International shipping and logistics market update - Week 44/2023

 

Drewry’s World Container Index for week 44 increased sharply to 1,406 USD, up 5% compared to the previous week. This rate index was down 54% compared to the same week last year and was 1% lower than the 2019 average before the pandemic ($1,420).

 

Drewry’s World Container Index Week 44/2023 (Photo: Phaata | Source: Drewry)

 

1. Asia - Northern America route

 

The freight rate from Asia to North America West Coast in the week 44/2023 increased sharply to 2,000 USD/FEU, up 12.68% over the previous week and up 6.21% over the previous month, according to Xeneta data.

It is forecasted that in November the market will likely be better. Demand for export shipping from China just started to appear this week, bookings in the next 1-2 weeks will determine capacity for November.

Q4 forecast: Expect more no-shows, but overall capacity is similar to Q2/Q3 figures. Increased demand ahead of Lunar New Year is likely to begin in December.

 

Asia- US West Coast Freight rate | Week 44/2023Asia- US West Coast Freight rate | Week 44/2023 (Image: Phaata.com)

 

2. Asia - Northern Europe route:

 

The ocean freight from Asia to Northern Europe in the week of 44/2023 increased sharply to 1,338 USD/FEU, up 39.52% over the previous week and up 21.97% over the previous month, according to Xeneta data.

GRI in November was initially applied at 1650-1800 USD, but rates are expected to decline rapidly. The EU shipping market remains stable but capacity will be slightly affected due to changes/suspension of vessel deployment in Southeast Asia; It is predicted that fares will decrease in the near future.

The Ocean Alliance announced three more sailing cancellations in the past week. Meanwhile, THE Alliance has announced the suspension of FE5 services from week 46 until further notice (but adding Cai Mep port in Vietnam to FE3 services); Shipping line CMA announced to remove Cai Mep port on FAL3 service from week 48.

In addition, market capacity is expected to remain down more than 20% throughout November due to further impact from the capacity reduction program from the 2M Alliance. More vessel cancellations are expected from the Ocean Alliance and 2M.

Similar to the Northern Europe route, GRI on the Asia-Mediterranean route starts at $2,000 and will most likely end up with a $200-300 increase over current GRI levels. Currently, no further sailing cancellation plans have been announced.

 

Asia-Northern Europe Freight rate | Week 44/2023Asia-Northern Europe Freight rate | Week 44/2023 (Image: Phaata.com)

 

3. Northern America - Asia route:

 

The freight rates from North America (West Coast) to Asia in the week of week 44/2023 increased slightly by 0.54% compared to the previous week, to 747 USD/FEU. This price decreased by 4.96% compared to the previous month.

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 44/2023US West Coast - Asia Freight rate | Week 44/2023 (Image: Phaata.com)

 

4. Northern Europe-Asia route:

 

The freight rate from Northern Europe to Asia in the week of 44/2023 decreased sharply by 13.68% compared to the previous week, down to 303 USD/FEU. This price decreased by 17.89% compared to the previous month.

 

Northern Europe - Asia Freight rate | Week 44/2023Northern Europe - Asia Freight rate | Week 44/2023 (Image: Phaata.com)

 

Find Freight rates here.
 
Find Logistics Companies here.

 

Read more:

 

Source: Phaata.com 

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Services!