The freight industry has reportedly seen strategic cargo theft soar 68% in Q4 of 2023, sparking one of the largest spikes in the industry’s history across the U.S. The theft is mostly targeted at food and beverage freight, leaving brokers with mounting debt they must pay out of pocket. Although inflation is on the rise again, it is to some extent cushioned by the rising imports from China into the U.S. The rise in imports is a pointer to the strong consumer-based economy that may not be deterred by rising inflation.
This edition of our newsletter explores these and other freight industry news to help you keep up with global and local freight industry trends.
The freight industry is no stranger to strategic cargo theft, but a 68% increase in Q4 of 2023 may leave many brokers and shippers biting their lips about their next shipments. This unprecedented rise could put many brokers out of business. Strategic cargo theft is mostly targeted toward food and beverage freight but has its imprints in other freights across the industry.
Although the 68% year-over-year rise is alarming, it would come as no surprise because Q3 of the same year saw a 57% increase in strategic cargo theft year over year for the same period. And so far, the numbers show that Q1 of 2024 will follow the same projection of increased cargo theft.
Undoubtedly, combating the rising cargo theft will be the focus of shippers and brokers going into the rest of 2024. One of the strategies for tackling these is increased security through cargo visibility and transparency during the shipping process.
According to new trade and logistics data, the imports coming to the U.S. from the Chinese are rising at the fastest rate since last fall. This is a notable increase considering the current tension between the two nations. However, it is a pointer to the strong consumer base readily defying the rising inflation in the country.
The current rise in Chinese imports into the U.S. coincides with the reopening of the Chinese manufacturing sector after shutting down for the Lunar New Year Celebrations. The first half of 2024 will hit 11.7 million TEUs (twenty-foot equivalent units), an 11% increase from last year. All of these are despite multiple threatening supply chain disruptions to the freight market.
According to the TD Cowen/AFS Freight Index released on April 9, the ground parcel rate per package is expected to increase. By all accounts, it should reach 29.3% above the index’s January 2018 baseline in Q2, marking a slight increase from 28.9% at the same time in 2023.
FedEx and UPS are already less inclined to promote and offer discounts considering the dropoff. Shippers nationwide are expected to brace for impact because it could impact logistics and supply chain margins. If the forecasts hold, it will spell the end of the shipping discounts we have grown accustomed to in the last three quarters.
The increased rates are primarily due to fuel surcharge increases and some other tweaks, which are expected to slightly increase the rates per package. Still, the rise in prices is enough to deter discounts and cause shippers some discomfort. Remember, a little can go a long way when shipping large volumes.
The significant rise in omnichannel supply chains has made it easier for more e-commerce businesses to enter the market. These supply chains have been directly responsible for a 30% boom in the e-commerce shipping volume since 2022.
Today, customers are armed with a lot of information, demanding personalized services and product offerings. Customers want the right products with the right service at their convenience. And businesses have no choice other than to get them all of these. However, these businesses must leverage the omnichannel approach to offer customers multiple options and improve the entire experience.
The world may be in chaos, but with the right technological solutions, these problems will not necessarily impact your logistics and supply chain operations. In the face of face potential disruptions and complexities that threaten to cripple operations, a flexible and agile supply chain will prevail.
If this is what you want, we will leverage technology to provide it for you. With us, you have:
Zengistics is the smarter option for getting logistics done more efficiently. Connect with us today.
Operating on the world’s first collaborative logistics platform, Zengistics is a technology company that executes freight.
