The Freightos Baltic Global index increased 6% month on month in November to $1,156/FEU as carriers had some success in tightening capacity and pushing rates up after prices fell in September and October for most lanes, says an article published on Baltic exchange website.
Global Freightos Baltic Index Overview
The Freightos Baltic Global index recorded a 6% month-on-month increase in November, reaching $1,156 per forty-foot equivalent unit (FEU). Carriers managed to tighten capacity, contributing to rate increases after price declines in September and October. Despite this uptick, the market’s overall overcapacity persists, keeping rates 11% lower than in 2019.
Transpacific Rates
Transpacific rates to the West Coast experienced a modest increase, reaching over $1,700/FEU early in the month but settling at $1,613/FEU, just 3% higher than October. Despite this moderate bump, prices remain 20% higher than 2019 levels, making them the only rates surpassing the beginning-of-year values.
Panama Canal Impact
Drought-driven daily transit reductions in the Panama Canal have not significantly affected container flows or prices. However, some carriers announced surcharges for containers on this lane starting in late December, potentially influencing rates in the coming weeks. Canal authorities have further announced transit reductions gradually rolling out through February 2024.
Transatlantic And Asia-Europe Rates
Prices to the East Coast retained early-month increases at $2,362/FEU, 7% higher than October but still 8% below 2019 levels.
Asia – North Europe rates rebounded from extreme lows in October to $1,380/FEU on early-month General Rate Increases (GRIs). However, prices declined in the second half to $1,211/FEU, a 15% gain on October but 17% lower than 2019.
Annual Contract Negotiations And Rate Challenges
Carriers, facing pressure to raise spot rates amid annual contract negotiations, announced additional and more ambitious GRIs for December. Some carriers extend 2023 contract terms through January to allow more time for spot recovery before finalizing long-term contracts. Persistent overcapacity and easing demand during the ocean’s lull period between peak season and Lunar New Year pose challenges to sustaining rate increases.
Asia-Mediterranean Rates And Transatlantic Prices
Asia-Mediterranean rates climbed 9% in November, closing at $1,492/FEU, roughly aligning with 2019 levels.
Transatlantic prices saw a moderate month-on-month rise of 18% in November, reaching $1,228/FEU. While carriers may be effectively reducing capacity, rates remain 36% lower than November 2019 due to volumes below and capacity exceeding 2019 levels.
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Source: Baltic exchange
