Update on the international container shipping and logistics market on Asia, Europe and North America routes in the Week of 24/2024.

Drewry's composite world container freight price index for the week of 24/2024 continued to increase by 2% compared to the previous week, to 4,801 USD. This fare index increased 202% compared to the same week last year and was 238% higher than the 2019 average before the pandemic (1,420 USD).

Drewry's aggregate world container freight rate index Week 24/2024 (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 24/2024 continued to increase slightly to 5,947 USD/FEU; equivalent to an increase of 0.71% over the previous week and an increase of 50.33% over the previous month, according to Xeneta data.

The market entered its peak period. It is expected that imports in June will be 10.7% higher than the same period last year, according to Flexport's report.

Shipping lines expect these rate increases to continue and accelerate in the short term as ships leaving Asia are expected to be full throughout June. Particularly for ships sailing from Vietnam and China (including Yantian /Shanghai/Ningbo) to West Coast ports 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 24/2024 (Photo: Phaata.com)

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

Freight rates from Asia to Northern Europe in the week of 24/2024 continued to increase to 5,836 USD/FEU, equivalent to an increase of 1.50% compared to the previous week and an increase of 54.92% 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 ongoing delays of ships rerouting through the Cape of Good Hope leading to low reliability; and many cruises departing from Asia were canceled, making the situation even more difficult (three cruises from the Ocean Alliance were canceled and one from MSC changed plans).

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 to increased 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 24/2024 (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 24/2024 decreased to 688 USD/FEU, equivalent to a decrease of 2.41% compared to the previous week, and a decrease of 6.65% compared to the previous month, according to Xeneta data.

Capacity remains available for vessels sailing 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 24/2024 (Photo: Phaata.com)

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

Freight rates from Northern Europe to Asia in the week of 24/2024 increased slightly to 626 USD/FEU, equivalent to an increase of 1.46% compared to the previous week; and decreased by 21.75% compared to the previous month.

Northern Europe - Asia shipping rates | Week 24/2024 (Photo: Phaata.com)

Source: Phaata