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Holiday demand drives tight capacity and rising rates in Asia-Pac freight, warns Dimerco’s November report. Early bookings are recommended to avoid surcharges. We anticipate that ocean freight rates, whether for long-haul or intra-Asia, will experience significant fluctuations, swinging dramatically between highs & lows as we approach Christmas and New Year”
— Alvin Fuh, Dimerco’s Vice President of Ocean Freight. TAIPEI, TAIWAN, November 5, 2024 /EINPresswire.com/ -- Dimerco Express Group’s November 2024 Asia-Pacific Freight Market Report highlights the intense pressures across global freight markets as peak season demand strains capacity and drives rates upward. Shippers across the Asia-Pacific are facing the effects as air freight capacity reaches critical lows, and ocean rates climb in response to holiday-driven demand.
The report shows that capacity for both air and ocean freight is particularly constrained on Asia-to-U.S. and Asia-to-Europe routes. Dimerco advises shippers preparing for the holiday season to book early to avoid premium pricing and likely delays.
Key findings in the report include:
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=> Intra-Asia Airfreight Capacity Tightens Further:
As Kathy Liu, Dimerco’s VP of Global Sales and Marketing, noted, “Driven by e-commerce and new electronic goods and product launches, intra-Asia airfreight capacity is extremely limited, as airlines allocate a greater portion of first-leg allotments to long-haul shipments due to higher revenue potential.” November is anticipated to be the peak period for shipments to the USA/Europe.
=> Significant Rate Fluctuations for Ocean Freight: Owing to a substantial blank sailing percentage on both Eastbound and Westbound routes, carriers are implementing a General Rate Increases (GRI) effective November 1st, leading to rate hikes of between 18-40% depending on the route. “We anticipate that ocean freight rates, whether for long-haul or intra-Asia, will experience significant fluctuations, swinging dramatically between highs and lows as we approach Christmas and New Year,” remarked Alvin Fuh, Dimerco’s Vice President of Ocean Freight.
=> Global Economic Slowdown Persists: The Global Manufacturing Purchasing Managers Index (PMI) dropped to 48.8 in September, signaling a continued slowdown in demand and trade flows and is expected to remain soft heading into Q4.
Region-Specific Trends and Updates: ---------------------------------------------- => China: Rising demand from e-commerce and electronics is driving up both air and ocean rates. The report advises shippers to book at least a week in advance to secure space on critical routes. => Taiwan: The reduction in demand for e-commerce goods to the USA has been supplemented by a strong export drive from the AI and high speed. => North America: The recent East Coast and Gulf port strikes, resolved faster than anticipated, left backlogs that are expected to clear by mid-November. However, shippers should anticipate increased costs as holiday demand peaks. => Europe: Spot rates for Asia-Europe routes are currently low but may rise as blank sailings tighten capacity amid year-end holiday demand.
Forward-Looking Freight Strategies for Shippers: --------------------------------------------------------------- While airfreight capacity on the route from Asia to the USA is constrained due to increased demand from all regions, on the ocean freight side, globally, carriers have reduced blank sailings over Weeks 43–4. However, on the main routes like TPEB, Asia-EU, and TA, blank sailing percentages are significant leading to higher freight rates.
Dimerco’s analysts recommend that businesses handle their logistics planning proactively to navigate these seasonal market shifts.
Download your copy of the November 2024 Freight Report.
About Dimerco: ------------------- Dimerco Express Group is a global provider of integrated logistics, transportation, and supply chain solutions. With a focus on delivering innovative and efficient services, Dimerco combines extensive industry expertise with advanced technology to meet the evolving needs of its customers. The company operates in key markets around the world, helping clients navigate the complexities of international trade while adhering to the highest standards of sustainability and corporate responsibility. For more information, visit Dimerco's website.
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November 05, 2024, 11:00 GMT
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