Carriers are pushing for a mid-August rate hike to the US West Coast in an attempt to reverse the recent rate slide on that route. The carriers’ resolve will be keenly tested as recent capacity additions on the Asia to US West Coast and Mexico routes have tilted the supply-demand balance on the previously tight market with capacity utilisation falling despite strong peak season cargo demand. The carriers’ ability to hold Asia-Europe rates last week gave the freight futures market a much needed b
Spot rates to Europe have risen above their January peaks with momentum continuing to be strong given the current tight space situation with further rate hikes expected in the coming weeks. Week 22 saw just 6 out of 11 Asia-North Europe sailings depart on schedule the congestion at Singapore and Tanjung Pelepas has severely disrupted the market. Overall capacity utilization remains very high while forward capacity forecasts for June with continued delays arising from congestion, which will redu
Transpacific freight rates have risen in tandem with European rates last week, rising to $2,553/feu to the West Coast and $3,559/feu to the East Coast, both breaching their 12 month highs. Capacity is expected to remain tight in the coming weeks, with reduced departures available in January especially on the US East Coast routes where the diversions to the Cape route will start to have an impact from week 3 onwards. Carriers are also switching ships away from the US West Coast to Europe where t
Transpacific freight rates have latched on to the Red Sea turmoil and the expected shortage of capacity in January especially on the East Coast services which have been affected by the Panama Canal restrictions as well as the Suez diversions to the Cape route. Rates to the West Coast have not gained as much in comparison, with capacity still open on all corridors as existing WC capacity is not affected by the Suez diversions, although carriers could still shift some capacity to Europe on accoun
Easing volumes especially to the US West Coast are starting hit spot freight rates with SCFI rates to USWC dropping by 8% last week. Zim’s surprise decision to relaunch the eCommerce Express (ZEX) service has sparked another round of rate cuts which has prompted CMA CGM to reconsider its plan to launch a similar express service in December. USEC rates are holding their ground as carriers continue to raise concerns over the Panama canal transit restrictions (in number of containership passage pe
Transpacific freight rates are holding at the $1,800-$1,850 per feu level to the US West Coast, with sentiment turning downwards ahead of the 1 September GRI (General Rate Increase). Although carriers will be able to lift rates above the $2,000 level in the coming week, there is considerable skepticism that the rates can hold through the rest of the month. Rates to the East Coast have also started to slip, with more capacity available from extra loaders and limited number of blank sailings thro
Transpacific carriers failed to hold on to their mid August rate increases and have given back part of their recent rate gains with spot rates falling back to the $1,800/feu level to the US West Coast compared to the latest SCFI assessment of $2,003/feu. Rates to the US East Coast were more resilient, with capacity reduced due to Panama Canal draft restrictions. Maersk has added 9 extra East Coast sailings since July but will be cutting back on these East Coast loaders which will be diverted to
Transpacific rates are holding steady after the 15 July rate increase, backed by the strong capacity utilization rates with bookings stretching out 3 to 4 weeks forward. Carriers are pushing ahead with the 1 Aug rate hike, which would bring rates to the US West Coast over $2,000/feu for the first time since October 2022. The rate rebound is expected to last through mid-August on the back of the strong vessel utilization with minimal capacity additions in the coming weeks. Asia-Europe rates we
Transpacific carriers successfully pushed ahead with the 15 July rate increase, with rates soaring to a 9 month high of $1,771/feu to the West Coast, based on the latest SCFI assessment. The removal of Zim’s ZNP this week will be followed by THE Alliance’s suspension of the PS5 from August, along with the disruptions from the Canadian port strike have provided positive catalysts for the rate hike planned on 1 August. Carriers are capitalizing on the tighter space situation from the rise in bla
Transpacific rates continued their decline over the past week, with carriers forced to undercut rates on both the West Coast and East Coast as capacity utilization levels are still dropping. There will be some capacity reductions over the coming weeks, with carriers expected to obtain a $200-300/feu rate increase in early July but the sustainability of the rate increase remains in doubt after the failure of the last 4 transpacific GRI attempts. Asia-Europe rates continued to slip despite relat