Companies like FedEx and Amazon have had to lay off large numbers of staff and curtail their operations. According to the International Monetary Fund (IMF), the world economy continues to face great challenges. The slowdown expected in 2023 will affect many economies, as countries that account for a third of the world economy will contract in 2023. The global logistics sector, unfortunately, will not escape the slowdown. According to Bloomberg Intelligence’s 2023 outlook for North American trucking and rail companies, the good times are coming to an end. According to accounting firm BDO, this week mergers and acquisitions in the UK logistics sector have slowed for the third consecutive quarter amid fragile market conditions. Mass layoffs FedEx Freight confirmed last week that it is carrying out layoffs at some US locations. The move is due to «current trading conditions affecting volumes.» The company reported that US deliveries were down around 10% in the three months of June to August 2022 compared to a year earlier. In addition, it has been reported that Amazon has reduced its logistics operations, delaying or closing more than 60 warehouse centers. This may impact Amazon Freight, a third-party logistics operation that in the UK and Europe manages a network of 6,500 freight vehicles and 13,000 freight partners. Shipping container platform Container xChange reported this week that the recession and excess inventory have caused shipping prices to fall and ports are now clogged with empty containers. Container cargo volume at the largest US ports decreased 3.8% in September 2022 compared to the same month in 2021. Total volume of full containers moved through nine major ports was 2.67 million TEUs in September 2022, down from 2.77 million in September 2021 and 2.85 million in September 2020. Meanwhile, global air cargo transit fell 10.6% year-on-year in September 2022, causing a corresponding reduction in freight rates. Figures for September published by the International Air Transport Association (IATA) confirm that the slowdown in air cargo activity continues. Global air cargo volumes decreased by 10.6% compared to the September 2021 total, standing at 20.330 million tonne/kilometres in total, and 10.6% also in the purely international sector. https://lnkd.in/eq-sujpN
