Transport

Freight rates from main Chinese sea ports

Navis Group offers comprehensive freight rate analysis from major ports in China from the beginning of 2023 up to now.
 
In late July-August, shipping lines attempted to cancel several weeks of discounts on the Asia-North Europe trade lane with a significant increase in FAK rates towards the end of the month. 
Carriers explain this move as necessary to “continue offering you a wide range of high-quality services”.

The average spot rate XSI for Asia to Northern Europe, as reported by Xeneta, nearly halved since the beginning of the year.

Meanwhile, market rates for Northern Europe (including the port of Gdansk, which is currently crucial for shipments to/from Ukraine), dropped in the past few weeks to below $1,000 USD for a 40-foot container, as demand proved weak at the beginning of the peak season.

Excess Supply

According to commentary from the Ningbo Containerized Freight Index (NCFI), the situation with “excess supply” on the route has not improved.

“Carriers continue to lower their rates to secure more shipping orders,” the statement adds, noting that rates “continue to decline.”

Disappointing Start to Peak Season with Weak Demand for Asian Exports to the US and Europe coincided with a flow of new mega-container ships on the Asia-Northern Europe trade lane. For instance, THE Alliance FE3 (Hapag-Lloyd, ONE, HMM, and Yang Ming) will soon deploy four vessels with a capacity of 24,000 TEU, replacing ships with capacities ranging from 13,400 to 19,870 TEU.

Moreover, two other alliances from the East and West, jointly operating vessels, have also upgraded their Asia-Northern Europe trade lines with larger ships. The 2M alliance, with its new “giant sisters” MSC Irina and MSC Loreto, boasting capacities of 24,346 TEU, claimed the title of “world’s largest container ship” from the recently launched OOCL Spain, with a capacity of 24,188 TEU.

Navis Group continues to monitor developments in the container shipping market for you.