Freight rate fell seven consecutive! The four major routes all fell, the European route fell the most!
A port strike on the East Coast of the United States has come to an end, despite expectations by shipping companies that the strike could lead to higher freight rates and additional costs, but those expected effects have not materialized. On October 11, the Shanghai export container comprehensive freight index released by the Shanghai Shipping Exchange was 2062.57 points, down 3.4% from the previous period. The freight rates of the four major routes in Europe and the United States continued to fall, of which the European line fell more.
The report shows that the recent Asia-Europe route transport market continues to weaken, and the spot market booking price continues to decline this week. Mediterranean routes, the market and European routes to keep pace, market rates continue to fall. On October 11, the freight rate (sea and sea surcharge) for exports to Europe and the Mediterranean basic port market was US $2,040 /TEU and US $2,369 /TEU, respectively, down 9.3% and 6.8% from the previous period.
In the North American route, the United States East Coast dockworkers in early October a brief strike, the strike has subsided, did not have a greater impact on the transport market. This week, transport demand recovered slowly after the National Day holiday, the balance between supply and demand was not ideal, and market freight rates continued to fall. On October 11, the freight rates (sea and sea surcharges) for exports from the port of Shanghai to the basic port markets of the West and East of the United States were 4,730 US dollars /FEU and 5,554 US dollars /FEU, respectively, down 2.5% and 1.3% from the previous period.
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In addition, the Delury World Container Index (WCI) showed that spot freight rates between Shanghai and New York fell 3 per cent week on week to $5,761 per 40 feet, while spot freight rates between Shanghai and Los Angeles fell 5 per cent week on week to $5,019 per 40 feet.
Although the strike did not have a significant impact on freight rates, the three-day strike caused severe congestion, with about 70 ships queuing for berths. Just last week, 29 ships in New York Harbor were delayed for up to 39 hours, 13 ships in Charleston Harbor were delayed for 57 hours, and 27 ships in Savannah Harbor were delayed for 70 hours.
With demand weak, shipping companies have also begun to increase the number of closures on major East-West routes to avoid further congestion on the East Coast of the United States.
Delury's data shows that in the five weeks from October 14 to November 17, 2024, 69 flight cancellations have been announced on the main east-west main routes - trans-Pacific, Trans-Atlantic, and Asia-Nordic and Mediterranean routes, representing a total of 10 percent of the planned 693 flights.
Of these, about 58% will be on trans-Pacific eastbound routes, 26% on Asia-Nordic and Mediterranean routes, and 16% on trans-Atlantic westbound routes.
Delury also said that with the end of the strike and the decline in peak demand, despite the strong willingness of shippers to support prices, freight rates are expected to continue to fall during the current seasonal downturn.
Freightos chief analyst Judah Levine also said: "With the strike over and peak season demand largely behind us, container prices should continue to relax during the seasonal slow season between peak season and the Lunar New Year."
