Amazon says it will expand its Prime Air drone delivery service to nearly 500 cities and towns across the United States. New metro areas include Chicago, Atlanta and Cleveland. The company plans to offer fast delivery of small, light items, with customers ordering through the existing app. Regulators still need to approve wider flight paths, and some communities have raised questions about noise and privacy. Amazon says the build-out will create local jobs in operations and maintenance.
The US economy added just 29,000 jobs in September, a sharp slowdown, and the unemployment rate rose to 4.2 percent. An outright ban on certain Canadian products took effect the same week, escalating a trade fight between the two North American neighbours and forcing importers to reroute cargo. A bond sell-off pushed mortgage rates to their highest level since 2023, and the Federal Reserve raised its benchmark rate for the first time in more than three years. Total US public debt passed $40 trillion for the first time, and big technology firms kept borrowing heavily to finance AI data centres.
South Korea's exports jumped 83.5 percent in September from a year earlier to a record $120.9 billion, the first month the country has shipped more than $120 billion of goods. On a working-day basis, average daily exports more than doubled, rising 104.9 percent. Semiconductor shipments set their own record as spending on AI infrastructure keeps climbing, and chips now make up close to half of export earnings. Industry Minister Kim Jung-kwan said annual exports could approach $1 trillion, while warning that protectionism and Middle East tensions remain risks. Factory surveys also pointed to a fourth month of expansion.
Hapag-Lloyd has raised its 2026 earnings outlook for the second time, pointing to strong demand and higher spot freight rates, and has submitted an improved offer for Israel's ZIM Integrated Shipping Services as it seeks approval for a US$4.2 billion takeover. The upgrade lands as container shipping enters its busiest stretch, with Chinese Golden Week from 1 to 7 October tightening capacity. The Panama Canal will lift daily Neopanamax transits to ten vessels from 15 October. Not all signals are positive: gate congestion at DP World's Melbourne terminal is adding costs for hauliers, forwarders and shippers.
The US Transportation Department released a final rule that resets corporate average fuel economy standards, with reporting putting the cut at roughly a third versus the Biden-era targets. Officials say the change will lower the upfront cost of a new vehicle by an average of $1,300 and give automakers more freedom over what they build. Congress had already removed penalties for missing the targets and the EPA had reversed the policy that justified regulating vehicle greenhouse gases. Environmental groups say the move will raise costs and hand clean technology to China. Analysts expect litigation rather than immediate change.
The University of Michigan's final September reading of consumer sentiment came in at 48.1, down from 51.7 in August and 12.7% below a year ago. It is the lowest reading in four months and roughly 15% below January. The expectations index dropped 10.1% to 46.3. Consumers cited high prices, especially fuel, and re-escalating trade disputes. Oil markets have been volatile all year as the war with Iran disrupted production and cargo shipping in the Gulf, and those costs feed into petrol, freight rates and eventually shelf prices. The gloom cut across party lines: Republican sentiment is about 20% below January, Democratic sentiment down 13%.
Amazon said it will expand its Prime Air drone delivery service to nearly 500 US cities and towns, up from 11 sites across 10 metro areas today. New markets include Chicago, Syracuse, Cleveland, Atlanta and Boise. David Carbon, vice president of Amazon Prime Air, said the company has delivered hundreds of thousands of packages by drone this year and offers delivery in as little as 30 minutes. The drones carry packages up to five pounds, which Amazon says covers more than 60% of its best-selling items. Prime members pay nothing on orders of $50 or more and $2.99 on smaller orders.
The yield on the 10-year US Treasury note is back above 5 percent, a level it had not reached since late 2023 and had touched only once before that since 2007. The benchmark yield has risen about 80 basis points since January, when it traded near 4.15 percent, and the 30-year bond is near 5.3 percent. Two forces are driving the move: oil near $100 a barrel because of the Iran war and the Hormuz blockade, and a Federal Reserve that raised rates this month for the first time since 2023. The government paid about $1.27 trillion in interest this fiscal year.
The months-long crisis in the Strait of Hormuz is still pushing up the cost of moving goods. Brent crude has traded close to $100 a barrel for weeks, and bunker fuel surcharges are feeding into container and bulk cargo rates. Container schedule reliability fell to 56.1%, the sharpest monthly drop since the pandemic, as ships take longer routes and bunch up at ports. Shipping stocks have reached decade highs as investors bet on higher rates. Analysts warn that peak-season demand plus fuel costs could keep rates firm into the fourth quarter. Tanker operators have booked strong earnings, while importers brace for another quarter of unpredictable delivery windows and higher landed costs.
Drewry's World Container Index rose 1% in the week to 24 September to $4,339 per 40ft container, pushed up by the Pacific trades. Shanghai to New York jumped 10% to $8,706 and Shanghai to Los Angeles gained 6% to $6,244, while Asia to Europe slid, with Shanghai to Genoa down 8% to $5,080. Carriers cancelled ten sailings in each of the past two weeks and plan seven more, a sign that rate support is coming from capacity discipline rather than a surge in cargo. For shippers closing out peak season, space is the bigger worry.