes U.S. growth forecast for 2023, leaves global outlook unchanged

Europe’s Weak Economy Faces Inflation, Oil Risks, Gentiloni Says

Delta Air Lines cargo revenue drops 36% on slow freight demand

Uber Freight’s new solutions: Rebuilt TMS, procurement, wide AI use

Economic News

Europe’s Weak Economy Faces Inflation, Oil Risks, Gentiloni Says

Europe’s economy faces continued headwinds from inflation as well as the risk of an impact on oil prices from the conflict between Israel and Hamas, according to European Union Economy Commissioner Paolo Gentiloni… Read more

IMF lowers Sub-Saharan Africa growth forecasts

Sub-Saharan Africa’s economic growth will shrink for a second year in a row in 2023 before rebounding in 2024, the International Monetary Fund (IMF) said on Tuesday in a report in which it cut its forecasts for economic expansion… Read more

IMF hikes U.S. growth forecast for 2023, leaves global outlook unchanged

The International Monetary Fund raised its U.S. growth projection for this year by 0.3 percentage points compared with its July update, to 2.1%. The U.S. has seen stronger business investment and resilient consumption while euro zone economies have diverged under pressure from higher interest rates… Read more

Fears of China’s ‘Japanization’ Weigh On Asia Economic Outlook

Increasing deflationary pressures and a deepening real estate crisis have put the world’s second largest economy on the brink of “Japanization,” analysts have warned. The term describes Japan’s 15-year period of low growth and deflation after the burst of an asset-inflated bubble in the late 1990s… Read more

Industry News

Flexport lays off 600 workers amid difficult freight market

Flexport is implementing Friday a 20% workforce reduction teased a week ago and notifying employees whose jobs have been eliminated as the freight forwarder moves to plug financial losses and become more nimble, CEO Ryan Petersen said in a message to staff posted on the company’s website… Read more

Delta Air Lines cargo revenue drops 36% on slow freight demand

Delta Air Lines’ cargo revenue dropped by more than a third year over year (y/y) for the second consecutive quarter amid an ongoing freight recession that has sharply eroded demand and shipping rates. The cargo and maintenance businesses pressured total unit revenues by a point in an otherwise strong third quarter for the airline… Read more

National fleet to earn over $9.1bn in freight revenue – Shippers’ Council

The Council, which was appointed by the Federal Government as the secretariat to the Nigerian Fleet Implementation Committee, said establishing a national fleet will bring in over $5.42 billion to the nation’s GDP and over $1.62 billion into the government coffers from corporate income tax through the joint venture companies… Read more

Technology Updates

Uber Freight’s new solutions: Rebuilt TMS, procurement, wide AI use

At the heart of the new offerings — and the one that most closely aligns with the capabilities brought to Uber Freight(NYSE: UBER) by the acquisition of Transplace — is an update of the Uber Freight TMS… Read more