Sea freight market update
China–North America
- Rate Changes: Ocean freight rates on the China to US East Coast route have seen a slight decrease, while similar declines have been seen on the West Coast route. The slight rate declines indicate a potential easing of rate pressures as additional capacity is being added by both major and regional carriers.
- Market Changes: The market remains dynamic, influenced by strong US import volumes and potential disruptions such as labor strikes at East Coast ports. Increased demand due to upcoming tariffs and expected labor disputes are affecting market conditions, as well as congestion problems at some Asian ports.
China–Europe
- Rate Changes: Rates from China to Europe have seen a slight decline. European market conditions, such as high inventory and inflation, contribute to a stable demand environment, limiting rate increases.
- Market Changes: The introduction of new ultra-large container vessels is impacting capacity and rate dynamics. Notable trends are low utilisation on the Asia-Europe route and an early end to the peak season due to holiday shipping needs. Low-margin shippers are beginning to see the impact of higher rates in previous periods, dampening overall demand.
Air Freight/Express Market Update
China-US and Europe
- Rate changes: Air freight rates from China to North America and Europe remain relatively stable. Despite the seasonal slowdown, rates are still supported by strong e-commerce volumes and limited capacity.
- Market Changes: Global air cargo demand declined slightly in early July, while air cargo rates from the Asia Pacific region remained significantly higher year-on-year. Despite recent disruptions to air services due to a global IT outage, new air cargo services and continued demand for e-commerce and general cargo continue to put pressure on space and rates, and a stable outlook is expected through the end of the year.
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