International Shipping and Logistics Market Update - Week 49/2024
1. Market Overview
This article follows our previous analysis on container freight rates in Week 48/2024. In Week 49/2024, the global container freight index from Drewry reported a sharp 6% increase compared to the previous week, reaching $3,533 per FEU. This figure is 149% higher than the pre-pandemic average of 2019, reflecting strong market volatility. Additionally, data from Xeneta provides further insights into rate fluctuations across major shipping lanes, particularly between Asia, North America, and Europe.
1.1. Asia-North America Route
Freight rates from Asia to the U.S. West Coast in Week 49/2024 continued to decline sharply, dropping to $4,081 per FEU, down 11.80% from the previous week and 20.91% from last month. This decrease is primarily due to the addition of more vessels at the end of November, improving capacity.
However, rates to the U.S. East Coast and Gulf Coast remained stable as services in these areas operated at full capacity. Carriers are preparing for a General Rate Increase (GRI) on December 15, depending on pre-Chinese New Year shipment surges and new tariffs. Peak Season Surcharges (PSS) are expected to decrease for the West Coast, while rates to the East Coast and Gulf Coast remain largely unchanged. ILA negotiations and tariff policies continue to play a significant role in influencing rates on this route.
1.2. Asia-Europe Route
Freight rates from Asia to North Europe in Week 49/2024 surged to $5,034 per FEU, up 22.81% from the previous week and 22.75% from last month. Shipping demand from Asia to Europe slightly increased in late November and is expected to stabilize by late December. Carriers have applied the December GRI, pushing rates higher.
Scattered equipment shortages at major Chinese ports have prompted some shippers to seek premium services to secure space and timely delivery.
1.3. North America-Asia Route
Freight rates from the U.S. West Coast to Asia dipped slightly by 2.03%, reaching $677 per FEU, down 4.11% from last month. This low rate reflects excess capacity in North America.
1.4. Europe-Asia Route
Freight rates from North Europe to Asia also slightly decreased to $335 per FEU, down 4.01% from the previous week and 5.63% from last month.
2. Insights and Outlook
The global shipping market continues to face challenges, from fluctuating freight rates to uneven demand across regions. Real Logistics predicts that in the coming months, factors like Lunar New Year and global economic uncertainties will significantly impact the market, particularly with rate increases ahead of the holiday season. Logistics companies must act swiftly to secure space and optimize shipping costs in this volatile market.
Real Logistics advises exporters to have contingency plans in place and closely monitor rate trends, especially on key routes like Asia-North America and Asia-Europe, to adjust business strategies accordingly.
3. Data Summary Table
4. Conclusion
Week 49/2024 has shown notable fluctuations in the global shipping market, with significant rate changes on major shipping routes. Keeping a close watch on market developments is crucial for businesses to make informed decisions and capitalize on opportunities amid ongoing global economic uncertainties.
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