Ocean rates out of Asia eased last week across the major lanes. For volumes to N. Europe and the Mediterranean, Red Sea diversions mean the window to ship and receive goods before the holiday season is closing, likely leading to decreasing demand and rates that are 10% and 19% lower than their July peaks, respectively, reports AJOT.
Key Takeaways
Demand that is likely past its peak for the year, as well as capacity increases have prices to the US West Coast 15% lower than in July. But a shift of volumes from the East Coast in anticipation of a possible port worker strike in October is keeping West Coast logistics busy nonetheless, with some carriers even adding sailings in the coming weeks.
Improving ocean logistics conditions out of India’s west coast faces new challenges from last week’s floods, leading to new backlogs in Mundra.
Port congestion is still above normal levels at some East Asian hubs. However, the better distribution of transshipment volumes that caused severe congestion back in May is one factor leading to more manageable wait times.
Cross-border e-commerce volumes continue to be a major driver of air cargo demand and elevated rates. Prices out of China were $5.12/kg to N. America last week and $3.61/kg to Europe.
Ocean rates – Freightos Baltic Index
- Asia-US West Coast prices (FBX01 Weekly) fell 4% to $6,858/FEU.
- Asia-US East Coast prices (FBX03 Weekly) fell 3% to $9,409/FEU.
- Asia-N. Europe prices (FBX11 Weekly) fell 2% to $7,770/FEU.
- Asia-Mediterranean prices (FBX13 Weekly) fell 12% to $6,274/FEU.
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Source: AJOT
