Weekly Ocean Operations Update: Asia to Europe, US and Australia 07/06/24

General overview: The market remains strong. There has been a significant capacity reduction due to blank sailings, ranging from 15-20%, with a higher cut of 28% in Week 26. The FEWB route is experiencing a shortage of extra loaders, with no mega vessels available and a minimum of 16 vessels needed to maintain service.

Hapag-Lloyd (HPL) will reintroduce its China-Gulf Express (CGX) service (ex Yantian to ANT/RTM/West Africa) from mid-June using vessels with a capacity of 3,500-4,000 TEUs. FAK space is sold out, with quotes now only available at premium and higher rates. More carriers are reducing named account contracts (NAC) and beneficial cargo owner (BCO) space, instead pushing for more FAK and premium space.  A peak season surcharge (PSS) will be applied from June 15 by HPL and CMA on top of NAC rates.

According to Alphaliner, the FEWB trade has grown by 7.7% year-over-year, with expectations of further growth in the second half of 2024. Additionally, the Shanghai Containerized Freight Index (SCFI) shows rates to Europe have increased by 251% year-over-year.

Shipping lines are currently operating at near or full capacity. Alplhaliner’s monthly report shows that the percentage of idle ships stands at 0.6%, which is the lowest it has been in the past 12 months. The majority of idling vessels are smaller in size (500-2,900 teu), with most larger vessels already deployed as part of the active fleet.

Equipment remains tight in certain locations, particularly Ningbo; please see the equipment spreadsheet linked below for a detailed breakdown.

Overview by trade lane

FEWB summary:

Rate and capacity update as of June 7, 2024:

Oceania summary:

Rate and capacity update as of June 7, 2024:

Transpacific summary:

Rate and capacity update as of June 7, 2024:

Equipment update by carrier

Correct at time of publication on June 7, 2024:

Click here to download equipment spreadsheet

Asia port updates

Market intel: EU

• EU blank sailing ex Far East – click here
• EU blank sailing ex ISC – click here
• Evergreen will start operating megamax ships on its Far East –Med ‘MD2’ service. The capacity upgrade will come at the expense of the Evergreen operated Far East – North Europe ‘CES’ service, which will see 20,100 teu ‘G-class’ ships replaced by 13,800 teu ‘T-class’ units. (Source: Alphaliner)
• CMA CGM is increasing Peak Season Surcharge (PSS) applicable from Asia to North Europe as from June 18th, 2024 (date of loading in the origin ports), applicable to BCO/NAC deals. (Source: CMA CGM)

Market intel: Oceania

• Australia blank sailing – click here

Market intel: USA

• TP blank sailing – click here
• The major drive for the upcoming JUNE GRI is the USA tariff increases on Chinese imports, including electric vehicles (EVs), solar panels, and semiconductors wef AUG 2024 and some wef JAN 2026. The increased tariffs are expected to impact the prices of certain products in the US and have tangible effects on Chinese exporters. It covers 14 different Chinese product categories and includes hiking import duties on imported Chinese electric vehicles from 25 percent to 100 percent in months. (Source: Reuters)