Global Market Update – Growth

At a time where the world is facing inflationary pressures, volatile military conflicts and recessionary concerns the overall global trade capacity has grown YOY in almost every major trade lane as you can see in the graph.

Oceania is up 9.5% as one of the biggest YOY growth, despite blank sailings and schedule adjustments this level of growth combined with major importers in Australia holding large inventory levels has resulted in the market rates seeing a decline over the last couple of months.

The balancing act will continue in 2023 with an increase in Global TEU available from new ship builds over 2023 balanced against blank sailings, withdrawal of services and consolidation of some services driving
down actual capacity available.
Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.

Market Update – Shipping Lines

The shown table and graph of two of the main bunker markets shows the YOY increase in fuel prices that have flowed on from the carriers to importers and exporters by way of BAF/LSA/FCR and other associated fuel charges.

The global container ship orderbook stands at almost 7.5 Mteu of capacity or just under 30% of the existing world fleet. 2.52 Mteu of capacity is due in 2023 and 2.85 Mteu due in 2024.Whilst there will be some scrapping of older vessels , idle vessels, schedule adjustments and blank sailing programs to try and offset the increase.

It seems the importer/exporter will be in a better position in 2023 than previous two years to utilise the enhanced capacity
in the market.
Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.

Market Update – Bunker/Fuel Rates

The shown table and graph of two of the main bunker markets shows the YOY increase in fuel prices that have flowed on from the carriers to importers and exporters by way of BAF/LSA/FCR and other associated fuel charges.

The increases have substantially impacted the industry, however we have seen signs in the last couple of months of downward p
res sure on bunker prices which we have seen result in reduced fuel charges by the carriers.
Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.

China’s zero-COVID Policy Update

The Chinese authorities zero-COVID policy remains under sharp focus with official case counts at their highest in six months, including record infections in Beijing and Guangzhou. It is reported that the Bank of China in its quarterly monetary policy report stated that it “will pay serious attention to the underlying possibility of rising inflation, especially changes in demand” Numerous carriers have either combined or reduced several services ex China. This is likely to see a 30% shrinking of capacity in the China Australia trade lane between 15th 30th of December2022. This period is an area of low demand for sea freight required capacity and vessel cargo space bookings.

China’s COVID 19 cases have risen again. This time climbing to near their highest level since the beginning of the pandemic.
China authorities recently reported 24,028 new infections. This is the highest since April 2022 when Shanghai’s outbreak spurred a surge in the national case tally. Authorities have indicated that they’re preparing to face even more infections as the country eases some of its COVID Zero rules .The southern manufacturing hub of Guangzhou remains a hotspot, with more than 9,000 new cases. One of China’s most populous cities, Chongqing, has reportedly found 4,631 new infections. Parts of some districts in Guangzhou remain locked down, even as restrictions ease in other areas.

National case numbers have more than doubled since the virus policy changes were announced on Friday. China is looking to build more hospitals that specialise in treating moderate and severe COVID patients. This is to ensure that intensive care units account for 10% of all hospital beds to tend to the most vulnerable patients. Beijing authorities have recently reported 458 new local cases, which is the highest within the current wave.

Some public venues including gyms and shops in Chaoyang district, where most cases have been detected, have closed, while school s in the affected area have switched to online classes.
Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.