Wiima Logistics’ Post

Carriers are finalizing their allocations for June/July, leading to additional General Rate Increases (GRIs) and Peak Season Surcharges (PSS) for spot and long-term contracts. While congestion in Singapore is improving, concerns are shifting to ports like Port Klang in Malaysia and Colombo. Moreover, worries are emerging about potential port strikes in Germany and France, and delayed labor talks in the USA ports due to automation issues. Far East to U.S. ocean freight rates have surged by 36%-41% month over month, with air freight prices also rising by 9% this year. DHL forecasts that ocean freight rate inflation may persist until early 2025, with rates potentially reaching between $20,000 and a Covid-era peak of $30,000. Factors such as longer Red Sea transits, container capacity shortages, and canceled sailings from Asia are contributing to the increase in spot ocean freight rates, despite a 48% decrease in ocean freight orders month over month. #OceanFreight #PortCongestion #SupplyChainManagement #logisticsmanagement

🚢🌐 Transpacific Eastbound Ocean Freight: Peak Season Insights 🌐🚢 As we enter peak conditions for Transpacific Eastbound Ocean freight, we're witnessing a significant surge in demand. May imports have increased by +6.8% YoY, and this trend is expected to continue through the traditional peak season, with June imports projected to rise by 10.7% YoY. 🔹 Floating Rates: The $1000 GRI implemented in the first half of May has stuck, and another $1000 GRI is anticipated due to the high demand. Carriers expect these rate hikes to persist, with vessels from Asia being full through May and June. Notably, routes from Vietnam and South/East China to the Pacific Southwest are especially tight. 🔹 Fixed Rates: Starting June 1, carriers will implement a Peak Season Surcharge (PSS), with another increase likely on June 15th. Stay tuned for more updates as plans are finalized. Importers are preparing for a challenging peak season, aiming to mitigate uncertainties. 🚢 Far East Westbound (FEWB): The market remains tight with space constraints expected at least until mid-June. Contributing factors include port congestion, equipment shortages, and rerouting delays. Rates have increased again for the first half of June, with another hike expected for the second half. Shippers are pushing cargo for earlier departure to avoid further cost increases, and Premium options are becoming a viable solution for urgent deliveries. 🌍 U.S. Exports: Inland container availability is becoming more challenging due to global disruptions. Extended transit times and port congestion are exacerbating the situation. OVRSEA advises booking well in advance: 3-4 weeks for coastal ports and 4+ weeks for inland rail points. ✈️ Air Cargo: Global air cargo tonnages rebounded by +2% in week 20, with average rates up to $2.48 per kilo. Tonnages and rates from the Middle East & South Asia to Europe have seen significant increases, and the Asia Pacific region is also experiencing notable growth. Feel free to reach out if you would like to dive deeper into any of these topics! #Logistics #FreightForwarding #SupplyChain #PeakSeason #TranspacificFreight #AirCargo #OceanFreight

Ocean and Air Demand Trends: Ocean rates have seen a significant increase. For instance, Asia-US West Coast prices increased by 13% to $4,917/FEU, and Asia-US East Coast prices climbed 18% to $6,323/FEU. Similarly, air rates have also been affected. For example, China – N. America weekly prices decreased 3% to $5.69/kg, while China – N. Europe weekly prices stayed level at $4.02/kg. (As far as i know, above O/F and A/F are just the cost a forwarder can have from the airlines or oceanlines.) Carrier Adjustments and Congestion: Carriers have been using more vessels traveling at faster speeds and relying more on transshipment. However, there have been signs of carriers falling behind, with increases in port omissions, delays, missed departures, and a decrease in empty equipment at export hubs. (It's a truth, nobody care about that meaningless carbon emission anymore.) Rate Surges: The highest air cargo rates of the year from Asia to North America and Europe are not riding on demand, but on constrained capacity due to weather disruptions and too little belly capacity on the China-United States leg. Rates from Shanghai to North America are understood to be even higher at more than $11 per kg. (Same in Taiwan. From TPE to anywhere in Europe and America, the airfreight rates is higher and higher every week! If you don't stare at those airlines, a pretty "off-load notification" will be sent to your mail box.) Regulation/News: US customs are cracking down on e-commerce shipments, potentially causing congestion and heightened market tension with paused flights and charters. (The USA citizians want to buy more cheaper daily supplies and foods for survival. That's why more and more famous shopping malls are collapsing and dissappearing recently.)<<< more places for parking the"no one wants to buy" Tesla vehicles, good news for them😎. https://lnkd.in/gCBV4xZH

