Dec to Jan 2023 Freight Update

23 December 2022

With more than 150 stations in over 17 countries, Dimerco connects Asia with the world like no other global 3PL. Every month, we gather firsthand market information from the industry players of our global network. Here's what you should know:

Air Freight

_{New Air Capacity Trend -}_{There’s an air capacity trend where giant companies, such as HP and Apple, are dealing directly with the carriers for regular volumes. This means that they are handling their own international freight and having freight forwarders manage only their origin and destination services. Regular charter arrangements by global forwarders will decrease in 2023, leading to a potential increase in shipments through commercial flights.}
_{Result of the Ease of COVID-19 Restriction in China}_{- The lifting of Covid-19 restrictions in China is leading to waves of infections in first-tier cities such as Beijing, Shanghai, and Shenzhen. This surge in cases has started impacting supply chains related to China, and it is expected to escalate coming up to the Chinese New Year.}
_{Strike at Heathrow Airport Suspended}_{- The Unite Union suspended its strike at London Heathrow Airport (LHR), which was scheduled to happen between Dec 16 -19. Members will vote on the revised pay offer with another planned strike between Dec 29 – Jan 1.}

_{Recommendation: Avoid sending air freight shipments to affected airlines below:}

Air Canada	American Airlines	Lufthansa	Swiss Air	TAP Air Portugal
Austrian Airlines	Qantas	Egypt Air	Aer Lingus	Finnair

Ocean Freight

_{No Expected Cargo Rebound}_{- There is no obvious cargo rebound towards year-end. It is anticipated that ocean carriers will continue to skip calls and conduct blank sailings to ease capacity issues for long-haul lanes. The collective capacity cut on weekly average will fall in the range of 20% or more.}
_{SCFI 2022 Drop}_{- The Shanghai Containerized Freight Index (SCFI) dropped by 73% for week 50 compared to July, meaning most ocean rates are falling back to pre-pandemic levels.}
_{Feeder service suspended for south China and Hong Kong}_{- The feeder operators in South China and Hong Kong have announced that feeder service from late December 2022 to the end of January 2023 will be suspended. •The suspension is due to covid-19 quarantine measures for ship crews coming back from Chinese New Year holiday.}

_{Recommendations:}_{Consider cross border trucking as the alternative solution for the suspended feeder services in South China and Hong Kong during the period.}