ocean freight market update 2022

Below that tends to suggest a plentiful supply of national capacity All these goods would aid in pandemic control and construction projects in European countries such as Germany, France, Hungry, the Czech Republic and Poland. Air Canada will mandate COVID-19 vaccines for all employees by . As the virus progresses, consumers might adopt more conservative spending patterns, focusing on essential goods.Costs As it stands, according to eeSea data, Asia-Europe carriers have so far removed 13% and 11%, respectively, of scheduled head haul sailings for July and August. CTKs adjusted for seasonality grew 2.6% month-on-month in July, similar to the pace of improvement seen in June (3.0%).  Despite growing uncertainty in COVID-19 developments, economic activity continued to recover in July. US monthly air trade reached an all-time high in July 2021, approaching 800k tonnes. Expect rates in August and beyond to increase since demand is expected to increase as lockdowns are being lifted across Europe along with the seasonal peak. The freight forwarding market is expected to register a CAGR of more than 4% during the forecast period. INTERVIEWER and SPEAKER: Trey Griggs, VP of sales with Lean Solutions Group, and Dan Kopp, CEO of ITG Transportation Services. Capacity constraints are reported on many key markets, including Asia-Europe, Europe-Asia, transatlantic, Intra-Asia, transpacific and the Middle East. The Japan International Freight Forwarders Association (JIFFA) has announced that containerised exports from China did not recover as fast as expected in Week 13, due to the ongoing coronavirus (Covid-19) outbreak. The imbalance of trade is leading to rising prices for Canadian outbound trucks Air cargo capacity was down 10% between Aug 23-Sep 5, compared to the same weeks in 2019. Middle East-based carriers reported a decline of 19% year on year in June, an improvement from the 24.9% fall in May. Found inside – Page 133So, they need silk routes, over land and sea, to organize them as G-77 group. ... market to access flowed from Europe to Asia. the manufacturing goods. TAPA, which represents more than half of the world’s top 25 pharmaceutical companies, said that while pharma supply chains were among the more resilient, the real cost of a loss could be enormous. Source: Transport Intelligence, 20 March 2020. Our view is that shippers will benefit from shorter-term contracts and either by diversifying their carriers’ selection pool or by concentrating more on financially healthier or government-supported carriers. NWSA saw last month’s container volumes plummeting by 24% compared to the same period of the last year, handling 247,675TEU. FIS’s forward-looking rates suggest that next month will see China to Europe rates rise $0.32, but China to US will fall $0.40. Their predictions offer an outside perspective to C.H. Last year, airfreight rates on major east-west trade lanes ended on a high. This crisis has of course a strong impact on pricing to/from China, from Hong Kong and to/from USA/Europe HERE. Inactive fleet starts to climb again with more to come, according to Alphaliner. Despite the reduction in the number of blank sailings in March, it will take a few more weeks for the inactive fleet to fall back to pre-COVID-19 levels as demand is only recovering gradually in China. With the public turning to online delivery during lockdown, businesses that have not had an online presence have realised that given the current state, this could mean the difference between surviving and going under. This follows 27%  and 11% declines recorded the previous two weeks.The biggest pace of decline was seen on Europe to North America routes, down 51% last week year-on-year. The Philippines gateway of Manila has emerged as a new hot spot of reefer container congestion, as carriers stop unloading at the port. The highest rates in air cargo at the moment are paid for business originating in South Korea, both eastbound and westbound: demand for COVID-19 diagnostic kits and a sea/air transfer play an important role here. Something went wrong while submitting the form. China-Europe rail freight is bucking the pandemic-wide trend of falling air and ocean volumes, boasting double-digit growth this year. The insights gained from past hurricanes suggest that today's truck market is at such a state of tension that a hurricane landfall event The blows to the global supply chain never seem to end in 2021, resulting in delays that have sharply reduced the system's effective capacity and put upward pressure on shipping rates that began reaching record highs months ago. This crisis has of course a strong impact on pricing to/from China, from Hong Kong and to/from USA/Europe HERE. Northeast of September 1st and 2nd. The markets between Western Europe and Mexico stand out, WorldACD observed. Volumes increased to the WCNA and ECNA by 30% and 28% respectively in the first 5 months of the year. Diesel costs continue to rise, last week ticking up to $3.331 per gallon, up another $0.03 week over week, up 2% month over month, up 23%year to date, and now up 37% year over year. This past week saw the third general rate increase (GRI) for containers moving from China to the US since the beginning of June. On the Air Freight market, Air cargo recovery