ANNOUNCEMENT ON SHIP FREIGHTS Q2.2024

Dolphin Sea Air would like to send your company updated information on the current international shipping situation.

1.Comments on the market

Due to skyrocketing demand, the continuous crisis causing port congestion has caused freight rates to skyrocket compared to the same period last year. Below are the reasons as well as market comments:

Restructuring market shares among shipping lines

One of the notable trends in the industry is the restructuring of market shares among shipping lines. In response to ongoing challenges, some carriers are making the strategic decision to reduce the size of their fleets, leading to shifts in supply and demand amid complex developments.

Tense situation in the Red Sea

Rising tensions in the Red Sea region have forced shipping lines to change their routing strategies. Many carriers are now choosing to divert their ships via the Cape of Good Hope, a longer route that lengthens transit times and increases operating costs. Disruptions to these shipping routes are adding further difficulties to an already tense situation.

Difficulties from natural disasters and geopolitical conflicts

The shipping market is facing a storm of challenges, with weather, natural disasters and ongoing geopolitical conflicts all contributing to the turmoil. The combination of these factors is creating a volatile and unpredictable environment for carriers and shippers alike.

Booming export goods from China

The US plans to impose strong tariffs on many Chinese goods from August, causing this country's exporters to boost exports ahead of schedule. Many Chinese exporters are paying higher prices to get space on ships, so space/shells will be prioritized for goods from China over other regions. Some ships serving other sea routes are being withdrawn and supplemented by export routes from China. Similarly, empty shells are also being considered for transfer to China to serve cargo needs, leading to a local shortage of shells in other Asian port areas.

Congestion of Singapore port, the largest transit point in East Asia/Southeast Asia to other regions of the world.

As a hub for transshipment of goods, connecting to more than 600 other ports globally, congestion at Singapore port is creating a knock-on impact on regional ports such as Malaysia, Shanghai port and Singapore port. Qingdao in China... As a result, ports in Southeast Asia and East Asia are becoming the "most serious bottleneck" for world maritime transport activities, when 26% of global container capacity is stuck in this area.

Most recently, a series of major shipping lines based in Taiwan (China) such as Evergreen, Yang Ming... predict that congestion at ports in Asia will not ease in the short term, so container shipping rates will stay high until the third quarter of 2024

2. Forecasting price fluctuations on main trade routes

The impact of these market fluctuations has manifested itself in significant changes in freight rates on different trade routes:

Calculated from July compared to June

• Freight rates from Haiphong to South Korea increased by 200%.
• Freight rates from Haiphong to Japan increased by 40%.
• Freight rates from Haiphong to Thailand increased by 200%
• Rates from Haiphong to India increased by 150%
• Freight rates from Haiphong to Northern Europe increased by about 25%
• Rates from Haiphong to Mediterranean increased by about 10%
• Freight rates from Haiphong to Australia increased by about 30%

June CSFI index is as follows:

Given these market dynamics, industry experts agree that ocean freight rates will remain strong in the third quarter of 2024. Furthermore, available shipping capacity is expected to be severely limited. important, leading to a highly competitive and challenging environment for shippers.

The only bright spot seems to be that Japan's major ports have managed to maintain relatively stable freight rates, providing some reassurance in a relatively chaotic market.

During a time of turbulent market conditions, Dolphin Sea Air commits to trying its best to ensure the on-time transportation schedule that your company requires.
Once again, Dolphin Sea Air would like to sincerely thank the valuable cooperation that your company has given to Dolphin.

Marketing