North American Market:

In the second half of August, the freight rate increased initially and followed by a decline as the blank sailings decreased noticeably. However, the rate is still climbing slightly compared to the first half of the month. The overall container situation of shipping companies is good, and individual European shipping companies are controlling the number of empty container releases to improve the situation of container shortage.

There is no congestion at the basic ports on the East Coast and West Coast of the United States, and the waiting time for berthing at the two major basic ports in western Canada is approximately 2-4 days.

Latin American Market:

Shipping spaces for West Coast Latin America and Mexico are remaining tight while the situation is better in terms of East Coast America. The Caribbean region is also affected by vessel congestion, leading to a shortage of cabin space. The SCFI index has been continuously declining in a short range. In the second half of August, short-term freight rates in the East Coast of South America are expected to maintain stable with a slight decrease, while rates in the West Coast of South America is stable. Affected by less blank sailings, increased extra ship, and release of new routes, the shipping capacities have been expanded and it is expected that short-term rate will go by the end of August. Although the situation of HC container shortage has been eased for some shipping companies, the inventory of refrigerated containers remains tight.

Europe & Mediterranean Market:

Europe: The SCFI index has been declining slightly for two consecutive weeks, shipping companies have lowered short-term freight rates for second half of August. The demand is expected to remain weak for the next two weeks, shipping companies have sufficient supply of empty containers. Major seaports in Europe are not congested, with an average waiting time of 1-2 days for large vessels.

Mediterranean: Booking orders for 2H is showing gaining momentum due to the blank sailings and the substitution of smaller size ships by some shipping. The SCFI index was fluctuating in minor extent in the past two weeks, and short-term freight rates are showing a downward trend. However, it is forecasted that there may be a price rebound in early September, but the rising range is still uncertain. Overall, shipping companies have good operation of container inventories, and individual European shipping companies are controlling the release of empty containers in order to improve container availability.

Article source: KuehneNagel