Visy Global Logistics - MARKET UPDATE June 2022
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Visy Global Logistics MARKET UPDATE June 2022
In this update
1. Ocean Freight update
2. Air Freight update
3. Regional update
• Asia
• United States
• Australia
• New Zealand
4. How can we help you?
2 Visy Logistics Market Update | June 2022
Though the World Container Freight index has
been dropping in the past few weeks, primarily
due to China’s lockdowns, we expect freight to
increase gradually as China factories resume
production
Latest Shanghai Container Freight Index (SCFI) is
showing an indication that rates have bottomed out
Source:
and are gradually increasing.
Source: Internal (average export rates from AU to Asia)
Source: Shanghai Container Freight Index (SCFI), May 2022
3 Visy Logistics Market Update | June 2022
Ocean Freight update
Space, equipment, schedule and price trends for major trade lanes
Trade Updates Space (Capacity) Equipment Availability Schedule Reliability Price Development
Asia – Europe (Westbound)
Asia – US/Canada
Asia – Oceania (Southbound)
Asia – LATAM
Intra-Asia (Short Sea)
Oceania – Asia (Northbound)
Oceania – US/Canada
Europe – Oceania
ISC – Oceania
S.Africa – Oceania
Oceania - LATAM
US/Canada – Oceania
Europe – Asia (Eastbound)
US/Canada – Asia
Australia Coastal
New Zealand Coastal
KEY #1
Space (Capacity) 70-100% of normal capacity 30-69% of normal capacity Less than 29% of normal capacity
Equipment Availability No challenges Medium challenges Major challenges
Schedule Reliability No challenges Medium challenges Major challenges
KEY #2
Price Development Up Stable Down
4 Visy Logistics Market Update | June 2022
Current inflationary trends, fuelled by the Russia-Ukraine War, will
have an adverse impact on bunker rates and can prolong supply chain disruptions,
further increasing costs of raw materials and commodities
Source: Bunker Prices Worldwide - BUNKER INDEX
5 Visy Logistics Market Update | June 2022
Beyond 2022: Container Shipping Capacity Outlook – 6.2M TEU to be delivered 2023-2024
• Orderbook is now 26% of the fleet size for the
first time since 2014
• Easing congestion expected to release ~2M TEU
capacity
• Total additional supply on target to exceed 8M
TEU between 2023-2025
• Vessels that do not comply with IMO emission
standards will commence to be phased out or
scrapped on 1 January 2023
6 Visy Logistics Market Update | June 2022
Air Freight update
Space, schedule and price trends for major trade lanes
Schedule
Trade Updates Capacity / Demand Price Development
Reliability
Asia – Australia Reduced / High
Europe – Australia Tight / Steady
USA – Australia Tight / Steady
Australia – NZ Tight / High
Australia – Asia Tight / Steady
Australia – Europe Tight / Steady
Australia – USA Tight / High
KEY #1
Schedule Reliability No challenges Medium challenges Major challenges
KEY #2
Price Development Up Stable Down
7 Visy Logistics Market Update | June 2022
Air Freight update
Positive airline signals Shanghai’s air capacity reduces by 66% compared to 2021
• Travel numbers increasing • April’s weekly capacity reduced by 62%
• Some reinstated flights to 15,800 tonnes, compared with 41,900
tonnes recorded end of March
• Handling capacity increase
• Most of the reduction has come from
non-Asia-Pacific-based airlines, with
Service disruptions
capacity reduced by 53% to 11,700 tonnes
• EU conflict transit impacts
• Flights are not fully loaded with cargo
• Charter fleet scarcities restricted to reduce work load
• Aircraft crew shortages • Cargo diverted to other airports
• Terminal staff shortages
dnata expands cargo operations at Sydney Airport
China lockdowns
Sydney, Australia, 20 May 2022 - dnata, a leading global air and
• Beijing , Guangzhou and Shanghai travel services provider, has signed a five-year lease with Sydney
airports affected Airport to expand its existing cargo facility at the international
• Hong Kong situation recovering airfreight terminal by an additional 4,800 sqm.
