Peter Sundara Swamickannu’s Post

Ocean 🌊 freight rates in the high profiled #AsiaEurope trade are increasing at an unprecedented levels last seen during the pandemic😷 . 3 key takeaways for me from the latest gCaptain piece, which succinctly explains the drivers behind these rising levels . 1. According to eeSea data📈 carriers' schedules on the #AsiaEurope trade promised 1.68mTEU, but only 1.29mTEU were shipped, leaving a shortfall of 397,000TEU due to #blanksailings and #vesseldelays. 2.High #AsiaEurope trade rates are driven by risk surcharges, transit costs, and #portcongestion. If carriers are already benefiting from these "politically charged contingency/transit disruption fees” does it make sense to add in tonnage even if these are available for deployment? 3. The modus operandi of #BlankSailings ⛵️ have evolved. Traditionally used to manage #oversupply by reducing services and creating "artificial demand," they now result from lack of vessels due to rerouting vessels via the #CapeofGoodHope and rising port congestion in #WestMed and #Asianports . In other words, effective capacity is scarce #containershipping #asiaeurope #freightlevels #eeSea #gcaptain #blanksailings #portcongestions

The Red Sea crisis impact is no more limited to only the Asia-Europe trade lane and has expanded to the global trade routes. The coming months will be even more challenging for both exporters/importers and the shipping line operators, as the crisis enters into the third quarter of 2024. Going round the Cape of Good Hope has tightened the tonnage capacity as 2-3 more ships are being needed into each service network. The shortage in tonnage supply is lifting the freight rates. All the ships which were earlier less utilized are today being optimally put into use to plug the supply gaps. All sizes of ships are being pushed into all kinds of services, which is again limiting our capability to meet the growing demand. #shipping #freight #oceanfreight #globaltrade #technology #business

Shippers should expect more Asia-Europe blanked sailings as rates rise It was just over a month ago that forwarders began to realise significant disruption was on the way for the Asia-North Europe trade – a sudden surge in demand led to tight space, combined with the beginning of spot rates’ rapid rise. However, it also appears to have caught carriers off guard as well, as data obtained from the eeSea liner database shows that capacity reductions on the trade in April amounted to almost 25% of previously advertised capacity. Altogether, some 1.68m teu of capacity ought to have been offered to shippers, according to carriers’ published schedules, while only 1.29m teu actually sailed, leaving shippers with a shortfall of 397,000teu – the equivalent of some 200,000 40ft containers – via blank sailings, omissions delayed arrivals. #Asia #Europe #BlankSailings #Rates Anne Hanley Olena Gudkova Stephen Higgins Catherine Casey https://lnkd.in/eT_st2gt

Have carriers failed to adjust to a new normal? Liner shipping operators are failing to act on significant increases in capacity with rates continuing to decline as a result and the expectation that further supply side increases will see an intensification of the rate erosions seen since August. Hong Kong consultant Linerlytica reports that carriers have not adjusted their Asia to Europe capacity as demand has softened, with an expected further boost of 25% to capacity in the trade in the coming weeks. “Apart from selective void sailings, none of the carriers on the Asia-Europe route are planning any winter capacity reductions. This would jeopardise their efforts to arrest the decline in freight rates despite plans to hike rates by $1,000-$2,000/feu on 1 November after the SCFIS [Shanghai Containerized Freight Index Settled Rates] has already slipped by 62% since July,” said Linerlytica. Demand is now tailing off in both Europe and the US according to Linerlytica, with the “heavy front-loading of holiday season cargo now in reverse”. An expected global boost to capacity of around 1m teu by the end of the year will increase capacity on both the Pacific and Asia to Europe trades, with notable changes to trades caused by the Red Sea diversions, which many industry observers believe will continue well into the new year and perhaps longer. https://lnkd.in/eitpNiHh

Strong demand and high spot rates have some long-haul carriers adding transpacific and Asia – Europe services. "Smaller regional carriers are also entering transpacific trade for the first time since the pandemic," shared Judah Levine, Head of Research at Freightos. "But with capacity already stretched thin, the shift of vessels to East-West lanes may contribute – like it did in 2021 and 2022 – to higher rates on regional and lower-volume lanes as well." Read the full Splash Maritime and Offshore News (splash247.com) article here https://lnkd.in/d_74eQE3 Sam Chambers #Transportation #ResearchInsights #Freightos #GlobalTrade

