Global freight rates maintain upward trend, eyes on Middle East
by Ayşe Vildan Cansız - acansiz@chemorbis.com
by Esra Ersöz - eersoz@chemorbis.com Ocean freight rates continued to rally this week albeit at a slower pace following the precipitous climb in the previous week, as the tensions in the Red Sea have no sign of subsiding, rather it has mounted further with the US and its allies launching air and missile strikes at Houthi rebel targets across Yemen.
Europe rally losses some steam
According to Drewry , a major shipping consultancy, the global container freight index has been steadily increasing since late-November, although the ocean shipping markets saw the notable jump in early-January. Following a spike of more than 100%, freight rates from China to Northwest Europe have increased by 23% this week to $4406/FEU while the the rates on China – South Europe also rose by 15% to $5213/FEU as of January 11.
Freightos, another shipping consultancy, also raised its benchmarks this week, albeit at a slower pace. The China/East Asia - North Europe index is up by 8% on the week to $4747/FEU while the index to Mediterranean was also up by 5% to $5307/FEU, as of January 12.
Rates on Asia – US routes remain bullish, although they are non-Red Sea routes
Despite not having been affected by the Red Sea crisis, spot freight rates from China /East Asia to the US spiked last week, and bulls remain in these routes this week as well. Drewry suggests that the rates on routes from China to US West Coast and East Coast were up by 2% and 8% to $2790/FEU and $4170/FEU respectively, as of January 11.
Freightos also reported a 7% increase in rates from China/East Asia to US East Coast to $4254/FEU, although there is a downward correction of 4% to $2596/FEU in China/East Asia to US West Coast.
According to Freightos, capacity shortages and possible congestion will be felt the most in the next couple of weeks given the rising shipments from China ahead of the Lunar New Year holidays in February amidst the longer transit times. An ease in freight rates may only come around late February, when a traditional slowdown kicks in and the industry may have more schedules available.
Europe rally losses some steam
According to Drewry , a major shipping consultancy, the global container freight index has been steadily increasing since late-November, although the ocean shipping markets saw the notable jump in early-January. Following a spike of more than 100%, freight rates from China to Northwest Europe have increased by 23% this week to $4406/FEU while the the rates on China – South Europe also rose by 15% to $5213/FEU as of January 11.
Freightos, another shipping consultancy, also raised its benchmarks this week, albeit at a slower pace. The China/East Asia - North Europe index is up by 8% on the week to $4747/FEU while the index to Mediterranean was also up by 5% to $5307/FEU, as of January 12.
Rates on Asia – US routes remain bullish, although they are non-Red Sea routes
Despite not having been affected by the Red Sea crisis, spot freight rates from China /East Asia to the US spiked last week, and bulls remain in these routes this week as well. Drewry suggests that the rates on routes from China to US West Coast and East Coast were up by 2% and 8% to $2790/FEU and $4170/FEU respectively, as of January 11.
Freightos also reported a 7% increase in rates from China/East Asia to US East Coast to $4254/FEU, although there is a downward correction of 4% to $2596/FEU in China/East Asia to US West Coast.
According to Freightos, capacity shortages and possible congestion will be felt the most in the next couple of weeks given the rising shipments from China ahead of the Lunar New Year holidays in February amidst the longer transit times. An ease in freight rates may only come around late February, when a traditional slowdown kicks in and the industry may have more schedules available.
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