Logistics businesses may not have "peak season"


The "peak season" of freight transportation of the year has begun, but there seems to be no sign of any congestions in the global flow.

Many logistics enterprises said that the volume of goods transported has shown signs of decline since May, the situation has yet improved, even became severe in the last 2 months.

“Especially, August to October period is the "peak season" of sea logistics and October to the next year January for air logistics with the new school year and the last holiday shopping season. However, this year seems unlikely to happen and the "peak season" will never come," a logistics business shared.

Mr. Jens Roemer, Senior Vice President of FIATA and Head of the FIATA Sea Transport Group also said that the situation of "speculation” or hoarding of goods in the recent times has caused the decline of goods output more serious, and freight rates have plummeted.

Average capacity supplied from Asia to the US West Coast has fallen to its lowest level since February in the past four weeks, new data shows from Xeneta – Ocean and Air rate benchmarking platform.

During this period, an average of 275.000 TEUs left Asia for the west coast of the US, about 50.000 TEUs less than the peak in early August.

Compared to the same four-week period in 2021, supply capacity decreased by 13%, equivalent to the removal of 21 8.000 TEUs ships, which is the average size of vessels in maritime service.

Accordingly, shipping lines are "struggling" with the reduction in freight rates from Asia to the US West Coast by "empty runs", reducing the supply of about 1.5 million TEUs of capacity in the past 12 weeks to keep the price. However, the exchange rate is still down 46.3% year-on-year, Xeneta data shows, averaging $4.150/FEU (40 foot container).

"This is the highest number of empty runs since January and February, at a time when the industry usually anticipates very strong demand," said Peter Sand, principal analyst at Xeneta.

Also from Mr.Sand, this is a powerful strategy used by shipping lines but it does not bring the expected results. In particular, Peter Sand said, the peak season does not seem to become true.

Sharing the same view, Judah Levine, head of research at Freightos, also commented: “Demand for ocean freight is falling, regardless of its drivers, inflation, recession concerns, early peak season is making capacity more available than before.”

Source: https://cafef.vn/doanh-nghiep-logistics-co-the-khong-co-mua-cao-diem-20220926085226202.chn

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