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 Asia:
• Factory shutdowns in Shanghai, as well as cities in Jiangsu province (i.e., Kunshan, Suzhou), led to a relatively stable outbound air freight rate for Intra Asia and USA/Europe flights.
• The Taiwan-to-Mainland China freight rate is rising due to the backlog at Beijing, Guangzhou, Xiamen, and Shenzhen. Carriers are charging express rates to ensure cargo movement.
• Although most of Southeast Asia has started reopening to international travelers, belly capacity is not expected to increase in the near term due to the current COVID situation and quarantine restrictions in China, Hong Kong and Taiwan
• Factory shutdowns in Shanghai, as well as cities in Jiangsu province (i.e., Kunshan, Suzhou), led to a relatively stable outbound air freight rate for Intra Asia and USA/Europe flights.
• The Taiwan-to-Mainland China freight rate is rising due to the backlog at Beijing, Guangzhou, Xiamen, and Shenzhen. Carriers are charging express rates to ensure cargo movement.
• Although most of Southeast Asia has started reopening to international travelers, belly capacity is not expected to increase in the near term due to the current COVID situation and quarantine restrictions in China, Hong Kong and Taiwan
Recommendation:
• For China’s eastern district, consider alternative airports, such as Beijing/Zhengzhou. For the southern district, consider alternative airports, such as Shenzhen/Xiamen/Guangzhou.
• Utilize alternative air freight solutions for China cross border in/out of Hong Kong.For Shanghai and nearby manufacturing hubs, communicate systematically with suppliers prior to freight pickup/delivery in order to fully comply with any updated regulations.
• For China’s eastern district, consider alternative airports, such as Beijing/Zhengzhou. For the southern district, consider alternative airports, such as Shenzhen/Xiamen/Guangzhou.
• Utilize alternative air freight solutions for China cross border in/out of Hong Kong.For Shanghai and nearby manufacturing hubs, communicate systematically with suppliers prior to freight pickup/delivery in order to fully comply with any updated regulations.
Ocean Freight Market Overview:
COVID-19 outbreak:
• All freight out of Asia is on a downtrend trend with soft market demand for the next couple of weeks. Currently, capacity is allocated to other ports in China and Southeast Asia. Anticipate a possible sharp rebound and reallocation of capacity to Eastern China when normal operations resume.
• Lot of export containers unable to gate-in at the Shanghai port due to lack of drivers and stringent virus testing procedures.
• Carriers need more freight out of Southeast Asia, and are willing to reduce freight charges. Booking space is easier than in 2021 ( book 2-weeks ahead)
• From week 17 (starting Apr 25) to 21, liners have announced 78 blank sailings, 64% of are Transpacific Eastbound, mainly to the US West Coast.
• All freight out of Asia is on a downtrend trend with soft market demand for the next couple of weeks. Currently, capacity is allocated to other ports in China and Southeast Asia. Anticipate a possible sharp rebound and reallocation of capacity to Eastern China when normal operations resume.
• Lot of export containers unable to gate-in at the Shanghai port due to lack of drivers and stringent virus testing procedures.
• Carriers need more freight out of Southeast Asia, and are willing to reduce freight charges. Booking space is easier than in 2021 ( book 2-weeks ahead)
• From week 17 (starting Apr 25) to 21, liners have announced 78 blank sailings, 64% of are Transpacific Eastbound, mainly to the US West Coast.
Bunker Surcharge Increases:
• Several carriers adjusted the bunker surcharge formula from quarterly to monthly to balance and prevent recent and/or possibly future impact of a fuel price increase.
• Several carriers adjusted the bunker surcharge formula from quarterly to monthly to balance and prevent recent and/or possibly future impact of a fuel price increase.
