Ocean freight market update
China-North America
- Rate changes: Ocean freight rates on the China to US East Coast route have seen minor decreases, while the West Coast route experienced a similar downward trend. The slight rate drop suggests a possible easing in rate pressures as additional capacity is added by both major and regional carriers.
- Market changes: The market remains dynamic, influenced by strong US import volumes and potential disruptions like labor strikes at East Coast ports. The demand pull-forward due to upcoming tariffs and expected labor disputes is influencing market conditions, alongside congestion issues in some Asian ports.
China-Europe
- Rate changes: Rates from China to Europe have shown modest declines. European market conditions, such as high inventories and inflation, contribute to a stable demand environment, limiting rate increases.
- Market changes: The influx of new ultra-large container vessels is impacting capacity and rate dynamics. Reduced utilization on the Asia-Europe lane and a seemingly early close to the peak season, driven by holiday shipping needs, are notable trends. The effects of high rates in previous periods on lower-margin shippers are starting to show, reducing overall demand.
Air freight/Express market update
China-US and Europe
- Rate changes: Air freight rates from China to North America and Europe have remained relatively steady. Despite a typical seasonal lull, rates are still supported by strong e-commerce volumes and limited capacity.
- Market changes: Global air cargo demand dipped slightly in early July, with rates from Asia Pacific origins remaining significantly elevated year-on-year. Despite recent disruptions in air services due to global IT outage, new air cargo services and persistent demand for e-commerce and general cargo continue to pressure space and rates, with a stable outlook expected through the end of the year.
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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