North American Market:

The shipping spaces are quite tight as the capacity utilization rate has reached to high lever. The freight rate for 2H of July has jumped and it will last until the end of this month due to the lack of capacity.

Many shipping lines have announced the GRI (general rate increase) plans for early and mid August. Though the strike in west coast ports of Canada have ended, it takes several weeks to recover the operations to normal in Prince Rupert port and Vancouver port. The impact may last until September, currently the time of waiting for berth ranges from 7-10 days.

Latin American Market:

Generally the spaces for Mexico and west coast of Latin America were tight at present while the it is open in terms of east coast. The freight rate is expected to remain the same for east coast but may slightly decline in west coast in short term. Some shipping companies are facing shortage of 40’GP. Supply and demand of reefer containers are balanced.

Europe & Mediterranean Market:

Attributed to the advanced shipments, the booking volumes for Europe trade lane have grew up recently, however the actual demand has not risen notably. Generally the empty containers are sufficient in the coming two weeks, some shipping companies are experiences tight supply of HC containers. The freight rate to basic ports of Europe soaring followed after the announcement of GRI by shipping lines. It is still wait and see whether it will be accepted by the market.

The Mediterranean market has showing the signs of cooling down, but overall spaces are still tight. The shortage inventory of 20 foot and reefer containers are remaining there in some European shipping companies. SCFI index starts to decline narrowly after 5 consecutive weeks edging up. The freight rates are forecasted to remain stable in July.

Article source: KuehneNagel