Global Market Update

A mix of soft demand and continued excess capacity for the time being is providing advantageous conditions for importers and exporters currently.
Most if not all lines have marked a rate restoration for April FAK rate levels , we also expect to see adjustment of schedules and blank sailing programs to ride out the next few months which is expected to see conditions somewhat soft. However we do expect that as inventory levels come down from historic and unprecedented levels and a resilient Australian economy that will see conditions change slightly over Q3 & Q4 this year.

A lot will depend on the carriers that added additional capacity to the Oceania market over the last 18-24 months and whether they will remain or divert their vessels to other more profitable trade lanes as the year goes on. Whilst there was a month-to-month decline of 3.8% in global schedule reliability reaching 52.6%, schedule reliability in January 2023 was considerably higher than in the previous two years, with the year on year increase of 22.2%

The average delay for late vessel arrivals continued to improve , as it has for much of 2022, with the latest figure at 5.26 days a month to month drop of 0.24 days

Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.

Global container fleet deployment by trade-lane

Poor cargo demand in China and falling ocean freight rates have led to significant changes in global container fleet deployment. More than 565,000 TEU of capacity was withdrawn from Asia – North America & Asia – Europe trade lanes. The biggest tonnage shift has been to Middle East and India (11%) where 320,600 TEU fleet capacity was added.

Oceania has seen an 8% growth , however we are yet to see how long some of the smaller players in market will continue to deploy the likes of ASL, Sealead, ZIM, TS Lines all have question marks on their commitment and financial viability in staying the course in the Oceania trade lane.

Capacity shift seen in 2021 to the Asia –North America and Asia- Europe trades was mostly at the expense of intra Asia fleet (-11% in 2021) and Africa related services (-6%)

Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.

India figure as one of the year’s fastest growing container destinations

As the global supply chain struggles to place its all  bets on China, there is rising confidence that India should become one of the more resilient alternatives to China. Trade between India and USA reached record high in 2021-22 fiscal year, This trade makes up 11.5%.
Of India’s total global trade and as a result, US has surpassed China to become India’s primary trading partner. The growing interest in Indian traffic is reflected recently by sister companies, COSCO and OOCL launching a SEA – India – US east coast service in December after closing a China – Vietnam – US East cost loop.

Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.