Transportation Market

Update/Overview
2022 P11.

Suggestions/questions to
rajneesh.mehta@nokia.com.
1 © 2020 Nokia
Executive
Summary • Global transportation market update & outlook

• Global Air / Sea / Road / Rail freight status & outlook

• Global transportation cost & lead time status( consolidated all lanes)

• Global transportation cost & lead time (main lanes)

- China to the Netherlands

- China to India
- China to Finland
- China to USA
- China to Brazil
- China to Mexico
- Hong Kong to Mexico
- India to the USA
- Vietnam to USA

• Nokia premium freight volumes (Inbound & Outbound ) MN, NI

 Market update and outlook
• Air and Sea freight markets are showing significant improvement in Capacity and space availability on trade lanes.

• Air and Sea freight rates are showing a significant decreasing trend.

• China Ground operations are working normal without any new restrictions.

• Flights capacity showing as ~ 90% in PVG and nearby airports 100% in China.

• Transportation LSP/Airlines/Shipping lines are working with ~ 100% staff availability.

• Major seaports are still witnessing port congestion, creating a delay in deliveries.

• Road border between Hong Kong & Vietnam to China is working normal.

• Road freight still witnessing disruption in Europe due to driver shortage, will continue in Q-4 as per market updates.

• Please refer to mode (Air / Sea / Road / Rail) for more detailed information.

Air Sea Rail Road

• Air freight costs are showing a
decreasing trend in Q-4 2022.
• Demand is high due overcome
challenges in other
transportation modes
• Showing improvement in • No major increase in train • Driver shortage continues in Q-
capacity and rates in Q4-2022. capacity recently. 4.
• Demand is high on EX Asia’s • Capacity is limited in Q4 • Russia – Ukraine war impact on
top lanes. 2022. the availability of drivers.

Please plan your deliveries/SR in advance due to critical market conditions.

 • Air freight market is showing improvement in Capacity and freight rates are
showing a decreasing trend.
Airfreight Market  Fuel prices are still near record levels, despite some reductions.
Trend-2022 • Reduced pressure on the air cargo market has resulted in the first signs of
yields easing
Air freight Market Trend- Cont…
 • Significant improvement in capacity in the sea freight market and rates are
going towards a reduction trend.

Sea freight Market • Volume remains high on ex-APAC to all destinations in Q-4.
• Global carrier schedule reliability slightly improved but still approx. 45%
Trend-2022 with an average delay of vessel arrivals of 6 days.
• Major seaports are witnessing post congestion, delays foreseen in
deliveries at the destination.
Sea freight Market Trend- Cont…
 • Road freight market will continue under pressure in Q-4 due to driver shortage.

Road freight Market • The number of unfilled positions is estimated to be more than 380 000 positions in Europe
• Several trucking companies report trucks standing idle due to a lack of drivers
Trend-2022
(No Major Changes received, so keeping the same for P11)
Road freight Market Trend- Cont…
(No Major Changes received, so keeping the same for P11)
 • There is an improvement in the rail freight capacity in the westbound /
Rail freight Market Eastbound routes in recent days.
• Rail freight rates are showing a decreasing trend in Q-4.
Trend-2022 • Delay in departure from China is expected in 2-3 days with unreliable lead
time.
Rail freight Market Trend- Cont…
 Summary (Increased prices in Top lanes)
  Air (Cost: Euro/CBM) Sea (Cost: Euro/CBM)
Lanes Avg 2019 Avg 2020 Avg 2021 Actual P10-2022 Avg 2019 Avg 2020 Avg 2021 Actual P10-2022
CN - NL € 488 € 1,002 € 1,182 € 1,896 € 95 € 69 € 189 € 308
   
CN - US € 783 € 1,313 € 1,923 € 1,834 € 127 € 144 € 335 € 597
   
IN - US € 1,116 € 1,299 € 1,782 € 1,332 € 125 € 106 € 336 € 972
   
CN – IN € 595 € 1,116 € 1,216 € 1,383 € 58 € 68 € 136 € 161
           
CN – FI € 686 € 921 € 1,065 € 1,673 € 167 € 139 € 289 € 1168
   
CN - BR € 1,065 € 1,390 € 2,281 € 3,009
 
CN - PL € 1,153 € 1,292 € 1,450 € 1,677
 
CN - MX € 681 € 1,383 € 1,893 € 1,976
 
HK - MX € 674 € 1,281 € 1,231 € 1,997
   
VN - US € 1,009 € 1,316 € 2,579 € 1,619   NA € 146 € 305 € 450

* Source : PBI , More lanes can be added as per request

Air Freight Cost trend (per cbm)
Avg 2019 Pre Covid – Euro 580
Avg 2020 during Covid- Euro 970
Avg 2021 during Covid- Euro 1250
Actual P10 2022 – Euro 1471

Sea Freight Cost trend (per cbm)

Avg 2019 Pre Covid – Euro 88
Avg 2020 during Covid- Euro 85
Avg 2021 during Covid- Euro 165
Actual P10 2022 – Euro 291

Rail Freight Cost trend (per cbm)

Avg 2020 during Covid- Euro 125
Avg 2021 during Covid- Euro 365
Actual P10 2022 – NA
Air Freight Intervals (+2 Days)
Avg 2019 Pre Covid – 7 Days
Avg 2020 during Covid- 9 Days
Aug 2021 during Covid- 9 Days
Actual P10 2022 – 9 Days

Sea Freight Intervals (+14 days but very

uncertain of booking confirmation and
schedule) )
Avg 2019 Pre Covid – 40 Days
Avg 2020 during Covid-41 Days
Aug 2021 during Covid- 60 Days
Actual P10 2022 – 55 Days

Rail Freight Intervals (Very uncertain of

booking confirmation and schedule)
Avg 2019 Pre Covid – 40 Days
Avg 2020 during Covid- 40 Days
Avg 2021 during Covid – 85 Days
Actual P10 2022- -NA-
15 © 2021 Nokia
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MN Premium Freight Usages
- Inbound Hub’s
MN Premium Freight Usages- Outbound
Total
NI (FN) Premium Freight Usages-
Inbound Hub’s
NI (FN) Premium Freight Usages- Outbound
Total
NI (ION) Premium Freight Usages-
Inbound Total
NI (ION) Premium Freight Usages- Outbound
Total
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