MarketPulse

MarketPulse

Market Pulse – 2022 Week 27

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202227] Spot freight rates have continued to soften last week with space now open on the Transpacific and Asia Europe routes with only the South American routes seeing high demand. Further rate discounting by carriers are expected for the rest of July, with demand remaining soft despite significant schedule slippage with up to 20% of total capacity on linehaul routes being delayed due to persistent congestion at both origin

MarketPulse

Market Pulse – 2022 Week 26

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202226] Hopes for a peak season boost to cargo demand is fading, with spot freight rates continuing to fall over the first week of July. US demand continues to soften, with the 4 main shipper categories  on the eastbound transpacific route grappling with rising cargo inventories (see chart below). Despite increased port congestion over the past week, this has not been sufficient to boost freight rates. The ILWU failed to  r

MarketPulse

Market Pulse – 2022 Week 25

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202225] Freight rates remain under pressure with peak season volumes yet to materialise, while easing congestion in China and the US West Coast has also released more capacity to the market. Rates are expected to remain soft until the end of July when carriers will try to push for a new round of rate increases. Congestion is rising in the US East Coast and North Europe but it has not had a material impact on overall capacit

MarketPulse

Market Pulse – 2022 Week 24

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202224] Spot freight rates fell last week with recession fears dampening peak season demand. Although demand is picking up, overall capacity on transpacific routes have increased materially in the past week and has outpaced demand as some carriers are offering rates below $7,000/feu to the West Coast. The window for the next transpacific rate hike has been pushed back to mid-July, but its success will depend on how strong ca

MarketPulse

Market Pulse – 2022 Week 23

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202223] Transpacific spot freight rates remain under pressure but alarmist reports of catastrophic demand drops are unwarranted. The recent weakness in smaller transpacific NVOCC bookings reflect volume shifts as BCOs are able to book directly at favourable rates with vessel space currently open. The reduction in the LA vessel queue is also freeing up more capacity to the USWC but USEC capacity remains constrained with conge

MarketPulse

Market Pulse – 2022 Week 22

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202222] Spot freight rates continued to drop on the Asia-Europe and Transpacific routes despite the reopening in Shanghai with volumes remaining soft. The composite SCFI increase was driven by rebounds on the Latin America and Middle East routes but the increase will only be sustainable if volumes strengthen from their current levels. Expectations remain high for a rebound in volumes for the summer peak season, with new orde

MarketPulse

Market Pulse – 2022 Week 21

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202221] Freight rates remain subdued, although sentiment is buoyed by the anticipated reopening at Shanghai. Capacity utilisation levels for vessels departing from Asia has weathered the Shanghai lockdowns in the last 2 months relatively well, with no notable dips based on Linerlytica’s ship utilisation data. Market expectations of a large rebound in cargo volumes are not justified, as there is no evidence of a large cargo

MarketPulse

Market Pulse – 2022 Week 20

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202220] The SCFI finally reversed 18 consecutive weekly rate declines, but the rebound remain unconvincing, with a further boost in demand needed to lift market sentiment in the coming weeks. Disappointing results announced by the major US retailers suggest consumer demand could be waning although signals remain  mixed at the moment. The market will be boosted by China’s reopening, with Shanghai due to end lockdowns on 1 Jun

MarketPulse

Market Pulse – 2022 Week 19

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202219] Market sentiment has improved slightly with both freight rates and charter rates holding up relatively better in anticipation of easing lockdown restrictions in key Chinese cities. Although the SCFI posted its 18th consecutive weekly drop, rates are expected to rebound when Shanghai re-opens within the next few weeks. The sustainability of the rebound will depend on the strength of cargo demand and forward signals ar

MarketPulse

Market Pulse – 2022 Week 18

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202218] Freight rates continued to fall last week but the pace of reductions have slowed with lower activity over the Labour Day holidays. Further rate reductions are expected despite attempts by some transpacific carriers to push for rate increases on 15 May and 1 June, with bookings too weak to support the rate hikes. Charter rates have also weakened in the face of softening demand, with both carriers and shipowners hoping

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