MARKET UPDATE: SEPTEMBER 13th, 2024
Market Update: Freight Rates Decline in Most Markets
As of September 2024, the freight market is navigating a dynamic and challenging environment influenced by various global factors. Sea freight is experiencing rate fluctuations and potential disruptions due to an impending East Coast port strike and the possibility of an International Longshoremen’s Association strike, with significant impacts expected on both trans-Atlantic and trans-Pacific routes. The ongoing decline in rates from Asia to North America and India, coupled with shifting demand patterns in Europe, is shaping the market. Meanwhile, the air freight sector is bracing for an unprecedented peak season driven by a surge in holiday e-commerce and the launch of new high-profile products like Apple’s iPhone 16. As the industry adapts to these evolving conditions, strategic planning and timely bookings will be crucial for navigating the complexities ahead.
MARKET WATCH
Ocean Freight
Asia to North America
Rates continue to decline despite the prospect of a looming strike on the EC. Significant blank sailing announcements and rates will likely hold firm until 09/30. Golden Week – 10/1/24 – 10/7/24 – Please book freight in advance.
Europe to North America
The North Continent to East Coast North American trans-Atlantic route experienced continued demand growth supported by capacity management and sourcing shifts from Asia to the EU, as well as importers advancing orders ahead of the potential International Longshoremen’s Association strike on Oct. 1. In the event of a strike carriers will offer services via Canada, but space/connections are limited and may not absorb all volume.
India to North America
Rates continue to decline.
Asia to Europe
European container markets continue to see a decline as imports imported holiday goods in advance.
East Coast Port Strike
Please see our focus piece on all things EC strike and ILA.
Air Freight
Asia to North America/Europe
Sources are saying that air peak will be unprecedented due to ecommerce surge for holidays as well as Red Sea diversion. Apple’s iPhone 16 launch begins shipping this month.
Need Help Navigating the Current Freight Market?
📰 IN OTHER NEWS…
Oil Tanker Attacked by Houthis Is at Risk of Leaking n Red Sea
The Sounion is carrying a million barrels of oil and U.N. group warns that a spill could devastate the coasts of Red Sea countries
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Container manufacturers tell customers they are ‘sold out’ until mid-October.
Drewry says it expects 2024 to be the second-highest year on record for dry freight container production, with manufacturers reporting full orderbooks.
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Ocean carriers ‘fire blanks’ ahead of China’s Golden Week holiday.
Fearing another container spot rate crash, ocean carriers have blanked a number of export sailings from Asia to Europe and Asia to the US, prior to the Chinese national holiday in early October.
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Wan Hai has been invited to join a shipping alliance, reveals GM
Despite the correction in freight rates, Wan Hai Lines’ general manager, Tommy Hsieh, is optimistic about container shipping’s profitability carrying into 2025.
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MSC to partner with new Asian container alliance.
The three Asian container lines ONE, HMM and Yang Ming will continue their cooperation under their name Premier Alliance after Hapag-Lloyd’s departure
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FCM approves Gemini Cooperation despite anti-competitive ‘concerns’
The Federal Maritime Commission (FMC) has admitted to “questions and concerns” over whether the Maersk and Hapag-Lloyd Gemini Cooperation will have anti-competitive consequences.
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Potential port strike has retailers, manufacturers scrambling
Retailers and manufacturers are seeking to mitigate a potentially multibillion-dollar hit if members of the International Longshoremen’s Association go on strike beginning Oct. 1 at 13 of the nation’s major East Coast and Gulf Coast ports.
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ILA readiness to strike highest since 2012
A FreightWaves article on Tuesday discussed the circumstances leading to the International Longshoremen’s Association’s (ILA) last multicoast strike in 1977. We noted how the ILA — which represents dockworkers at ports along the East and Gulf coasts — is one of the less strike-prone unions in the industry.
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What to know about ILA demands in potential port strike
It was 1977 since the last strike by the International Longshoremen’s Association, which represents unionized workers at ports on the U.S. East and Gulf coasts. The United States Maritime Alliance (USMX), representing 40 ocean carriers and terminal operators, has successfully negotiated 10 straight master contracts without a work stoppage with the ILA.
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Trump’s tariff plan will cause another massive Asia-US freight rate spike
US presidential hopeful Donald Trump’s promise to impose a 20% tariff on all imports entering the country, as well as 60%-100% imports levied on Chinese goods, could throw the transpacific trade into a renewed rate spike.
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