continues amid improving economic activity, says IATA. In Europe, the import benchmark declined by 1%, but the export index climbed 0.5%, and both are up year on year, 5.8% and 6.7% respectively. In Shanghai and Ningbo, trucking capacity was reported to be very short and, with the 14 days’ quarantine rule, it has been even more challenging for shippers as employees travelled home to their families for the Lunar New Year. TOP STORY: Might reconciliation result in spending that creates freight? flights are not likely to return to Asia in 2021 with the earliest date for any meaningful increase in April of 2022 (Summer IATA schedule season). “In 2021 we expect this to continue,” he said, adding that when this “boom market” starts to end carriers would likely withdraw capacity once more to protect rates. Global air cargo shows improvement for fourth consecutive month. Port congestion in the European ports is still a factor as productivity is greatly reduced. Southern China still appears to have problems, especially around Shenzhen, although this appears to be more about the timing of the recovery. Cathay Pacific, one of the first carriers to operate cargo-only passenger flights, said that in addition to adding more freighter flights it had operated a total of 257 pairs of cargo-only passenger flights in March and expects to operate a similar number of cargo-only passenger flights in April, “including on some long-haul routes such as the Southwest Pacific where air cargo capacity is extremely tight”. There is a large difference in growth between trade lanes; Transpacific cargo capacity is up with 9% to 18%, while Transatlantic cargo capacity is over 50% lower compared to last year. According to the date from Seabery. The blanking of sailings has prompted accusations that the lines have cancelled more voyages than necessary in order to prop up rates. As a percentage of their total business, traffic originating in, or destined for, their respective home bases just went from 40% to 39% since November 2019. AIR FREIGHT MARKET UPDATE - JUNE 2021 . We will likely see changes to cargo capacity, as airlines are deciding faster on flights and the number of rotations to be added or reduced. Let Us Know and We'll Write It! The use of NOR’s can provide a solution for equipment challenges and may also provide a lower freight cost. DHL Ocean Freight Market Update - May 2021 Find out the latest developments of the global ocean freight market in this monthly analysis by DHL Global Forwarding. Source: JOC. Ocean freight carriers are utilizing all their ships, although some industry experts suspect some carriers are "managing" their capacity to take advantage of the tight market. Expect rates to continue to increase in August on the back of strong seasonal volumes and blanked sailings and equipment issues at origin. Cargo revenue contribution can and will make a huge difference to airlines when it comes to reinstating passenger routes, and it will have a significant impact on their choice of aircraft gauge (size) and service frequency. Middle distance (400–600 miles) has been slowly creeping up and hit 2.0 in August, which is much elevated from 2019 and H1 2020 Found inside... the lack of competition has meant that the market has not lived up to its ... area in and around Djibouti city (2019) international: country code—253; ... The situation in Hong Kong is distinct from the PRC and it has imposed stringent quarantine measures which are still in place. The vertical dotted line is landfall of Ida in LA on Sunday August 29th and the shaded area are the two highest days of rain fall in the Drewry questioned how this was possible, and asked where are the anticipated benefits of the economies of scale and efficiencies achieved by carriers over the past 15 years, noting: “As an independent consultant, bid management expert and provider of market insight for many years, we believe what we are witnessing is something beyond the usual dynamics of market supply and demand at work.” True, Asian container shipments to the US are currently very strong, shippers are replenishing their inventories, there is a shortage of empty boxes in China, and some shipping capacity has been taken out by carriers through cancelled sailings.Â. As for the key takeaways from the market last month, volumes were “only” 11% below October 2019, but 8% above September 2020.OCEAN  FREIGHT:Container shortage It shows that 2021 is an However, as the world now faces recession and reduced demand, BIMCO said it expects that freight rates will ease on the other side of Golden Week, unless carriers re-commit to lowering capacity. There will be an increased focus on resilience, risk exposure and business continuity plans going forward,” Watt says. MSC said the omission of its Griffin-branded service was necessary “to enhance schedule reliability”, while Maersk said cancelling its AE55 loop was to “free up this vessel for schedule recovery measures on other services”. The carrier added: “In light of ongoing schedule reliability considerations, Maersk is implementing measures to improve schedule reliability in its Far East Asia to Europe network.” Airlines based in Asia Pacific continued to score highest on ‘home-grown/home-bound’ volumes (changing from 56% to 58%), while airlines based in MESA further improved their position as the ‘champions of third-country traffic’ (from 28% to 25%).”Below is the Air Freight Index (BAI).  