Freight rates to North Europe continued to slip with the SCFI falling by 6.6% while the SCFIS dropped by 14.5%. Although most carriers are holding their rate quotations through mid-February with Far East offices to be shut for the Lunar New Year holidays, rates are still under pressure with vessel utilization already dipping ahead of the holidays and carriers are reported to be unsuccessful in building up any significant roll pool before the holidays. Further rate deterioration is expected with
Asia-North Europe SCFI rates slipped by 14.5% last week, effectively erasing all the gains that carriers have secured in December. Although capacity utilization remains strong, the average capacity on the North Europe route in January remains at a 2 year high as carriers try to hold their volumes ahead of the new alliance reshuffle next month. The OCEAN Alliance’s launch of the new Loop 3 service from April will add up to 5% to overall FE-North Europe capacity, setting the stage for a fresh rou
Asia-North Europe rates largely held their ground in the last week of December before the next rate hike attempt in January. SCFI rates to North Europe reversed 3 consecutive weekly declines with a small 0.5% gain while the SCFIS rebounded by 4.4% to erase all of its previous week’s losses. The strong rate environment at the end to the year has helped carriers push ahead with a better outcome on their 2025 annual contract negotiations, with contract rates ranging from $2,500 to $3,5000/feu whic
Asia-North Europe rates slipped marginally in the past week with the SCFI dropping by 2.2% while the SCFIS fell by 2.7% as carriers continued to roll back some of the rate increases that they have obtained earlier in December. Maersk in particular has been blamed for their aggressive rate cutting, forcing rivals to offer lower rates that have been extended to the first week of January. Carriers’ initial plans to raise rates to $6,000/FEU in January now appear doomed although they are still push
Asia-North Europe carriers failed in their bid to raise freight rates in mid-December with spot rates rolling back some of their earlier gains with the SCFI slipping by 2.2% last week. However, the SCFIS jumped by a larger than expected 14.0% on 16 December, reflecting the delayed effects of the early December rate hikes. Most carriers are holding their rates until the end of the year, before making another attempt to raise rates to $6,000/feu on 1 January. Maersk continues to offer selective d
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