Freight rates continue to fall and nearly 100 voyages are cancelled! Eight-day strike warning in ports as shipping lines adjust sailing schedules
Spot container rates on all major routes continued to fall and the rate of reduction increased at what should normally be a peak demand season. In addition, Maersk informed some vessels that their ETAs would be significantly advanced or delayed due to the planned eight-day strike action at the Port of Felixstowe.
The latest report from the Ningbo Shipping Exchange said that the Ningbo Export Container Freight Index (NCFI) was down 4.7 per cent from last week, with all 21 shipping lines experiencing declines in their freight indices. Consumer purchasing demand on European routes was weak and the market was oversupplied, while North American routes did not have a strong season and freight demand did not improve.
The latest edition of the Drewry World Container Index (WCI) composite index was US$5,956/FEU, down 3% week-on-week and down for the 24th consecutive week. The Shanghai to Genoa spot rate fell 10%, or US$960, from the previous week to US$8,779/FEU; the Shanghai to Los Angeles spot rate fell 2% to US$6,834/FEU; the Shanghai to New York rate was largely unchanged at US$9,749/FEU; and the Shanghai to Rotterdam rate fell 1% to US$8,833/FEU.
In addition, the latest Baltic Freight Index (FBX) showed a large drop. the FBX Global Container Freight Index also fell 3% week-on-week to US$5,956/FEU. the China/Asia to US West spot rate fell 7% to US$6,149/FEU, to US East down 4% to US$9,498/FEU and to Northern Europe down 5% to US$9,986/FEU. FEU.
Some analysts believe that the scale of supply and demand is shifting in favour of shippers, with downward pressure on both spot rates and long-term contract rates.
Hapag-Lloyd chief executive Rolf Habben Jansen said on the first-half interim earnings call last week, "There has been a substantial easing in demand and we are seeing this in bookings and requested offers." He said his company's transpacific bookings were "holding up quite well", while European consumers were showing "more nervousness".
However, the latest Global Port Tracker report from the National Retail Federation is less optimistic about US trade. "Exciting import growth is fading fast," said Ben Hackett, co-publisher of the report. "The outlook for volumes in the coming months is for a decline compared to 2021, with the downward trend expected to deepen further in 2023."
In addition, the rate of decline in freight rates has been slowed in some areas of port congestion, such as on the Asia-Europe trade route, where major ports are being affected by a combination of increased dwell times for import containers, labour shortages and strike action.
Analysis says that in the coming weeks and months, ocean shipping companies will cancel as much capacity (blank sailing) as possible to balance supply and demand. Meanwhile, an eight-day strike at the Port of Felixstowe, the UK's largest container port, scheduled to begin on 21 August, may lead shipping companies to avoid this strike period and remove capacity.
Maersk issued a notice on August 12 announcing the strike at the Port of Felixstowe, stating that the port and the union had failed to reach an agreement, that new pay offers had been rejected by the union and that no further negotiations were currently scheduled.
Maersk expects the strike action to have a significant impact on vessel scheduling and is actively working with its vessel partners to minimise risk and disruption. The company will retain calls at the Port of Felixstowe, but the ETA for some vessels will be significantly advanced or delayed.
Based on eight consecutive days of strike action from 21 August to 29 August, Maersk's current contingency plans are as follows and are subject to change as the situation develops further.
Freight rates continue to fall and nearly 100 sailings have been cancelled! 8-day strike warning in ports and adjustment of sailing schedules by shipping lines
Impact on bookings: Subject to availability, Maersk will continue to accept dry cargo exports on strike affected Felixstowe vessels, but will not be able to accept new reefer bookings on strike affected Felixstowe vessels due to the risk of unavailability of reefer points.
Also according to Drewry's latest Voyage Cancellation Tracker, out of a total of 756 scheduled voyages on major trans-Pacific, trans-Atlantic, Asia to Northern Europe and Mediterranean routes, 98 voyages were cancelled between week 33 and week 37. Of these, 25 voyages were cancelled by the 2M Alliance, 33.5 voyages by the TEH Alliance and 22.5 voyages by the Ocean Alliance.
Translated with www.DeepL.com/Translator (free version)
