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:
• Global air freight volume continues to shrink as the global economy approaches recession.
• Passenger flights have increased as various countries in Asia have lifted Covid restrictions. This is causing an imbalance on the supply and demand in the air freight market, leading to decreasing rates.
• Due to the Covid restriction in South China, the cross-border truck resources still remain at 70% - 80% between South China and Hong Kong. This has led to more shipments departing or arriving in Shenzhen or Guangzhou directly, instead of Hong Kong, vs. 2021.
• A strike at Heathrow Airport happened between 11/18 to 11/21, which led to flight cancellations on Qatar Airways, Virgin Atlantic,Singapore Airlines, Cathay Pacific and Emirates.
• Passenger flights have increased as various countries in Asia have lifted Covid restrictions. This is causing an imbalance on the supply and demand in the air freight market, leading to decreasing rates.
• Due to the Covid restriction in South China, the cross-border truck resources still remain at 70% - 80% between South China and Hong Kong. This has led to more shipments departing or arriving in Shenzhen or Guangzhou directly, instead of Hong Kong, vs. 2021.
• A strike at Heathrow Airport happened between 11/18 to 11/21, which led to flight cancellations on Qatar Airways, Virgin Atlantic,Singapore Airlines, Cathay Pacific and Emirates.
Ocean Freight Market Overview:
Global
• For long-haul supply side from Asia, average weekly market capacity reductionsdue to blank sailings and call omissions increased to 19.1%. This figure is expected to increase to 20% in the coming weeks.
• Per Sea Intelligence, Transpacific blank sailings were at 446,756 TEUs (17.1% of total capacity) − an increase from 7.1% of total capacity vs 3 weeks prior.
• Based on Shanghai Containerized Freight Index (SCFI) evolution for all trades exporting from Asia, the composite index has dropped by 66% since July 1st and68% compared with the corresponding period from last year.
North America
• USA Port congestion: Savannah and Houston continue to have the largestqueue followed by Oakland, New York / New Jersey, and Norfolk.
• Union Pacific Railroad (UP) will remove the demurrage cap at 7 inland locationsstarting Nov. 28. The locations are Council Bluffs (Iowa), Dallas, Denver, Houston, Memphis, Salt Lake City, and St. Louis.
• Container dwells in Los Angeles – Long Beach terminals for trains remain long at around 14 days.
• For long-haul supply side from Asia, average weekly market capacity reductionsdue to blank sailings and call omissions increased to 19.1%. This figure is expected to increase to 20% in the coming weeks.
• Per Sea Intelligence, Transpacific blank sailings were at 446,756 TEUs (17.1% of total capacity) − an increase from 7.1% of total capacity vs 3 weeks prior.
• Based on Shanghai Containerized Freight Index (SCFI) evolution for all trades exporting from Asia, the composite index has dropped by 66% since July 1st and68% compared with the corresponding period from last year.
North America
• USA Port congestion: Savannah and Houston continue to have the largestqueue followed by Oakland, New York / New Jersey, and Norfolk.
• Union Pacific Railroad (UP) will remove the demurrage cap at 7 inland locationsstarting Nov. 28. The locations are Council Bluffs (Iowa), Dallas, Denver, Houston, Memphis, Salt Lake City, and St. Louis.
• Container dwells in Los Angeles – Long Beach terminals for trains remain long at around 14 days.
