With Chinese New Year on the horizon, freight rates remain elevated due to strong demand and ongoing capacity constraints. Carriers are continuing with blank sailings throughout January, further limiting available capacity on Asia-Europe routes and intensifying the supply-demand imbalance.
As we begin the new year, the market remains heavily influenced by strong demand and ongoing capacity constraints. With Chinese New Year being celebrated on 29th January 2025, and for up to two weeks after, we are seeing the usual seasonal spike in volumes as businesses rush to move goods before factory closures in China and Hong Kong.
Impact of Chinese New Year on Supply Chains
Chinese New Year significantly impacts global supply chains originating from this region. Almost all factories and manufacturers shut down for the holiday, and while ports and customs operate with limited staff, normal operations can take weeks to fully resume. This year, the pressure on supply chains has been further exacerbated by a high number of blank sailings announced by carriers, as they continue to withdraw capacity to balance supply and demand. These measures are contributing to sustained high freight rates, which are expected to remain elevated throughout January and into February. The ongoing use of blank sailings from Asia to North Europe has also resulted in last-minute schedule changes, creating additional challenges for supply chain planning.
Holiday-Related Delays at UK and European Ports
Port operations in the UK and across Europe have largely returned to normal following the congestion issues experienced in Q4 of 2024. However, the Christmas and New Year holiday closures have caused some minor disruptions, leading to delays in vessel arrivals. We anticipate that operations will normalise fully by next week as ports resume regular activity.
Potential US Strike Action
The possibility of strike action in the US remains a concern as we move into 2025. Negotiations between the International Longshoremen’s Association (ILA) and port operators have stalled, with unresolved issues including port automation and labour conditions. The ILA has indicated that if a new master contract is not finalised by the critical deadline of 15th January 2025, strike action across East and Gulf Coast ports could occur. Following previous disruptions in October, any such action could likely have significant repercussions for global supply chains. We will continue to monitor the situation closely and provide updates as developments unfold.
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]