Here are the key insights from this week’s Freightos Weekly Update: Ex-Asia ocean rates climbed sharply last week – and may be set to climb further as mid-month GRIs and surcharges get introduced – as Red Sea diversions keeping capacity tight combine with unseasonal increases in demand. Reports of rolled containers and full bookings through the end of the month to N. Europe may reflect the start of a restocking cycle for European retailers. The National Retail Federation projects that US monthly ocean imports will climb above the two million TEU mark in May and peak at 2.1 million in August suggesting the start of an early peak season possibly due to some pull  forward out of concern that Red Sea diversions or potential labor disruptions at East Coast and Gulf ports might cause delays during the normal busy season. In air cargo, worsening ocean conditions could push some more demand to the air, though increased capacity from summer passenger flights could reduce the impact on air rates, and Temu’s reported pull back from the US market could free up significant capacity for the China - N. America market. You can check out the full weekly update here: https://lnkd.in/dpgXA3Eq

Check out our weekly update and quick analysis of the freight index for Week 24/2024. 🚢🌍 An early start to ocean peak season is pushing ocean rates up sharply. Economic recovery signs in Europe and concerns in North America over Red Sea delays, new tariffs, and potential Q4 labor disruptions are driving this surge. Capacity is stretched thin by Red Sea diversions, worsening port congestion, and pushing rates higher. 📈📊 Prices from Asia to the N. America West Coast are nearing $6k/FEU and have surpassed $7,500/FEU to the East Coast, each lane about $1,000 higher than their early-year peaks. Rates from Asia to the Mediterranean are back to their Q1 peak of about $7,000/FEU, and prices to N. Europe are over $6,000/FEU. Further increases are likely as carriers announce Peak Season Surcharge increases up to $2,000/FEU for mid-June and July. ⚓️🚢 High demand and spot rates are prompting some carriers to add transpacific services, while others reallocate capacity to Red Sea lanes. Port congestion, especially in Singapore and Barcelona, has led to delays in about half of Asia-Europe sailings. Delays cause blanked sailings and congestion at ports like Shanghai and Qingdao. 🏗️🌐 Increased transshipment at major hubs is the primary cause of congestion. Singapore's congestion has eased slightly due to increased productivity from a reactivated terminal, but delays have increased in nearby Malaysia. Barcelona is extending working hours to reduce backlogs. 🛳️📉 Destination ports in N. Europe and N. America are not yet reporting significant congestion. Disrupted schedules at origins could lead to vessel bunching, but elevated volumes are expected to be seasonal, not pandemic-level, potentially avoiding extreme congestion and delays. ✈️📦 Some expect the latest ocean disruptions to push demand to air cargo. However, Freightos Air Index rates out of the Middle East and S. Asia have been stable since mid-May. Prices from China to N. America ticked up 3% to $5.57/kg, while rates to Europe eased 12% to $3.40/kg. #SupplyChain #Logistics #OceanFreight #ShippingIndustry #MarketTrends #ContainerShipping #FreightRates #PortCongestion

While there was an unusual demand from April - June this year, invoking talk of an early peak season, demand softened in the second half of June and early July out of China. While there is a lot of talk about problematic shipping conditions, a lot of this is centred around the US/EU import market. Oceania is still feeling the impacts of this, however the market is softer than it has been in a few weeks. Equipment shortage remains a problem, and pricing is still high, but not spiking as much as was originally expected. With most carriers diverting their vessels around the Cape of Good Hope in order to avoid conflict in the Red Sea, we are seeing each container travel an average of 9.3% further than it originally would. How does this impact you? With vessels increasing their transits on average 14 days, the initial hope of a capacity injection to drop spot rates has not eventuated. In fact, carriers are now scrambling for additional capacity to service the demand. Even going as far as to charter vessels at record high prices. We may not see overcapacity return until the Red Sea is safe to utilize again. Even so, this will take some time to materialize. Short term, rates will be unlikely to drop, and space will remain a concern if we see the traditional peak season (July-October) push ahead in Oceania. With larger vessels being re-routed to more profitable trades, capacity may be tight moving towards Q4. #shipping #capacity #redsea #marketoutlook #explorate #insights https://lnkd.in/gDHH5A6f

