Overall
This week, the Drewry composite index increased by 3%. Freight rates between various ports have shown diversity; rates from Rotterdam to New York remained stable. Rates from Shanghai to Los Angeles increased by 7% and Shanghai to New York rose by 6%. Drewry expects rates on the Transpacific trade to rise in the coming week, driven by front-loading ahead of the looming ILA port strike in January 2025 and the anticipated tariff hikes under the incoming Trump Administration.
Ocean – TPEB:
Shipping lines successfully implemented a General Rate Increase (GRI) on December 15, with only minor rate adjustments and corrections observed since. Initial Peak Season Surcharge (PSS) announcements signal a planned increase for January 2025, reflecting anticipated pre-Lunar New Year demand. No significant equipment issues have been reported at origin, ensuring smoother operations for shippers. A moderate blank sailing program is in effect for December, maintaining 92% available capacity. For January 2025, capacity is projected to rise to 97%, though additional blank sailings may be announced soon to align with Lunar New Year demand fluctuations and network adjustments on the Transpacific trade lane.
Ocean – FEWB
Market demand is closely aligned with operating capacity, resulting in stable rates as 2H December progresses. Supply volumes are stronger compared to November, but vessel return speeds and operating capacity remain sufficient to meet demand. Floating rates for Freight All Kinds (FAK) have remained stable, with fluctuations in the Shanghai Containerized Freight Index (SCFI) staying within a narrow range. Equipment shortages at major Chinese ports are occasional but manageable. Shippers are encouraged to prioritize timely Equipment Interchange Receipt (EIR) printing and early equipment pickups to reduce the risk of missed cargo loading.
Ocean – TAWB
Demand remains elevated due to the potential for an ILA strike on January 15, while Canadian ports continue to face congestion stemming from recent strikes. Space is limited, particularly in the Western Mediterranean (WMED), where extra loaders are running at full capacity, as well as in Northern Europe (NEUR) and Eastern Mediterranean (EMED) services, which are also near capacity. Rates for the second half of December have followed the stable trends observed in the first half and in November. Most carriers are expected to extend their rates into January, maintaining consistency amidst continued high utilization levels.