Overall
This week, the Drewry composite index decreased by 2%. Freight rates between various ports have shown diversity; rates from Rotterdam to New York remained stable. Rates from Shanghai to Los Angeles decreased by 5% and Shanghai to New York declined by 1%. The ILA port strike, which began on October 1, 2024, ended after three days on October 4, 2024. Drewry expects spot rates to remain stable next week.
Ocean – TPEB:
- Floating rates: Rates remain steady on the West Coast, with open space availability in the Pacific Southwest and Northwest. East and Gulf Coast rates are stable, supported by fully utilized service strings through mid-December.
- Carrier focus: Carriers are preparing for a General Rate Increase (GRI) on East Coast routes effective December 1, while West Coast rates remain steady with no immediate adjustments.
- Peak Season Surcharge (PSS): Initial reductions are being applied to West Coast routes starting December 1, with no changes for East or Gulf Coast routes at this time.
Ocean – FEWB:
- Demand fluctuations: Demand rose slightly in late November due to anticipation of the December GRI but is expected to stabilize in mid-December as the European holiday season begins.
- December GRI: Carriers announced a GRI for December with adjustments expected based on vessel utilization.
- SCFI trends: The Shanghai Containerized Freight Index (SCFI) dropped slightly in Week 48, reflecting FAK extensions. A rebound is anticipated in early December as the GRI takes effect.
- Equipment availability: Occasional equipment shortages persist at major Chinese ports but are manageable. Premium options are available for shippers needing firm space or specific service times.
Ocean – TAWB:
- Demand levels: Strong demand persists for North and South Europe, particularly in the West Mediterranean, as clients aim for ETAs before January 15.
- Blank sailing impact: Blank sailings through Weeks 47–52 are contributing to backlogs, as they fail to accommodate increased demand for early departures.
- Equipment availability: Equipment levels are generally sufficient, though shortages in hinterland areas remain.
- Rate stability: Rates are stable across most carriers, continuing trends observed in November for both North and South Europe.