Giovanni Valente’s Post

Asia-Europe Shipping Rates Surge Ahead of Lunar New Year Spot market rates from Asia to North Europe and the Mediterranean continued their upward trend into December, fueled by ocean carrier rate hikes on Dec. 1 and robust demand ahead of an early Lunar New Year starting Jan. 29. According to Drewry, rates from Shanghai to Rotterdam surged 19% week-over-week to $4,775 per FEU, while Shanghai-Genoa rates jumped 22% to $5,496 per FEU. Data from Platts, an S&P Global affiliate, showed slightly higher rates, with Asia-North Europe at $5,133 per FEU and Asia-Mediterranean at $5,400 per FEU as of Wednesday. Hapag-Lloyd CEO Rolf Habben Jansen noted that demand for Asian […]

The Lunar New Year has passed, yet its effects linger at U.S. ports. Despite import declines following the holiday, port figures remain robust compared to last year. The ebb and flow continues, but resilience shines through. Jillamy stands ready to guide you in making the best choices for your freight. 🌊🚢 🌐✨ #logisitics #supplychainsolutions #oceanfreight https://bit.ly/3Ui8zr3

Via Economist Intelligence: EIU: "Global and regional sea freight rates have begun to stabilize, after peaking in early February as a result of Houthi attacks in the Red Sea. The recent price trends matched our expectations for freight rates following the Lunar New Year, but we expect sea freight rates to remain elevated throughout 2024 (albeit lower than year-earlier levels), given the shipping diversions resulting from the geopolitical situation in the Middle East." https://lnkd.in/gQ-jgQVS #SupplyChain #Logistics #GlobalBusiness

Booming May rates mask the looming capacity bomb Rate Increases: Container shipping rates surged 28.8% since May 2. Driven by Asian port congestion, high US import demand, reduced Asia-Europe capacity, and geopolitical risks in the Red Sea. Prior Trends: Drewry Shipping observed a 2.6% week-on-week drop in rates from January 25 to early May. This decline boosted shipping companies' revenues and share prices by 19% this year. Current Challenges: Short-term issues include Asian congestion, repositioning of empty containers, and capacity constraints on European routes. Red Sea diversions significantly impacted capacity. Capacity Shortfall: Alphaliner reported 1.14 million TEUs of new capacity delivered this year. Major alliances still lacked 36 ships for Asia-Europe routes as of May 10. If Red Sea diversions end, 54 vessels (764,100 TEUs) could be redeployed, potentially causing overcapacity. Future Capacity: Stefan Verberckmoes predicts another 2 million TEUs of capacity this year. This will help address the 10% shortage on Asia-Europe routes. Extra tonnage needed for India-Europe and Asia-US East Coast routes. Operational Adjustments: Three main alliances operating 340 ships on Asia-Europe routes, 36 short of needed. Resulted in 9.6% cancellation of weekly sailings. Ocean Alliance short 20 ships; 2M and THE Alliance each need eight more vessels. Maersk and MSC resumed vessel sharing to manage the shortfall for European trades. https://lnkd.in/ecAbcJVh #oceanshipping #oceanfreight #oceancontainer #globallogistics

Container Shipping Outollok According to projections by Clarkson's forecast, the global container cargo volume for 2024 is expected to increase. Clarkson forecasts a growth rate of approximately 3.7%, with an estimated volume of 208.54 million TEUs. Maritime Strategies International offers a more optimistic outlook, predicting a growth rate of 4.5% for the same period. This upward trend is attributed to the halt in interest rate hikes in the U.S., signaling expectations of a recovery in consumer and corporate demand. By region, Asia is projected to see a 3.4% increase to 89.42 million TEUs, Europe a 1.5% rise to 16.75 million TEUs, and North America a 6.5% increase to 22.49 million TEUs. [email protected] +56 9 53267704

Global ocean freight container shipping demand reached a record high in May 2024, with 15.94 million TEU transported. This surge is driven by record exports from China and has led to significant increases in spot rates across major routes. The demand increase, combined with longer sailing routes due to Red Sea diversions, has resulted in a 17.9% increase in global TEU-miles compared to 2023. The situation is characterized as a "perfect storm" of pressure on ocean supply chains, with severe port congestion in Asia and Europe exacerbating the issues. Shippers are concerned about the ongoing spot market climb, persistent Red Sea conflict, and port congestion as the industry approaches the traditional peak season in Q3.

