The Freightos Baltic Global index witnessed a 9% decline month-on-month in April, signalling a continued easing of rates from the highs experienced earlier in the year. Despite the slowdown in the decline, prices may be stabilizing as long as Red Sea diversions persist, with rates still significantly elevated compared to 2019.
Regional Rate Dynamics: Asia to North America
Rates from Asia to North America’s West Coast experienced a 15% decrease in April, while rates to the East Coast fell by 19%. Despite these declines, prices remain notably higher than pre-2019 levels, with some relief seen due to operational resilience and infrastructure improvements.
Stability and Fluctuations: Asia to Europe
Prices from Asia to North Europe remained relatively stable in April, slightly increasing compared to March, while rates to the Mediterranean dipped slightly. Despite fluctuations, rates remain substantially elevated compared to 2019, with carriers showing varying strategies to maintain pricing stability.
Geopolitical Risks and Market Impact
Geopolitical events, such as the Iranian seizure of an MSC vessel in the Strait of Hormuz, pose potential disruptions to container flows. Such incidents highlight the vulnerability of global trade routes and could lead to congestion at key hubs, affecting supply chains and freight rates.
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Source: Baltic exchange
