DSV MARKET UPDATE – December 2023

Dear all,

Please find attached the latest market update for Air & Sea-December monthly overview

DSV Market Update December 2023

Local Update

Ocean freight:

Red Sea situation
The missile attacks has broadened the threat to all ships passing through the Red Sea, even those that have no links to Israel. Few giant shipping lines advised that they  already diverted its ships from the Suez to the longer Cape of Good Hope (rounding Africa)
This move adds ~18 sailing days and will impact the shipping rates , not only due to the direct cost ( extra fuel, manpower ,insurance, security) but also the impact of demand/supply imbalance .
As we know from the COVID19 period , as long as the vessels have to prolog the transit time it decreases the available space on global vessels  ( not only the ones are related to those specific lanes)

Shipping lines who already advised that they will stop passing through the Red Sea are: MSC , ZIM, Maersk , Hapag Lloyd
There are some more shipping lines who decided to divert its ships from the Suez but currently they apply it on the next 2 sailings … we probably will hear soon that more and more shipping lines will stop completely passing through the Red Sea due to lack of insurance .

There are some shipping lines who advised that they would skip Haifa/Ashdod ports.

Airfreight:

• Lufthansa group arilines plan to resume flights to Tel Aviv starting January 8th 2023
• Lufthansa will offer 4 weekly flights to Frankfurt.
• Austrian will offer 8 weekly flights to Vienna.
• Swiss will offer 5 weekly flights to Zurich.

General update 

• As the Panama Canal authorities will reduce the number of reservation slots to cross the canal from 24 vessels per day to 22 vessels.
• Europe’s Petrochemical Industry Is Heading for Decline The petrochemical industry runs largely on two feedstocks: natural gas and naphtha with the increase cost this has affected the production of chemicals out of Europe.
• Global Supply Chain pressure index Is going up and returning to average.

Ocean freight highlights

• Lines unveil surcharges as Emission Trading System (ETS) set to impact 37% of fleet.
• Aging containership fleet has not driven an increase in vessel scrapping.
• US imports down by seasonality and Panama Canal. Transit times increased to US East Coast due to Panama.

Airfreight highlights

• The growth of global air cargo demand outpaced supply for first time this year.
• Europe to Latin America general cargo spot rates spiked in early December.
• Anchorage weather impacted 5-8% of weekly Eastbound Transpacific capacity in November, impacting yields.