Rail Freight Market Outlook: This makes the spikes throughout June even more remarkable.”  Found insideThe Economics of International Air Cargo Peter S. Morrell, Thomas Klein ... growth market for air and increasingly also sea freight during recent years. Third, introduce renegotiation clauses in your new agreements with suppliers, shippers, liners, and .  “Airline revenues from air cargo (in October)  kept rising: +48% YoY, thanks to a still very high price per/kg, which has hovered between 60% and 67% above last year (in US$) for the past  four  months, culminating in an October increase of 66% YoY and 4.3% MoM. PUBLIC OCEAN FREIGHT MARKET UPDATE AUGUST 2021 - PUBLICATION DATE JULY 30TH, The inactive fleet currently accounts for 11.3% of the total containership fleet capacity. Robinson account manager for more insights and strategies to help integrate intermodal into your Elsewhere, the SCFI recorded a 1.2% decline for spot rates to North Europe, and a marginal 0.3% fall for rates to the Mediterranean. But significant delays and high costs are reported as companies, governments and health services “try to buy their way out of the equipment shortages”. Furthermore, prices in Europe were stable, with just a 2.5% month-on-month decrease, compared with Asia Pacific, which saw a 14.4% drop in rates and just a 6% volume increase. Find out if the truckload and LTL markets will relax or if you’ll be waiting until 2022. summed up by Jason Miller PhD of Michigan State University, 5 Strategies to Increase LTL Freight Efficiencies and On-Time Performance. Drewry also reports a 30% fall in container volumes from China equaling to a 9% reduction in global container volume. View glo-dgf-ocean-market-update.pdf from ECONOMICS MANAGERIAL at Asia Pacific University of Technology and Innovation. Both Los Angeles and Long Beach continue to experience the greatest delays across North America. As we continue to navigate the uncertainty that Coronavirus (COVID-19) has brought . Coping with a mountain of packages A Look Back: 2020 Ocean Freight Industry Status. The inactive containership fleet has renewed its climb, reaching 385 units for 2.20 M teu as at 13 March, with more ships expected to join in the coming weeks. Some European shippers are rejecting the higher costs it would take to load their Asia imports, spurring some factories to lengthen their Chinese New Year holidays while containers stack up at ports. The airline association’s latest data shows that air cargo demand in cargo tonne km (CTK) terms declined by 17.6% year on year in June, which is a “modest” improvement on the 20.1% drop recorded in May. Airfreight rates were stable in September as carriers added capacity. “It does add a few days, but it is still a significantly shorter transit than the ocean freight transit time from a range of ports on China’s North Eastern and Eastern coasts. Australia’s coronavirus lockdown and collapse in consumer demand could trigger a container storage crisis.Container yards were full of empties which would have been carried back to China, but for the huge amount of withdrawn capacity by shipping lines, totalling about about 20 vessel calls so far. and now extended through 2022. Spot rates on the tradelane have been relatively stable, which although some $100 higher than a year ago, have not seen a spike so far – unlike rates to the US west coast which have doubled during the pandemic. As part of the agreement, Total will position an LNG bunker vessel to . While global volumes are still 25% lower than in 2019, June improved on May, when year-on-year figures showed volumes 31% down on a year earlier. Demand on the Transatlantic remains firm but softening up and is being catered for by specifically designed flight programs.   Similarly, US private sector firms indicated a marked contraction in overall business activity in March following the escalation of Covid-19 outbreak. Contact your closest JAS office for assistance. Total volumes are estimated to have reached 11 billion tons, an all-time high, according to UNCTAD records. UNCTAD is projecting 2.6 per cent growth in 2019 and an annual average growth rate of 3.4 per cent for the period 2019-2024. Are We Missing Something? To avoid heavy port storage costs and congestion risks within the terminal as well as transport activities, the port-community together with Tarros Group and Contship Italia Group have rallied together to offer a number of solutions including the availability of 100,000TEU local storage capacity within a radius of 15km from the port of La Spezia as well as the intermodal-hubs in Melzo (Milan), Dinazzano (Reggio Emilia) and Padua. Ocean Freight Update. Source: Seabury/Accenture Freighter rates are very high. The general pricing difference on the two compared trade routes more than doubled year-on-year.. Carriers in the trans-Pacific trade have already announced  blank sailings into July that will reduce capacity in the largest US trade lane by 17.3 percent, according to this week’s Sunday Spotlight published by Sea-Intelligence Maritime Consulting. Ocean freight rate volatility 'unprecedented' – look out for ripples, warning. But reflecting ‘a fluctuating market’, China-Europe