Demand is beginning to recover and production is starting to pick up in China after a months-long lockdown in Shanghai was lifted earlier this month according to a recent report by Flexport.
In its freight market update on June 14, Flexport said the surplus in the Asia-North America capacity causes rates to drop, while rates between Asia-Europe rates remain stable.
In South China — Shenzhen, Guangzhou, Dongguan, and Hong Kong — the freight forwarder and customs brokerage company said the overall market is "soft" and "demand weak with rate levels decreasing."
"Demand is beginning to recover and production picking up, however, there is a surplus of Transpacific Eastbound (TPEB) capacity causing rates to drop, while far east westbound (FEWB) rates remain stable," Flexport noted in its report.
Moving forward, it added that demand is "expected to pick up" in July as more Chinese factories ramp up production.
展望未来，它补充说，随着越来越多的中国工厂提高产量，7月份需求“预计会回升”。
"TPEB demand ex-HAN is continuing to pick up as we approach the quarter end. Space is also getting tighter especially due to congestion at transit hubs. TPEB rate levels are expected to increase next week, while FEWB rates are trending downwards due to weak demand," Flexport added.
“随着我们接近季度末，除 HAN 的 TPEB 需求继续回升，空间也越来越紧张，尤其是由于交通枢纽的拥堵。预计 TPEB 费率水平下周将上升，而 FEWB 费率由于疲软而呈下降趋势需求，”Flexport 补充道。
In terms of shipping, the freight forwarder said for Asia-North America, rates continue to fall on TPEB as demand remains soft relative to the capacity available, especially to Pacific Southwest ports.
It added that shipping activity has resumed in Shanghai, although the strength and timing of the volumes rebounding after two months of Covid-19-related lockdowns remain unclear.
"International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) labor negotiations continue as July 1st, when existing contracts expire, rapidly approaches," Flexport said, noting that intermodal bottlenecks, chassis shortages, and high fuel prices continue to pose additional challenges despite the improved balance between supply and demand.
"Levels remain elevated relative to the pre-Covid market with softening in many major pockets," it further said.
它进一步表示：“相对于 Covid 之前的市场，水平仍然较高，许多主要领域都在走软。”
Meanwhile, for Asia-Europe shipping, Flexport noted that following the Shanghai reopening, volumes are picking up again but recovery has "not translated into a big surge thus far."