- Capacity on Major East-West Routes to Rise 5% in November.
- Freight Rates Extend 16-Week Decline to $1,651 per 40ft.
- U.S. and China Impose Reciprocal Port Fees on Vessels.
Shipping companies are starting to reduce the number of blank sailings and bring back more services. Between weeks 42 (October 13–19) and 46 (November 10–16), just 6% of the scheduled sailings (41 out of 716) on major East-West routes have been cancelled. Breaking it down, 44% of these cancellations are on the eastbound Transpacific route, 32% on the Asia–Europe/Med route, and 24% on the westbound Transatlantic route. According to Drewry, a solid 94% of weekly departures are expected to go ahead as planned, reports Drewry.
Capacity Expected to Increase in November
Drewry predicts a significant decrease in blank sailings, dropping from 81 in October to 52 in November. During this same timeframe, overall capacity on key East-West routes is anticipated to grow by 5% month-on-month.
Freight Rates Extend Downtrend
The latest figures from Drewry’s World Container Index (WCI) show a 1% dip week-on-week, bringing the rate down to $1,651 for a 40ft container, marking the 16th week in a row of declines. Freight rates have decreased by 1% on both Asia–Europe/Med and Transpacific routes, while the Transatlantic route saw a 2% drop. Ongoing issues like overcapacity, blank sailings, and regional congestion are still causing disruptions in sailing schedules.
U.S. Port Fees Add to Disruptions
To complicate matters further, new port fees from the U.S. Trade Representative (USTR) for Chinese vessels will kick in on October 14. Ships will need to pay these fees upfront to avoid being turned away from U.S. ports. In retaliation, China has introduced similar fees for U.S. ships, but the overall impact is expected to be minimal given the small size of the U.S. fleet that docks at Chinese ports.
Outlook: Ongoing Volatility Ahead
As we look ahead, the freight markets are likely to remain unpredictable. Factors like geopolitical tensions, congestion, and structural overcapacity are expected to keep rates under pressure. Shippers are encouraged to plan and stay adaptable in the face of ongoing uncertainty.
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Source: Drewry
