International shipping and logistics market update - Week 6/2023

Phaata International shipping and logistics market update - Week 6/2023 (Photo: Phaata)

1. Asia - North America route

The supply of spaces is higher than the market demand. It is forecasted that many sailings on the Asia-North America route will be canceled to stabilize rates.

- Freight rates: The freight rates from Asia to the West Coast of North America in the week 6/2023 decreased to 1,356 USD/FEU, equivalent to a decrease of 2.59% compared to the previous week and a decrease of 7.31% compared to the previous month, according to Xeneta data.

- Space: Available. Capacity is forecast to increase over the next few weeks and more train cancellations are likely in the near term.

- Equipment: Available

Recommendation: Bookings should be booked at least 2 weeks in advance of the scheduled departure date (ETD). Shippers note flexibility in shipping plans when there are frequent blank sailings recently.

Asia- US West Coast Freight rate | Week 6/2023 (Image: Phaata.com)

2. Asia - Northern Europe route:

Demand for shipping has been improved, but bookings for the next few weeks remain low.

- Freight rates: The freight rates from Asia to Northern Europe in the week 6/2023 increased slightly to USD 1,673/FEU, equivalent to an increase of 1.33% compared to the previous week and a decrease of 12.68% compared to the previous month, according to Xeneta data.

- Space: Generally available, despite the impact of blanked sailings and vessel delays.

- Container equipment: Most are available.

Recommendation: Shippers should be flexible in planning their shipping when congestion and delays occur. In addition, shippers should also note that many blank sailings today.

Asia-Northern Europe Freight rate | Week 6/2023 (Image: Phaata.com)

3. Northern America - Asia route:

Spaces are available on all of these route services. Supply capacity has outstripped demand and shipping lines are trying to find cargo to transport.

All services to the Asia Pacific (APAC) region have very low capacity utilization, with no space restrictions. Congestion has been cleared across most North American container yards thanks to improved operations due to less demand.

Capacity on the North America-Asia route in Q1 is forecast to remain the same. With the agricultural season in North America starting in Q1, demand is likely to pick up in the near future, but even with that peak demand, supply outstrips demand.

- Freight rate: Freight rates from North America (West Coast) to Asia in the week 6/2023 increased slightly by 1.28% compared to the previous week, to $1,028/FEU. This price increased 1.78% compared to the previous month.

- Space: There is no big change in capacity in the market with very few blanked sailings as carriers prepare for the Lunar New Year. Stable for West Coast ports, and has improved in US East Coast ports.

- Empty container equipment: Container equipment is mostly available.

Recommendation: Shippers should make reservations 1-2 weeks before the estimated time departure (ETD) for direct services at major ports. Make reservations 2-3 weeks in advance for inland services in the US or transshipment services on this route.

 US West Coast - Asia Freight rate | Week 6/2023 (Image: Phaata.com)

4. Northern Europe-Asia route:

- Freight rates: Freight rates from Northern Europe to Asia in the week 6/2023 increased slightly by 1.75% compared to the previous week, to USD 580/FEU. This price increased by 1.58% compared to the previous month. 

- Container equipment: Most are available.

Recommendation: Shippers should take note of flexibility in their shipping planning when upcoming congestion and delays are expected.

Northern Europe - Asia Freight rate | Week 6/2023 (Image: Phaata.com)

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Read more:

• Maersk profits $30.9 billion in 2022, expects to drop at least 84% in 2023
• Hapag-Lloyd announces general rate increase from Asia to Latin America
• DSV to grow gross profit 33% in 2022 after merging Agility GIL
• Excess capacity could cause a new price war among container lines, warns Evergreen chairman

Source: Phaata.com 

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