March 12, 2024 Asia-Pacific Freight Market Report Released by Dimerco

Here’s a rundown on what’s happening with the Asia-Pac freight market in February-March.

Global Outlook

• Global PMI rose consistently, reaching a seven-month high at 51.8 in January.
• Slight global CPI increase due to Red Sea shipping issues, but potential for global inflation slowdown.Core Goods CPI at 1.3%, services CPI at 4.6% in December.
• Financial markets anticipate potential interest rate cuts by the US Federal Reserve and European Central Bank in 2024.
• 10-year Treasury bonds’ rate at 4.3% in mid-February strengthened the US dollar. Despite the rise, expectations persist for a decrease in the US dollar’s value throughout the year.

Air Freight Outlook

• Airfreight growth in 2024 is projected at 2-5%, with increased passenger widebody capacity in Asia-Pacific impacting load factors and rates.
• E-commerce remains resilient, driving air freight volumes despite an overall slowdown due to the Chinese New Year.
• Outbound rates from India to Europe and the US doubled in February due to the Red Sea crisis, but supply remains lower compared to other Asian countries.
• Anticipation of a slight increase in demand for outbound shipments from Asia as factories resume operations by late February or early March.

Ocean Freight Outlook

• ONE and WHL forge an independent partnership through a Vessel Sharing Agreement (VSA) for a new TP AP1 loop, separate from the Maersk-HL alliance and the upcoming Gemini Cooperation.
• Post-Chinese New Year challenges result in an estimated capacity withdrawal of 35% for Europe/Med Westbound and 25% for Trans-Pacific Eastbound. Carriers strategically adjust rollover pools, maintaining stable freight rates despite sluggish cargo movements.
• Swift response to the Red Sea Crisis sees carriers deploying additional vessels, with 2M leading in average sailings and reducing overall rollover to less than 20%. Despite challenges, rates for Northern Europe slightly decrease, showcasing the industry’s adaptability.

Download the full report here: 2-minute rundown on what’s happening with Asia-Pac freight market in Feb – Mar. (prowly.com)

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