Asia Shipping : Third-Quarter Review and Outlook

Special Report

Rate ‘ relief ’

The logistics manager for a Germany-based retailer said the market was slowing , “ which is a relief ,” with most of their orders for the autumn and Christmas seasons already in European warehouses or distribution centers .

“ We can see the rate indices dropping and some offers from carriers for spot market cargo out of China are also falling , so the market is becoming easier ,” the source said .

“ We can see the rate indices dropping ... so the market is becoming easier .”

Peter Sand , chief analyst at rate benchmarking platform Xeneta , said while Asia-Europe was likely to see full ships and historically high rates for the rest of the year , the frontloading of shipments meant there was unlikely to be a continuing squeeze on capacity .

“ Demand is not growing , and we see the capacity is being deployed to cater to the demand with vessel load factors out of Asia to Europe at 95 % in the second quarter , so there is not much space left ,” Sand told the Journal of Commerce Sept . 3 .

He noted that there was also not much blanking of sailings by carriers on the Asia-Europe trade despite deployed capacity reaching a peak for the year in August .

“ It seems the trade lane has found a balance between supply and demand ,” Sand said . “ If they deploy more ships now into the trade , they may see a sharp fall in the spot market .”

Sea-Intelligence Maritime Analysis , in its Sunday Spotlight newsletter , highlighted the growing volatility in weekly deployed capacity on Asia – Europe routes . When planning shipments , cargo owners needed to factor in potential space issues “ even when the market has sufficient capacity according to pro-forma schedules ,” the analyst said .

email : greg . knowler @ spglobal . com

Asia – North Europe volumes surge 8.3 % through July

Containerized imports to North Europe from Asia , with year-over-year change

TEU volume

1,005,190 1,000,000 ,

800,000

1,000,000 600,000

400,000

200,000

120 % 110 %

100 %

80 %

60 % 100 % 40 %

20 %

-20 %

0 -40%

Jan L2021 Jul Jan 2022 Jul Jan 2023 Jul Jan 2024 Jul , 2024 Jul

Source : Container Trades Statistics

TEU Year-over-year % change

0 %

Year-over-year % change

© 2024 S & P Globa

DP World adds Hong Kong forwarder to growing 3PL network

By Greg Knowler

Goodman Group

DP World ’ s move into controlling end-to-end logistics will be further strengthened with the integration of Hong Kong-based supply chain solutions provider Cargo Services Far East into its fast-growing forwarder division . The Dubai-based terminal operator finalized the acquisition in early September , adding a China specialist forwarder with products covering origin purchase order management , ocean and air freight , and warehousing for a diverse range of sectors .

“ Industries such as automotive , chemicals , healthcare , perishables , retail and technology require tailored logistics solutions .”

No financial details were disclosed , but when the takeover was made in April , financial analysts put the value of Cargo Services , owned by Hong Kong tycoon John Lau , at between $ 300 million and $ 400 million . Lau will remain with the business and assume a senior leadership position within DP World , the port operator said in a statement Sept . 2 .

Sultan Ahmed bin Sulayem , DP World chairman and CEO , said in the statement that Cargo Services ’ logistics expertise and global network complemented the terminal

22 Journal of Commerce | September 23 , 2024 www . joc . com