International shipping and logistics market update - Week 36/2023

International shipping and logistics market update - Week 36/2023

1. Asia - Northern America route

The freight rate from Asia to North America West Coast in the week 36/2023 have decreased to $2,163 per FEU (Forty-foot Equivalent Unit), increasing by 0.79% compared to the previous week and 10.41% compared to the previous month, according to Xeneta data.

Shipping lines are still considering capacity reduction options to cope with low and uncertain market demand. This could potentially lead to a shortage of space in the market as the Golden Week approaches.

Rain in the Southwestern United States continues to affect rail and road transportation. Shipments from California ports to the Southwestern and Texas regions may experience delays of 2-3 days in transit time. Additionally, Tropical Storm Lee is forming in the Atlantic Ocean and is forecasted to become a major storm. Its earliest impact on shipping is expected by the end of the upcoming weekend.

Asia- US West Coast Freight rate | Week 36/2023 (Image: Phaata.com)

2. Asia - Northern Europe route:

The ocean freight from Asia to Northern Europe in the week of 36/2023 continue to decline, reaching $1,375 per FEU, a significant decrease of 9.72% compared to the previous week and a 21.11% decrease compared to the previous month, according to Xeneta data.

Demand remains stable - high inflation, high inventory levels, rising energy costs, and political instability continue to impact demand in the European region. Carriers are looking to implement GRI (General Rate Increases) in September, and many sailings have been blanked and adjusted for the next month.

Asia-Northern Europe Freight rate | Week 36/2023 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rates from North America (West Coast) to Asia in the week of 36/2023 have slightly decreased by 0.13% compared to the previous week, reaching $787 per FEU. This rate is 8.75% lower than the previous month.

Overall, demand remains weak and is forecasted to persist until the end of the first quarter of 2024. Freight rates continue to be attractive as shipping lines aim to fill vessels while capacity remains surplus.

US West Coast - Asia Freight rate | Week 36/2023 (Image: Phaata.com)

4. Northern Europe-Asia route:

The freight rate from Northern Europe to Asia in the week of 36/2023 have decreased by 5.09% compared to the previous week, reaching $373 per FEU. This rate is 2.61% lower than the previous month.

Northern Europe - Asia Freight rate | Week 36/2023 (Image: Phaata.com)

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Read more:

• Cost-cutting success helps COSCO defy market pressures
• International shipping and logistics market update - Week 35/2023

Source: Phaata.com 

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