Logistic News

Asia Pacific Container Logistics August 2022: How can your logistics cope with continuous challenges?

Global trade continues to face challenges and uncertainties due to the Russia-Ukraine conflict, inflation, and economic recession. But how can you react to this changing logistics landscape and ensure your logistics operate smoothly? Read on to get more insights into our market update.

Anna-Sophia Metzel, Yan Jing Fu, 09 August 2022

The outlook for the global market remains highly uncertain. Container imports into Europe are impacted by the Russia-Ukraine conflict, and imports into Asia are also impacted due to Covid-19 lockdowns in China. The short-term outlook, however, is more positive. Cargo volumes through Shanghai are returning to pre-lockdown levels, and demand from US consumers is increasing ahead of shipping peak season on North American trades. Moving forward, the global market situation depends on how consumers and businesses react to the various uncertainties, higher prices, and policy changes.

Read on and get some updates about the latest market trends in inland transportation and ocean freight for you to handle the challenges in the best way possible.

What are the latest inland transportation trends in the Asia Pacific?

  • China: Some potential surcharges can be applied for trucking, including highway toll fees. Lead times may also face challenges. With Shanghai gradually returning to normal after the two-month city-wide lockdown in April and May, factory production is picking up. Demand rebounded in July with signs of seasonal peaks in many trades. Trucking in the city area has also fully gone back to normal. Intra-provincial trucking is also back to pre-lockdown levels, although truckers are toned to undergo local testing requirements. However, the current situation is dynamic and can change in the coming weeks.

  • Australia and New Zealand: Delays across all ports caused by bad weather on the East Coast are impacting the final estimated arrival time and final availability of cargo for delivery to end consignees. Congestion at Auckland caused by labour shortages and vessel bunching leads to vessel delays of up to eight days. This impacts container availability, final delivery to end users, and extended transit times.

  • Japan and Korea: The volume of container drayage is stable, and slight ease is expected in August due to the holiday season.

  • Thailand, Malaysia, and Singapore: The three countries are not seeing the same level of recovery in container volumes as experienced by Greater China. They could also be hit if there is a slowdown in demand from developed countries due to the rising inflation and fuel prices.

What are the logistics insights across ocean freight globally?

The situation in Shanghai is normalizing but is still hard to predict – this combined with the strikes in Europe and the continuous congestion in the ports in North America, our customers have a larger need for flexibility than ever. Our focus is on delivering just that to help support the fulfilment of their customer promises.

Anne-Sophie Zerlang Karlsen, Head of Asia Pacific Ocean Customer Logistics

Many uncertainties are still taking place to affect global trade and bring risks to supply chains. Read on and get detailed updates on shipping routes from the Asia Pacific to other regions.

  • Asia Pacific-North Europe: North European trade demand is stable, but networks face severe pressure due to port congestion. High yard density and holiday season labour shortages are adding to congestion issues. In the meantime, labour strikes, particularly in Germany, also challenge logistics globally.

  • Asia Pacific-Mediterranean: Vessels are being delayed by congestion at both origin and destination.

  • Asia Pacific-North America: The Asia Pacific to North America overflow issue is gradually improving. Export volumes in the second half of July and August are expected to increase. Even though we would still suggest you, our customers, prepare more lead time between the estimated time of arrival and actual departure time.

  • Asia Pacific-Latin America: Overall market demand for the Latin America trade is very strong as shipping is heading into the traditional peak season.

  • Asia Pacific-West Central Asia: Tight space on this route remains. Together with Maersk, we closely monitor the evolving situation in Sri Lanka and Pakistan. In Pakistan, the government has restricted the issue of Letters of Credit to automotive and technology customers. The situation is expected to remain the same until mid-August. It is forecasted that India will import more solar-related materials from Q3 2022.

  • Asia Pacific-Africa: For West Africa, transportation demand has decreased compared with the last two months. However, in some areas like Angola, the demand is picking up. On the whole, the capacity is tightening in West Africa. For South Africa, market demand is improving compared with Q2, and the market rate is stable. In terms of East Africa, demand is gradually picking up. Space on the Dar Es Salaam service is quite full, and we recommend you, our customers, to book your shipments early.

  • Asia Pacific-Oceania: Australia’s transportation needs are expected to be soft due to increased capacity. New Zealand’s demand is expected to hold into August; however, Auckland port productivity is impacted due to labour shortage and vessel bunching.

  • Import Asia Pacific: Terminals in China are operating normally after the ease of the Covid-19 situation. Disruptions caused by Typhoons, especially at South China ports, could potentially cause a 1-2 days delay. With the ports In Europe and North America continuing to face port congestions, cargo imports to Asia may face delays.

Average vessel waiting times at Asia Pacific ports

Article image

What is Twill doing, so you can cope with logistics challenges in Asia Pacific?

At Twill, we aim to ensure you a seamless logistic experience. No matter how challenging the market situation is, we offer the flexibility and attention that your business needs:

  1. Loading priority for your cargo: Time efficiency plays a critical role in your business's daily operations. We can see above that transportation capacity is still tight in some countries/areas. How to ensure your cargo can be delivered to the destination as per your plan? At Twill, we offer a loading priority for your cargo. Without extra costs, your cargo is entitled to get load prioritisation.

  2. Accessibility and visibility across each stage: We provide logistics transparency, visibility, and accessibility from pricing, booking, tracking, delivery, and payments. You can easily trace your cargo to ensure everything is on the right track.

  3. Transparent pricing models: As a small or medium-sized business, you need to stay in control of your finances. Our two pricing models with daily rates and monthly fixed rates provide your business with immediate access to search for prices on our platform. This means no hidden costs but a clear pricing breakdown.

  4. Twill is your all-in-one logistic provider: As we are supercharged by Maersk, our logistics network covers more than 300 ports in over 150 countries. You can arrange transportation by choosing Twill’s end-to-end logistics services.

  5. Insightful industry knowledge sharing: As an insightful partner, we keep you updated by sharing market news, trends, and knowledge. We point out the market situation you need to know to simplify your decision-making. For more insights and updates, you can head to our Knowledge Hub. Keep yourself informed about the latest industry information and get more insights into container logistics in the Asia Pacific.

Was this content useful?

© 2022    Turfmarkt 107, 2511 DP Den Haag, The Netherlands