Expect Market Turmoil to Continue Well into the New Year Dear Valued Customer: Based on our current market forecasts we believe that 2024’s market turmoil will continue through at least the first quarter of 2025. We believe the following issues could lead to service disruptions, rate increases, and equipment shortages: 1. The U.S. election: There is an expectation that tariffs will be increased sometime early next year – regardless of who wins. This could impact space availability and cause rates to rise as shippers try to import their goods as early as possible. 2. Blank and delayed sailings: December will most likely see residual impacts stemming from the ILA Strike, creating a lack of supply as shippers try to import their goods ahead of eventual tariff increases. 3. Lunar New Year 2025: Projections show that Lunar New Year 2025 is shaping up to be like Lunar New Year 2024, which saw 20% of the industry’s scheduled sailings cancelled, and rates increases across all services. 4. New Alliances (Gemini and Premier): Historically, the transition to and creation of new shipping alliances tends to have many unexpected issues, creating disruptions throughout the entire global supply chain. As a result of these forecasts, we are advising all shippers to reach out to their logistics advisors as soon as possible to discuss what actions need to be taken to prevent any problems that could come from these issues.

Record high ocean freight rates amidst Red Sea crisis Chabahar connectivity could lead to an alternate East-West route and thus help India navigate the Red Sea crisis #Oceanfreight rates are heading to record high levels with global events like the #RedSeacrisis; port congestion especially in the #MiddleEast and #Asia regions; #container repositioning imbalance – with there being higher number of empty containers in Colombo and the Gulf region instead of China; and strong container demand being seen as prime causes. Freight rates are up. And the Drewry index is up 2 times y-o-y in year-to-date CY24. For the week-ended June 6, the (Drewry’s) composite index increased 12 per cent to $4,716 per 40 ft container and has increased 181 per cent when compared with the same week last year. As per estimate, the current composite index of $4,716 per 40 ft container is 232 per cent more than average 2019 (pre-pandemic) rates of $1,420. https://lnkd.in/gKfvUJWG

Despite sequential declines in imports following the Lunar New Year, overall port figures remain resilient compared to last year. In March, the Port of Los Angeles led West Coast ports with a notable annual growth rate, though experiencing a slight monthly decline. Loaded import twenty-foot equivalent units showed a yearly increase, while loaded export TEUs soared remarkably. On the other hand, the Port of Long Beach observed modest import growth but faced export challenges. Meanwhile, the Port of Savannah on the East Coast continued its growth trend, handling significantly more TEUs than the previous year, with impressive import and export figures. Looking ahead, April and May are expected to sustain strong import numbers, setting a positive tone for the rest of the year. #Imports #Exports #PortofLosAngeles #PortofLongBeach #PortofSavannah #TEUS https://lnkd.in/eE2NdPSz

🌊 This month’s Ocean Freight Market Update highlights that: 📈 Rates remain much higher than the same time last year (SCFI YoY +255% to Europe,+245% intra-Asia, +147% to USWC, +128% to Oceania, +96% to South America). 📊 Demand remains healthy at least until Lunar New Year driven by early Lunar New Year and potential implementation of new US tariffs. ⚓️ Capacity: Global container market continued to recover through the entire Q3 and further recovering. 📰 Check the full report for a detailed analysis and insights, curated by our #OceanFreight experts. Read the full report here: : https://okt.to/7rWAHi #DHL #DHLGlobalForwarding #Transportation #Logistics #FreightForwarding