The efficiency of using container ships globally is at a low level, especially on the trans-Pacific and Eurasian routes, causing the container freight rates to drop continuously in the past time.
Sea-Intelligence noted in a recent analysis that "Global demand continues to decline and whether we calculate growth in TEUxMiles or as a percentage year-to-date in 2019, one thing is clear. It's clear: the supply/demand balance is under a lot of pressure."
The latest demand data from the Bureau of Container Trade Statistics (CTS) shows that in August 2022, year-over-year growth was lower than that seen in 2019.
Sea-Intelligence further noted "In order to maintain very high spot rates, nominal usage exceeding 92%-93% needs to be maintained on the transpacific service, and with threshold levels on the Asia-Europe route is 85%." However, across the trans-Pacific, capacity utilization fell below 90% for most of 2022, and the price drop continued.
On the Asia-Europe service, train utilization has decreased further. As we can see in Figure 1, the 2022 utilization in Asia-Europe has been consistently below the 85% threshold, which is unlikely to trigger a rate increase and although utilization has improved in August to 74% from 72% in July; the 2-month average continued to decrease from 76% to 73%.
This latest data simply reconfirms what has happened since the beginning of 2022, there is no fundamental support for rates to continue to soar across the trans-Pacific and Asia- Europe.
On the afternoon of October 1, at the meeting on the socio-economic situation in the first 9 months of 2024, the Department of Planning and Investment of Ho Chi Minh City said that many economic indicators have grown steadily. Notably, export turnover is on a recovery trend and has grown.
In the first eight months of 2024, Vietnam earned nearly VND 4 trillion from tea exports, surpassing the total export revenue of last year.
Australia has made another stride in its agriculture sector by announcing an agreement to export plums to Vietnam in the near future, in addition to the current exports of peaches and nectarines. This project is part of a two-way agricultural market access agreement aimed at providing Australian plums to Vietnam and Vietnamese passion fruit to Australia.
Today marks a significant milestone for Glotrans: our 5-year anniversary as a valued member of the WWPC Logistics Network.
On behalf of the entire Glotrans team, we would like to extend our warmest wishes to you and your loved ones for a prosperous, healthy, and joyful Lunar New Year 2025.
Dear Customers and Partners, Glotrans would like to announce the 2025 Lunar New Year holiday schedule as follows: Holiday: From January 25, 2025 (Saturday) to February 2, 2025 (Sunday) Back to work: February 3, 2025 (Monday)
