Total 152 Posts
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202435] Carriers failed to check the decline in freight rates with the SCFI slipping by 5.6% last week, led by sharp drops on the Transpacific and Middle East routes. The SCFIS, which is a better measure of actual market spot rates, have been dropping continuously since its July peak to the US West Coast in contrast to the SCFI false signal of a rate rebound a week ago, with cumulative losses reaching 38% since July. The ou
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202434] The SCFI rebounded by 0.8% last week but is unlikely to hold on to these gains with freight rates coming under pressure on both the Asia-Europe and Transpacific routes. Carriers failed to push ahead with the planned 15 August transpacific rate hikes and allowed rates to the US West Coast to slip with the lower rates to show up on the coming week’s SCFI reading. Carriers will be making another push for a September rat
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202433] Although spot freight rates have peaked in July, container carriers are still on track to record bumper 3rd quarter earnings with the July revenue figures more than 100% higher than a year ago. Carriers have managed to retain most of their recent rate gains into August despite the eroding market sentiment with EC freight futures for October trading at a 46% discount to current spot rates. There is some positive rate
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202432] US recession fears dominate the market this week, with the SCFI dropping for the 4th consecutive week on weakening capacity utilisation. Rates to the US West Coast have registered the sharpest drops and even though carriers are still pushing for a mid-August transpacific rate hike, market sentiment continues to weaken. Rates to North Europe are holding up relatively better, with capacity still constrained by both Red
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202431] 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
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202430] Any further escalation of the Red Sea crisis would have a limited impact on the container markets as only 14% of the ships currently deployed on the Asia-Europe trade is using the Suez Canal. The share of the overall capacity is even smaller, as only 4% of the 7.48m TEU deployed is using the Suez route as the majority of the carriers there are deploying smaller ships, with CMA CGM the sole exception as it retains a s
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202429] The SCFI retreated last week by 1.6% after 14 consecutive weekly gains in a further sign that the market has peaked. While demand remains firm, supply has also risen with capacity injections most notably in the Indian subcontinent, Latin America and US West Coast routes where freight rates are the most lucrative currently. This has capped freight rate increases on those routes, but overall capacity utilisation remain
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202428] Renewed apprehension over a Middle East ceasefire and signs that freight rates may have peaked spooked the jittery container shipping equity and freight futures markets on 8 July despite continued advances in the SCFI and charter rate indices last week. Although carriers successfully pushed ahead with the 1 July rate hikes, cracks have appeared on their ability to secure further rate increases as the additional capa
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202426] The container market stepped up further with SCFI spot rates surging by a further 6.9% while EC freight futures for 2025 contracts registered strong gains on rising conviction that the Red Sea crisis will last through next year. Charter rates continues to set higher benchmarks although carriers remain hesitant to commit to forward positions for ships that are coming open at the end this year and early 2025. The Lati
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202426] The container market remains red hot with short term charter rates breaching the $150,000 per day benchmark and spot freight rates rising above the $8,000/feu level, setting new highs not seen since the end of 2022. New services out of Asia continue at a rapid pace, led by the Mexico route with 6 new services launched since May, followed closely by 5 new services to the US West Coast and 3 new services to North Europ