8 Visy Logistics Market Update | June 2022
Regional update: Asia
Market update Equipment status –Asia
• Overall market demand slightly reduced due to COVID-19 • Equipment shortages remain an industry-wide challenge in Asia
outbreak in China • Recommend customers to use SOC/NOR as substitution wherever
• Extra capacity expected to be available from May’22, with possible
ANL’s new service (Shanghai/Shekou to Sydney/Brisbane)
Country 20DRY 40DRY 40HDRY 45HC 40HCRF
• Current spot rate reductions temporary and freight expected
China insufficient insufficient insufficient insufficient insufficient
to increase once China factories resume full production
• Schedule reliability remains an ongoing issue Japan
/Australia
enough enough enough NA enough
Major ports update: Korea insufficient insufficient insufficient enough enough
Country Port Waiting Time Indicator Expected Waiting Time
Vietnam tight insufficient insufficient insufficient insufficient
South Korea Busan 1-1.5 days
Qingdao Cambodia tight insufficient enough enough enough
Shanghai 1.5-2 days
China Thailand insufficient tight tight enough enough
Ningbo 1.5-2.5 days
Yantian 1.5-2 days Malaysia tight enough enough enough enough
Tanjung Pelepas 3.5 days Singapore enough enough enough enough enough
Malaysia
Port Klang Up to 2 days Indonesia enough tight tight enough enough
Singapore Singapore 2 days
Philippines enough insufficient enough enough enough
Auckland Berth windows are suspended
New Zealand
Tauranga Berth windows are suspended Myanmar enough insufficient insufficient enough enough
Melbourne
Australia
New Zealand tight enough insufficient NA insufficient
Sydney 0.5-1 days
9 Visy Logistics Market Update | June 2022
Regional update: USA
TPEB Volume & Port Congestion USWC Labour Negotiations
between PMA & ILWU
• Most contentious item on the agenda is
terminal automation
• PMA sees automation as the way forward to
greater productivity
• ILWU sees it as a ‘job killer' and susceptible
to hackers, posing a National Security risk
• Nevertheless, ocean carrier profits could
fund expansions in pay and benefits for port
workers, and fear of further supply chain
disruptions may lead to smoother talks
• How this pans out remains to be seen as the
negotiations move forward
Source: Journal of Commerce (May 2022)
10 Visy Logistics Market Update | June 2022Regional update: Australia
• Patrick’s terminal (QLD) has announced that due to recent events caused by extreme Conclusion of the Brown
weather conditions, its Fisherman's Island terminal has put in place amendments to marmorated stink bug
both empty container and export received windows until further notice
(BMSB) risk season
• Hutchison Ports have increased their terminal infrastructure levy effective 01.05.2022.
• On 1 May 2022, the 2021-22 BMSB
Brisbane represents an increase of 21.79% and Sydney 17.20%
season ended
• Visy Global Forwarding is excited to announce the launch of our new Customer Digital
• Goods shipped or vessels departing
Platform. This will give our customers the opportunity to track containers, make
from BMSB identified target risk
bookings, retrieve reports, and search quotes… just to name a few of its key features.
countries on or after 1 May 2022,
We will go live soon - watch this space!
will no longer be subject to the
BMSB seasonal measures
• Importers are reminded that it is
their responsibility to continue to
ensure that any goods imported,
are free of biosecurity risk material
throughout the year, not just during
periods of heightened seasonal
measures
Seasonal measures for Brown marmorated
stink bug (BMSB) - DAWE
11 Visy Logistics Market Update | June 2022Regional update: New Zealand
• On 1 May 2022, the 2021-22 Brown Marmorated Stink Bug
(BMSB) season ended
• Though the Omicron variant is still active in New Zealand, it
could have reached its peak; however, we continue to remain
vigilant and maintain preventative measures to ensure we
provide our clients with the very best service
• Given the time of the year, rail transit time from Tauranga to
Metroport has extended out to eight days. Hence, it is critical
that we are provided with the correct documentation
• Trade Single Window: NZ Customs & Ministry of Primary
Industries (MPI) clearances continue to flow well for non-
targeted goods (e.g. aluminum coils)
• However for targeted goods (e.g. used wooden furniture), MPI
document processing is three to six days
• Fuel adjustment factor for road transport continues to be
challenging due to escalating fuel prices
• Overall, as we enter the winter months, we continue to focus
on forward planning to ensure our clients’ cargo is moved in
the most timely manner
12 Visy Logistics Market Update | June 2022Talking... Regional rail solutions
The multi-million dollar Riverina Intermodal Freight and Logistics
(RiFL) project, due for full completion later this year, provides a
freight solution for Australia’s eastern seaboard that is likely to grow
the region, support jobs and bring positive sustainability outcomes.
In this interview, we chat with Lee Schmelich, Visy Logistics’ Country
Manager for Australia, about the nation-building project.
Read the interview here >
“You really need to see the project to appreciate its
scale. For example, to build the siding over
100,000m3 of dirt had to be moved. Surfacing the
terminal has taken over one million pavers – if you’ve
ever paved anything in your backyard you’ll
appreciate that’s a lot of pavers."
Looking for US to Australia air freight?
Our airfreight consolidation program offers twice weekly departures from New York, Chicago and LA to Sydney,
Melbourne and Brisbane. Door-to-door service with daily pick up from all USA 48 lower states.
Find out more >
13 Visy Logistics Market Update | June 2022Copyright This brochure is subject to copyright. The copyright is owned by Visy, or in the case of some material, a third party. You may view this brochure solely for personal use, any other use, including the reproduction, modification, distribution, transmission, republication or display of the content of this brochure is prohibited. Disclaimer The information contained in this brochure is believed to be accurate and current at the date the information was published in this brochure. We make no representation or warranty as to the reliability, accuracy or completeness of the information contained in this brochure or that the brochure is error free.
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