Update on the international container shipping and logistics market on Asia, Europe and North America routes in Week 21/2024.

Drewry's aggregate world container freight price index for the week of 21/2024 continued to increase sharply by 16% compared to the previous week, to 4,072 USD. This price index increased 142% compared to the same week last year and was 187% higher than the 2019 average before the pandemic (1,420 USD).

Drewry's aggregate world container freight rate index Week 21/2024 (Source: Drewry)

1. Shipping route: Asia - North America (Asia - North America)

Freight rates (Ocean Freight) from Asia to the West Coast of North America in the week of 21/2024 continue to increase sharply to 4,760 USD/FEU; equivalent to an increase of 5.31% over the previous week and an increase of 43.68% over the previous month, according to Xeneta data.

The market entered its peak period. The volume of imported goods from Asia to North America in May is forecast to increase by +6.8% over the same period last year; This demand will not ease during the traditional peak season (imports in June are expected to be 10.7% higher than the same period last year), according to a recent report from Flexport.

Shipping lines expect these rate increases to continue and accelerate in the short term as ships leaving Asia are expected to be full throughout May and June. Particularly for trains traveling from Vietnam and China (including Yantian/Shanghai/Ningbo) to West Coast ports, seats are very scarce.

For long-term fixed freight rates, starting from June 1, shipping lines will apply Peak Season Surcharge (PSS) and it is likely that PSS will continue to apply on June 15.

Importers expect a difficult peak season and are trying to weather the uncertainties.

Asia-North America shipping rates | Week 21/2024 (Photo: Phaata.com)

2. Shipping route: Asia - Europe (Asia - Europe)

Freight rates from Asia to Northern Europe in the week of 21/2024 continued to increase sharply to 4,677 USD/FEU; equivalent to an increase of 9.58% compared to the previous week and an increase of 46.06% compared to the previous month, according to Xeneta data.

The market continues to be tense and space is limited at least until mid-June. Many factors are at play including port congestion, lack of container equipment; and continued delays of ships rerouting through the Cape of Good Hope resulted in low reliability and many canceled sailings from Asia making the situation even more difficult (three sailings from the Ocean Alliance were canceled and one trip from MSC was canceled and plans were changed).

Demand continued to be stronger than usual and rates increased again. The forecast increase in shipping demand is driven not only by consumer demand but also by companies adjusting inventory levels due to longer-than-expected delivery times. The next rate increase is expected to be announced in the first half of June at $1,000/FEU.

To provide earlier priority shipping and ensure delays are avoided, many shipping lines are willing to use Premium options to prioritize loading onto the earliest trains; along with higher container equipment priority.

Shippers are trying to push delivery schedules earlier to avoid additional shipping costs. All trains are fully booked unless seats are guaranteed. Shippers should book early, split reservations into smaller lots, and pick up empty containers as soon as possible.

Asia-Europe shipping rates | Week 21/2024 (Photo: Phaata.com)

3. Shipping route: North America - Asia (Northern America - Asia)

Freight rates from North America (West Coast) to Asia in the week of 21/2024 continue to decrease to 705 USD/FEU; down 1.81% from last week, and down 8.20% from last month, according to Xeneta data.

Capacity remains available for sailings from major U.S. ports to discharge ports in Asia, Northern Europe and the Mediterranean.

Some inland rail locations have container equipment problems related to the global disruption of container flows. When making loading reservations at U.S. domestic railroad locations, shippers are advised to make reservations 3-4 weeks in advance of the train's departure date.

North America - Asia shipping rates | Week 21/2024 (Photo: Phaata.com)

4. Shipping route: Northern Europe - Asia (Northern Europe - Asia)

Freight rates from Northern Europe to Asia in the week of 21/2024 continued to decrease slightly to 782 USD/FEU, equivalent to a decrease of 0.51% compared to the previous week; and decreased by 9.70% compared to the previous month.

Northern Europe - Asia shipping rates | Week 21/2024 (Photo: Phaata.com)

Source: phaata.com