International shipping and logistics market update - Week 50/2023

International shipping and logistics market update - Week 50/2023

Drewry’s World Container Index for the week 50 continued to increase by 4% compared to the previous week, to 1,521 USD. This rate index decreased by 28% compared to the same week last year and was 7% higher than the 2019 average before the pandemic (1,420 USD).

Drewry’s World Container Index Week 50/2023 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

The freight rate from Asia to North America West Coast in the week 50/2023 decreased to 1,593 USD/FEU, down 3.45% compared to the previous week and down 16.42% compared to the previous month, according to Xeneta data.

Q4 forecast: It is expected that many sailings will be missed, but overall capacity is similar to Q2/Q3 figures. Increased demand ahead of Lunar New Year is likely to begin in December.

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 50/2023 (Image: Phaata.com)

2. Asia - Northern Europe route:

The rate for container shipping from Asia to Northern Europe rose slightly to $1,236 per FEU in week 50/2023 decreased slightly to 1,458 USD/FEU, down 0.48% from the previous week and up 11.55% from the previous month, according to Xeneta data.

Ocean Alliance announced that three more sailings were canceled last week. Meanwhile, THE Alliance announced that it would suspend service FE5 from week 46 until further notice (but added the port of Cai Mep in Vietnam to service FE3); CMA CGM announced that it would drop the port of Cai Mep from service FAL3 from week 48.

Asia-Northern Europe Freight rate | Week 50/2023 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rates from North America (West Coast) to Asia in the week 50/2023 increased slightly by 0.13% compared to the previous week, to 744 USD/FEU. This price decreased by 2.23% 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 50/2023 (Image: Phaata.com)

4. Northern Europe-Asia route:

The freight rate from Northern Europe to Asia in the week of 50/2023 decreased by 1.69% compared to the previous week, down to 350 USD/FEU. This price decreased by 0.85% compared to the previous month.

Northern Europe - Asia Freight rate | Week 50/2023 (Image: Phaata.com)

Find Freight rates here.
 
Find Logistics Companies here.

Source: Phaata.com 

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Services!