The global logistical challenges have exacerbated the intricate demand-supply dance.

Drewry's World Container Index decreased by 3% to $2,929 per 40ft container this week (published on 28 March 2024) and has increased by 71% when compared with the same week last year.???

The latest Drewry WCI composite index of $2,929 per 40ft container is 106% more than average 2019 (pre-pandemic) rates of $1,420.

Drewry WCI : Trade Routes from Shanghai (USD / Feu)

Ocean Freight rates from Shanghai to New York decreased 6% or $318 to $5,058 per Feu.

Likewise, rates on New York to Rotterdam and Shanghai to Los Angeles declined 3% to $637 and $3,825 per 40ft container respectively.

Similarly, rates on Shanghai to Rotterdam, Rotterdam to Shanghai and Shanghai to Genoa dwindled 2% to $3,159, $814 and $3,806 per 40ft box respectively.

Also, rates on Los Angeles to Shanghai and Rotterdam to New York shed 1% to $691 and $2,261 per Feu respectively.

APAC – EUROPE

The trade lane between FE/APAC and Europe is experiencing a 1% decrease in recent assessments, but a significant upsurge compared to a year ago, indicating an ongoing recalibration of market forces influenced by supply and demand dynamics.

The FE/APAC -Europe trade market is undergoing adjustments due to economic pressures and carrier strategies changes. The introduction of larger vessels has introduced a new variable, potentially impacting rates and capacity availability. Stakeholders must navigate a complex decision-making landscape with agility and foresight.

APAC – NORTH AMERICA

Ocean freight rates between FE/APAC and North America have experienced adjustments, with rates on the Asia to US west coast lane declining by 3% but still multiples of last year's rate. Rates to the US east coast saw a similar decline but remained over 100% higher year on year, indicating unpredictable trade dynamics.

Market conditions are anticipating evolving trade patterns, with a slight downturn in rates yet a significant increase. The intricate demand-supply dance, exacerbated by global logistical challenges, necessitates adaptive strategies. BCO(s) and Carrier(s) navigate uncertainty, with potential capacity shifts influencing future market directions.

Container shipping lines are experiencing increased fuel costs going around Africa and they are passing that cost on.

However, ocean freight is now in its traditional slow season and the expectation is that with rate increases far exceeding most estimates of the additional costs faced by carriers, rates would come down from recent highs, but the lines are removing capacity to protect rates.

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Disclaimer

This post's information is for reference purposes only and does not constitute investment or purchase advice. This material may contain information sourced from publicly available information or other third-party sources and makes no warranties or guarantees for its accuracy or integrity. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser.