Global maritime trade grew in 2023, but container shipping volumes did not increase as much. The UNCTAD report predicts that global maritime trade will continue to grow in the coming years, but the pace of growth will be slower than in previous years, reports Freight Waves.
Disruptions In Routes
Demand for iron ore, coal, and grains remains strong. “A record of almost 250,000 port calls by container ships in the second half of 2023 were driven by growing trade and longer routes, causing some congestion, especially in Asia, which handles 63% of global container trade,” UNCTAD said.
Disruptions to key routes through the Suez and Panama canals and resulting longer voyages pushed ton-miles up by 4.2%.
Rerouting, port congestion, and rising operational costs saw freight rates surge in 2024. The report cited the Shanghai Containerized Freight Index (SCFI) which by midyear had more than doubled from late 2023 on longer shipping distances, increased fuel consumption, and higher insurance premiums.
Increase In Consumer Price
UNCTAD projects global consumer prices could increase 0.6% by 2025 if freight rates remain elevated.
While high-volume shipping mostly moves under charter and contract for primary trans-Pacific and Europe-bound cargo, spot rates outside those routes also surged.
From January to July 2024, the average rate on the SCFI Shanghai–South America route more than doubled to $9,026 per twenty-foot equivalent unit, the highest level since September 2022, the report stated. The Shanghai–South Africa route saw its average rate almost triple to $5,426 per TEU (the highest since July 2022), while the Shanghai–West Africa average rate jumped 137% to $5,563 per TEU (the highest since August 2022).
Did you Subscribe to our daily newsletter?
It’s Free Click here to Subscribe!
Source: Freight Waves
