DSV Global Market update – November 2024

LOCAL UPDATE

Airfreight

• Due to the security situation in the area, several international airlines have temporarily canceled flights to Israel, some of them should gradually return to operations.
• The situation creates a great burden on the Israeli airlines and the international companies operating to and from Israel. The load and the reduction of the capacity causes the extension of the transit time.

Ocean

• The red sea crisis is still influencing the traffic from the Fareast to Israel and the global market as well.
• Most of the shipping lines have decided, to stop all voyages through the Suez Canal for the time being, and to have their vessels operate via the Cape of Good Hope.
• Other options are shipping by ocean from the Fareast to Bahrain or Jebel Ali ports, trucking to Sheikh Hussain, clearing from customs at the cross border, trucking the shipments to final destinations in IL.
• The situation causes longer transit time, lack of capacity, and shipments switched from Ocean to Air to meet the lead time.

Land border crossings

• The Allenby cargo terminal is working partially operates according to the instructions of the Israeli customs.
• The other border crossings are working as usual, but there is a load due to the regulation of deliveries from Allenby to other crossings.

​Political crisis with Turkey

• The political crisis with Turkey gives its signals in the supply chain especially in ocean/air traffic to Israel, direct sailings from Turkey are possible for Palestinian customers only and without the involvement of an Israeli forwarder.
• DSV Israel is working to find alternative solutions for its customers,

Please contact our service and sales representatives for additional information and import solutions.

Global
General Update

Please find attached a new monthly market update, with this update we also include a quick overview for the ocean project cargo if you have customers that are interested to know.  US East coast strike negotiations started last week but have been cancelled again, raising the probabilities of a port strike by January 15th if an agreement is not reached.

OCEAN

AIR
Volumes are growing, and we start to see the effects of the anticipated peak season, Expected E-Commerce impact on Asia to Europe and North America during November and December, and potential ripple effect to other markets.

Tenders
Workload is increasing, it is starting the negotiation for 2025 key ocean contracts while Airfreight is also being discussing for mid and long term.

General Update

• Trade is expected to take center stage under President Trump’s administration, with unilateral tariffs likely to become a primary lever in U.S. economic strategy.
• Eurozone industrial output fell in September, underlining the fragility of the currency area’s economic recovery as exporters brace themselves for the possibility of higher U.S. tariffs.
• China Industrial production slowed in October, rising 5.3% from a year earlier, compared with September’s 5.4% year-over-year increase.
• Canada’s Government Intervenes to End Port Shutdowns, Canadian Prime Minister Justin Trudeau’s government is stepping in to force the country’s major seaports to resume operations, ending lockouts on both coasts and pushing employers and labor unions into binding arbitration.

Ocean freight highlights

•  Global container port congestion increased at 2,40m TEU (7,8% of fleet)
• ILA Breaks Off Negotiations Over Automation Issues for USA East Coast Ports, The January 15 contract expiration is just five days before the U.S. presidential inauguration setting the potential stage for a longshore strike at the start of the new Trump administration.
• Most Transatlantic top 10 carriers have reduced capacity
• Brazil import TEUs hitting record year for 2024
• U.S. container imports in US: October volumes remain elevated, Second highest month of October in history despite less volume than in September
• Carrier on time Performance at 51,4%

Airfreight highlights 

• Two major topics for the rest of 2024: e-commerce and ocean disruptions
• Trade imbalances are clearly reflected in the airline’s flight contribution.
• International air cargo capacity growth is up +10% (vs. 2019) between Oct 7-Nov 3, 2024
• Levant & Caucasus is seeing notable air cargo capacity growth amidst strong expansions throughout the region.
• North American integrator capacity is down, primarily due to a decrease in domestic capacity.
• Global tonnages (+4%) and rates (+12%) continue to show strong YoY improvements.