The delays associated with the longer transits, container shortages, and weather will only add to the headache of logistics managers as they embark on an early pulling forward of freight for the holidays and back-to-school season. The soaring rates come on the heels of a period of tense negotiations in March between shippers and clients over rates, which was fueled by the Red Sea diversions and the impact of the longer transits. The recent increase in demand for exports out of China, together with the dip in the number of repatriated empty containers, means shippers are starting to find empty equipment hard to come by at some export hubs. Even though demand levels are not extremely high, with vessel capacity already stretched thin, the recent increase in demand is enough to push rates up, and the added lack of containers is only helping to push them up even higher. "Carriers have plenty of room to manipulate capacity." #ContainerShipping #CapacityCrunch #LongerTransitRoute #BlankSailings #Manipulation 🧐 https://lnkd.in/gQgftPzp

Prices for maritime container shipping are likely to embark on a downward trend in 2025. Geopolitical and macroeconomic factors are behind the projected lower rates, which do not bode well for #Asia – #Europe rail freight traffic. #railfreight #railfreightnews #railcargonews

At AsstrA-Associated Traffic AG, we understand the importance of a smooth #supplychain for FCL transportation. Our team closely monitor the situation and proactively develop #alternativeroutes to ensure uninterrupted logistics services. Here are the key highlights from the FCL Market Update for Q1: 📌 Economic Outlook: The expected economic enhancement by the end of 2024 is set to boost trade in goods and increase the demand for logistics services. 📌 Freight Rates Outlook: Ocean container shipping rates experienced a significant increase in Q1 2024. The WCI and SCFI indices recorded a 74% and 68% rise respectively compared to the same period last year. Far East - North Europe: The normalization of the Cape of Good Hope route has stabilized global reliability. However, congestion around Southern Spain and UK ports has increased due to higher vessel arrivals. North Europe - Far East: Mainland China's economy is expected to be supported by more accommodative policies, stimulating demand. Drewry predicts freight rates on the Asia-Europe route to stabilize in the coming weeks. North Europe - US - North Europe: The ocean network is experiencing a slowdown in the season, leading to stabilization. Demand is expected to remain moderate despite the projected increase in production in the US. Far East - US - Far East: There was an increase in demand for #containershipping on routes from Asia to the United States in January 2024 compared to the previous year. 📌 Rules and regulations: Ocean Alliance announced the extension of their five-year shipping agreement, and the US Federal Maritime Commission issued the final rule on Demurrage and Detention Billing Practices. 🚢 Stay informed with AsstrA as we navigate the dynamic FCL transportation landscape, ensuring reliable and efficient logistics solutions for our clients. #FCLtransportation #logistics #shipping #trade #marketpulse #oceanfreight #globallogistics #FCL

Barometer: Shipping crisis and worldwide issues 🌏 While Asia-Europe freight rates are stabilising slightly, the shipping sector continues to face unprecedented challenges, having a major impact on carriers and shippers. Dive into the heart of these economic upheavals with our expert Jérôme de Ricqlès and discover how the crisis situation in the Red Sea is disrupting the global supply chain and the Mediterranean market. Don't miss this in-depth analysis to understand the consequences of this situation on the global economy 👉 https://lnkd.in/ekJ_h-7y #transportation #shipping #freight #RedSea #upply

Though this article directly references the Asia-Europe trade, there are important and somewhat frightening numbers for the growing and spreading congestion across Asia. The critical factor facing the market and whether there will be any likelihood of a break in spiraling spot rates is this insidious congestion. As the carriers move away from one port like Singapore to another, the congestion just spreads and then grows. The Taiwanese carriers collectively don't see any short-term resolution meaning high spot rates, continued space constraints and equipment shortages may be with us into Q3. #spotrates #spotmarket #congestion #carriers #oceanshipping #oceanfreight #transpacific