Overall
This week, the Drewry composite index experienced a 4% increase, yet it has registered a 256% increase compared to the same period last year. Additionally, the average index for the year-to-date significantly exceeds the 10-year average, highlighting the lasting impact of the exceptional conditions during the 2020-2022 period.
Freight rates between various ports have shown diversity; rates from Rotterdam to New York decreased 2%. Rates from Shanghai to Los Angeles and Shanghai to New York increased by 4%. Drewry expects freight rates ex-China to continue rising next week due to the onset of the early peak season. Drewry expects a minor increase in freight rates due to congestion at Asian ports.
Ocean – TPEB: Volumes on the Transpacific route remain strong, surpassing last year’s numbers despite blank sailings caused by Cape of Good Hope routings and port congestion in Asia and North America. Shipping lines are offering expedited services and guaranteed equipment and space, while others are reducing the backlog in Asia with extra loader (XL) space. XL space en route to the Pacific Southwest is improving the situation week by week, though the East Coast remains heavily overbooked. All General Rate Increases (GRIs) for June have been implemented, with further rounds expected in July due to peak conditions. Rates to the East Coast will be adjusted twice as much as those to the West Coast to manage high booking volumes. A new Peak Season Surcharge (PSS) for July 1st has been announced, following two successful increases earlier this year.
Ocean – FEWB: Equipment shortages in Asia’s main loading ports remain severe. Liners are repositioning empty containers, but continued delays from Cape of Good Hope rerouting will likely prolong these issues. While port congestion in Asia is easing, shippers still face an additional 2-3 days in berthing lead time. Demand remains strong, with rates rising again in early July. Equipment shortages will likely push customers to expedite cargo departures to avoid further delays. Liners are announcing blank sailings for July and August, anticipating critical market space. Shippers are pushing for earlier departures to avoid cost increases, and premium options are increasingly available to expedite cargo loading.
Ocean – TAWB: In Northern Europe, demand is stable, with carriers extending rate levels until August and September. Equipment issues persist in Southern and Eastern Germany and the Hinterlands, including Austria, Hungary, Slovakia, Czech Republic, and Switzerland. In the Western Mediterranean, congestion and equipment issues at key ports, along with reduced schedule reliability, are impacting the market, with rate increases starting in July as demand rises. The Eastern Mediterranean is experiencing congestion, with carriers announcing equipment imbalance and operational charges due to increased costs on routes to the U.S. and equipment availability issues in Turkey, Greece, and Egypt. Booking 2-3 weeks in advance is recommended to ensure smooth loading.
Ocean – U.S. Exports: Ocean rates for Q3 are increasing in the U.S. export market, driven by rising rates in global container markets. Congested key destination transshipment hubs for U.S. exporters include ports in Asia and the Mediterranean. Booking 3-4 weeks in advance for coastal port loadings and 4+ weeks in advance for inland rail point loadings is recommended to ensure smooth loading.