THIS week has been two steps forward, one step back… and occasionally a small detour just to keep things interesting...
Judging by this week in shipping, it seems the industry has been following much the same game plan.
Drewry’s World Container Index fell 1% this week, with rates easing across both the Transpacific and Asia-Europe trades. The slight easing comes as capacity increases on some key routes, with fewer blank sailings announced for the week ahead.
Closer to home there feels like there is a lot more pressure, with FAK rate levels from both South and North East Asia rising again as we head into the ninth month of the year.
Drewry’s Intra-Asia Container Index also rose 10% this week, reaching its highest level in three years. Poor weather and repeated typhoon activity have caused further congestion across China, disrupting port operations and putting additional pressure on capacity. With another typhoon is forecast for the region, further rate increases are expected in the coming weeks.
Staying in the region, all eyes are now on the upcoming Golden Week holidays and carrier blank sailing announcements. Some lines have already made adjustments to their scheduling, citing expectations of softer demand during and after the holiday period.
Meanwhile, uncertainty around the Strait of Hormuz continues, while some carriers are cautiously returning to the Suez Canal as security assessments improve.
Whilst attention remains on those alternative shipping routes, another key trade gateway is also in focus. Indonesia, Malaysia and Singapore have reaffirmed their commitment to keeping the Straits of Malacca and Singapore free, open and safe for international shipping. The two straits carry almost a quarter of global seaborne trade and nearly a third of global oil and gas supplies, making their security and navigability critical to global supply chains.
So, what else is happening out there?
There has been a lot of vessels in and out of Fremantle’s inner harbour this week. This picture is of the Marti Crown, she’s around 170 metres long and 28 metres wide. That’s relatively small compared with some of the container ships that call at Fremantle. (But as someone who is also on the shorter side, I’m certainly not going to underestimate her! 😅)
Hope you all have a great weekend!