Weekly Supply Chain Update 31

Container Freight

Far East Westbound (FEWB)

• Demand post-Lunar New Year remains weak throughout February, with a continued decline in floating rates expected.
• Blank sailings previously announced are now impacting market capacity. However, with shipments that were deferred ahead of the holiday, carriers are seeing good vessel utilisation in February despite lower demand. In anticipation of the rate decrease, carriers are expected to accept over-bookings in preparation for March.
• While occasional equipment shortages persist at origin due to blank sailings and vessel delays, timely printing of Equipment Interchange Receipts (EIR) can help ensure prompt document processing, avoid delays in equipment pickup, and reduce the risk of missed cargo loading.
• The overall SCFI Comprehensive Index showed a decrease of 7.28%, with significant declines across various shipping routes. Europe (Base port) saw the largest drop, with a reduction of 342 USD/TEU (15.93%)

Trans-Pacific Eastbound (TPEB)

• Following the Lunar New Year, demand remains subdued in February, and floating rates are expected to continue decreasing. A gradual recovery is anticipated in weeks 9 and 10.
• Blank sailings scheduled prior to the holiday are currently affecting market capacity. However, due to deferred shipments that were arranged before the holiday, most carriers are reporting good vessel utilisation in February, despite the decline in demand. With rates expected to decrease, carriers are likely to accept overbookings in preparation for March.

Trans-Atlantic Westbound (TAWB)

• Recent changes in carrier alliances and vessel deployments, which temporarily reduced available capacity and caused service disruptions, have now been fully implemented. These strategic adjustments are expected to stabilise schedules and improve service reliability moving forward.
• The number of blank sailings has decreased in both North and South Europe.
• Several carriers have introduced a Peak Season Surcharge (PSS) starting March 1 for shipments from North Europe to the U.S., Canada, and Mexico.
• Demand has remained stable in February, with carrier capacity maintaining healthy levels.

Bulk

Panamax Market

Strong demand from South America is driving rates higher, particularly for fronthaul routes, while tonnage is tightening. However, long-term market growth may be limited by weaker coal demand and slower economic growth. In the Pacific, steady grain shipments from the North Pacific and improved coal and mineral exports from Indonesia are supporting rates, but sustained strength will depend on consistent cargo flows.

Supramax Market

The Atlantic market is showing signs of recovery, especially in the U.S. Gulf and South Atlantic, with more cargo emerging, but the Continent-Mediterranean route remains weak, needing fresh demand to push rates higher. In the Pacific, rates have improved post-Lunar New Year, with increased activity in the Indian Ocean and Southeast Asia. Period interest has picked up in the Supra/Ultra segments, keeping sentiment positive.

Handysize Market

The West Mediterranean has seen improved cargo flows, while the East Mediterranean remains sluggish. The U.S. Gulf market is stable, and the South Atlantic has seen some positional gains but remains flat overall. In the Pacific, the North China market has tight tonnage, which has led to stronger bids, while Southeast Asia shows more activity, though some routes are still lacking fresh cargo. Overall, market sentiment for Handysize vessels has slightly improved.