MARKET BRIEF | February 2024
Latest Impact of Red Sea Crisis
The Red Sea Crisis has intensified and has continued to impact global supply chains, influencing geopolitical dynamics. This particularly is affecting energy industry trade flows between Europe and Asia, especially the new-energy vehicle supply chain between China and Europe, which is key for both nations. However, there are broader global implications. Since nearly 30% of the world’s trade goes through the Suez Canal via the Red Sea, this disruption could can bring about economic strain and heightened geopolitical tensions. A major part of the mix is how China’s involvement could reshape regional dynamics, potentially fueling competition with other global powers. China’s initial response was to not condemn the actions by the Houthis. Rather, they are continuing to disassociate themselves from the West as they build alliances with Iran and other Persian Gulf countries. So, even though the Red Sea Crisis negatively affects China’s trade, it does represent an opportunity for them to side with Middle East powers and expand its profile in the Global South.
UPS Cutting 12,000 Jobs
UPS announced significant layoffs affecting 12,000 jobs, across various locations, in the states of Oregon, Maryland, and Connecticut. The company is shifting its sorting operations, impacting both part-time and full-time positions. The move follows UPS’s efforts to streamline operations, optimize its workforce, enhance efficiency, and adapt to changing market demands. Employees affected by the layoffs will receive severance packages. These layoffs mark a significant workforce reduction for one of the biggest players in its space, sparking concerns among employees and communities impacted by the job cuts, as well as the supply chain industry.
West Coast Ports Seeing Growth
Ports along the U.S. West Coast have been experiencing a rebound, and are seeing major growth compared to ports on the East Coast. In particular, bookings at the Port of Los Angeles have risen 144%, and 106% at the Port of Long Beach. West Coast ports had seen a decline caused by long-term congestion and labor issues. But now, with troubles in the Panama Canal and Red Sea impacting the East’s larger ports in New York and New Jersey, the West is benefitting.
Aeronet’s Founder Retires, Leading to New Top Management
After four decades as the head executive of Aeronet Worldwide, founder Anthony N. Pereira has retired from regular involvement in the company, although will retain his position as Chairman of the Board. “Tony” – as he is known to his associates – expressed in an internal company announcement that, “The time has come for me to step back and embrace the next chapter of my life, but before I do, I wanted to express my deepest gratitude for the remarkable experience of being a part of this extraordinary company that I founded nearly 42 years ago.” … With his retirement, his son Mark Pereira returns to Aeronet Worldwide, and assumes the role of Chief Executive Officer … READ MORE
Freight Forwarders vs. Common Carriers
In today’s global trade and commerce, the roles of freight forwarders and common carriers are pivotal. Both entities play crucial roles in ensuring the seamless movement of goods from one point to another. To truly understand their significance, let’s review a brief history of freight forwarders and common carriers before exploring their differences and similarities … READ MORE