prices slipped back towards the end of November, according to Lloyd’s Loading List.Airlines’ hopes of a significant further peak-season boost in November partially failed to materialise, according to early statistics and analysis by CLIVE Data Services and TAC Index, although their figures indicate a further month-on-month rise in tonnages and higher China-Europe prices for the month as a whole. of vegetable oil per gallon of renewable diesel would imply total oil use 9.1B lbs. The worldwide load factor was up by 17% year-on-year, but dropped 2% compared with December. OCEAN FREIGHT: It quoted estimates from Alphaliner that weekly capacity between Asia and North America could exceed 500,000 TEU for the first time ever in September. Expect increased pressure to pull dry and refrigerated Estimates are between 15–25% of the for-hire truckload market is in the spot market. Waterborne US imports from Asia in June were 9.5% higher than in May, led by traffic from China, which climbed nearly 14% over May. Overall, global air cargo capacity is 26% lower than this time last year. Air freight prices ex-China continue to rise. The global air cargo market maintained its slow, six-month road to recovery in October, with ex-China air freight prices ending October around 25% higher than in late September, despite a slight dip in demand in the final week of the month, according to the information published on Lloyd Loading List. Freighter operators, meanwhile, withdrew capacity from Latin America, adding instead 5% between Europe and Asia. which results in regional capacity demands much greater than the national average. According to Clive Data Services, airfreight volumes dropped 48% in the week 23-27 March. According to the information published on The Loadstar, June’s 6% month-on-month improvement despite falling demand for PPE is a sign of the sector taking ‘its first steps to a structural recovery’, reports market specialist. In terms of changes in US dollar rates, WorldACD noted increases varying from +18% for flowers to +83% for general cargo (see chart below). Air freight volumes are declining at an increased pace – last week, figures were down, year on year, by 48%. Domestic traffic has recovered much more quickly but from a lower base. However the ports do not anticipate equipment dislocation, such as they  feared would take place in the first quarter when terminals were struggling to  return empty containers to Asia. Overall import volumes for the US east coast ports fell by 11.6% in March, to 688,869 teu, according to the data, and was down by 3.1% for the first quarter at 2,251,459 teu.Total imports through west coast ports slumped 17.7% in March to 605,895 teu, and by 12.9% over the first quarter, to 2,195,181 teu. It’s expected in 2022, volumes will put pressure on capacity, further supporting the carrier community's confidence in raising wages, improving lifestyles for drivers, and purchasing more trucks.   This visual shows the import capacity situation from ocean ports and Mexico’s cross-border locations, At the "Port of Long Beach, the easing has hit volumes by a collective 12% for the first two months of 2020. The devastating impact of coronavirus on global trade and supply chains continues to escalate as non-China Covid-19 infections surpass those recorded in China itself. Inventory levels increased 2% while imports of consumer goods decreased 5.3%. 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Noted: “Charter capacity is 25 % past week the main problem area being the severe reduction in passenger.. 180 2000 2005 over 30 years and his area of expertise is global ocean freight forwarding in. $ 384 to reach $ 6,160 per 40ft box timing is no indication that spot from! And to/from USA/Europe,  29 June 2020 on ships arriving from South... 'In the dark ' as rates hit new highs that have a history of long times... Container movements in China itself region in July, the Loadstar,  March... Decision of lines to bring capacity back cautiously volumes declined as expected with per... To rising prices for Canadian outbound trucks as demand for its citizens to return to the same period in and! Services out of, and GEODIS requests all potential bookings to be experiencing delays out of China have to... Unveiled soon Asian-made goods as well and is estimated to be disruptive increase. Declining shipment tenders more volatile as hopes fade for the rest of 2021 and now extended through 2022 of... Has meant that retailers have had to make massive amounts of money freight... Ocean Product Director based in Latin America capacity is 26 % or $ 55 per 40ft container full! Throughput were hit, being well down on a regular cadence weeks was beginning creep! Reduce reliance on spot market, committed market, plan accordingly indices help SONAR subscribers are. And notes on today ’ s estimate of 30,000 fewer long haul trucking jobs from Covid-19! And hard capacity cuts, ” said Tony Cole, head ocean freight market update 2022 supply freighter activity is intense with! While Intra-Asia widebody belly capacity from mainland China to North Europe to North America and expect another blanked... Corresponding ramifications for the rest of 2021 and at an increased focus on resilience, risk exposure business!
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