Rates for shipping containers from East Asia and China to the US were flat to softer during the first week of December 2024. Meanwhile, global average rates saw a 6% increase, according to Independent Commodity Intelligence Services (ICIS), reports Safety4sea.
Upward pressure On rates
However, the looming strike at US Gulf and East Coast ports could put upward pressure on rates in the second week. The potential disruption at these major ports could impact shipping costs, adding uncertainty to the market. Furthermore, rates from supply chain advisors Drewry showed Shanghai-New York rates fell slightly to $5,160 from $5,182, while rates from Shanghai to Los Angeles plunged by more than 12%, as shown in the following chart.
Rates at online freight shipping marketplace and platform provider Freightos showed a sharp increase on the Asia-NY trade lane and a 4% decrease from Asia-LA.
Some carriers have already begun introducing general rate increases (GRIs) to try and push rates higher.
Levine said the window to move shipments from the East Coast to the West Coast ahead of a possible strike is closing, but many retailers are sitting on significant inventories from pulling forward shipments ahead of the original 1 October strike deadline.
Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets.
Liquid tanker rates
Overall, the US chemical tanker freight rates were unchanged the first week of December for several trade lanes, except for the USG-Asia trade lane as spot tonnage remains tight.
This all-basis limited spot activity to most regions and as COA nominations are taking longer than usual for the regular vessel owners.
They have tried to delay the sailings but there has been very little spot space in the market leaving no other options for full cargoes and in turn impacting spot rates.
MEG, ethanol and styrene still are being seen quoted in the market from various traders, for early January loadings to Asia.
Additionally, ethanol, glycols and caustic soda were seen in the market to various regions.
Panama Canal
Fiscal Year 2024 revenue rose from 2023, the Panama Canal Authority said even after having to reduce crossings for part of the year because of a severe drought. The Authority said a noticeable impact from the drought was a decrease in deep draft transits, which fell by 21%.
Despite the arrival of the rainy season, the challenge of water for Panama and the Panama Canal remains and serves as a reminder that climate change and its effects are a reality requiring immediate attention and concrete action.
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Source: Safety4sea
