Chinese New Year 2023: Impact on logistics II
As Chinese New Year (CNY) approaches, we provide you an comprehensive update on the current state of shipping from and to China.
In this update, we will be covering the latest developments in air freight, including the launch of a new service and the sponsorship of development by the city of Guangzhou. We will also be discussing the current state of ocean freight, including blank sailings and changes in prices for Chinese container exports. Finally, we will be offering our predictions for transportation challenges and rates during CNY.
The city of Guangzhou has announced its sponsorship of airfreight development, with a focus on supporting the establishment of regular charters, particularly for e-ommerce. However, market uncertainty has led to an increase in short-term deals between airlines and forwarders, particularly in the Shanghai market. A new routing service from Xiamen Airport (XMN) to Mexico City Airport (MEX), chartered by AWOT and operated by Alaska Air. This service will run twice weekly.
Air China Cargo is also planning an IPO at the Shenzhen Stock Exchange to finance network and fleet expansion. As per latest report from China Aviation, they are expecting the freight pricing to further reduce due to passenger market is to recover to approximately 80% compared to 2019, that is to further release freight capacity.
Turning to ocean freight, there have been more blank sailings on the trade NEBP route in preparation for CNY. The “AE1″/”Shogun” loop, with a fleet of two ships, has been reduced to just one ship. The last sailing from Ningbo was in November, and there have been no sailings from China in December.
Maersk and Mediterranean Shipping Company (MSC) have also decided to void the first two sailings of 2023 due to low cargo demand forecasts. In addition, there has been an unusual drop in prices for Chinese container exports to Europe and the Mediterranean, with the index falling by 34% and 57%, respectively, over the last seven weeks.
As we approach Chinese New Year, we expect transportation to become more challenging, particularly for domestic transport. Air freight is expected to rapidly rise later this week. We encourage ship spare suppliers to deliver their cargo to our hub as early as possible to avoid any potential delays.
We hope this update has been helpful and wish you a Happy and Prosperous Chinese New Year!