Contra Consolidations’ Post

Recently, the container shipping market has faced unprecedented challenges. Soaring freight rates and severe capacity shortages have led to frequent overbooking on certain routes, causing a significant demand-supply imbalance. As a result, the charter rates for container ships have reached their highest level in two years. In response to the surge in capacity demand, some international shipping companies are turning their attention to the Chinese domestic container ship market. According to industry analysis firm Linerlytica, the rise in charter rates and lease terms reflects the sharp increase in charter demand amid limited available vessels. Even smaller container ships originally intended for the domestic Chinese market have found lessees in the current climate. The significant uptick in the container shipping market is driven by multiple factors. Firstly, a surge in shipments from traders has notably increased the demand for container shipping capacity. Additionally, port congestion in parts of Asia has worsened, further restricting effective capacity and exacerbating the tight market. Moreover, the ripple effects of the Red Sea crisis have added to market uncertainties. Industry experts predict that with traders continuing to concentrate their shipments and the upcoming peak season in the third quarter, this year might see an extended peak season in the shipping market. This means that capacity constraints are likely to persist, keeping freight rates at elevated levels. #Freight #OceanShipping #ShippingLines #Mexico #MSC #CMACGM #Cosco #FreightManagement #FreightSaaS #InternationalFreight #CrossborderShipping #InternationalTransport #WallTech #CargoWare #eTower

The start of peak shipping season, coupled with longer transits to avoid the Red Sea and bad weather in Asia, has disrupted key trade routes. Ocean carriers are skipping ports or reducing port time, leading to fewer empty containers being picked up. This has worsened the equipment shortage, especially in China, where high demand and fewer containers are making export operations difficult. Rates are rising, with MSC and YML adding $1,000 per container, and backlogs are growing. Shippers need to stay informed, adapt quickly, and explore alternative solutions to cope with these challenges. #Equipmentshortage #Emptycontainers #WeFreight

It is how to plan the unplan.

📢 Exciting news from the shipping industry! In May, global demand for ocean freight container shipping hit an all-time record, reaching 15.94 million TEUs 🌊🚢. This new milestone surpasses the previous record set in May 2021. With severe port congestion and diversions due to the Red Sea conflict, it's impressive global networks managed such volumes. Shipping demand is largely driven by the Far East, with China leading the way📈. Spot rates have soared, making shippers concerned ahead of the traditional peak season in Q3. Read more in the article "Ocean container shipping demand hits record in May" on Supply Professional. 🔗 [Link to article] #ShippingNews #OceanFreight #GlobalTrade #SupplyChain #RecordBreaking

🚢 Dive into the latest insights on the shifting tides of the shipping industry! 🌊 This article explores the impacts of the Red Sea crisis, rate fluctuations, and carrier strategies shaping the Europe to Asia trades. Get the scoop on rate hikes, capacity utilization, and the confusing market signals affecting shippers and forwarders. Don't miss out on understanding the dynamic landscape of global shipping! 📦🌍 Read more here: https://lnkd.in/dQV7PdzW #ShippingIndustry #RedSeaCrisis #TradeRoutes #MarketInsights

If there's something predictable about the maritime market in the last few years, it's that it is unpredictable. H1 '24 has lived up to that, witnessing rates and capacity availability fluctuate wildly, making it hard to pinpoint if the issue is demand-side or supply-side. While US containerized imports look to be outstripping year-on-year numbers all through H1 '24, a bit of perspective will show that '23 volumes were held down by bloated inventories from the year before. Sure, the numbers are high this year, but it's nothing out of the ordinary in the larger scheme of things. On the other end of the spectrum, capacity supply faces a ton of headwinds. There's the Red Sea crisis that scooped out capacity via circumventing COGH, port congestion across Asia-Pacific, there's an issue with repositioning empties, and beyond such ambient challenges, there's a significant lack of transparency on available capacity. “Our discussions with vessel operators and brokers tell us that vessels leaving China are not always leaving full,” said Ram Radhakrishnan, the CEO of Silq. “While liners spoke of the empty repositioning problem back during the pandemic, they are choosing not to talk about it today. This makes it seem like there is no space on deck, when in reality, that isn’t always the case.” The challenge could lie in shipper-owned containers (SOCs). While liners were okay with using SOCs during the height of the pandemic, Ram explained that not many vessel operators are keen to pick SOCs today. While this can solve the empties repositioning problem, increasing container supply will also reduce liners' margins on their owned containers, making their reluctance understandable. All this market opacity is being exploited by extra loaders for available space that carriers don't advertise, selling them 1-2 weeks before scheduled sailings. This week's newsletter discusses this 'gray area' and more. Read on! #maritime #freight #supplychain #logistics https://lnkd.in/gAd3aAaa

🌊 Ocean freight rates are soaring 🌊 The start of peak shipping season, the longer ocean transits to avoid the Red Sea, and the bad weather in Asia have been disrupting key trade routes and influencing global transport in the past few weeks. Additionally, ocean carriers seem to be skipping ports, reducing port time, or both. This leads to fewer empty containers being picked up along the key trade routes. These supply chain issues have worsened the equipment shortage, where high demand and fewer containers are making export operations difficult. To take into account these challenges and disruptions, shippers should stay informed, be flexible to adapt to a new situation swiftly, and explore alternative solutions. Interested to know more about the causes for the high ocean freight rates? Discover it here: https://lnkd.in/eJEiCzuZ #oceanfreight #oceantransport #shipping #transportation #logistics

During a time of extreme fear-mongering amidst a volatile geo-political landscape, importers are facing the brunt of a surge in shipping costs that defies logic. This is a well thought out memo from Vishnu Rajamanickam, double-clicking into the drivers and data that's causing the surge in container shipping costs. While rates from China to the US West Coast are beginning to taper, shipping to the US East and Gulf Ports, likewise shipping from the ISC to the US continues to be a nightmare with carriers putting sold-out signs and a grey market forming offering slots at ridiculous rates.

We're seeing unprecedented changes in ocean shipping rates from Asia to North America. As May spot prices close in on $5,000 per 40-foot container, industry experts predict even steeper costs with peak season on the horizon. Asia to US West Coast: Rates jumped 13% in just one week, hitting $4,917 per FEU, a sharp rise from April's low of $2,911. Asia to US East Coast: Rates climbed 18%, now at $6,323 per FEU, though still below February's peak. Factors at play include ongoing conflicts in the Red Sea and labor concerns at East Coast ports. Stay informed and prepared for more shifts in the coming weeks. #oceanfreights #shippingcosts