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Global Logistics Update: Air Cargo Rates Spike, Rail Dwell Times Rise, and Brazilian Exporters Face Congestion Challenges

Key Supply Chain Insights as of November 21, 2024

This week’s logistics updates highlight significant challenges and trends across air, rail, and sea freight. From surging air cargo rates driven by peak season demand to growing rail congestion in the US and equipment shortages in Brazil, here’s what you need to know.


Air Cargo Rates Hit 2024 High Amid Peak Season Demand


Air freight rates from China to North America and Europe have reached their highest levels of the year as the peak season gains momentum. E-commerce preparations for November promotions, along with the release of new electronic products, are driving heightened demand for air cargo capacity.

The latest Baltic Air Index (BAI) data shows:

  • Shanghai to North America: Rates climbed to $6.79/kg, up 7% from last week and 30% higher year-over-year.

  • Shanghai to North Europe: Rates increased to $4.85/kg, marking a 9% weekly rise and an 18% annual increase.

This trend reflects a robust e-commerce ecosystem and the cyclical nature of air freight demand during the holiday season.


US Rail Container Dwell Times Reach Two-Year High in Los Angeles-Long Beach


Rail container dwell times at the ports of Los Angeles and Long Beach, the largest US port complex, have soared to their highest level in two years. In October, rail-destined containers experienced an average dwell time of 9.86 days, compared to 9.25 days in September and 8.2 days in August, according to the Pacific Merchant Shipping Association (PMSA).

Key drivers of the congestion include:

  • Increased import volumes: Higher-than-normal levels due to diverted cargo from East and Gulf Coast ports.

  • Seasonal surges: Elevated activity expected to persist through January.

These delays pose challenges for importers trying to manage supply chain efficiency and reduce costs during a critical holiday period.


Brazilian Exports Struggle Amid Mounting Port Congestion

Brazilian exporters are grappling with severe congestion at key ports, including Santos, as limited availability of empty containers disrupts trade flows. Several ships have missed berthing windows or bypassed the Port of Santos entirely, leading to cargo rollovers and rerouted shipments.

The congestion stems from:

  • Peak season pressures: Increased export activity straining port infrastructure.

  • Backlog clearance efforts: Dockworkers are occupied managing a significant volume of delayed shipments.

This bottleneck has impacted Brazilian exporters, who are finding it increasingly difficult to secure equipment and maintain schedules in international trade lanes.


The Bigger Picture

These developments underline the complexities of managing supply chains during peak periods:

  • Air freight trends showcase the critical role of capacity planning in meeting seasonal e-commerce demand.

  • US rail delays highlight the need for infrastructure investment to handle sustained import surges.

  • Brazilian port congestion emphasizes the importance of efficient terminal operations and equipment management to minimize export disruptions.


As global trade enters a critical holiday phase, adaptability and proactive measures remain key for supply chain stakeholders.

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