International shipping and logistics market update - Week 45/2024

 

Drewry’s World Container Index for the week of 45/2024 continued to increase by 7% compared to the previous week, reaching USD 3,444/FEU. This freight rate index is 142% higher than the average of 2019 before the pandemic (USD 1,420).

 

Drewry’s World Container Index Week 45/2024 (Photo: Phaata | Source: Drewry)

 

1. Asia - Northern America route

 

Ocean freight rates from Asia to the West Coast of North America in week

45/2024 decreased slightly to USD 5,141/FEU, equivalent to a decrease of 0.94% compared to the previous week, down 7.60% compared to the previous month, according to Xeneta data.

Demand in early November recovered significantly after a lull following the Golden Week in China. East Coast arrivals are returning to normal levels, with some carriers and services having full or limited capacity until the end of November.

Contractual fixed rates remain stable, and the Peak Season Surcharge (PSS) remains in place and is expected to extend depending on further changes.

Canada:

Labour disputes that have led to strikes are affecting operations at major Canadian ports, including those in British Columbia and the Port of Montreal. Most cargo will not be diverted to the East Coast of Canada as Montreal terminals are also facing strike action that affects 40% of import volumes.
 

 

Asia-US West Coast Freight rate | Week 45/2024 (Image: Phaata.com)

 

2. Asia - Northern Europe route:

 

Freight rates from Asia to North Europe in week 45/2024 increased sharply to $4,098/FEU, equivalent to a 25.02% increase compared to the previous week, up 7.33% compared to the previous month, according to Xeneta data.

Shippers are stepping up bookings to avoid increased freight costs for late November departures, with vessels expected to be full in the coming weeks.

Carriers are expected to cut capacity by 15-18% in November, with ten sailing cancellations announced so far, which will continue to impact market supply.

The first half of November has seen a shortage of space due to multiple sailing cancellations since late October. Cancellations are set to continue into the second half of November, with carriers planning General Rate Increases (GRIs) of $5,400-5,500 per FEU during this period.

Some shipments are being postponed to avoid arrivals falling during the Christmas and New Year holidays in Europe. If this trend continues, it could have a significant impact on the GRI and market dynamics in the second half of November.

The Shanghai Container Freight Index (SCFI) rose by $215/TEU in week 45 to $2,442/TEU. Another increase is expected in week 46, reflecting the GRI in early November.

 

Asia-Northern Europe Freight rate | Week 45/2024 (Image: Phaata.com)

 

3. Northern America - Asia route:

 

Freight rates from North America (West Coast) to Asia in week 45/2024 increased slightly by 0.71% week-on-week to $706/FEU, up 0.28% month-on-month, according to Xeneta data.

 

US West Coast - Asia Freight rate | Week 45/2024 (Image: Phaata.com)

 

4. Northern Europe-Asia route:

 

Freight rates from North Europe to Asia continued to decline slightly in the week of 45/2024 dropped sharply to USD 354/FEU, down 8.05% compared to the previous week, and up 4.42% compared to the previous month, according to Xeneta data.

 

Northern Europe - Asia Freight rate | Week 45/2024 (Image: Phaata.com)

 

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Source: Phaata.com 

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