Below is a short Analysis for 20’ containers and the rates are as per market feedback which might vary as per spot and other factors.
For Oct 2024 – The rates have started falling, the space has opened up and there is a rate reduction for nearly all destination by around 15%.
Last 4 months overview.
- Situation was pretty bad in July when most of shipping lines were unable to provide space and ocean freights were soaring. All transhipments ports were heavily congested – Singapore, Colombo.
- In August the situation eased up on space but rates were not much impacted.
- In September the rates started reducing with space available from most of the lines.
- The rates have decreased from October and space is available. For few destinations for Europe, Maersk is even quoting 800 USD lower than the rates mentioned in above chart, since its on spot and can vary does its not mentioned above.
Reason for rate reduction in
- The market has opened up, the port congestion is over and the overall exports from India has reduced in Aug due to low demand due to inflation in Europe and few other countries.
Future prediction
- The rates are sliding, and if the situation does not worsen the rates would fall further.
- Many vessels and containers which were ordered in past years are to be in the market by this year-end which will lead the increase in space compared to present demand and reduce the freight further.
Cautious Note – In case if Israel – Iran war escalates, there can sudden increase in freight due to bunker rate increase. Also in case Strait of Hormuz is blocked then oil supply can be disrupted, leading to several challenges. We have made a detailed analysis of this in our earlier BLOG , please click to read it further.
