According to reporting from The Loadstar, Trans-Pacific freight rates are expected to remain firmer than Asia-Europe rates, supported by resilient U.S. import demand, while weaker European growth continues to weigh on volumes and pricing.
The strength of the U.S. market has been reflected in port volumes handled, with the twin ports of Los Angeles and Long Beach both setting the highest record of cargo moved for any month in their history. “We’ve got good momentum heading into the final months of the year,” said Port of Los Angeles Executive Director Gene Seroka. Port of Long Beach CEO Dr. Noel Hacegaba called September a “historic month”, noting that the Port of Long Beach processed 25% more cargo than compared to a year ago.
Conversely, the Asia-Europe market is facing a different set of market dynamics. The gradual return of containerships to the Red Sea and Suez Canal is beginning to restore effective capacity to the trade, increasing the potential for further downward pressure on freight rates.
BIMCO said that containership transits through the Suez Canal during the first half of October exceeded 50% of levels seen before the disruption. BIMCO previously estimated that a return to Suez routings could reduce containership demand by as much as 10%.
However, the impact of reduced demand may not be immediate. As reported by Hellenic Shipping News, congestion at Asian ports is also absorbing some of the available capacity and could temporarily moderate the effects of additional vessel supply.
At the same time, the outlook for a sustained normalization of Suez routings remains closely tied to security conditions across the Middle East. Recent attacks involving two Singapore-flagged containerships in the Strait of Hormuz have again highlighted the risks facing commercial shipping in the region.
Singapore’s Maritime and Port Authority (MPA) said in a statement, “Such attacks are unprovoked, unjustifiable, and a breach of international law. All actions affecting international shipping must fully comply with international law, in particular the United Nations Convention on the Law of the Sea, and must not endanger the safety of seafarers and ships at sea.”
According to the International Maritime Organization (IMO), 80 attacks on international shipping in and around the Strait of Hormuz have been confirmed since the current Middle East conflict began on February 28, with casualties and injuries reported.
Source: The Loadstar, Port of Los Angeles, Port of Long Beach, BIMCO, Hellenic Shipping, MPA, IMO