The latest Asia-Pacific Freight Report from Dimerco highlights ongoing shifts in the freight market driven by manufacturing fluctuations, geopolitical developments, and capacity constraints as the holiday season approaches.
According to Dimerco's analysis, the global manufacturing PMI edged slightly downward to 50.8 in September, signifying modest growth amidst subdued overall demand. The United States and India showed robust manufacturing activity, whereas markets such as Taiwan and South Korea indicated contraction due to varying regional economic conditions.
Key takeaways:
· Transpacific air freight demand surged notably ahead of year-end, propelled by high-tech and consumer electronics launches, e-commerce promotions ahead of Black Friday, and the U.S. market’s aluminum coil shortage. Shippers are advised to anticipate tight capacity, especially given the temporary pause on U.S.-China tariffs expiring mid-November, which has led to significant frontloading of shipments.
· Ocean freight carriers have implemented substantial capacity adjustments, with approximately 7% of scheduled sailings canceled to stabilize freight rates. Notably, the introduction of the General Rate Increase (GRI) has begun showing positive impacts on rates. However, uncertainty remains high due to new USTR 301 Port Charges on Chinese vessels and reciprocal tariffs, which are forecasted to impact trade patterns significantly.
· Regionally, freight capacity is tightening considerably in Northeast Asia, Southeast Asia, India, and Mexico, with air freight markets particularly strained. In China, strong e-commerce demand coupled with pre-tariff shipping has sharply raised air and ocean freight rates, particularly to the West Coast. South China and Hong Kong face rising congestion and increased shipment volumes driven by seasonal demand. Australia’s port congestion and equipment shortages are also constraining freight availability.
· European air freight remains constrained due to disruptions from the Everest ransomware attack affecting major airports, while ocean freight carriers cautiously expand in the Red Sea region despite lingering security risks.
