International shipping and logistics market update - Week 8/2024

International shipping and logistics market update - Week 8/2024

Drewry’s World Container Index for the week 8/2024 continues to slightly decrease by 2% compared to the previous week, down to $3,659. This index has increased by 93% compared to the same week last year and is 158% higher than the average of 2019 before the pandemic ($1,420).

Drewry’s World Container Index Week 8/2024 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

The freight rates from Asia to the West Coast of North America in the week 8/2024 slightly increased to $4,777/FEU, up 1.36% compared to the previous week and up 33.06% compared to the previous month, according to Xeneta data.

Due to the situation in the Red Sea, ships cannot return empty containers to Asia in time to meet demand. If the situation does not change, there may be equipment shortages in the coming weeks.

Prolonged drought is causing more restrictions on container ship traffic through the Panama Canal. There are 32 transits per day, down from the normal 36, and the canal is planning to gradually reduce that number weekly to an expected 18 per day before February 1. While container traffic has so far not been affected, further reductions will likely start to have an impact. Carriers are evaluating the possibility of adding more ships to Suez-bound routes. Alternative routes could be via the Suez Canal or via the U.S. West Coast by rail. Carriers are also implementing weight restrictions of 8 tons on average for containers moving through the canal. Traveling through Panama remains the fastest route to the U.S. East Coast.

Asia-US West Coast Freight rate | Week 8/2024 (Image: Phaata.com)

2. Asia - Northern Europe route:

The rate for container shipping from Asia to Northern Europe in the week 8/2024 continues to decrease to $4,310/FEU, down 4.77% compared to the previous week and down 10.53% compared to the previous month, according to Xeneta data.

Due to the situation in the Red Sea, ships cannot return empty containers to Asia in time to meet demand. If the situation does not change, there may be equipment shortages in the coming weeks.

Spot freight rates continue to rise sharply as the threat from the Red Sea causes most shipping lines to reroute ships from the Suez Canal to the Cape of Good Hope. This significantly increases shipping costs and is expected to increase total shipping time by 2-4 weeks depending on the vessel's destination. We predict that this increase in spot rates will not easily stop even after the Lunar New Year.

The Ocean Alliance and 2M have announced more than 15 blanked sailings in February, and there may be more announcements from THE Alliance soon. If the situation does not change, there may be equipment shortages in the coming weeks.

Asia-Northern Europe Freight rate | Week 8/2024 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rates from North America (West Coast) to Asia in the week 8/2024 continues to slightly increase by 0.28% compared to the previous week, up to $704/FEU. This rate is down 0.98% compared to the previous month.

Empty containers at many railway stations in the US mainland are lacking due to a lack of imports into the Midwest. Shippers should make reservations 2-3 weeks in advance to ensure they have container equipment for export plans.

Overall demand remains weak and is forecast to last until the end of the first quarter of 2024. Fierce competition is taking place among carriers. Freight rates continue to be offered by shipping companies at attractive rates to fill ships while capacity is still surplus.

US West Coast - Asia Freight rate | Week 8/2024 (Image: Phaata.com)

4. Northern Europe-Asia route:

The freight rate from Northern Europe to Asia in the week 8/2024 decreased sharply compared to the previous week, down to $920/FEU. This rate is down 7.16% compared to the previous week, and up 25.17% compared to the previous month.

Northern Europe - Asia Freight rate | Week 8/2024 (Image: Phaata.com)

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Read more:

• Air Freight Rates Drop After Lunar New Year
• Transpacific Container Demand Surges in Early 2024
• Port of Savannah Handles Nearly 430,000 TEUs in January 2024
• Container Leasing Rates Skyrocket Amid Equipment Repositioning Imbalances
• Wan Hai and ONE jointly launch services connecting Asia to US West Coast
• International shipping and logistics market update - Week 7/2024

Source: Phaata.com 

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