Market Update: Asia-WestMed

Although the shipping and rail transport situation has somewhat improved, delays are still being experienced since last October due to the constant increases in cargo due to peak season.

We are updating the current situation of the Far East market with regard to the different types of transport:

Rail

Rail transport is stabilising slightly in November due to a small improvement in maritime traffic, caused by reductions in Chinese manufacturers’ production lines. However, some delays and cancellations continue to be experienced as a result of ongoing congestion at China’s borders.

Maritime

There has been a small improvement in terms of capacity to the Mediterranean. Equipment shortages have generally decreased, although some shipping lines are still experiencing problems. There are still some delays in shipping forecasts. Prices are stabilising and remain broadly in line with October. Increases for premium services to secure space continue to be around USD 1000 – USD 1500. Penalties for not loading are about the same level. And some carriers are applying surcharges on arrival due to the new application of EU regulations. These surcharges vary between €10 / €25 per container and are expected to come into effect for all carriers during this month.

Air

With the holiday season approaching, the demand for air transport continues to increase and, with it, prices are rising week after week, reaching all-time highs. The high demand and the need to get the products on time are making this means of transport the most requested in all its modalities, including charter flights.

Some services have experienced disruptions:

• Hong Kong
  The Hong Kong airport terminal has resumed operations in November after COVID quarantines imposed by the Hong Kong government in October.

• Shanghai
  All passenger flights were cancelled between 5 and 10 November as a result of the China International Import Expo (CIIE).
  Some airlines are using their passenger flights as freighters to cover the lack of demand.

Noatum Logistics maintains agreements with shipping lines, airlines and rail operators for export from China and the Far East. Please note that for all transport requests, we will need as much advance notice as possible to secure slots and even then, bookings may take a few days longer than usual. In addition, the rates will be subject to changes compared to previous weeks.

Finally, we would like to inform you of the increase in the price of fuel. Container carriers are announcing immediate price increases. However, it seems that this increase will not be in the form of a surcharge, but as a change in the total amount of their services.

We are at your disposal to discuss the best logistic solutions to move your cargo on time. Please do not hesitate to contact your Noatum Logistics sales representative or operative to discuss and plan your bookings.