Update on the international container shipping and logistics market on Asia, Europe and North America routes in the Week 27/2024.

Drewry's aggregate world container freight price index for the week of 27/2024 continued to increase sharply by 10% compared to the previous week, to 5,868 USD. This fare index increased 298% compared to the same week last year and was 313% higher than the 2019 average before the pandemic (1,420 USD).

Drewry's aggregate world container freight rate index Week 27/2024 (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 27/2024 continued to increase sharply to 7,930 USD/FEU, equivalent to an increase of 12% compared to the previous week, according to Freightos data.

The market entered its peak period. Shipping lines have successfully applied the July 1 General Rate Increase (GRI) to spot freight rates across all export ports from Asia to North America. For fixed prices on long-term contracts, carriers announced new Peak Season Surcharges (PSS) for July 1. The price increase in early July marked another milestone increase of sea freight rates.

Demand is very high, with volumes exceeding last year's figure on the trans-Pacific route due to the impact of shipping vessels having to bypass the Cape of Good Hope and port congestion in Asia and North America. We are seeing more premium services being offered from shipping lines, including expedited shipping services, container facilities and guaranteed slots, as other carriers try to reduce backlogs in Asia by adding more seats.

Carriers expect these rate increases to continue and accelerate in the short term, as ships leaving Asia are expected to be fully booked through June. Services from Asia to North America were near capacity in July. Routes from Vietnam and South/East China (Yantian/Shanghai/Ningbo) to the US were particularly tight.

Shippers are expecting an extremely difficult peak season and are trying to weather the uncertainties.

Asia-North America shipping rates | Week 27/2024 (Photo: Phaata.com)

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

Freight rates from Asia to Northern Europe in the week of 27/2024 continued to increase sharply to 8,400 USD/FEU, equivalent to an increase of 18% compared to the previous week, according to Freightos data.

Spot freight rates increased sharply again in early July, with an increase of $1,500-2,000/40' container. The capacity of shipping lines cannot fully meet current transport demand, while many trains are expected to be canceled in July and August.

Demand continued to increase strongly and freight prices increased sharply again. The increase in shipping demand is being driven not only by consumer demand but also by importers adjusting inventory levels due to longer-than-expected delivery times. Shippers are expected to resume shipments as soon as possible to avoid further delays.

The market continues to be tense and space shortages continued in July. Many factors are at play including port congestion; Lack of container equipment and constant delays of ships rerouting through the Cape of Good Hope lead to low reliability and many canceled sailings from Asia making the situation even more difficult.

Equipment shortages have become severe at most major departure ports in Asia. Shipping lines are rearranging empty containers to improve the situation, but with continued delays of ships rerouting through the Cape of Good Hope, we expect this problem to persist in the coming weeks. .

Strikes in the ports of Bremerhaven, Hamburg and Le Havre have not yet affected schedules, but inland shipping networks risk delays. Customers importing goods to Germany and France should closely monitor deliveries as strikes could last until July if unions do not receive a satisfactory response from the government to their demands .

To provide priority shipping earlier and ensure delays are avoided; Many shipping lines have used "Premium" options to prioritize loading onto the earliest ships along with higher priority of container equipment.

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 27/2024 (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 27/2024 decreased to 315 USD/FEU, equivalent to a decrease of 3% compared to the previous week, according to Freightos 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 (West Coast) - Asia shipping rates | Week 27/2024 (Photo: Phaata.com)

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

Freight rates from Northern Europe to Asia in the week of 27/2024 decreased sharply to 607 USD/FEU, equivalent to a decrease of 7% compared to the previous week,

Northern Europe - Asia shipping rates | Week 27/2024 (Photo: Phaata.com)

Source: Phaata.com