Ocean freight market update
China-North America
- Rate changes: Ocean freight rates on Transpacific routes have seen moderate increases in earlyJuly. Carriers have successfully implemented a General Rate Increase (GRI) across all Eastbound gateways, resulting in rates to the East Coast seeing more significant hikes compared to the West Coast. The introduction of Peak Season Surcharges (PSS) has further pushed rates up, and these surcharges are expected to remain in place for the rest of the month.
- Market changes: Volumes on Transpacific routes have surpassed last year’s figures, driven by robust demand. However, blank sailings and port congestion, particularly in Asia and North America, continue to challenge the market. Premium service offerings with expedited transit times and guaranteed equipment availability are becoming more common as carriers attempt to manage the backlog. This trend is likely to persist, with demand remaining strong through the summer.
China-Europe
- Rate changes: Freight rates on China-North Europe routes have risen again in the first half of July, following earlier increases. Despite some stabilization due to flat European demand and high inventories, capacity cuts and blank sailings are still supporting higher rate levels.
- Market changes: The surge in container volumes has led to significant port congestion, exacerbated by diversions around the Cape of Good Hope. European ports are particularly strained, with on-time performance still below 50%. The influx of new ultra-large container vessels is adding pressure, and the market is watching closely for any potential easing of these conditions.
Air freight/Express market update
China-US and Europe
- Rate changes: Air freight rates from China to the US have continued to rise, driven by ocean-to-air conversions and strong e-commerce demand. Rates from China to North Europe have also seen increases, although at a slower pace compared to the Transpacific lanes. Overall, global air freight rates have seen a year-over-year improvement, with significant variations across different trade lanes.
- Market changes: The air cargo market is currently grappling with overcapacity issues, similar to the ocean freight sector. Carriers are grounding freighters in anticipation of a rebound later in the year. Despite this, demand for e-commerce and general cargo shipments remains high. The upcoming peak season is expected to be robust, with substantial volume increases projected, particularly for consumer electronics and other high-demand goods. Airliners are advising shippers to secure capacity well in advance to avoid potential delays and higher costs.
Disclaimer: All information and views in this post are provided for reference purposes only and do not constitute any investment or purchase advice. The information quoted in this report is from public market documents and may be subject to change. Alibaba.com makes no warranties or guarantees for the accuracy or integrity of the information above.
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