Freight Market Update for Our Sellers Community

I’ve got some fresh insights from the latest Freightos Global Freight Outlook for July 2024 that can help us stay ahead in our Amazon selling game. Here’s what you need to know:

Economic Trends:

• US Inflation: It’s down to 3% as of June, which means prices are stabilising after a spike earlier this year.

• Retail Sales: We’re seeing a slight increase, with core retail sales up 2.6% year-to-date. Consumers are getting a bit more budget-conscious, switching to generic brands, especially for food and household goods.

Freight Volumes & Market Disruptions:

• US Ocean Imports: There’s been an early peak season since May, expected to continue until August. So, if you’re shipping goods, plan accordingly.

• Europe Imports: Demand has been strong since March and continues to grow through the summer.

• Red Sea Diversions: These have caused congestion, but key ports like Singapore are improving. Keep an eye on your shipping routes and adjust if needed.

Freight Rates:

• Ocean Freight Rates: They’ve spiked due to increased demand and limited supply. West Coast rates are at $8,000 per 40ft container, and East Coast rates at $9,600 per container. Rates might have peaked in early July and could start to drop by September.

• Air Freight Rates: Air cargo volumes are up 13%, driven by e-commerce. Rates remain high, so consider this for urgent shipments.

Contracts & Market Volatility:

• Tender Activities: Shippers are now opting for shorter-term contracts to stay flexible in this volatile market. Leveraging tech solutions can help manage these changes more efficiently.

Key Takeaways for Us:

1. Plan Shipments Wisely: With current rates high, consider the timing of your shipments. Rates might ease by September.

2. Adapt to Consumer Behaviour: As consumers lean towards more affordable options, adjusting our product offerings to include budget-friendly choices could be beneficial.

3. Stay Agile: Use tech solutions to manage your freight and stay updated on market trends. This will help us respond quickly to any changes.

Let’s stay proactive and keep crushing it!

Cheers,

Lois