Aiming to provide relevant and up-to-date information to help you navigate your supply chain.
Operations in Israel
We have been monitoring the situation in Israel closely since October and taking action to ensure the safety of its employees and the overall efficiency of its customers’ supply chains.
Since October, all vessels calling Israeli ports have been subject to an increased insurance premium due to the ongoing risk in and around the area. Covering the additional insurance has enabled us to keep operations moving as steadily as possible and secure capacity in the market for our customers over the final three months of the year.
Moving into 2024, insurance premiums continue to be raised for vessels bound for Israel, which on 07 December 2023 brought about the need for Maersk to officially implement an Emergency Risk Surcharge (ERS) for all customer cargo discharged at Israel terminals. ERS will be applied to Israel import cargo for bookings with a Price Calculation Date (PCD) from January 8, 2024, until further notice. Review the Emergency Risk Surcharge for Israel Imports here.
The European Union Emissions Trading System & Emissions Surcharge
The European Union Emissions Trading System (EU ETS) is an initiative designed to reduce greenhouse gas emissions within the European Union, and it now encompasses the maritime industry. This means that all customers using Maersk's services for cargo shipments to, from, or within the European Economic Area (EEA) will be impacted by these new regulations.
Sustainability lies at the core of our business. We are committed to minimizing our environmental footprint and actively participating in global efforts to combat climate change. As part of our compliance with the EU ETS Directive, we will incorporate the costs associated with carbon allowances into our operations.
We encourage you to familiarize yourself with the EU ETS Directive and its implications for your operations published in this customer advisory and FAQ.
At the end of October, the Panama Canal Authority (PCA) announced new limits likely to lead to fewer than 24 crossings a day this month. As of February 1, 2024, until further notice, the number of booking slots will be reduced to 18 per day. We have been closely monitoring the situation, and thus far, we are able to continue making and securing timely canal transits to support our customers. We continue to adapt our internal processes to match the updated booking requirements of the Canal, obtaining access to the transit slots needed to ensure minimum impact on our customers.
For the most up-to-date information as the news in the Panama Canal develops, please visit our advisory page on this subject.
Overall, in terms of schedule reliability, Sea Intelligence has recently published a new reliability report, putting Maersk at the top of the most reliable carriers, with schedule reliability of 71.1% in October 2023.
As we enter the winter season, we face weather-related issues in Europe and the Gulf of Mexico. However, our services remain highly reliable in the market. Moreover, we have available space on our services from Mexico to North Europe to accommodate any additional space required by our customers.Transpacific
Maersk is the leading provider in the Asia-West Coast South America trade lane, offering customers an exceptional service reliability of 96.29%. Notably, the AC2 service, connecting Asia with Mexico, achieves an unparalleled 100% service reliability in September/October 2023.
United States & CanadaIndia, Middle East & Africa
In our West Africa trade, we are experiencing robust volume during the cocoa season. However, we are currently facing space limitations to Canada, which impacts our overall performance in this trade.
In the South Africa trade, we have encountered some challenges at ports due to strong winds and occasional port omissions on our AMEX service. Despite these constraints, we are working diligently to minimize disruptions and maintain smooth operations. Regarding the East Africa market, we continue to observe persistently weak garment import volumes into North America.
Record-Breaking Online Sales and Early Promotions Define US Holiday Shopping Trends
In the United States, Christmas shopping starts on Black Friday, the day after Thanksgiving. However, retailers have initiated seasonal sales promotions as early as the beginning of November. According to Statista, In 2023, holiday online retail sales in the US reached nearly $254 billion, with Cyber Monday as the biggest online shopping day in US history, generating approximately $12 billion in revenue. These five days, known as Cyber Five, spanning from Thanksgiving Day to Cyber Monday, were projected to accumulate around $40 billion in online sales.
The gradual digital transformation of the retail sector has become apparent during the final quarter of the year when an increasing number of Americans turn to online stores to find the perfect gifts for themselves or their loved ones. Statista reported that when asked about their holiday gift shopping plans in 2023, most consumers expressed their intention to make at least some of their purchases online, while almost ten percent planned to shop for the holidays exclusively on the internet.
Another prominent e-commerce trend that has gained traction during the holiday season in the United States is retailers' early promotion of online deals. The year's final quarter typically represents the most lucrative period for retailers in the country. As a result, early advertising has become crucial in capitalizing on shoppers' purchasing power. In 2023, slightly over half of US shoppers initiated their holiday gift shopping before December. Furthermore, around one-third of consumers anticipated using social media platforms like Facebook, YouTube, and Instagram for their holiday shopping purchases.
Product Spotlight: Container Protect for Ocean Products
Dents and dings happen in shipping; let them happen to the container and not your plans.
Did you know that one in three containers globally sustain damage or require clean-up, leading to avoidable delays and surprise costs for shippers? Container Protect is now available in North America and offers unlimited protection* against such instances, offering a hassle-free alternative for just USD $15.
Container Protect will save all involved from the hassle of disputes and paperwork by providing transparent coverage against container cleaning and repairs due to third-party damage. This allows you to focus on what really matters to you, your business, while we take care of the formalities.
Why is Container Protect right for your business?
- It’s flexible and can be purchased up to 10 days before the vessel’s arrival time.
- It’s simple, covering all commodities.
- It’s predictable, so you will never be surprised by any unexpected bills for dents, chips, scratches, or cleaning.
Visit Container Protect on Maersk.com and add it on your next shipment in the USA and Canada or globally, as it is offered in more than 100 destinations as we grow to serve you worldwide.
Topics, Trends, and Insights
Challenges and Resilience in the Global Economy for 2024
Weakened growth of the global economy in 2024
After displaying unexpected resilience in 2023, the global economy faces new challenges in the coming year. According to Euromonitor's report "Global Economic Forecasts," the revised real GDP growth rate for 2023 stands at 2.8%, primarily driven by the strong performance of the US economy. However, for 2024, global growth expectations have tempered, projecting a rate of 2.7%. This downward revision is attributed to the potential impacts of restrictive monetary policies on advanced economies' services sectors and labor markets, compounded by the existing weaknesses in manufacturing and global trade.
Major economies to face diverse challenges in 2024
In 2024 major economies will grapple with diverse challenges. While the US enjoyed resilient consumer spending and a robust labor market in 2023, Euromonitor’s projections indicate a significant slowdown in the country for 2024. Conversely, the Eurozone is expected to experience a modest recovery after stagnation caused by weak foreign demand in the manufacturing sector. Meanwhile, China continues to face challenges, leading to a projected growth rate decrease from 5% in 2023 to 4.7% in 2024, primarily driven by weak business and consumer confidence.
Asia Pacific will lead the way among resilient developing economies
Among the developing economies, the Asia Pacific region emerges as a driving force of resilience. In 2024, advanced economies are expected to decelerate to a growth rate of 1.1%, while developing economies maintain a stable rate of 4.0%. Countries such as Vietnam, the Philippines, and Indonesia are poised to experience accelerating momentum, with growth rates projected at 6.0%, 5.7%, and 5.1% respectively. India is the fastest-growing major economy, with a projected growth rate of 6.1% in 2024.
As the global economy faces diverse challenges and resilient pockets of growth, navigating these dynamics becomes crucial for businesses and investors alike. Stay informed and agile to seize opportunities and mitigate risks in this evolving economic landscape.
More News from Maersk from around the world
- Shipping CEOs join forces to accelerate the decarbonization of global maritime transportation.
- Nestle cuts ocean transport emission with Eco Delivery solution by over 80%
- Maersk to deploy first large methanol-enabled vessel on Asia-Europe trade lane
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