According to Dimerco, intra-Asian ocean freight rates are “falling,” although the market is holding up better than long-haul shipments. The Taiwanese forwarder said in its September Asia Pacific freight report that demand for ocean freight was weakening globally due to economic recession and inflation, with macro indicators “not suggesting a quick turnaround.” Overall, ocean loading factors ex-Asia for long-distance trades fell by 94%. The percentage could fall to 92 percent or lower in the coming weeks. “Low demand has resulted in falling maritime freight charges.”
Intra-Asian rates from South-east and North-east Asia are also falling but remain reasonably constant when compared to rates in and out of China. ” Indeed, the Southeast Asia Freight Index declined 2.5 percent last week, while the Shanghai Containerized Freight Index sank 10.4per cent. The Regional Comprehensive Economic Partnership (RECP) and the China plus-one arrangement, according to Dimerco, have kept intra-Asian trade “extremely steady” in comparison to deep-sea lanes. “Due to the expansion in commerce among RECP countries, as well as the raw material transport required for the manufacturing move from China into Southeast Asian countries,” Dimerco stated.
