Here we go again… Rate Increases and Premium Services

Welcome to our latest Market Watch update, where we delve into the latest developments impacting global logistics. The ongoing Red Sea conflict strains capacity and schedule reliability on the Asia to North America route, with potential strikes in Canada and the East Coast of North America looming. Meanwhile, India’s new services to North America are softening rates. The Panama Canal saw increased transits in April, though numbers remain below last year. Additionally, the Asia to Europe market faces rate hikes due to container space shortages. Air freight remains robust, fueled by ecommerce growth.

Read the full post on our Market Update blog

Sea Freight

Asia to North America

Red Sea conflict continues to impact capacity and schedule reliability. Reports of space tightening and equipment shortages at origin ports. Potential for strikes in Canada and on the East Coast may cause further increases in June. Premium options are back for more reliable transit times. More blank sailings slated for June with potential for another GRI in June.

Panama Canal Update

Oceangoing transits in April totaled 789 vessels, 42 higher than March, but 289 below the April 2023 number, according to the Panama Canal Authority’s latest data.

India to North America

Plenty of capacity as new services are introduced and rates continue to soften.

Asia to Europe

Multiple sources noted that the availability of container space on vessels traveling from Far East Asia to North Europe was constricted for weeks to come, with some carriers releasing premium container rates on the market to ensure they capitalize on any leftover container ship allocation. The Red Sea crisis along with restocking is causing rate increases.

Air Freight

Asia to North America

Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

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– The CargoTrans Team