Beyond the heartbreak, the port of Iskenderun on Turkey’s Mediterranean side in the southeast of Turkey was severely damaged by the earthquakes.  Initial reports indicate there has been large-scale damage to infrastructure and vessels have been diverted to other ports as the southern Turkey facility remains closed.  The recent fire at the port has since been extinguished but it is unclear when the port will reopen to international shipping lines.
 
Typically, import bookings don’t fully recover for about a month after the beginning of the Lunar New Year.  This always brings a slow shipping period for imports, but the volumes reported in the months before were less than expected.
 
Shipping lines for China’s exports are now starting to report revenue declines and there are emerging pressures on them to provide reduced contract and spot rates as they try to fill their ships in the depressing market that has followed the Lunar New Year holiday.  With consumer demand moderating amidst high inflation and rising interest rates, it is likely shipping lines will blank sailings with little or no notice to bring capacity in line with demand to minimise the rate reductions.
 
Airfreight services are on the increase with services being added back on due to the re-opening of China. Several new weekly flights have been added and it is hoped that services will be back to pre-COVID levels by mid-2023.
 
It’s a welcome relief as we watch this space with much interest.

Sam Curro
Executive Business Manager – Oceania