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Dear Clients, With China returning from their Lunar holiday period, we have started to receive several pieces of market information. Please see a summary of these below. Freight Rates As has become the norm, the smaller shipping lines are in a “discounting cycle” with rates falling ex Main ports in China, particularly into the east coast of Australia, where capacity outweighs demand currently. The larger carriers are now starting to follow as they aggressively try to protect market share. S.E.Asia rates are not falling as sharply or as fast. But there are some savings out there. Blank Sailings Shipping lines have outlined a significant blank sailing programme from Asia (both China and S.E.Asia) ports to Australia over the coming weeks. The reason for this is an attempt to balance supply & demand post the CNY holiday period when manufacturing isn’t at full capacity, whilst maintaining freight rates at a profitable level. We urge you to discuss current bookings and your required landed date(s) with your Transways contact so that we can tailor your bookings to meet available services. How effective these blank sailings are at maintaining a level of demand (rate level) will be interesting and we sit, wait and watch as to what moves the shipping lines will make over the coming months. US Trade War As we have seen in the media, The US has opened a trade war with its 3 largest trading partners, Canada, Mexico and China. It will be interesting to see what eventuates here and the impact it has on the global economy. China has started that it will file a case with the World Trade Organisation as well as taking counter measures. And just this week, we have seen the US President threaten to apply a 25% tariff to all US imports of Steel and Aluminium products from “anywhere” in the world. Should you wish to discuss any of these points, please don’t hesitate to reach out to your key contact @ Transways Logistics International. |
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