- Transpacific Spot Rates Plunge Amid Weak Demand.
- Asia–Europe Rates Rise 5% as Peak Season Begins.
- Transatlantic Rates Hold Steady Despite Market Shifts.
Global container shipping is still grappling with operational hurdles, but it looks like the number of cancelled sailings on key East–West trade routes is set to drop. In June, we’re expecting a 14% decrease in blank sailings, with an even bigger 60% decline projected for July, reports Drewry.
Schedule Reliability is Getting Better
Out of 717 planned sailings across the Transpacific, Transatlantic, and Asia–North Europe & Mediterranean routes, 49 sailings are slated for cancellation between weeks 26 (June 23–29) and 30 (July 21–27), which translates to a 7% cancellation rate. Most of these cancellations will hit the Transpacific eastbound route (47%), followed by Asia–North Europe & Med (35%) and Transatlantic Westbound (18%).
Even with the disruptions, sailing reliability is improving. We can expect about 93% of weekly departures to go off without a hitch over the next five weeks.
Spot Rates Take a Dive on Transpacific Trade
This week, spot rates on the eastbound Transpacific route took a significant hit:
- Down 20% to the U.S. West Coast (USWC)
- Down 10% to the U.S. East Coast (USEC)
This decline is largely due to a mismatch between capacity and a softening demand. Cancellations have also seen a notable drop:
- USEC cancellations fell by 60% (from 11 to 4)
- USWC cancellations dropped by 64% (from 29 to 10)
These numbers suggest we’re moving towards a more stable scheduling environment.
Asia–Europe/Med Rates on the Rise, Transatlantic Rates Steady
On the flip side, spot rates for the Asia–Europe and Mediterranean routes increased by 5% week-over-week, thanks to:
- Tightening vessel capacity
- Early peak season demand
- Ongoing port congestion
Meanwhile, Transatlantic spot rates have remained flat.
Drewry’s World Container Index Takes a Hit
As of June 19, Drewry’s World Container Index fell by 7% week-over-week to $3,279. This drop is mainly due to a 14% decrease in Transpacific rates, which was partially balanced out by a 5% increase in Asia–Europe/Med rates, while Transatlantic rates stayed the same.
Geopolitical Risks: Still Low, But Worth Noting
Even with the ongoing tensions between Israel and Iran, container shipping has managed to stay on course without any major disruptions. That said, the possibility of the Strait of Hormuz being closed remains a low-probability yet significant concern for global shipping routes.
Advice for Shippers
Shippers should stay adaptable and foster strong relationships with their carriers to successfully navigate the current market uncertainties and fluctuations in rates.
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Source: Drewry
