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Rate Related Update and Market Conditions

Market Conditions

TPEB (Trans-Pacific Eastbound)

  • Rates: No major rate adjustments expected in the next 1–2 weeks due to the Lunar New Year holiday. Short-term fluctuations may follow in early February, similar to PSS trends.

  • Demand: The SCFI has declined for the third consecutive week due to reduced cargo movement.

FEWB (Far East Westbound)

  • Rates: Market remains soft, with potential adjustments expected post-Lunar New Year.

TAWB (Trans-Atlantic Westbound)

  • Rates: Stable overall, with minor fluctuations depending on specific routes.

Operational Updates

TPEB:

  • Carriers have implemented roll pools at major origin ports to prevent vessel underutilization, causing expected rollovers in the coming weeks.

  • No major equipment shortages reported at origin.

FEWB:

  • Blank sailings before and after the Lunar New Year continue to impact vessel schedules.

  • Some origin ports are experiencing occasional equipment shortages due to blank sailings and vessel delays. Shippers should secure containers early.

TAWB:

  • Equipment shortages persist in Central Europe, particularly in Austria, Switzerland, Hungary, Slovakia, the Czech Republic, and southern Germany. Carrier haulage is recommended for better equipment access.

Capacity Management

TPEB:

  • Carriers are managing vessel space through roll pools to maintain utilization, leading to potential cargo rollovers.

FEWB:

  • The launch of new alliance services in February may impact schedule reliability and space availability.

TAWB:

    • Space availability is gradually improving on U.S.-bound routes, though equipment shortages in Central Europe remain a challenge.

California Wildfires and Potential Supply Chain Disruptions

Southern California wildfires have caused widespread damage but have not significantly disrupted warehouse operations. However, logistical challenges such as power outages and shifting consumer demand have been reported. Experts anticipate that as rebuilding efforts begin, demand for construction materials will surge, potentially leading to supply shortages. Short-term storage needs for materials like drywall, cabinetry, and roofing supplies are expected to increase, with potential implications for pricing and availability in the logistics sector.

  

U.S. Senate Examines Chinese Influence Over Panama Canal

A U.S. Senate Commerce Committee hearing addressed concerns over China’s growing influence on the Panama Canal, a key passage for global trade. Lawmakers discussed Chinese firms’ control of strategic infrastructure near the canal and potential economic leverage. Concerns were also raised about increasing canal transit fees, with some senators arguing these costs disproportionately affect U.S. shippers. The hearing, which lacked representation from the Panama Canal Authority, marks an escalation in U.S. scrutiny over the waterway’s management and its geopolitical implications.

Declining Asia-Europe Ocean Freight Rates Amid Weak Demand

Ocean freight rates from Asia to Europe have dropped sharply in January, with average short-term rates on the Asia-North Europe trade lane declining 21% since late December. The market slowdown is attributed to weaker demand leading up to the Lunar New Year, a period during which many Chinese factories temporarily close. Competition among carriers and forwarders has intensified, with some offering aggressive pricing to secure market share despite ongoing uncertainties in global trade conditions.

U.S. Ports See Strong Growth in Container Imports

Inbound container volumes at the ten largest U.S. ports increased by 14.2% year-over-year in December, continuing a 15-month growth streak. Data from analyst John McCown indicates that for the full year 2024, U.S. import loads rose by 15.2%, marking the second-highest annual increase on record. While outbound volumes showed weaker growth, the sustained rise in imports suggests strong economic activity. Analysts predict long-term container volume growth of 2.7% per year, highlighting the continued importance of containerized trade in global logistics.