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 updates in Asia:
• Shanghai has announced plans to reopen gradually starting Jun 1. First and last-mile trucking delivery is expected to improve by end of June.
• Lockdown for Mainland China is lifted in Jiangsu province (i.e., Kunshan, Suzhou), but situation is deteriorating in Beijing, Chongqing (avg. 7 days before shipment is released for pick up)
• As situation improves in Hong Kong, Cathay Pacific is resuming >30 flights per month from HK to US starting June.
• The Taiwan-to-Mainland China freight rate is rising 30%-35% due to backlog at Beijing, Guangzhou, Xiamen, and Shenzhen. Carriers are charging express rates to ensure cargo movement. Expect flight cancellation on short notice.
• Although Southeast Asia reopened 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.
• Shanghai has announced plans to reopen gradually starting Jun 1. First and last-mile trucking delivery is expected to improve by end of June.
• Lockdown for Mainland China is lifted in Jiangsu province (i.e., Kunshan, Suzhou), but situation is deteriorating in Beijing, Chongqing (avg. 7 days before shipment is released for pick up)
• As situation improves in Hong Kong, Cathay Pacific is resuming >30 flights per month from HK to US starting June.
• The Taiwan-to-Mainland China freight rate is rising 30%-35% due to backlog at Beijing, Guangzhou, Xiamen, and Shenzhen. Carriers are charging express rates to ensure cargo movement. Expect flight cancellation on short notice.
• Although Southeast Asia reopened 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:
• Divert your air freight from Shanghai if it’s impacted by disruptions: for eastern district, consider Zhengzhou; for southern district, consider Shenzhen/Guangzhou/Xiamen.
• Utilize our Truck-Truck solution via Qianhai (bonded area) Shenzhen until cross-border trucking resumes normal operation. This solution is available both ways in/out of Hong Kong to/from China.
• Place booking as early as possible and communicate systematically with suppliers in China prior to freight pickup/delivery in order to fully comply with any updated regulations.
• Divert your air freight from Shanghai if it’s impacted by disruptions: for eastern district, consider Zhengzhou; for southern district, consider Shenzhen/Guangzhou/Xiamen.
• Utilize our Truck-Truck solution via Qianhai (bonded area) Shenzhen until cross-border trucking resumes normal operation. This solution is available both ways in/out of Hong Kong to/from China.
• Place booking as early as possible and communicate systematically with suppliers in China prior to freight pickup/delivery in order to fully comply with any updated regulations.
Ocean Freight Market Overview:
COVID-19 outbreak:
• Due to China Covid restrictions impacting cargo export volume, ocean carriers have reallocated space to Southeast Asia into US and Europe. For Intra-Asia service, space and equipment are available to book. Suggest direct services to avoid congestion and delay at transshipment ports.
• Carriers are still imposing blank sailings between Asia and North America to realign vessel schedules impacted by the ongoing port congestion.
• Space from Shenzhen into the US East Coast is showing signs of becoming tighter. •Trucking rates in USA remains high due to fuel cost hikes. Terminal waiting time remains high.
• US East Coast Port congestion has improved, with Savannah being the exception with 5-6 days to berth. Charleston vessel waiting to berth improved to 5-7 days.
• Due to China Covid restrictions impacting cargo export volume, ocean carriers have reallocated space to Southeast Asia into US and Europe. For Intra-Asia service, space and equipment are available to book. Suggest direct services to avoid congestion and delay at transshipment ports.
• Carriers are still imposing blank sailings between Asia and North America to realign vessel schedules impacted by the ongoing port congestion.
• Space from Shenzhen into the US East Coast is showing signs of becoming tighter. •Trucking rates in USA remains high due to fuel cost hikes. Terminal waiting time remains high.
• US East Coast Port congestion has improved, with Savannah being the exception with 5-6 days to berth. Charleston vessel waiting to berth improved to 5-7 days.
Bunker Surcharge Increases:
• Carriers started announcing an emergency fuel surcharge and several carriers adjusted the frequency of reviewing the bunker surcharge formula from quarterly to monthly to balance and prevent the negative impact of a fuel price increase.
• Carriers started announcing an emergency fuel surcharge and several carriers adjusted the frequency of reviewing the bunker surcharge formula from quarterly to monthly to balance and prevent the negative impact of a fuel price increase.
