DSV Market update Air & Sea – September 2022

Dear all,

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

DSV Market update AS September 15th 2022 1

1. Algeciras Express: DSV New product  -the product provides extending coverage from North China to Europe, South East Asia (Vietnam, Cambodia etc) to Europe and China/South East Asia to Africa. This product is a great solution with the constraints of not being able to use truck or rail services from China to Europe using Russian territory, this also shows the ability of DSV to offer solution to our customers on a DSV 100% controlled product using multiple shipping lines, CFS and trucking solutions. (attached a presentation)
2. DSV has set up a global internal function to procure OOG cargo for ocean freight with multiple solutions (RO/RO, Container lines, etc)..

Key topics

• US – Inflation Showed Signs of Easing during August, primary driven by lower energy cost, however “core” inflation is still large and it remains unclear whether the slowdown will continue.
• The Purchasing Managers Index has slipped into negative growth in 2022 Q2
• Consumer sentiment has come down further in Q2

Global Ocean ports situation: Global port congestion continues high with 12.2% of global fleet waiting at the ports. We see congestion growing in China due to typhoons near shanghai while congestion is string in East Coast North America and in Europe with labour issues in UK, moving a lot of cargo to other hub ports like Rotterdam or Antwerp.

Ocean freight highlights:

•    After Shanghai lockdowns on March – April,  ocean shipping rates have plunged 60% from far east
• Transit time performance, improvements seen in the Los Angeles and worsening in Vancouver and Europe
• US – Freight Railroads Propose Strike postponed
• Schedule reliability has improved once again,  but still stands on low ration of 36%

Airfreight highlights;

• Exceptional growth in passenger flights capacity on North Atlantic route , Europe to South America and Asia via Middle East to Europe
• Air cargo rates have slightly softened but they remain high due to fuel surcharges
• Fuel prices now trending downward, but at a high level since there is still a large spread of jet fuel vs crude oil price
• German government support fund sells remaining Lufthansa stake

Yahalomit Barzilay

Senior Director, Import

DSV Israel