International shipping and logistics market update - Week 49/2023

International logistics and container shipping market update on Asia, Europe and North America routes in the week of 49/2023.

International shipping and logistics market update - Week 49/2023

Drewry’s World Container Index for week 49 increased 6% compared to the previous week to 1,461 USD. This rate index has decreased by 32% compared to the same week last year and is 3% higher than the 2019 average before the pandemic ($1,420).

Drewry’s World Container Index Week 49/2023 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

The freight rate from Asia to North America West Coast in the week 49/2023 decreased slightly to 1,653 USD/FEU, down 1.14% compared to the previous week, according to Xeneta data.

Q4 forecast: It is expected that many sailings will be missed, but overall capacity is similar to Q2/Q3 figures. Increased demand ahead of Lunar New Year is likely to begin in December.

Prolonged drought is causing more restrictions on container ship traffic through the Panama Canal. There are 32 transits per day, down from the normal 36, and the canal is planning to gradually reduce that number weekly to an expected 18 per day before February 1. While container traffic has so far not been affected, further reductions will likely start to have an impact. Carriers are evaluating the possibility of adding more ships to Suez-bound routes. Alternative routes could be via the Suez Canal or via the U.S. West Coast by rail. Carriers are also implementing weight restrictions of 8 tons on average for containers moving through the canal. Traveling through Panama remains the fastest route to the U.S. East Coast.

Asia- US West Coast Freight rate | Week 49/2023 (Image: Phaata.com)

2. Asia - Northern Europe route:

The rate for container shipping from Asia to Northern Europe rose slightly to $1,236 per FEU in week 49/2023 increased sharply to 1,477 USD/FEU, up 19.50% compared to the previous week, according to Xeneta data.

Ocean Alliance announced that three more sailings were canceled last week. Meanwhile, THE Alliance announced that it would suspend service FE5 from week 46 until further notice (but added the port of Cai Mep in Vietnam to service FE3); CMA CGM announced that it would drop the port of Cai Mep from service FAL3 from week 48.

Asia-Northern Europe Freight rate | Week 49/2023 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rates from North America (West Coast) to Asia in the week of week 49/2023 remained stable compared to the previous week, at 743 USD/FEU.

Empty containers at many railway stations in the US mainland are lacking due to a lack of imports into the Midwest. Shippers should make reservations 2-3 weeks in advance to ensure they have container equipment for export plans.

Overall demand remains weak and is forecast to last until the end of the first quarter of 2024. Fierce competition is taking place among carriers. Freight rates continue to be offered by shipping companies at attractive rates to fill ships while capacity is still surplus.

US West Coast - Asia Freight rate | Week 49/2023 (Image: Phaata.com)