18 July 2023 Rate Forecast August 2023 Shipping lines are currently making announcements regarding increases in freight rates from Asia to Europe. We hope you are enjoying the summer, whether you are on vacation or working. This time of the year is usually busy in our industry, especially when it comes to imports from Asia. Besides the normal volumes, we typically see an uptick in demand relating to Christmas. This year has been different: • There has been a slowdown in demand. Retailers have for a while been reporting high inventory levels, and high inflation is hitting the Asia-Europe trade hard. • New capacity is entering the market. New containerships delivered in June reached 277,873 TEU, setting a record for new capacity delivered in a single month. If we add the above together, we see a market where supply and demand are not in balance. During Covid container freight rates reached an all-time high, and we are now experiencing the opposite. But as to every good story, there is an end. Even if we now see a slowdown demand and increased supply, carriers are keen to re-evaluate current price levels, especially from Asia to Europe. Lately, we seen several announcements from carriers who are implementing a Peak Season Surcharge (PSS) and/or a General Rate Increase (GRI) as of 1 August 2023. The amounts vary from USD 250/TEU to USD 550/TEU. As we are still some weeks from August, we are monitoring the situation closely and will inform you as soon as we have a final overview. We do however recommend taking into consideration that rate levels in August might be higher than previous months. In the meantime, we want to wish you a continuously great summer, and if you have any questions or comments, please do not hesitate to reach out to your DSV contact person. DSV – Global Transport and Logistics At DSV, we keep supply chains flowing in a world of change. We provide and manage supply chain solutions for thousands of companies every day – from the small family-run business to the large global corporation. Our reach is global, yet our presence is local and close to our customers. More than 75,000 employees in over 80 countries work passionately to deliver great customer experiences and high-quality services. We aspire to lead the way towards a more sustainable future for our industry and are committed to trading on nature’s terms. DSV is a dynamic organisation that fosters inclusivity and diversity. We conduct our business with integrity, respecting different cultures and the dignity and rights of individuals. Visit dsv.com and follow us on LinkedIn, Facebook and Twitter.
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