DSV Market update Air & Sea – July 2022

Dear all,

Please find attached the latest market update for Air & Sea, consider this one as the July monthly overview, together with this update we have a Q2 overview for Road.

 DSV Market update AS July 15th 2022

Key topics

• Germany’s North Sea Ports (Hamburg and Bremerhaven) face longest strike Action in Decades
• China’s Economy Records 0.4% Growth, Weakest Since Wuhan Lockdown
• Overall inventory to sales is growing, The US  top six largest retailers are expected to cancel orders and reduce their inventory levels
• Global Ocean ports situation: Global port congestion continues is now growing and it is on 13%. We see congestion growing both in China, but numbers are growing in North America East Coast and Europe. Port of Savannah is the red point with 45 vessels waiting to berth. In Europe port strikes in Hamburg / Bremerhaven and Rotterdam are also having a big impact.

Ocean freight highlights:

•    Orderbook-to-fleet ratio has reached to 30% on 2022 there has not been any vessel scrapping.
• Increasing number of containers at Los Angeles / Long Beach, Dwell time is 9 days for containers (peak was 11 days)
• Schedule reliability has improved once again, this time by 2.1 percentage points M/M, reaching 36.4% in May 2022.

Airfreight highlights;

• Continued demand/supply imbalances keep load factors ~7 percentage points above pre-COVID levels
• Global aviation fuel prices have skyrocketed to in excess of $4.00 per gallon, the highest levels ever recorded
• Air cargo rates have slightly softened after the highs of 2021, they are still significantly up on pre-COVID levels
• In response to airspace closures, several freighter operators have opted to serve Europe-Asia via the Middle East
• The effect of Shanghai’s lockdown on air cargo in April 2022 was more than double that of the Russia/Ukraine war

Yahalomit Barzilay

Senior Director, Import

DSV Israel