The U.S. conducted a third air strike on a Houthi missile facility in Yemen today, destroying four anti-ship ballistic missiles deemed an imminent threat to merchant vessels and U.S. Navy ships (see abcNews, by Luis Martinez). Red Sea diversions increase the demand for more ships by container lines due to security concerns, raising spot container freight rates and the cost of renting ships. Liners may need to acquire additional vessels to maintain schedules amid longer voyages around the Cape of Good Hope (see: FreightWaves, by Greg Miller). Meanwhile, the drought at the Panama Canal has led to unprecedented low water levels, with ongoing ship transit restrictions, causing delays and increased shipping costs. The canal faces further tightening restrictions in the arriving dry season and canal revenue could drop by $200 million (See: FP Foreign Policy, by Mle Hoejrls Dahl).

Homebuyers, especially first-time buyers, had a challenging and discouraging task in 2023 with rates hitting a high of 7.79% late in 2023 and median home prices over $400,000. In recent weeks, as mortgage rates have been declining, the challenge is still expected to continue as pricing remains relatively high supported by lower inventory and high demand, with some softening in certain areas. Read more about trends and predictions at Forbes Advisor. (See “Housing Market Predictions for 2024 …” at Forbes Advisor, by Robin Rothstein and Caroline Basile, Staff, 1/4/2024)

Growing risks of Houthi rebel attacks in the Red Sea are prompting major shipping companies (i.e., Maersk, MSC, CGM, & others) to avoid the region, opting for longer routes around the Cape of Good Hope. This has led to increased shipping rates as voyage distances rise. The U.S.-led Operation Prosperity Guardian aims to protect shipping, but uncertainties persist. Container shipping is expected to see significant rate increases, while import markets, especially in Europe, face delays, impacting jet fuel and diesel supplies. Concerns are rising for potential higher shipping rates and stock values amid ongoing uncertainties. (More at FreightWaves, “Red Sea chaos should boost...shipping rates” by Greg Miller, 12/18/2023) or Detailed VIDEO

A recent study presents important safety information relative to the holiday season for truck drivers and others. As one may expect, key risk factors are speeding, harsh braking, and traffic volume/congestion. However, compelling data also found that the time of day and the weeks just prior and after the holidays show spikes for safety risk as well. The top ten states with the highest levels of speeding included mid to northern states on the east coast, VA to NH (also HI), while for harsh braking included a similar group but also CA, UT, KY and FL. Speeding was found to be more common from 9 to 11:00 a.m., while less at night from 10 p.m. to 1 a.m. (More at: FleetOwner, “How drivers can stay safe around holidays” Jenna Hume, 12/13/2023)

As we near the end of the year, a report presents that U.S. layoffs for 2023 through October more than doubled over 2022 for the same period. The information was sourced from The Challenger Report which explained that even though cuts in October were down 22% over previous month, the job cuts in 2023 YTD was 641,350 vs. 243,388 in 2022. Technology was the leading industry responsible for most of the number racking up 158,513 lost jobs. (More at: CFO Magazine, “U.S. Employers Announced 22% Fewer Job Cuts in October” Vincent Ryan, Senior Reporter-at-Large, 11/3/2023)

As reported in last Update, the Panama Canal Authority (ACP) has currently maintained the same plan over the next several months with reduced reservation slots dropping down to a low of 18 daily by February 1. However, FreightWaves is now reporting that with the continued traffic to the canal (avoiding diverted routes) the average wait time for ships without a reservation has risen dramatically from 2.1 days on November 1 to 11.4 as of Wednesday this week for southbound transits. (More at: FreightWaves, “No Reservation at Panama Canal? Prepare for a long wait” Greg Miller, 11/29/2023)