Dimerco connects Asia with the world like no other global 3PL. We integrate air and ocean freight, trade compliance and contract logistics services to make global supply chains more effective and efficient. For the latest Asia-Pac Freight Market Update, please find below overview and recommendation along with details in attached file.
Air Freight Market Overview
COVID-19 outbreak in China:
• China – Hong Kong Cross Border trucking capacity is dramatically reduced, severely impacting Hong Kong as gateway in/out China.
• Shanghai, Qingdao lockdown and massive population testing has caused labor shortage, resulting in terminal delays. Trucking capacity, especially inter-city traffic remains a key challenge due to local regulation restrictions.
Ukraine｜Russia conflict:
• Into Europe: 36 countries have “no-fly" restrictions over Russia, extending flight times due to rerouting of flights.
• Fuel Surcharge increases across all airlines. (i.e., 15% from Indonesia and 25% from Philippines)
• China – Hong Kong Cross Border trucking capacity is dramatically reduced, severely impacting Hong Kong as gateway in/out China.
• Shanghai, Qingdao lockdown and massive population testing has caused labor shortage, resulting in terminal delays. Trucking capacity, especially inter-city traffic remains a key challenge due to local regulation restrictions.
Ukraine｜Russia conflict:
• Into Europe: 36 countries have “no-fly" restrictions over Russia, extending flight times due to rerouting of flights.
• Fuel Surcharge increases across all airlines. (i.e., 15% from Indonesia and 25% from Philippines)
Recommendation:
• Utilize ocean feeder service for cross-border in/out of Hong Kong.
• For China’s eastern district, consider alternative airports such as Beijing/Zhengzhou. For southern district, consider alternative airports such as Shenzhen/Xiamen/Guangzhou.
• Utilize ocean feeder service for cross-border in/out of Hong Kong.
• For China’s eastern district, consider alternative airports such as Beijing/Zhengzhou. For southern district, consider alternative airports such as Shenzhen/Xiamen/Guangzhou.
Ocean Freight Market Overview:
• China – HKG : China Zero-Covid policy with lockdown and massive population testing has caused labor shortage, affecting operations and supply chains flows. Trucking capacity, especially inter-city traffic remains a key challenge due to local regulation restrictions.
• Congestion remains at US Ports, with some cargo shifting from west coast to gulf and east coast ports.
• Europe: All carriers have stopped booking to Ukraine and Russia.
• Shanghai port operation remains normal, but a labor shortage has affected operating efficiency. More and more fleets skip Shanghai ports with around 75% on TPEB lane.
• Congestion remains at US Ports, with some cargo shifting from west coast to gulf and east coast ports.
• Europe: All carriers have stopped booking to Ukraine and Russia.
• Shanghai port operation remains normal, but a labor shortage has affected operating efficiency. More and more fleets skip Shanghai ports with around 75% on TPEB lane.
Recommendation:
• Book early and communicate constantly for any changes.
• Be flexible with equipment availability.
• With current situation in China, for Eastern district, consider alternative seaport such as Taicang / Ningbo; Ports operation in China’s southern district, including HKG, YTN, HUP, have resumed normal operations. Check with shipper to verify current local regulation restrictions.
• Book early and communicate constantly for any changes.
• Be flexible with equipment availability.
• With current situation in China, for Eastern district, consider alternative seaport such as Taicang / Ningbo; Ports operation in China’s southern district, including HKG, YTN, HUP, have resumed normal operations. Check with shipper to verify current local regulation restrictions.
