International shipping and logistics market update - Week 41/2024

Internatsrcional shipping and logistics market update - Week 41/2024

Drewry’s World Container Index for the week of 41/2024 continued to decline by 4% week-on-week to $3,349. This freight rate index is 136% higher than the pre-pandemic average of 2019 ($1,420).

Drewry’s World Container Index Week 41/2024 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 41/2024 to $5,487/FEU, down 2.11% week-on-week and 13.48% month-on-month, according to Xeneta data.

Current high inventory levels may reduce importers’ appetite for additional shipments in the coming weeks, causing freight rates to continue to decline, although the decline has slowed over the past week.

Carriers are implementing cancellation plans that will impact Weeks 38 to 41 to accommodate reduced capacity on the trade. Changes to shipping schedules or transit times are expected, especially for feeder connections, as cancellations could result in shipments being transferred to subsequent sailings.

The International Longshoremen’s Association (ILA) strike has ended after three days. Ports on the US East Coast and Gulf Coast have resumed normal operations. However, it is expected that it will take about a week for the ports to clear the large volumes of cargo that were backed up during the three-day strike.

Spot rates extended through mid-October. Terminals have announced booking restrictions to East Coast terminals via Los Angeles, leading to carriers suspending bookings.

Long-term contracted fixed rates: Peak Season Surcharge (PSS) will remain unchanged through October.

Asia-US West Coast Freight rate | Week 41/2024 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe in week 41/2024 to $3,544/FEU, down 7.44% week-on-week and 45.28% month-on-month, according to Xeneta data.

Market demand remains weak, with carriers actively cutting rates to find cargo.

Spot freight rates continued to fall in the first half of October. Shipping lines are now more proactive in adjusting prices to find cargo to optimize vessel usage efficiency.

While the equipment shortage has largely been resolved, some ports of loading (POLs) with low direct calls are still likely to have equipment shortages for certain container types, such as 20’GP and 45’HC.

Asia-Northern Europe Freight rate | Week 41/2024 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 41/2024 decreased slightly by 1.24% compared to the previous week, to USD 714/FEU, up 2.73% compared to the previous month, according to Xeneta data.

Capacity has been reduced on routes from the US to the Indian subcontinent, Middle Eastern ports and Northern European ports, related to vessel shortages and cancelled sailings.

In October, freight rates are forecast to increase on major routes from US East Coast and Gulf Coast ports.

To ensure smooth export shipments, Phaata.com advises shippers to book 2 weeks in advance for coastal loading shipments and 3-4 weeks or more for inland rail loading shipments.

US West Coast - Asia Freight rate | Week 41/2024 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia continued to decline slightly in the week of 41/2024 fluctuated sharply to 392 USD/FEU, equivalent to an increase of 14.96% compared to the previous week, down 16.42% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 41/2024 (Image: Phaata.com)

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Read more:

• Sea-Intelligence forecasts 10-17% capacity cut due to US East Coast port strike
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• Ocean freight rates fall and air freight rates rise as ILA strike ends
• International shipping and logistics market update - Week 40/2024

Source: Phaata.com 

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