DSV Market update Air & Sea – September 10th 2021

Dear all,

Please find attached presentation of the latest market update for Air & Sea.

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Asia-Europe Rail – COVID and railway maintenance affect rail transport times between China and Europe.

Ocean ports situation – near 400 vessels waiting at the ports, congestion is getting worse, 110 global ports are affected.

Ocean Freight – Rates are at an all-time high every week

Airfreight – Preparations for the golden week holiday by the end of September, will add additional stress levels to all the cargo in backlog, transit time becomes unrespectability long and not guaranteed due to the limited capacity and high demand.

Ocean freight highlights –

• Shanghai Container Freight Index hitting (again) new historical all-time high at 4,568.

• The current strong demand of China to the USA is likely to remain since inventory levels in the USA are not even close to being replenished.
• Global port congestion gets worsened with a record of 50 vessels waiting outside Los Angeles- Long Beach.
• The Far East to Europe trade has risen 19.7% while capacity on the Far East to North America trade has risen 30.6%.

Airfreight highlights –

• China, Golden week – mid-Autumn festival supply problems are getting worse, Air cargo rates from China to North America and Europe ticking upwards, with long transit times and heavy backlogs.
• Air cargo capacity was down by 10% between Aug 23-Sep 5, compared to the same weeks in 2019. The air cargo market keeps recovering despite the slower increase in air cargo capacity.
• Global air cargo capacity increased across freighters and widebody belly, up 2% vs. the previous two weeks, global passenger capacity has steadily increased in the last three months.
• US monthly air trade reached an all-time high in July 2021, approaching 800k tonnes.

Best Regards,

Yahalomit Barzilay

Senior Director,Freight Forwarding,
Air & Sea, Israel