With Chinese New Year drawing closer, freight rates remain elevated, driven by increased volumes and ongoing capacity constraints. The ending of strike threats at major ports in India brings some welcome news.
Current Shipping Situation
As the countdown to Chinese New Year continues, freight rates remain elevated due to strong demand and ongoing capacity constraints. Carriers have maintained blank sailings throughout December to balance capacity on Asia-Europe routes, adding to the current supply-demand challenges. With volumes expected to peak in the weeks leading up to the Chinese New Year holiday at the end of January, pressure on supply chains is likely to persist into the early months of 2025.
Conditions at European and UK ports have shown steady improvement since last month’s peak congestion. However, vessel schedules remain inconsistent, making arrival ETAs not entirely dependable. These delays continue to affect the timely return of containers to Asia. While container availability at major Chinese ports is being managed for now, the risk of shortages could increase as demand intensifies closer to the Chinese New Year holiday.
Strike Action Update
There was good news this week as the threat of strikes at Indian government ports ended following the approval of a new five-year labour agreement. This resolution brings much-needed stability to operations at the country’s major gateway ports.
In the US, the deadline for discussion of outstanding issues, including port automation, remains set for 15 January 2025. If this strike goes ahead, it could impact supply chains. We will continue to monitor the situation closely and keep our customers updated.
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]
