Logistics Update June
Generally, the transport and logistics markets have continued the same path as from last update i.e., low demand and falling freight prices. There are however differences in the magnitudes of the changes in capacity and prices across ocean freight, air freight and freight via road respectively.
Ocean
Demand is still lower than same period last year and the overall trend with declining rates is continuing into June. Our logistics barometer shows a steady declining price since April 2022 towards June 2023 for an average across selected major shipping routes.
There are generally no major service disruptions across all major European ports, which is most likely due to the softening markets.
The equipment situation is also back to normal, hence there are no major bottlenecks on European base –and outports. In some out-ports in EU, 20’ft containers can however be a problem to get. Total number of waiting days for container vessel are less than two days, except for the port of Antwerp.
Air
The average air freight shipment weighs less than previous years and there seems to be overall shifts in volumes from air freight towards sea freight
The supply (capacity) is currently greater than demand, resulting in a downward pressure on rates, which for April are now down at index 150, where index 100 corresponds to 2019 levels. Prices are thus still around 50% above pre-covid levels (around index 100). Air freight is experiencing similar developments as ocean freight in terms of both demand and prices.
There is an ongoing trend towards longer-term agreements (tenders and contracts).
Road
Compared to the same period in 2022, freight forwarders see a market decline in volume of roughly 10%. Capacity and drivers are thus, with a few geographical exceptions, available in the market.Prices have also been declining since new year and are now overall at roughly the same level as for the same period in 2022.
The spike in prices and resulting adjustment back to the normal has however occurred later for road transportation, than for ocean and air freight.
As a member of DI Handel, you can access the interactive logistics dashboard right here: Logistics Barometer
