- Overcapacity Makes GRIs Hard to Sustain for Carriers.
- East to Atlantic Freight Rates Remain Stable.
- Middle East Tensions Have Limited Impact on Liner Routing.
The liner market has hit a temporary high point. Freight rates have taken a dip on major trade routes like the Trans-Pacific and from the Far East to the Mediterranean. This decline can likely be attributed to overcapacity, which is making it challenging for liner companies to sustain their General Rate Increases (GRIs), reports Baltic Exchange
East to Atlantic Trade Stays Strong
Even with ups and downs in other areas, freight rates from the Far East to the Atlantic have remained stable over the past week, providing a bit of reassurance in an otherwise softening market.
Middle East Tensions Have Minimal Effect
Despite rising tensions in the Middle East, including Iran’s threats to shut down the Strait of Hormuz, the liner market has felt little impact. This is mainly because most large container ships have already switched to routes around the Cape of Good Hope, leaving only smaller vessels to navigate through the Suez Canal.
Weekly Freight Rate Snapshot (FBX)
- FBX01 (China/East Asia – USA West Coast): Wrapped up the week at $4,516/FEU, down $1,415/FEU from last week.
- FBX03 (China/East Asia – USA East Coast): Saw a slight uptick to $7,177/FEU, up from $7,124/FEU the previous week.
- FBX11 (China/East Asia – North Europe): Closed the week at $2,966/FEU, a modest increase of $26 from last week.
- FBX13 (China/East Asia – Mediterranean): Dropped to $4,360/FEU, a decrease of $211 from the week before.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Baltic Exchange
