Market Intelligence [Square Newsletter] 2023 No.5

Economy

The OECD Composite Leading Indicator (OECD CLI) decreased 3 consecutive months in the US, increased 4 consecutive months in Europe (Big 4), and increased 6 consecutive months in China. However, the economies of all major countries are seen as being contracted.

Sea Freight

Despite the decrease in ocean freight, liners are seeking to order vessels additionally. Ocean Network Express (ONE) additionally ordered 10 new dual-fuel container ships with a capacity of 13,700 TEUs. As a result, ONE’s O/E ratio increased to 37.3%.

Air Freight

Following economic contraction and continuous inflation, air freight saw a weak demand. However, as the number of passenger flights increased, air freight supply increased centered on the belly.

The U.S. PMI index was 47.1, 6th consecutive month of contraction. Europe contracted for 10th consecutive month at 45.8, the lowest level in 35 months. China's PMI index also fell below 50 for the first time in 4 months, to 49.2, the lowest level since the re-opening. WTI shifted upward during the Chinese Labor Day holiday, with demand for tourism recovering and the effects of re-opening.

Benefiting from China’s export rebound in Mar and contract negotiations, composite index climbed for six consecutive weeks, but slowed down to 998.3 in WK17. Fares from Hong Kong to Europe fell for an average of eight consecutive months per month, while fares from Hong Kong to the U.S. Jet Fuel and FSC are continuing to decline after 2nd half of '22