BCO’s Put Pen to Paper as Spot Rates Stabilize

Welcome to our latest Market Watch update, where we delve into the ever-shifting dynamics of sea and air freight. From the intricacies of Asia to North America routes to the latest trends in contract negotiations for 2024-2025, we analyze key developments shaping the industry. As supply and demand economics prevail in sea freight, and air freight rates remain elevated due to disruptions and e-commerce demand, we provide insights into the evolving landscape. Stay tuned as we explore fixed-rate contracts for the coming year and offer recommendations for navigating the complexities of global logistics. Don’t hesitate to ask us about fixed-rate contracts for 2024-2025.

Read the full post on our Market Update Blog

Sea Freight

Asia to North America

Supply and demand economics prevail as capacity continues to outpace demand while accounting for longer distance and transit times for Red Sea/Panama Canal detours. EC seems to have much more capacity with some WC voyages at capacity. We expect carrier capacity to increase in May to its highest point in 17 months.

Contract 2024-2025

BCO’s have started signing carrier contracts at rates 12-17% above last year.

Ask us About Fixed Rate Contracts 2024-25

General Terms

• Total MQC requirement: at least 300 TEU for each NAC
• Weekly MQC requirement: at least 4TEU per week on single port pair
• Rates are valid from 01 May 2024 till 30 April 2025.
• Rates are inclusive of Bunker surcharges in Q2, which will be backed out at the time of filing and float quarterly per tariff.
• Rates are inclusive of GRI/DTHC/ACC/ Panama or Suez Canal surcharge
• Rates are subject to subject to ISPS/TSC/Carbon Tax if any.
• Rates are subject to PSS under mutual agreement.
• Rates are only applied to general cargo of legal weight.
• Rates are subject to the carrier’s final approval and contract filing.

Air Freight

Asia to North America

Air freight rates remain elevated as sea freight disruption and robust e-commerce shipments keep demand high. Year-on-year data shows global tonnages up by +8%.

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– The CargoTrans Team