MARKET BRIEF | January 2024
Red Sea Crisis Update
Global shipping rates continue their sharp rise due to the effects of Houthi attacks on container ships in the Red Sea. Instead of taking the usual route through the Suez Canal – which links the Red Sea to the Mediterranean Sea – vessels are traveling all the way around the southern tip of Africa, adding between two and two and half weeks to the journey. Attacks on, and plundering of, vessels continue despite the U.S. and U.K. launching strikes against Houthi militants in Yemen. This is significant in that approximately 30% of global container trade passes through the Suez Canal. This situation, combined with the number of ships being restricted through the Panama Canal – due to exceedingly low water levels – has threatened a resurgence in inflation, especially because of the rise in oil prices since the beginning of 2024.
Port of Long Beach Kicks Off Rail Infrastructure Project
The Port of Long Beach initiated a major project to upgrade its rail infrastructure and improve air quality. The port’s goal is to become the world’s first “zero-emissions seaport,” which will be helped by the construction of this new rail support facility on Pier B. The facility is a key component of the port’s on-dock rail developments, and will triple rail capacity. The multi-phase, $1.567 billion project is expected to be completed in 2032, and is funded by federal, state, and local grants.
FedEx Announces New E-Commerce Platform
Last week, FedEx announced the launch of its data-driven e-commerce platform, which they named ‘fdx.’ In a press release from the company, FedEx describes it as “the first data-driven commerce platform that connects the entire customer journey — making it easier for companies to grow demand, increase conversion, optimize fulfillment, and streamline returns.” Fdx will utilize features from the ShopRunner platform FedEx acquired in 2020, which centers around more accurate and real-time delivery and shipment statuses. There will also be reporting on carbon emissions of various shipments. The official launch of fdx is scheduled for the fall of this year, however, businesses can currently request a private preview.
Lori Loverdi Promoted to General Manager of Aeronet Chicago
Lori Loverdi has been named General Manager of Aeronet Worldwide’s Chicago station. She originally joined Aeronet in 2015 as Sales Director, and has brought in numerous important accounts. Ms. Loverdi has over 40 years of experience in … READ MORE
