---
title: "Freight Market Update: September 20, 2023"
description: "Ocean FAK rates drop pre-Golden Week with 20–30% capacity cuts. Air demand surges Asia–US/Europe on electronics and ecommerce. U.S. export rates remain low as carriers chase backhaul volume."
language: en
canonical: https://www.flex.thisisbrew.com/global-logistics-update/freight-market-update-september-20-2023/
lifecycle: live
---

# Freight Market Update: September 20, 2023

## Trends to Watch

\[Ocean - FEWB\] With soft demand and the expected impact of Golden Week, FAK rates continue to drop prior to the Golden Week holiday. Capacity cut for October is estimated to be 20-30%. On the Mediterranean trade demand has weakened and more blank sailings have been announced from all 3 alliances.

\[Air - Global\] Overall market demand for air freight capacity is on the increase — particularly from Asia to the U.S. and Europe. South East Asian countries such as Thailand, Vietnam, Singapore and Malaysia are most impacted with surging demand levels due to consumer electronics and semiconductor production. At the same time, China and Hong Kong are experiencing rising demand levels due to ecommerce activity and New Product Introduction (NPI). Because all of this volume routes through 3 primary export gateways in Asia—HKG, PVG, and TPE—capacity is impacted resulting in extended transit times and rising rate levels.

\[U.S. Exports\] US Export trades remain wide open with all carriers aggressively pursuing volume and pricing accordingly. Filling the backhaul remains a top priority and low rates reflect this aggressive push for market share accordingly.

\[Ocean - ISC U.S.\] Ocean freight demand ex India has softened in September resulting in carriers dropping rates. Drop in demand is expecting to persist through the first half of October.

\[Ocean - LATAM\] Space remains open both northbound and southbound—and both to and from both coasts. Brazil exports: Vessel utilization at a very healthy level (~90-95%). We recommend placing bookings 4-5 weeks prior to CRD.

Wider Trends Worth Watching:

Some shippers are beginning to restock after selling through last year's overstocks, leading carriers to continue expecting a muted peak season using small gains around back-to-school and Halloween as guideposts.

Mexico is seen as a growing market due to the nearshoring trend continuing to expand. Yard capacity south of the border at Laredo continues to grow and more rail links are being established.

Shipping into the USWC is rebounding after uncertainty around labor actions and congestion in the first half of the year. Delays at the Panama Canal are a contributing factor, as are the lower rates compared to the U.S. Gulf Coast/USEC.

Please reach out to your account representative for details on any impacts to your shipments.

## North America Vessel Dwell Times

For more details, please visit Flexport’s Ocean Timeliness and Air Timeliness indicator pages.

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