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
• Overall demand softening in Asia Pacific. China is in the doldrums: COVID, global economic slowdown, Ukraine war, inflation, and some orders shifting from China.
• In Taiwan, there is weak demand due to raw material shortages and a reduction of orders. Airlines expect passenger flights to recover to 50-60% by September. However, rising oil prices may lead airlines to reduce passenger flights to stabilize rates.
• In July, Cathy Pacific Cargo has resumed full freighter schedule, operating
between 90 to 100 freighters each week. However, market demand in Hong Kong is slow, especially into US with continuing rate decreases.
• Fuel surcharges continue to increase (i.e., Taiwan: +5% since Jun 11th ) but are expected to remain the same in August.
• North America export demand remains steady & US airports are running normally.
• Shipments into EUR could experience additional destination dwell time due to labor shortages in main air hubs.
• In Taiwan, there is weak demand due to raw material shortages and a reduction of orders. Airlines expect passenger flights to recover to 50-60% by September. However, rising oil prices may lead airlines to reduce passenger flights to stabilize rates.
• In July, Cathy Pacific Cargo has resumed full freighter schedule, operating
between 90 to 100 freighters each week. However, market demand in Hong Kong is slow, especially into US with continuing rate decreases.
• Fuel surcharges continue to increase (i.e., Taiwan: +5% since Jun 11th ) but are expected to remain the same in August.
• North America export demand remains steady & US airports are running normally.
• Shipments into EUR could experience additional destination dwell time due to labor shortages in main air hubs.
Ocean Freight Market Overview:
• Overall market is on downward slide. U.S. new orders slowed down as importers are working through current inventory and pending orders. The downward import rate trend continues in July.
• Schedule reliability remains between 30% and 40% (Sea-Intelligence)
• North America port congestion continues, with the East Coast worsening.
• Trucker protests against AB-5 law in California has caused disruptions in terminal access & pick up/delivery in Oakland.
• Ocean Shipping Reform Act of 2022 (OSRA-22) is changing demurrage / detention collection practice by the Ocean Carriers and Terminals.
• Burden of proof on long contentious detention and demurrage billing practices shifting from shippers/consignees to container lines.
• US Railway worker strike prevented with President Biden’s signing of executive order.
• Schedule reliability remains between 30% and 40% (Sea-Intelligence)
• North America port congestion continues, with the East Coast worsening.
• Trucker protests against AB-5 law in California has caused disruptions in terminal access & pick up/delivery in Oakland.
• Ocean Shipping Reform Act of 2022 (OSRA-22) is changing demurrage / detention collection practice by the Ocean Carriers and Terminals.
• Burden of proof on long contentious detention and demurrage billing practices shifting from shippers/consignees to container lines.
• US Railway worker strike prevented with President Biden’s signing of executive order.
