International shipping and logistics market update - Week 48/2024

International shipping and logistics market update - Week 48/2024

Drewry’s World Container Index for the week of 48/2024 continued to decrease by 2% compared to the previous week, to USD 3,331/FEU. This freight rate index is 134% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 48/2024 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 48/2024 to USD 4,627/FEU, down 2.38% week-on-week and 10.93% month-on-month, according to Xeneta data.

The lack of space from Asia to the US West Coast has improved due to additional vessels have been added in late November, causing rates to the West Coast to decline. However, rates from Asia to the US East Coast and Gulf Coast remain stable as most services are fully utilized until mid-December.

Rates from Asia to the US West Coast are being extended by carriers into early December. Meanwhile, carriers are preparing for a possible General Rate Increase (GRI) on the US East Coast routes effective December 1, pending final confirmation.

Peak Season Surcharges (PSS) may be adjusted downward for the US West Coast routes effective December 1, while there are no changes for the East Coast or Gulf routes at this time.

ILA negotiations and potential tariff actions remain the main pressures on rates and capacity on this trade.

Asia-US West Coast Freight rate | Week 48/2024 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe in week 48/2024 decreased to USD 4,099/FEU, equivalent to a decrease of 0.99% compared to the previous week, up 26.83% compared to the previous month, according to Xeneta data.

Demand increased slightly in the second half of November, due to the forecast of GRI in December. It is expected to stabilize in the second half of December due to the holiday season in Europe.

Shipping lines have announced December GRI at USD 6,000–6,200/TEU, with proactive adjustments based on vessel forecasts. A downward adjustment is expected.

Shanghai Container Freight Index (SCFI): SCFI slightly decreased by USD 31/TEU in Week 48. With the December GRI in effect, SCFI is expected to recover in Weeks 49 and 50.

Specific equipment shortages are occurring at major ports in China but remain manageable. For shippers who need to secure space and an expected time of departure (ETD) can consider choosing the "premium" service of the shipping lines.

Asia-Northern Europe Freight rate | Week 48/2024 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 48/2024 decreased by 0.86% compared to the previous week, to USD 691/FEU. This price is down 1.14% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 48/2024 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia continued to decline slightly in the week of 48/2024 decreased slightly to USD 349/FEU, down 0.57% compared to the previous week, and down 9.35% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 48/2024 (Image: Phaata.com)

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Read more:

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• Global shipping sees highest growth in tonne-miles since 2010
• Global Container Shipping Industry Profits to Rise 'Hugely' in 2024
• Shipping looks back at a turbulent year in the Red Sea and 1,000 days of war in Ukraine
• COSCO schedules: Vietnam - North America in Dec 2024
• SITC updates Vietnam-Intra Asia sailing schedules in Dec 2024
• International shipping and logistics market update - Week 47/2024

Source: Phaata.com 

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