Shipping conditions remain under strain, although there are some signs of congestion easing at European and UK ports. Reduced capacity from blank sailings, coupled with an uptick in demand, has driven up market rates once again.
Current Shipping Market Update
With Chinese New Year fast approaching, freight rates are rising again due to an increase in demand combined with limited capacity driven by blank sailings imposed by carriers. Carriers have extended blank sailings into the first two weeks of December, further tightening capacity on Asia-Europe routes and exacerbating the supply-demand imbalance. As volumes increase ahead of the Chinese New Year shutdown in China, we anticipate additional pressure on supply chains in the coming weeks.
The situation at European and UK ports is improving compared to the peak congestion seen earlier this month. However, delays persist, with vessel schedules disrupted by carriers holding ships to alleviate port congestion and by bouts of poor weather impacting operations.
Late arrivals of vessels to European and UK ports continue to have a knock-on effect on equipment returns to Asia, with reduced availability of containers still an issue at key ports in China. For now, Chinese ports are managing current volumes with the equipment available, but shortages could emerge as demand intensifies closer to Chinese New Year.
Looking Ahead
Potential strike action at major ports in India and the US could pose risks of disruption to the supply chain in the coming months, but this is contingent on the strikes going ahead. In India, dock workers have called for an indefinite strike starting 17 December if wage revisions and service conditions are not implemented as agreed. In the US, there is the deadline of 15 January 2025 for an agreement to be reached on outstanding issues including port automation. Should these strikes take place, there could be an impact, and we are making customers aware of this possibility.
While some progress has been made in mitigating port congestion, the supply chain remains under some strain. With continued vessel delays and anticipated volume increases, disruptions are expected to continue until after Chinese New Year at the end of January 2025.
As always, we are closely monitoring these developments and will continue working to minimise any impact on your shipments.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team at 01376 533039 or email [email protected]
