North American Market:

Ocean freight turned to declining due to the sluggish market. Shipping capacities affected by suspension and blank sailing are very limited, spaces are generally ample while spaces for 20 GP are shortage in some shipping lines.

The dry season in Panama Canal leads to strict restrictions on goods shipped bound for East Coast of US. However, the effective date for the canal surcharge previously announced by some shipping companies has been postponed to July 1.

West Coast terminals and the International Longshore and Warehouse Union (ILWU) shut down some port facilities, which resulted in minor operation disruptions. It remains unclear whether the situation will be escalate further.

Latin American Market:

In 1H of Jun, the spot freight to East Coast of Latin America increased slightly while in terms of West Coast the freight declined. However, it is expected to rebound in the second half.

There are no suspension plan from shipping lines in the next 2 weeks, Some European shipping companies still face tight spaces of 20’ containers, but the supply of refrigerated containers has returned to normal. Currently, the demand for South America has slowed down, comparing to the East Coast of Latin America, the spaces are still tight in the West Coast.

Europe & Mediterranean Market:

Europe market remains weak, shipping capacities expanded due to fewer suspension of sailing. Spot freight is facing pressure of downward.

There is no congestion in major seaports of Europe, however, many empty containers have been accumulated in some ports. Strikes and bad weathers have became the main challenges.

In the next two weeks, the suspended shipping capacity of Mediterranean route accounts for about 0% and 23% of the total capacity respectively. The inventories of 20’GP and reefer containers are still tight. It shows the signs of cooling down in Mediterranean market while the availability of spaces are tight. The overall freight rate market remains stable in Jun.

 Translated article from KuehneNagel