As the Golden Week holiday is about to begin, the shipping market is undergoing a series of changes. This week, the spot prices of major east-west shipping routes continued to decline, which is the result of the combined effect of multiple factors.
Freight rates continue to fall
This week, significant price declines were seen on transpacific and Asia-Europe routes, as well as on the traditionally more stable transatlantic route.According to Drewry's World Container Index (WCI) for this week, spot rates on the Shanghai-Rotterdam route fell a further 9%, closing at $1,735 per 40ft, close to the low of $1,442 reached in mid-December 2023, before the Red Sea crisis.
Capacity Adjustments and Rate Changes
Drewry pointed out that liner companies are reducing capacity to align with the slowdown in demand before the Chinese Golden Week holiday, when factories will be closed for eight days. It is expected that freight rates will continue to decline in the coming week. The specific capacity adjustment situation is as follows picture.
Operational challenges exacerbate market weakness
Recently, operational challenges such as typhoons in South China and port strikes in Italy have further disrupted schedules, exacerbating congestion on the Asia-Europe shipping routes. Judah Levine, director of research at Freightos, said these delays could particularly disrupt shippers trying to ship before the Golden Week holiday. However, as many Asia-Europe shippers may have already moved their peak season cargo and due to the tariff deadline, the peak season for the trans-Pacific has been brought forward. It is expected that the decline in demand in October will minimize the impact of the typhoon on major trade routes.
Based on the current market situation, it is recommended that enterprises with shipping plans maintain business flexibility, book shipping space as early as possible, and closely monitor operational risks.
আপনার বার্তাটি 20-3,000 টির মধ্যে হতে হবে!
