Logistics News: Early June 2024

Overview

Continuous Rise Since April:
- Asia-bound routes to Europe and the US
- North-South routes to South America and Africa
Cost: Exceeding $7,000 per 20 ft from Shanghai to the east coast of South America.
Contributing Factors:
- Container Shortage: Due to geopolitical issues at the Suez Canal leading to rerouting via the Cape of Good Hope (adds ~2 weeks to voyages).
- Inventory Buildup: By retailers due to impending 100% US tariff on EV imports from China (effective August).
- Potential US-China Trade Tensions: If Trump wins the November presidential election.
Chassis Shortage: No significant shortage; only container shortage noted.
Outlook: Strong indications suggest container shortage might not last until the second half of the year.

Rising in Off-Peak Season: Due to increased e-commerce demand, especially in Europe and the US.
Demand Surge: In Europe for the holiday season (early June to mid-August).
IATA Statistics:
- Global air cargo demand rose 11% in Q2.
- Air freight rates from Hong Kong and Shanghai up by 12.3% and 41.5% YoY.
- Shipments from Dubai increased by 148% in early May compared to the previous year.
Route Adjustments: Shipping companies avoiding the Suez Canal due to Houthi attacks, opting for South Africa's Cape of Good Hope.
Combined Transportation: Increased switching from sea to air transport for quicker delivery times.
Outlook: Anticipation of tight air transportation space for the rest of the year.

Port of Singapore: Over 100 container vessels waiting offshore (up to 46 hrs).
- Delay in unloading containers causing schedule disruptions.
- Ocean freight rates (May 31): $6,185 per FT to West Coast US, $726 per 40 ft to East Coast US.
- Significant increase in rates to Europe and the Mediterranean.
Port Measures: Attempting to ease congestion by reactivating previously inactive ports.
- Full bookings from Asia to Europe/US for June.
Outlook: Peak season's impact on securing space.

New Initiative: Visualization of container inventory using digital tools.
- Categories: Available, Some Available, Needs Confirmation.
Implications: Helps shippers and forwarders check space status and potentially leads to buying excess space.
Reception: High demand and supportive feedback from customers and representatives.
Future Prospects: Anticipated to be well-received with the introduction of new vessels.

Further Information: Detailed video on ocean freight rates available via link in overview section.
Contact Information: For shipments to/from Thailand, contact Eno.
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