- East-West trade lanes report a 7% cancellation rate, with Transpacific routes most affected.
- Labor disputes, port congestion, and tariffs increase costs and delays for shippers.
- Freight rates remain steady, supported by demand management and advisory services.
Shipping on major East-West trade routes faces significant challenges with cancellations, labor unrest, and rising demand due to tariff proposals. While freight rates hold steady, disruptions in North American ports and pre-holiday surges complicate logistics. Shippers rely on advisory services to navigate these turbulent times, reports Drewry.
East-West Trade Lanes Experience 7% Cancellation Rate
Between mid-November and late December, 48 sailings have been canceled across Transpacific, Transatlantic, and Asia-Europe trade routes.
The Transpacific Eastbound route accounts for 60% of these disruptions, followed by the Transatlantic and Asia-Europe routes. Despite cancellations, 93% of scheduled sailings remain on track.
Alliances Adjust Schedules Amid Cancellations
Major alliances, including THE Alliance, OCEAN, and 2M, implement strategic adjustments to mitigate disruptions.
Non-alliance operators contribute significantly to cancellations, with 27 blank sailings announced over five weeks.
Freight Rates Remain Stable Despite Pressures
The Drewry WCI Composite Index stayed steady at $3,440 per 40ft container.
While Asia-North Europe and Transatlantic rates saw minor increases, Transpacific rates dipped slightly. Controlled demand has helped maintain overall rate stability.
Labor Disputes Disrupt US Ports
Labor unrest over automation continues at East and Gulf Coast ports, delaying already strained supply chains.
Though Canada sees easing tensions after government intervention, US ports face unresolved issues with deadlines looming in early 2025.
Tariff Proposals Drive Pre-Holiday Shipping Surge
US importers accelerate shipments to avoid potential tariffs on Chinese goods.
This has led to increased congestion at ports and a rise in logistics costs, further stressing supply chains.
Impact on Global Supply Chains and Costs
The combined effects of labour disputes, tariffs, and cancellations heighten risks of delays, cost spikes, and shortages across North America.
These factors underscore the fragility of global shipping networks.
Intra-Asia Trade Booms Amid Seasonal Demand
The pre-Christmas rush has boosted intra-Asia spot rates by 45% over the last two weeks. Peak season demand, tight capacity, and blank sailings drive this surge.
Shippers leverage contract advice, freight forecasts, and surcharge insights to navigate these challenges. These services help mitigate commercial risks and adapt to shifting market dynamics.
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Source: Drewry
