NEWSLETTER
Q3/Q4- Nov 20, 2018
|
AGWorld HO Chi Minh Office
The Vietnam market has been on our radar for a long time. After a few years of recruiting, the “right” candidate finally came to us in the way of Ms. Van Wong. Van has now joined the AGWorld family and comes to us with over 20 years of industry experience. Van and her experienced team will be able to assist you with all the ins & outs of logistics in Vietnam, where the market from this region to North America and Europe continues to grow. The Trade War Crisis has shifted the focus on manufacturing from China to other South East Asia countries. Vietnam being one of the top chosen countries. |
Freight Market UpdateAs the holiday shipping season is coming to an end, we are seeing some release in pressure on the demand of air space out of HKG.
Regular Commodities are continuing to be expedited, to beat the potential raised in Tariffs by year end. Many buyers are pushing factories to ship out as soon as possible, causing many ocean carriers to be fully booked. The overflows are coming in to the Air Freight Market but with a deferred service request.
Many Taiwanese companies who established factories in China are pulling out and going back to Taiwan. This results in the Taiwan freight market remaining strong and prices continue to peak.
The Intra-Asia market is stronger than ever now due to factories moving resources and partially finished goods to other countries outside of China. We anticipate this will continue in 2019.
Countries such as Vietnam, Malaysia, Thailand, Philippines, Indonesia and India are highly sought after as the next manufacturing location for US companies, however, the infrastructure in those countries are still a few years behind. Their Airports/Ports capability will have a difficult time to handle the increased volume. It will take them a few years to catch up and implement the necessary capacity to handle the demand. Carriers and other logistics service providers will be looking at Singapore and Korea to move of these countriesfreight out . We anticipate that the freight rate and capacity out of these 2 countries will be challenging in 2019.
There are still a lot of uncertainties on everyone’s mind, with the G20 coming up, a lot of eyes are on where the USA and China Trade War will end up.
“Many hope the G-20 meeting will diffuse trade tensions between the world's two largest economies…” |
|
Contact Us
AGWorld 238 Lawrence Ave South San Francisco, CA 94080 650-246-3737 This email address is being protected from spambots. You need JavaScript enabled to view it. www.ag-world.com |
AGWorld’s
|
is coming