Posted on October 30, 2024
Maersk Asia Pacific October Market Update has the latest information to stay updated and keep your cargo moving.
As we enter the final quarter of 2024, the global economy is showing resilience, with strong market demand for both ocean and airfreight across major markets. In this monthly Market Update, we introduce the latest updates on the newly introduced Gemini network – set to launch in February 2025 – which will aim to deliver unprecedented schedule reliability. We also highlight new logistics services from Greater China Area to keep your cargo moving to Europe, and we look at news that may affect your planning, such as the surge in demand in Southeast Asia.
This month we cover the latest economic and logistics indicators, regional logistics news, as well as the latest in Maersk solutions to support your logistics needs.
Market Trends
- Despite varying conditions across regions, the global economy has maintained momentum through the first half of 2024, with overall growth still projected at 2.7%. Composite PMIs remain positive, though manufacturing PMIs contracted further in September across the major economies, dipping to 48.8 globally. This decline below 50 signals slowing activity in the manufacturing sector.
- Economic growth in the U.S. remains strong, bolstered by solid goods and retail sales. However, a dip in consumer confidence and recent developments in select financing indicators might point to moderating consumption.
- In Europe, manufacturing activity remains subdued, with projected GDP growth for 2024 at 0.8%. Growth continues to be led by the services sector, and that in southern Europe.
- Chinese economic momentum has softened, but GDP growth is still expected to reach 4.8% for the year. Exports continue to be a key growth driver, while domestic demand remains weak, exacerbated by a stagnant housing sector. Recent fiscal and monetary policies should support the growth in China.
- On September 27th, tariffs introduced in May by the Biden administration officially took effect, impacting goods from China to the U.S. across various sectors, including raw materials, intermediate inputs, and consumer products.
Trending Topic – The Network of the Future
Last month we reached out with an update on the Gemini Cooperation and the Network of the Future. We are now writing with further information about what network is expected to be phased in on February 01, 2025.
After thorough consideration and given the continued safety concerns in the Red Sea, Hapag-Lloyd AG (Hapag-Lloyd) and Maersk A/S (Maersk), an entity under A.P. Moller – Maersk, confirm that they expect to phase in their Cape of Good Hope network for the commencement of the Gemini Cooperation on 1 February 2025. As the situation remains highly dynamic, Hapag-Lloyd and Maersk will return to the Red Sea when it is safe to do so.
The Gemini Cooperation’s ambition is to deliver industry-leading schedule reliability of above 90 percent once fully phased in, ensuring efficient and flexible services across the East-West trades. The Cape of Good Hope network will include 29 mainliner services supported by 28 intraregional shuttle services and will be operated by a fleet of around 340 vessels with a total capacity of 3.7m TEU.
In a recent customer broadcast, Maersk CEO Vincent Clerc highlighted the transformative impact of the Gemini Network, emphasizing its ability to insulate different port pairs and work more on a point-to-point basis rather than relying on traditional long-line systems. This new structure aims to significantly lift reliability by preventing disruptions at one port from cascading across the entire network. “Instead of having every shock transmitted across all ports that are in a rotation, we’re going to start to insulate the different port pairs,” Vincent Clerc explained, underlining the reliability boost that the Gemini network will bring.
Additionally, Vincent Clerc noted how investment into APMT terminals and hubs is already showing increased capacity with 30%, and that these investments mean hubs are better equipped to handle increased cargo volumes with delays. He stated, “What the new network will do is that it will diminish the problem coming into the hubs and then ensure that we achieve that 90% plus reliability,” reinforcing the company’s commitment to delivering greater predictability and stability for customers.
“What the new network will do is that it will diminish the problem coming into the hubs and then ensure that we achieve that 90% plus reliability.”
— Vincent Clerc – CEO, A.P. Moller – Maersk
