Rate Related Update and Market Conditions
Israel Approves Ceasefire Agreement with Hezbollah
Israel approved a U.S.-brokered ceasefire with Hezbollah, set to begin Wednesday, allowing focus on Iran and Hamas. The U.S. aims to extend diplomacy to Gaza, but Israel remains committed to eliminating Hamas, leaving the region tense with ongoing uncertainties.
INTRA EUROPE TRADE SCX & IBC SERVICE REVAMP
ONE announced the launch of SCX (Scandinavia Express) and IBC (Iberia Europe) Services, tailored to enhance operational efficiency and schedule reliability. These revamped services reflect ONE’s commitment to optimizing the network and providing customers with reliable shipping solutions.
Evergreen Marine Corporation and PSA International Jointly Invest in the Establishment of a Container Terminal
Evergreen Marine and PSA International signed a joint venture to develop a container terminal in Singapore, operational by late 2024. The partnership aims to boost efficiency, enhance capacity, drive innovation, and support sustainability, strengthening Evergreen’s Asia network and global collaboration.
Rate Related Updates
Effective December 1, 2024, CMA CGM has announced updated Freight All Kinds (FAK) rates from Asia to the Mediterranean and North Africa. This adjustments reflects an increase in pricing and will remain in effect until further notice.
Port Congestion
Trump’s Tariff Plan to Include Oil Imports from Canada and Mexico
President-elect Donald Trump’s proposed 25% import tariffs will include crude oil from Canada and Mexico, key suppliers to U.S. refiners. Industry groups warn this could increase costs for refiners, raise fuel prices for consumers, and disrupt North American energy security. Analysts highlight the challenges for U.S. refineries reliant on Canadian heavy crude, as tariffs could lead to higher gasoline prices, particularly in the Midwest.
Suez Canal Sees Record Traffic Despite Avoidance by Ultra-Large Vessels
The Suez Canal recorded its highest weekly containership traffic in 2024, with 54 vessels passing through. However, smaller vessels dominated transit as ultra-large containerships over 18,000 TEU have avoided the route for nine months due to security risks in the Red Sea. While mid-sized vessels show recovery, the shift highlights how ongoing Houthi attacks continue to reshape global shipping patterns and restrict larger ships from utilizing the canal.
Asia-Europe Ocean Rates Surge Ahead of December Price Hikes
Ocean freight rates on Asia to North Europe and Mediterranean routes have spiked ahead of carriers’ planned Dec. 1 price hikes. Carriers aim to strengthen their position during annual contract negotiations and capitalize on higher demand fueled by an early Lunar New Year. If successful, freight-all-kinds rates could rise by more than 30%, though current prices remain below carrier expectations.
Montreal Port Employers and Union Enter Mediation for New Contract
The Maritime Employers Association and the Canadian Union of Public Employees Local 375 have agreed to a 90-day mediation process to resolve contract negotiations for 1,300 longshore workers at the Port of Montreal. This step aims to avoid government intervention and address ongoing labor disputes affecting Canadian ports. The mediation reflects efforts to resolve coast-to-coast port disruptions that have impacted trade and logistics across the region.
