International shipping and logistics market update - Week 49/2024

International shipping and logistics market update - Week 49/2024

Drewry’s World Container Index for the week of 49/2024 increased sharply by 6% compared to the previous week, down to USD 3,533/FEU. This freight rate index is 149% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 49/2024 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 49/2024 continued to decline sharply to USD 4,081/FEU, equivalent to a decrease of 11.80% compared to the previous week, down 20.91% compared to the previous month, according to Xeneta data.

The lack of space from Asia to the US West Coast has improved due to the addition of more vessels in late November. This has caused the West Coast freight rates 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.

Spot rates from Asia to the US West Coast fell sharply in early December. Carriers are preparing for a General Rate Increase (GRI) on December 15, but this is contingent on anticipated volume increases ahead of the Lunar New Year and before the new tariffs are implemented.

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 49/2024 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe in week 49/2024 increased sharply to USD 5,034/FEU, equivalent to an increase of 22.81% compared to the previous week, up 22.75% compared to the previous month, according to Xeneta data.

Demand increased slightly in late November and is expected to stabilize in the second half of December due to the holiday season in Europe.

Shipping lines have applied December GRIs at USD 5,300-5,500/FEU. This has caused freight rates on this route to increase sharply.

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 49/2024 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 49/2024 decreased by 2.03% compared to the previous week, to 677 USD/FEU. This price is down 4.11% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 49/2024 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia continued to decline slightly in the week of 49/2024 decreased slightly to USD 335/FEU, down 4.01% compared to the previous week, and down 5.63% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 49/2024 (Image: Phaata.com)

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Read more:

• Asia-Europe Rates Rise with December GRIs
• Air Cargo Takes ‘Wait-and-See’ Approach to US Tariffs and Positive Demand Outlook for 2025
• Global shipping sees highest growth in tonne-miles since 2010
• Global Container Shipping Industry Profits to Rise 'Hugely' in 2024
• COSCO schedules: Vietnam - North America in Dec 2024
• SITC updates Vietnam-Intra Asia sailing schedules in Dec 2024
• Pacific Lines updates domestic sailing schedules in Dec 2024
• International shipping and logistics market update - Week 48/2024

Source: Phaata.com 

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