No precipitous plunge in container shipping rates, just ‘orderly’ decline.

Spot rates are at least temporarily plateauing because U.S. import demand remains above pre-COVID levels, some U.S. ports remain extremely congested, and ocean carriers are “blanking” or “voiding” (i.e., canceling) sailings, both because their ships are stuck in port queues and because they’re matching vessel supply with cargo demand to avert the fate of Greek tanker owners.

Void sailings are still the go-to options for carriers at this point to try and stymie the fall in rates. Congestion is still the buzzword for East Coast ports, with Savannah currently feeling the full force of loaded imports and associated delays.

French container line giant CMA CGM SA is seeing an across-the-board drop in shipping rates and a loosening of logistics bottlenecks in some regions as demand softens. The decrease is expected to continue.

The observations are in line with those of the World Trade Organization, which said this week merchandise trade flows slowed last quarter and will likely stay weak in the second half. This could see the winding down of a frothy period for container carriers after two years of high rates and capacity shortages stemming from pent-up demand from consumers during the pandemic.

The air cargo market remains flat as the industry heads towards the traditional peak season.

Forwarders have also reported a switch back to sea freight from airfreight as container shipping supply chain snarl-ups have eased and prices have come down. Airfreight conversions back to ocean freight have continued with more shippers seeking lower supply chain costs by tolerating the longer duration of ocean freight transit.

During the peak of the pandemic, the air freight industry picked up ocean volumes due to the higher prices and disruption in ocean shipping.

This disruption is easing due to easing demand in ocean. The cost differential between the two modes is also edging back up.

Reference:

https://www.freightwaves.com/news/no-precipitous-plunge-in-container-shipping-rates-just-orderly-decline

https://economictimes.indiatimes.com/small-biz/trade/exports/insights/shipping-giant-cma-cgm-sees-softening-of-global-freight-rates/articleshow/93812268.cms

https://www.aircargonews.net/business/supply-chains/air-cargo-market-remains-flat-ahead-of-upcoming-peak-season/

More News
Emerging Trends in Microsphere Technology
News · 01/02/2025

Targeted drug delivery revolutionises treatment by focusing medications on specific tissues, reducing the impact on healthy cells. Scientists enhance this precision with carriers like microspheres and nanoparticles, controlling release and absorption. Microspheres, made from biodegradable proteins or polymers, sustain drug release, making them ideal for targeted therapies, especially in oncology. Beyond drug delivery, microspheres open new possibilities across industries—from next-gen coatings to thermal insulation. With tailored sizes, shapes, and materials, they drive advancements in pharmaceuticals, advanced materials, and more.

READ MORE
US FDA proposes mandatory Asbestos testing in Cosmetics with Talc
News · 01/02/2025

The U.S. Food and Drug Administration (FDA) has proposed a new rule to require standardized testing of talc-containing cosmetics for asbestos. The FDA noted that this move aims to protect consumers from potential harm posed by asbestos, a known carcinogen linked to serious illnesses such as lung and ovarian cancers.

READ MORE
Chinese New Year affects Asian freight traffic
News · 20/01/2025

As one of the most significant holidays in China, Chinese New Year (CNY) profoundly impacts global shipping, logistics, and supply chains. Scheduled to begin on January 29, 2025, this festive period lasts up to two weeks, with many factories, ports, and businesses shutting down or operating with limited staff. Understanding the implications of CNY on your supply chain is critical to avoid disruptions and ensure seamless operations.

READ MORE
High Freight Rates Strain Global Supply Chains
News · 04/11/2024

Disruptions in the Red Sea, Suez Canal, and Panama Canal have driven up shipping costs, sending shockwaves through the global economy.

READ MORE
Fond memories from #CPhIMilan2024..…
News · 29/10/2024

It was truly heartwarming to see so many clients and associates visiting our stand, even as late as at the end of the show, sharing drinks and engaging in conversations.

READ MORE
Fears of strike in US, its impact on ocean freights & what lies ahead…
News · 01/10/2024

Ocean freight rates on key global container routes have fallen again. Despite the upcoming Golden Week in China, which usually drives demand, the situation this year is slightly different, and the expected rate increase may not happen.

READ MORE
Highly Potent Active Pharmaceutical Ingredient (HPAPI) | Challenges & Opportunities
News · 02/08/2024

Highly potent active pharmaceutical ingredients (HPAPIs) are at the dangers of cross-contamination with other product forefront of pharmaceutical manufacturing. They are particularly common in targeted therapies and personalized medicines. This is primarily due to their potent therapeutic effects at low dosage forms.

READ MORE
It’s all happening again: The supply chain is under strain…
News · 02/07/2024

The floating traffic jams off ports. The multiplying costs of moving freight. The resulting shortages of goods. All of this had seemed like an unpleasant memory confined to the COVID-19 pandemic. But no such luck!

READ MORE
Sudden container crunch sends ocean freight rates soaring…
News · 05/06/2024

An ocean container capacity crunch has hit global trade just as peak shipping season starts, with freight spot rates up some 30% over the past few weeks and heading higher.

READ MORE