Logistics enterprises actively respond to the international freight market with low demand

The latest market information of logistics supply chain in Asia-Pacific (October 2022) released by container company Maersk recently (hereinafter referred to as market information) shows that although the port congestion in Asia, North America and Europe is gradually improving, the freight volume prospect is still bleak. The change of international market demand from the previous surge to the current downturn requires enterprises to further adjust their purchasing plans and carriers to adjust their operating networks, and these uncertain factors will also affect the supply chain situation in the coming months.

Maersk's head of Asia-Pacific maritime management said that inflation and rising energy costs are still the main concerns of customers, which has led to the current sluggish demand in the export market. Coupled with lower sales volume and shorter transportation cycle (due to reduced terminal congestion), the storage inventory level in the United States and Europe continues to be high. It is expected that the inventory level will stabilize in the fourth quarter, and customer demand will continue to return to normal.

In October, the market demand of long-distance trade LCL goods such as Europe and trans-Pacific showed a downward trend, while the market demand of intra-Asian routes was relatively stable compared with September. Affected by the weak demand, the carrier has taken the measures of empty flights and integrated some routes, but it can still ensure the accurate rate and stability of flights. Maersk has added a number of routes and displayed them on related websites, so that enterprises can quickly check the freight rates of all routes and book shipping space.

In terms of air transport, according to market information, in October, the air transport rate from China to the United States dropped to $6.58 per kilogram, a decrease of 39% compared with the same period last year. The air transport market is facing an uncertain prospect because of the dull export demand. In October, Australia's air freight showed signs of decline, while the transportation time was improving, and the freight demand and capacity supply were largely balanced. For other destinations, after Qantas has increased flights to Sydney and Melbourne, the freight rate of Indonesia-Australia route will be reduced. In Bangladesh, the freight rate of goods over 500 kg has decreased, while the freight rate of goods under 500 kg has slightly increased. In India, although all other airports remain unchanged, Channel Airlines is offering lower freight rates.In terms of land transportation, market information mentioned that Maersk team developed a series of new barge route services in China to meet the needs of enterprises. Maersk's transportation capacity is generally sufficient, and the new route of land-to-water conversion has been launched, covering Rizhao-Qingdao (export/import) and Lanshan-Qingdao (export/import) businesses. There are three contracting modes to choose from: full-contract, partial-contract and one-stop import comprehensive scheme. In order to better provide reliable, flexible and sustainable inland solutions for enterprises, Maersk has also introduced special products for sea-rail transportation between Zhengzhou and Qingdao, which will last until the end of this year. The Changsha barge service along the Xiangjiang River was suspended due to the dry season. Maersk suggested that enterprises choose the trucking service from Changsha to Yueyang. The sea-rail combined transport service to Shanghai and Ningbo also has sufficient capacity. In South China, Maersk added export cargo barge services between Beijiao-Yantian, Beijiao-Shekou, Zhongshan-Yantian, Zhongshan-Nansha, Xiaolan-Nansha, Dongguan-Yantian/Shekou/Nansha/Hong Kong. New barge service for imported goods between Hong Kong and Yantian.