- US–China Port Fee Truce Eases Trade Tensions.
- Carriers Withdraw 10% of Sailings to Manage Capacity.
- October Cancellations Surge but November Outlook Improves.
After months of ups and downs, the global ocean freight market is starting to show early signs of stabilising. Carriers are tightening their capacity by cancelling certain sailings and managing their rates with caution, but it’s still unclear how long this balance will hold, reports Drewry.
US–China Port Fee Truce Offers Short-Term Relief
A temporary agreement between the US and China on reciprocal port fees, set to last a year, is expected to ease trade tensions and provide a bit of short-term stability to market sentiment.
Carriers Adjust Capacity Across Major Trades
Between weeks 45 (November 3–9) and 49 (December 1–7), carriers have pulled 69 out of 718 scheduled sailings, roughly 10% of the total capacity. Most of these cancellations are happening on the Transpacific eastbound route (46%), followed by Asia–Europe/Med (38%) and Transatlantic westbound (16%). Still, 90% of weekly departures are on track to go ahead as planned.
Cancellations Rise in October, but November Looks Smoother
In October, carriers cancelled 96 sailings, a notable increase from 58 in September, which cut overall capacity by about 7% month-on-month. However, November is looking a bit brighter, with a modest recovery expected as capacity rises by 7% and cancellations drop to 64 blank sailings.
Freight Rates Inch Up Across Key Routes
According to Drewry’s World Container Index (WCI), average freight rates increased by 4% week-on-week, reaching $1,822 for a 40ft container as of October 30. Transpacific rates went up by 5%, Asia–Europe/Med saw a 4% increase, while Transatlantic routes dipped by 2%.
Outlook: Cautious Optimism Amid Market Testing
While the mood has improved, the market is still quite fragile. Shippers are encouraged to plan and stay flexible as the industry tries to determine whether this uptick in rates is a sign of a lasting recovery or just a temporary blip.
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Source: Drewry
