Freight Market Heats Up for Summer
In our latest market update, we explore the ongoing challenges and trends in sea and air freight. The North American container market is facing tight space and equipment shortages, driving rates to their highest levels since July 2022. Meanwhile, container freight from India to North America is softening with added capacity. The Panama Canal aims to resume normal traffic by October. In Europe, container rates are surging due to increased demand and service additions. Air freight tonnage continues to rise as some sea shipments shift to air to avoid delays.
Sea Freight
Asia to North America
The North American container market continues with tight space, equipment shortages met with ongoing demand. Significant GRI stuck as of 6/14 and rate levels are at their highest since July 2022. It’s important to note that rates levels to WC are just $2000 short of their early 2022 highs. There are more GRI’s expected for July 1. However if this is an early peak we could see rates start to come down in August/September. That being said we don’t see the ongoing diversion around Cape of Good Hope or a return to the Suez Canal happening any time soon.
India to North America
Rates continued to increase week over week, except for the Northwest India to US East Coast (USEC) lanes. Continued blank sailings are expected from Northwest India to USEC. As a result, we can expect stabilized rates and potentially some upward momentum if the rate of blank sailings increases.
Panama Canal Update
The Panama Canal expects to resume normal traffic levels by October after restricting the number of ships crossing daily due to months of severe drought. The Canal’s Authority recently announced it will increase the maximum number of ships traveling the waterway to 34 per day in July, two more than now.
Asia to Europe
Container freight rates in Europe continued to surge as container liner companies introduced new services to supplement Asia westbound trade loops following a demand uptick. The continuation of container ship diversions from the Red Sea combined with container shortages and port congestion has caused shippers to move seasonal cargoes sooner than usual in fear of delays in addition to the longer transit times.
Air Freight
Asia to North America/Europe
Tonnage continues to increase as some sea freight is converted to air to avoid longer transit times. Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.
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– The CargoTrans Team
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