Weekly Supply Chain Update: 23

Containerised Freight

Trans-Pacific Eastbound (TPEB)

• Space Availability: West Coast space is improving with additional capacity by late November, while East and Gulf Coast routes remain fully utilised.
• Rates: Floating rates for the West Coast are stable, but East Coast rates may adjust with a General Rate Increase (GRI) anticipated around December 1.
• Market Pressures: ILA negotiations and potential tariff actions are influencing rates and capacity planning.
• Fixed Rates & Surcharges: These remain steady through November.

Far East Westbound (FEWB)

• Space Tightness: Blank sailings and roll pools are constraining space, with rates projected to rise to $6,000–$6,200 in December. Shortages persist but remain manageable, with premium options for shippers needing guaranteed space or specific schedules.
• SCFI Movement: Rates dropped slightly in Week 47, with a further dip expected before climbing in line with December’s GRI.
• NCFI Movement: Market cargo volume decreased, leading to an oversupply of space and continuous freight rate declines. The Europe route index fell by 2.3% compared to last week. The Middle East route continues capacity expansion and insufficient cargo volume resulting in an accelerated rate decline causing the index to drop by 8.6% compared top last week.

Transatlantic Westbound (TAWB)

• Space Constraints: Tight space for North and South Europe, with New York seeing the highest demand.
• Blank Sailings: Scheduled for Weeks 47–52, focusing on US Gulf and East Coast services.
• Equipment: Availability is generally good, though minor shortages are reported in Southern Germany.
• Rates: December rates align with November levels.

MSC: New Rates from Far East to Mediterranean & Black Sea Ports

MSC has released new Freight All Kinds (FAK) rates, applicable to shipments from all Far East ports (including Japan, Korea, and Southeast Asia) to destinations across the Mediterranean (West Med, East Med, Adriatic, and North Africa) as well as Black Sea ports.

These updated rates will come into effect on 1 December 2024 and remain valid until further notice, but no later than 14 December 2024.

For 20DV's into West Mediterranean base rates will increase from USD 3,650 to USD 4,450 and Black Sea increasing from USD 3,800 to USD 4,550.

PSA Antwerp Partners with Combinant to Boost Rail Connectivity

PSA Antwerp and Combinant are launching an integrated service to enhance connectivity between PSA’s deepsea terminals and the Combinant Rail Terminal at the Port of Antwerp. This initiative aims to shift freight transport from road to rail, promoting faster, cost-effective, and sustainable options for moving goods between the port and its hinterlands.

A new trucking service will link PSA’s deepsea terminals on the right bank of the Scheldt River with the Combinant Rail Terminal, supporting one of Europe’s leading container ports in its efforts to improve modal efficiency.

Bulk & Break Bulk Freight

Key Insights from the Baltic Dry Index (BDI) and Capesize Market Trends

The Baltic Dry Index (BDI) has shown signs of recovery in November, climbing from 1,374 on 4 November to 1,627 by 19 November, driven by stronger capesize freight rates. However, the index remains 10% lower year-on-year, reflecting weaker performances in other shipping segments. Capesize shipments increased by 1% in November compared to the previous month and the same period last year. Despite this, overall capesize demand growth has slowed to 4% year-on-year, down from the 7% growth recorded during the first three quarters of 2024.

Market sentiment has been negatively impacted by weaker capesize spot rates, with one-year time charter rates falling by 7% and second-hand capesize prices decreasing by 2% since October. Longer sailing distances for Brazilian iron ore and Guinean bauxite shipments have supported demand, but the pace has not been sufficient to match earlier highs.

Looking forward, Forward Freight Agreements (FFAs) indicate stable rates through December, with a seasonal dip expected in Q1 2025, bringing rates below the levels seen in Q1 2024. Nonetheless, capesize freight rates could reach this year’s highs again in 2025, as the market is projected to remain balanced, with supply and demand growth forecasted at 0.5-1.5%. Low vessel deliveries and a steady supply/demand balance continue to support a cautiously optimistic outlook for the capesize market.

Chipolbrok Expands Fleet with New Multipurpose Vessels

Chinese-Polish transport company Chipolbrok has placed an order with China’s Chengxi Shipyard for two new multipurpose vessels. Each vessel will have a capacity of 61,600 dwt, accommodating up to 800 TEU containers, a draught of 13.5 meters, and four cranes (2x 80 tons and 2x 150 tons, combinable). Delivery is scheduled between 2025 and 2026.

These new vessels will join six sisterships in Chipolbrok’s fleet, enhancing its capabilities in handling breakbulk, project cargo, and dry bulk parcels such as rare earths, minerals, grain, oil seeds, and coke, particularly during periods of low multipurpose demand.