April Showers Brings Brighter Days for Panama Canal Transit

Welcome to our latest Market Watch update, where we bring you the latest insights and developments in the sea and air freight industries. As we transition into April, we see promising signs for Panama Canal transit, with increased daily allowances set to alleviate congestion and improve transit times. Additionally, we explore the stabilization of spot rates on the Asia to North America route and the impact of dense fog in key Asian ports. Join us as we delve into these topics and provide valuable information on fixed-rate contracts for 2024-25. Don’t miss out on the opportunity to optimize your logistics strategy—reach out to us today for more information.

Asia to North America

Spot rates have stabilized to half of their high from the end of January although a May 1 GRI is on the table.

Asian Ports

Dense fog in Shanghai, Ningbo and Busan has contributed to closures, congestion and delays.

Panama Canal Update

The Panama Canal Authority (ACP) announced last week that starting in the second half of May, it would allow 31 ships to transit the canal daily, up from 24 ships each day during the first half of May. The number of ships allowed to transit will increase to 32 by the start of June. The canal remains restricted to ships with a 44-foot depth, but more large ships will be able to transit.

• 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.

Asia to North America

Air freight rates remain elevated and significantly above pre-covid rates.

Jet Fuel

With ongoing conflict in the Middle East we expect jet fuel prices to increase especially as we approach summer travel season. Disruption to sea freight continues to drive cargo to airlines as well as continued high demand for ecommerce goods.

Looks like rain: Panama Canal Authority eyes return to normal service
The Panama Canal could be back at nearly full capacity in time for this year’s peak season, if current rainfall forecasts prove to be accurate.
– Read More

MSC Aries now bound for Iran, and crisis will be ‘a catalyst for higher rates’
Less than 2% of the containerships active in the Persian Gulf are Israeli-owned, and redeploying these vessels to other routes is unlikely to significantly disrupt trade, according to new analysis from Linerlytica today.
– Read More

Ocean carriers push Panama Canal to mitigate climate effect on water levels
The Panama Canal’s ability to handle more ships in the coming months is an encouraging sign for ocean carrier executives who say the added capacity will be needed as container shipping continues to avoid the Suez Canal. Yet the liner industry is calling on Panama to invest more to mitigate the effects of climate change on the canal.

– Read More

HMM unveils ambitious plan to double container fleet, capacity by 2030
HMM, South Korea’s top container line, is planning to increase both its container vessel fleet and lifting capacity by more than 50% by 2030 under a mid- to long-term strategic plan announced by chief executive Kim Kyung-bae Monday.
– Read More

Iran Launches Drone and Missile Attack at Israel
Iran launched a wave of more than 300 drones and cruise and ballistic missiles toward Israel, setting up a direct military confrontation between the two nations and raising the risks of wider regional war.
– Read More

Third temporary channel opens at Key Bridge collapse site
A third temporary channel opened Saturday at the site of the Francis Scott Key Bridge collapse. Commercial vessels were able to use the Fort Carroll Temporary Alternate Channel, which has a controlling depth of 20 feet, a 300-foot horizontal clearance and a vertical clearance of 135 feet.
– Read More

Questions? All you have to do is contact us.

#makingtheworldsmaller