As we enter the final quarter of 2024, significant developments in global shipping routes are impacting freight rates and vessel availability. The recent return of large vessels to Europe and America in September has stabilized the market, providing sufficient space for shipments. However, shipping rates are expected to fluctuate in the coming weeks, with notable changes in the US, Canada, and other regions.
Key Highlights:
- North America: While rates have dropped by USD 500-800 per 40HC on the West Coast, Canada faces an impending worker strike, starting October 1, 2024. This is expected to drive a rapid rebound in shipping costs in early October, with South American and Caribbean routes likely to follow.
- Middle East: Shipping rates have approached their lowest since 2018, with prices for basic ports in the region stabilizing around USD 800 per 40HC.
- East Africa: Shipping rates have decreased slightly, with market rates for Mombasa ranging between USD 2500-2850 per 40HC.
- Europe & Mediterranean: European ports have experienced a significant decrease, with freight rates dropping to USD 3500-4000 per 40HC. Meanwhile, Eastern Mediterranean ports remain stable at USD 3800-4000 per 40HC.
Looking Ahead:
As we move into October and the holiday season, shipping companies are expected to adjust vessel deployment in anticipation of Christmas, New Year, and the Spring Festival in January 2025. This adjustment may lead to gradual increases in freight rates as companies strive to maintain profitability.
Stay tuned for more updates as the market evolves.
