Shippers in Asia are facing a double whammy of soaring freight rates and a capacity crunch on intra-Asia trades as vessels operating deep-sea services are delayed due to longer transits around the Cape of Good Hope, shipping executives say.<\/p>\n
Exporters are already seeing equipment shortages just as intra-Asia trade is close to peaking as the return of containers back to Asia is delayed due to vessel diversions driven by ongoing attacks on commercial shipping in the Red Sea by Houthi militants.<\/p>\n
The impact will be especially felt on key services such as China-Vietnam and China-Thailand, where deep-sea services are accounting for an increasing share of the intra-Asia volumes on those trade lanes, figures show.<\/p>\n
Deep-sea services accounted for about 64% of total quarterly capacity between China and Vietnam in the fourth quarter 2023, up from almost 58% a year prior, figures prepared for the Journal of Commerce by transport consultancy MDS Transmodal show. Blue water services provide approximately 50% of the capacity between China and Thailand, up slightly from a year earlier, and 90% of space between China and Singapore, MDS figures show.<\/p>\n
Shipping and forwarding executives said the problems are likely to hit the peak shipping period ahead of the start of the Lunar New Year on Feb. 10 as factories across Asia, especially China, rush to complete orders before closing for about two weeks.<\/p>\n
\u201cSpace and equipment will be tight before the Lunar New Year for the whole market,\u201d May Yau, Asia pricing director at FIBS Logistics in Hong Kong, told the Journal of Commerce.<\/p>\n
She said intra-Asia shippers will be disproportionately affected by equipment shortages as mainline carriers focus on deep-sea trades.<\/p>\n
\u201cCarriers have started to limit the release of equipment for short-haul and instead are prioritizing long-haul,\u201d Yau added.<\/p>\n
Carriers rerouting vessels via the Cape of Good Hope \u201chas significantly impacted capacity supply and demand,\u201d she said.<\/p>\n
A senior intra-Asia shipping executive told the Journal of Commerce the Red Sea and Panama Canal disruptions have not yet had an impact on intra-Asia trades, but they will in time.<\/p>\n
\u201cFour weeks before the Lunar New Year we are really into the peak season for intra-Asia trades and there is a big requirement for space in the market,\u201d the source said. \u201cWe\u2019ve seen volumes rise 5% in January compared with December. Ships are full.\u201d<\/p>\n
Coming capacity shortfall<\/p>\n
Peter Sand, chief analyst at rate benchmarking platform Xeneta, said total intra-Asia volumes grew 25% from September to October. In November, volumes increased 19% year on year, he added.<\/p>\n
Research firm Linerlytica indicated the capacity shortfall will kick in at the end of this month as vessels on trans-Pacific and Asia-Europe services sail via southern Africa to avoid delays at the Panama Canal and the attacks in the Red Sea.<\/p>\n
Details please refer to JOC news.<\/em><\/p>\n Source:<\/p>\n Wallis, K. (2024, January 16). Intra-asia shippers face capacity crunch, equipment shortages as rates surge<\/i>. Journal of Commerce. https:\/\/www.joc.com\/article\/intra-asia-shippers-face-capacity-crunch-equipment-shortages-rates-surge_20240116.html<\/p>\n Shippers in Asia are facing a double whammy of soaring freight rates and a capacity crunch on intra-Asia trades as vessels operating deep-sea services are delayed due to longer transits around the Cape of Good Hope, shipping executives say. Exporters are already seeing equipment shortages just as intra-Asia trade is close to peaking as the …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[78],"tags":[89,84],"class_list":["post-2863","post","type-post","status-publish","format-standard","hentry","category-news","tag-logistics","tag-maritime"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts\/2863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/comments?post=2863"}],"version-history":[{"count":1,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts\/2863\/revisions"}],"predecessor-version":[{"id":2864,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts\/2863\/revisions\/2864"}],"wp:attachment":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/media?parent=2863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/categories?post=2863"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/tags?post=2863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}