This freight rate market is a rollercoaster! 🎢 Buckle up, because the last week’s Freightos update has some twists and turns! #OceanFreight rates are making waves again 🌊. Asia-US West Coast prices jumped 13% to $4,917/FEU, while Asia-US East Coast rates soared 18% to $6,323/FEU. Even our friends in Europe felt the pinch, with Asia-N. Europe rates climbing 6% to $4,876/FEU. If that wasn’t enough, Asia-Mediterranean prices increased 3% to $5,637/FEU. Seems like the ocean freight market decided it needed a workout and is upping its game! #AirFreight has been slightly more stable (but don’t get comfortable). China-N. America weekly prices dipped 3% to $5.69/kg, and China-N. Europe stayed flat at $4.02/kg. However, N. Europe-N. America dropped by 1% to $1.73/kg. While these air rates are holding steady, it’s clear that the sky isn’t completely turbulence-free. The kicker? Carrier adjustments due to #RedSea diversions and the early start of peak season in Asia are causing congestion and spiking rates. With spot rates nearing $5,000/FEU for the West Coast, up nearly 70% from April’s floor, it’s a reminder that in global logistics, if it’s not one thing, it’s another! 📈🛳️ Stay tuned, folks, as we navigate these choppy waters together! 🚢✈️ #Logistics #SupplyChain #Freight #SupplyChainManagement #Freightos #FBX #FAX 

Anyone interested in staying up to date on the spot market should give this a quick read. In the last 6 days since this post, we have seen major changes taking place. As we all know, the market can change at the drop of a hat, affecting forwarders and suppliers alike. Definitely prepare yourselves for the long haul here.

Further to my earlier post on container reposition madness, (see here: https://lnkd.in/g3iQatVF) - an ocean container capacity crunch has hit global trade at the start of peak shipping season, causing a 30% rise in freight spot rates, with further increases expected. Factors contributing to this crisis include bad weather, longer ocean transits, and vessels skipping ports. Freight intelligence firm Xeneta warns that rates will continue to rise through June, surpassing previous spikes and impacting consumer prices. This capacity crunch is exacerbated by delays from the Red Sea route changes and bad weather affecting port operations in China, Malaysia, and Singapore. Despite forecasts for sufficient capacity, vessel space on major trade lanes remains insufficient to meet demand. This shortage is affecting specific locations and equipment types, leading to increased rates and shipment delays. Logistics experts are concerned that the situation will mirror the chaos seen during the Covid-19 pandemic, with shippers now facing premium rates to secure space guarantees. The container crunch has been worsened by an increase in demand for exports from China and a decrease in repatriated empty containers. This has pushed rates higher, with some carriers implementing significant rate increases. As peak season approaches, logistics managers are moving up shipping schedules to avoid delays, ensuring seasonal items arrive on time to meet consumer demand. #ContainerCrunch #GlobalTrade #FreightRates #PeakSeason #BadWeather #ShippingDelays #RedSeaRoute #SupplyChainCrisis #PortOperations #LogisticsChaos #ExportDemand #Singapore

China Airfreight Market Update- TLDR: ✈️Q1 volumes down 6.4% from Q4 (fairly normal as Q4 is always spikes) ✈️First half of Q2 also down in volume, perhaps CNY related. ✈️March alone has 17% increase in volumes from Feb ✈️China>Europe volume up 11% vs '23 ✈️Recent volume spikes 'unsurprisingly' due to Red Sea Crisis as well as the ongoing E-comm boom ✈️Warnings on global trade structure shifts to reduce China reliant trade. What does this mean? 📈growing demand for space on flights 📉Less availability on flights 📈Higher pricing as a result DM, Call, text, whatsapp or Email to discuss more 😊 📲07450 140281 📩[email protected] #china #europe #supplychain #logistics #redsea #airfreight #import #ecommerce