By JR Chao.    Photo：Markus Winkler

According to the 2022 WACF, the world's cargo fleet will require almost 2,800 new and modified freighters for expansion and replacement until 2041.According to Boeing, with cargo traffic tripling over the projection period, operators will need to migrate to more capable, fuel-efficient, and sustainable planes like the 777-8 Freighter to fulfill demand. A third of deliveries will be new production freighters, with the remaining two-thirds being freighter conversions, such as the 737-800 Boeing Converted Freighter (BCF), giving carriers greater options in both existing and growing markets.

The 2022 WACF also includes the following shipping market insights through 2041:

1. Asia-Pacific will get roughly 40% of all freighters, including new and converted freighters.

2. Despite accounting for only 8% of the entire commercial airline fleet, dedicated freighters continue to transport more than half of all air cargo, with passenger planes carrying the balance as belly cargo

3. Over the next two decades, the global freighter fleet will increase by more than 1,300 planes to more than 3,600 jets.

"While the air cargo market is returning to a more normal pace following historic demand in the last two years, structural factors such as express network growth, evolving supply chain strategies, and new cargo-market entrants are driving sustained freighter demand," said Darren Hulst, Boeing Vice President of Commercial Marketing. "In the global transportation network, air freighters will continue to be a crucial facilitator for moving high-value commodities in higher volume across expanding markets."

Sea Freight in Shenzhen: 

The decrease in sea freight price in America's West coast has slowed down; however, the price in the East coast and the IPI (Interior Point Intermodal) are completely opposite. The prices are dropping dramatically. 

Yantian and Shekou ports eased the restrictions, the ETB-7 is now changed to 10 days. 

Air Freight in Shenzhen: 

There aren't a lot of needs currently and the air freight price has dropped slightly compared to last week.  

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Ningbo

Ningbo city seems to have COVID issue. Nonetheless, it didn't have effect as to the functionally of the Ningbo seaport. Beilun ports and the CFS warehouses in Ningbo are still functioning normally. Drivers are required to do a PCR every 24 hours and apply for health safety clearance. All that hassles need to be done and reviewed before going to the loading area one day in advance. 

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Sea Freight in Shanghai: 

The American line rate is still descending. To limit the cost, YML is changing the schedule for ships from Taiwan to LA and Long Beach. Now, it's a fleet every two weeks, so the shipping space release needs to be advanced. Another thing to look out for is that because of the pandemic, some districts are being partially closed and managed. How the government will prevent and control it in the future remains to be seen.

Air Freight in Shanghai: 

Comparing to last week, the air freight cost to the USA has gone up slightly, but the booking process will be more complicated and takes longer time. On the account of the raised in pandemic, lots of people are working at home. Therefore, it is necessary to confirm the delivery time and the time of sending the documents case by case before booking.

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Xiamen 

The market for this week's Xiamen remains dull. The price to America's Westcoast is only dropping slightly, nevertheless; the East coast is dropping significantly. 

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Dalian 

Due to the low market demand, freight rates have been falling for many weeks, and prices are still falling this week. In the transit aspect, for the drivers to use the highway, they will be required to provide a tested the PCR report within 48 hours. And in the import aspect, going to the loading the area, drivers also will be required to provide a tested the PCR report within 48 hours. To make things more difficult, they also need to wear a protective clothing and a surgical mask.

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Sea Freight in Hong Kong:

On account of pandemic, the seaport is obstructed. Trucks, which travels both ways from Hong Kong to Shenzhen or Shenzhen to Hong Kong are limited and need to wait for permission. In addition, after unloading the goods, shuttling will be needed and that brings the cost up.

Air Freight in Hong Kong:

The air freight market in Hong Kong is low, not many cargos are in the market and there are lots of space remaining. 

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Vietnam 

1. Sea freight rates drop sharply

After 2 years of dizzying increase, sea freight rates began to fall deeply from June 2022 and now, when entering the "crop" at the end of the year, freight rates have not shown signs of inching up and the situation of container surplus is getting bigger and bigger.

Usually, this time is the peak season for exporting goods to other countries to serve Christmas and New Year. 

However, even ocean rates have now dropped quite deeply, there are still no customers request to book. The reason is that the world's consumer demand has decreased, people in many countries have tightened their spending because of inflation, which has led to reduction of exporting goods and an oversupply of containers. 

As a result, shipping lines have been racing to lower prices to attract customers.

In Vietnam's main markets such as the US and EU, the demand decreased and inventories were high, so importers reduced orders.

In this context, enterprises exporting essential and affordable goods benefited because market demand remained. Meanwhile, high-priced items "lost" because there were no orders.

2. Acquiring LF logistics, Maersk carrier wants to go deep into the supply chain in Vietnam

After the $3.6 billion M&A deal between Maersk and LF Logistics in August 2022, both Maersk and LF Logistics aim to penetrate deeper into the very potential logistics market in Vietnam, bringing Vietnam into the supply chain through a global logistics network with comprehensive warehousing, distribution and supply capabilities optimized by data and powered by technology.

When the acquisition is complete, it means that the customers of the two companies will have access to a system of 450 global general warehouses, spanning more than 6 million square meters.

Together with the shipping capacity available on the platform and technology, this competitive advantage gives the carrier an advantage when entering the supply chain and completing multi-channel orders in the Vietnamese market.

Thailand:

1. Border and Cross-border Trade News

Border and cross-border trade in the first 10 months of 2022 totally 1,450,310 mil baht, an increase of +1.74% compared to the same period last year. The exports value at 855,839 million baht, decrease of 0.66%, and imports value 594,471 million baht, an increase of 5.41%, with Thailand's trade balance in the first 10 months of 2022 with total 261,368 million baht. The Border exports trade continued to expand for the 10th consecutive month, increasing by 4.50% compared to the same month last year. Cross-border exports, meanwhile, declined as exporters shifted back to sea and air freight as freight rates continued to fall.  Thailand has 97 checkpoints with neighboring countries. 63 checkpoints have been opened and another 8 checkpoints are waiting for neighbors to accept. If successful, it will increase flexibility.

2. FTA negotiations

Thailand currently has 14 FTAs with 18 countries. The Government will push forward the framework for FTA negotiations between ASEAN-Canada, Thailand-EFTA, Thailand-Turkey and Thailand-Pakistan. However, it will focus on pushing the utilization of existing FTAs such as RCEP, which the Department of Foreign Trade, Department of Trade Negotiations will expedite the utilization of benefits. This is the one of the mission of Ministry of Commerce.

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