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:
• China Flight cancellations during Golden Week, together with high demand for e-commerce cargo, triggered a short-lived price increase in first half of Oct. However, this dropped as soon as the space/flights returned to normal.
• China 20th CPC National Congress was held on Oct. 16. The first plenary session is on Oct. 23. During the period, all Chinese airports (except HKG) not accepted over-size, over-weight cargo. Beijing has the strictest controls, which may gradually ease by early Nov.
• Taiwan, with the ease of covid-19 regulation, weekly flights are expected to increase by 80% compared to September, with passenger traffic expected to return to 40% of pre-pandemic levels in 2023.
• In the US, volumes show a continued weak trend with no signs of a peak season spike. However, if the inventories become sufficiently low and consumer demand strengthens, a late season spike may still be possible. As of now, rates and volumes continue to drop.
• With a reduction in shipment volume in the Southeast Asia market, airlines are now willing to negotiate prices on high-quantity shipments and offer special ad-hoc rates for some outbound shipments from Southeast Asian countries, such as Indonesia and Thailand.
• China 20th CPC National Congress was held on Oct. 16. The first plenary session is on Oct. 23. During the period, all Chinese airports (except HKG) not accepted over-size, over-weight cargo. Beijing has the strictest controls, which may gradually ease by early Nov.
• Taiwan, with the ease of covid-19 regulation, weekly flights are expected to increase by 80% compared to September, with passenger traffic expected to return to 40% of pre-pandemic levels in 2023.
• In the US, volumes show a continued weak trend with no signs of a peak season spike. However, if the inventories become sufficiently low and consumer demand strengthens, a late season spike may still be possible. As of now, rates and volumes continue to drop.
• With a reduction in shipment volume in the Southeast Asia market, airlines are now willing to negotiate prices on high-quantity shipments and offer special ad-hoc rates for some outbound shipments from Southeast Asian countries, such as Indonesia and Thailand.
Ocean Freight Market Overview:
· Ocean carriers have cut 24 percent of trans-Pacific capacity through October, totaling to 670,376 TEUs. Volume around China’s Golden Week did not lead to a significant boost. Ocean Carriers’ efforts to impose blank sailings are expected to continue for the remainder of 2022.
· The loading factor of carriers’ long-haul exports from Asia reached 96% full per week, on average, whereas the ensuing 2−3 weeks would drop slightly to 94%.
· On long-haul exports from Asia, capacity cuts from blank sailings and call omissions was at 17.8% per week, increasing to 25% by week 44.
· The Shanghai Containerized Freight Index (SCFI) shows a week 39 rate decline of 54% since July 1st and a decline of 59% vs. the same week in 2021.
· USA Port congestions have improved as shipment volume decreases. Savannah and Houston continues to have the largest queue followed by Oakland, New York / New Jersey, and Norfolk. However, the terminals are still considered as congested, impacting space availability and cut off for US exports and Import / Export IPI transitions. Cargo via IPI will experience a longer lead time when comparing with vessel dwelling time due to the land side factors.
· Global schedule reliability continues to improve, reaching 46.2% on time in August.
· The loading factor of carriers’ long-haul exports from Asia reached 96% full per week, on average, whereas the ensuing 2−3 weeks would drop slightly to 94%.
· On long-haul exports from Asia, capacity cuts from blank sailings and call omissions was at 17.8% per week, increasing to 25% by week 44.
· The Shanghai Containerized Freight Index (SCFI) shows a week 39 rate decline of 54% since July 1st and a decline of 59% vs. the same week in 2021.
· USA Port congestions have improved as shipment volume decreases. Savannah and Houston continues to have the largest queue followed by Oakland, New York / New Jersey, and Norfolk. However, the terminals are still considered as congested, impacting space availability and cut off for US exports and Import / Export IPI transitions. Cargo via IPI will experience a longer lead time when comparing with vessel dwelling time due to the land side factors.
· Global schedule reliability continues to improve, reaching 46.2% on time in August.
