Posted on January 22, 2024
Global shipping news

Weekly Shipping & Logistics News Wrap, Week 4

Top Highlights 

  • World Container Index records significant increase.  
  • Red Sea crisis sparks capacity drop.  
  • THE Alliance members facing challenges.  
  • Red Sea attacks boost air freight.  
  • Spot rates from Asia surge. 

Let’s look at the above shipping and logistics news in more detail: 

World Container Index Records Significant Increase 

Drewry’s World Container Index has seen a remarkable surge, spiking by 23% to reach an impressive $3,777 per 40ft container this week. Notably, this surge represents an 82% increase compared to the same week last year. These rates now stand as the highest seen since October 2022, significantly exceeding pre-pandemic rates in 2019 by a staggering 166%. 

Red Sea crisis sparks capacity drop 

In more shipping and logistics news, the ongoing crisis in the Red Sea has sent shockwaves through service networks, resulting in the second-largest capacity drop experienced since the blockage of the Suez Canal by the Ever Given. Sea-Intelligence, a prominent maritime analysis firm, has provided insights through its “Trade Capacity Outlook” report, comparing the current situation with previous market disruptions. 

THE Alliance members facing challenges 

With Hapag-Lloyd’s exit from THE Alliance, the remaining members find themselves in a challenging position. Maersk and Hapag-Lloyd’s creation of the Gemini Cooperation from February next year has disrupted the landscape of global liner alliances on major east-west trade routes, leaving other members struggling to fill the void. 

Red Sea Attacks Boost Air Freight 

Disruptions in the Red Sea have triggered a surge in air cargo shipments from Asia to Europe. The attacks on vessels have prompted companies that typically ship clothing exports from Vietnam to Europe to opt for more expensive air freight. This shift has led to a remarkable 62% increase in cargo volumes on the Vietnam-to-Europe route in the week ending January 14, accompanied by a 10% rise in rates. 

Spot Rates from Asia Surge 

In the latest shipping and logistics industry news, container spot rates from Asia to the US and Europe continue their upward trajectory amid uncertainty in the Red Sea. Adding to the complexity, some shippers are experiencing significant allocation cuts for low-rated contract cargo, pushing them toward the spot market. Rates for shipments before the Chinese New Year have soared, with select carriers quoting over $10,000 per 40ft container. 

House of Shipping Insight 

The shipping and logistics industry is navigating a landscape marked by unprecedented challenges. From soaring container rates to disruptions in key trade routes, the industry is witnessing significant shifts. Collaborations, such as the Gemini Cooperation between Maersk and Hapag-Lloyd, are reshaping the competitive dynamics of the sector. As the situation evolves, industry players must remain agile to ensure the uninterrupted flow of goods worldwide. 

Weekly Shipping & Logistics News Wrap, Week 4

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