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:
• Intra-Asia demand and rate is stable with raw materials flying among Asia countries.
• Southeast Asia to USA/Europe rate is stable. However, the rate is expected toincrease starting September into October due to more PAX luggage taking up cargo capacity, as well as traditional peak season approaching.
• China airfreight market is soft with declining rates as export volumes continue to decline, even with flight cancellations into USA/Europe. With heat waves in Chinasubsiding and new tech products (i.e., iPhone) launching in Sept/Oct, it may suggest a peak season start at around the 3rd week of Sept.
• The air rates and space from Taiwan to USA, Europe, Southeast Asia and China are stable, with tight capacity only into San Francisco (USA) and Heathrow (UK). InTaiwan, there is a weak demand for consumer products. High inventory rates have caused companies to delay new orders. The weak demand yielded better pricing from the airlines and greater flexibility for specific cargo types.
• China’s military exercises during Aug led to cancellation of mostly China-based freighter and passenger flights in/out of Taiwan, creating a temporary capacity shortage.
• Southeast Asia to USA/Europe rate is stable. However, the rate is expected toincrease starting September into October due to more PAX luggage taking up cargo capacity, as well as traditional peak season approaching.
• China airfreight market is soft with declining rates as export volumes continue to decline, even with flight cancellations into USA/Europe. With heat waves in Chinasubsiding and new tech products (i.e., iPhone) launching in Sept/Oct, it may suggest a peak season start at around the 3rd week of Sept.
• The air rates and space from Taiwan to USA, Europe, Southeast Asia and China are stable, with tight capacity only into San Francisco (USA) and Heathrow (UK). InTaiwan, there is a weak demand for consumer products. High inventory rates have caused companies to delay new orders. The weak demand yielded better pricing from the airlines and greater flexibility for specific cargo types.
• China’s military exercises during Aug led to cancellation of mostly China-based freighter and passenger flights in/out of Taiwan, creating a temporary capacity shortage.
Ocean Freight Market Overview:
• Ocean rates in general are on the downward trend for nearly all trade lanes,except the corridor for Asia to S. America.
• Blank sailings and skipped calls continue due to port congestions and the ZEROCOVID policy in China. Absent these triggers, we expect that carriers might have to undercut their rates faster/quicker than above levels.
• Global vessel schedule reliability improved to 40.5 percent in July, marking the third consecutive month of improvement.
• Number of vessels waiting outside of Los Angeles and Long Beach is decreasing and port congestion has improved on the US West Coast. Congestion at GulfCoast & East Coast ports continues, especially in Savannah.
• Canadian National Railway recently moves cargos to Valleyfield in Montrealwith additional charge and delay due to current yard is overwhelmed.
• German port employers and the dockworker union reached an agreement onwage increases, which ends the dispute that has been disrupting port operations.
• The Aug 21-29 port worker strike at Felixstowe port − the largest container port in the UK − could lead to UK supply chain disruptions. So far, talks have not reached a resolution.
• Blank sailings and skipped calls continue due to port congestions and the ZEROCOVID policy in China. Absent these triggers, we expect that carriers might have to undercut their rates faster/quicker than above levels.
• Global vessel schedule reliability improved to 40.5 percent in July, marking the third consecutive month of improvement.
• Number of vessels waiting outside of Los Angeles and Long Beach is decreasing and port congestion has improved on the US West Coast. Congestion at GulfCoast & East Coast ports continues, especially in Savannah.
• Canadian National Railway recently moves cargos to Valleyfield in Montrealwith additional charge and delay due to current yard is overwhelmed.
• German port employers and the dockworker union reached an agreement onwage increases, which ends the dispute that has been disrupting port operations.
• The Aug 21-29 port worker strike at Felixstowe port − the largest container port in the UK − could lead to UK supply chain disruptions. So far, talks have not reached a resolution.
