DSV MARKET UPDATE – JANUARY 2024

Dear customers,

Please find attached the market update for January 2024 for Air & Sea. 

DSV Israel

LOCAL UPDATE

Ocean

The red sea crisis is influencing the traffic from the Fareast to Israel and the global  market is well.

Most of the shipping lines have decided, to stop all voyages through the Suez Canal for the time being, and to have their vessels operate via the Cape of Good Hope.

A Few shipping lines stopped confirming bookings into Israel.

As a results of this situation:

GENERAL UPDATE

• Deflation Worries Deepen in China With domestic demand weak, fears are growing that China will try to export its way out of trouble, raising trade tensions.
• US: Inflation Edged Up in December After Rapid Cooling Most of 2023
• Eurozone Inflation Rose Less Than Expected, Keeping Rate-Cut Talk on Track.

Red Sea Attacks

• Red Sea Insurance Soars After US Airstrike
• More than 28 attacks registered in a asymmetric warfare, latest attack was today to a US flag dry bulk vessel with a missile strike near the gulf of Aden.
• Shipping line Hapag Lloyd and Maersk and confirmed that red sea is not safe and they will keep transit through cape town, we are also seeing diversions of tanker vessels and LNG vessels.
• Tesla giga factory in Berlin will stop few days due to delays on stock coming from China.

 OCEAN: Rates are soaring mainly on Asia to Europe trade, but we are starting to see ripple effects and rates from Asia to America are increasing too, we see a potential issue of lack of equipment and potential congestion in the future.
AIR: After e-commerce campaign peak has been completed we start to see operations “back to normal” from the peak with capacity being available again before Chinese New year. For the time being are few Ocean to Air conversions due to cargo delays caused by red sea attacks

Tenders: we recommend that our  customer’s focus to move the cargo at ad-hoc / spot and wait after Chinese new year when there will be potentially more space available. It is key to focus on multiple solutions.

Ocean freight highlights:

• Chinese New year 2024 is coming with few capacity available
• Panama Canal Drought – Increase in Daily transits
• Maersk to use freight rail to circumvent Panama Canal amid drought
• Aging containership fleet has not driven an increase in vessel scrapping
• US: December imports surprisingly high amid Panama.

Airfreight highlights:

• Global international air cargo capacity was up +6.0% (vs. 2019) between December 11th-January 7th in 2024, and decreased by -5.1% in the last four weeks (vs four weeks prior)
• Airline freighter capacity increased strongly towards the end of year Holidays vs Q4 2022, mainly on Transpacific
• Air cargo capacity from China & Hong Kong to US increased by +18% over the last four weeks (vs. 2019)
• Mostly major Asian and Gulf airports top the ranks of growth in international air cargo capacity over 2023
• The 2023 decrease in freighter capacity at Incheon is mostly attributed to carriers from the US, Germany, and Gulf region