Global trade bellwethers like FedEx and Cathay Pacific Airways have cast a pall over the year-end holiday shopping season — the business slowdown they're seeing points to weaker-than-expected consumer demand, not a Christmas bonanza.
The gloomy outlook comes as consumers globally struggle to cope with surging costs of food, fuel and housing. Even more spendthrift shoppers in China are tightening purse strings as the country's harsh Covid-19 curbs have hit the economy.
FedEx, which on Thursday withdrew a forecast it issued just three months ago, said a global demand slowdown accelerated at the end of August and was on pace to worsen in the November quarter.
The lack of a 'freight wave' from China's reopening was a negative sign for freight demand
JP Morgan
"The lack of a 'freight wave' from China's reopening was a negative sign for freight demand," said JP Morgan analysts, who downgraded FedEx stock to "neutral" from "overweight" on the outlook warning.
"It appears to have impacted FedEx first as the leading air freight carrier in the Asia-Pacific region."
FedEx shares were down nearly 20 per cent in premarket trading on Friday, pulling stock in Deutsche Post — owner of logistics giant DHL — 6.4 per cent lower in their slipstream in Frankfurt.
The Christmas holiday season is usually frantic for air cargo and shippers moving newly launched smartphones, toys, and apparel from factories in Asia to the US and Europe.
But western retailers including Costco Wholesale Group and Macy's have found their shelves overflowing with unsold merchandise, suggesting they misjudged demand and are likely to be more cautious while restocking.
"We do a lot of business with Costco, Walmart, Target and they are telling us straight that they just don't have space for anything right now," said Jonathan Chitayat, the Asia boss of Shanghai-based Genimex Group, a contract manufacturer for a range of products from cleaning brushes to exercise equipment.
"They just bought so much in the first half of the year to deal with the unpredictability of the supply chain from China and then demand dropped, so they just have massive amounts of goods."
Hong Kong's Cathay Pacific Airways gave a warning this year's peak cargo season may be weaker than last year's because of inflation and China's zero-Covid policies. France-based transporter CMA CGM said weak consumer spending was curbing shipping demand and rates.
Reflecting a demand slump, ocean container shipping rates from Asia to the US west coast have slumped nearly three quarters since the start of the year to their lowest level since May 2020, according to booking platform Freightos Group.
Worldwide air cargo volumes fell 11 per cent in the first full week of September from a year earlier, according to WorldACD Market Data, which said there were no clear signs yet of a revival.
The Baltic Air Freight Index powered by TAC data, which hit record highs in December on a pandemic-led peak season rally, has since slumped nearly 40 per cent.
"Normally prices strengthen this time of year as traditional peak season approaches, but there is little sign of that happening yet," TAC Index said in a weekly market update.
Deloitte forecast this week that US holiday retail sales growth will slow sharply, hurt by "declining demand for durable consumer goods, which had been the centrepiece of pandemic spending."
Still, people are spending on some goods and services such as cars and dining out, though a surge in raw material prices and a still-raging semiconductor shortage have dampened sales.
The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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MATCH INFO
Tottenham 4 (Alli 51', Kane 50', 77'. Aurier 73')
Olympiakos 2 (El-Arabi 06', Semedo')
KILLING OF QASSEM SULEIMANI
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Killing of Qassem Suleimani
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Changing visa rules
For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.
Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.
It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.
The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.
The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
UAE currency: the story behind the money in your pockets
$1,000 award for 1,000 days on madrasa portal
Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.
School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.
“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.
“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”
Nick's journey in numbers
Countries so far: 85
Flights: 149
Steps: 3.78 million
Calories: 220,000
Floors climbed: 2,000
Donations: GPB37,300
Prostate checks: 5
Blisters: 15
Bumps on the head: 2
Dog bites: 1
57%20Seconds
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VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
