I'M NOT sure about your part of the world, but it felt like everything I touched this week turned into a problem. It was definitely not the week to run low on blood pressure medication!
Am I the only one who wakes up excited on a Friday morning knowing the Drewry World Container Index has been published?
This week, the WCI fell 2%, with rates easing across both the Transpacific and Asia-Europe trades as demand softened during China’s Golden Week. Transpacific rates fell 3% from Shanghai to Los Angeles and 2% to New York, while Shanghai to Rotterdam dropped 2%. Shanghai to Genoa was unchanged.
The Golden Week slowdown has weakened cargo volumes, while the increasing return of services through the Suez Canal is adding capacity to the Asia-Europe trade.
The Drewry Intra-Asia Container Index also slipped 1% this week after six consecutive weekly increases. Demand softened during Golden Week, although congestion and vessel bunching at Shanghai and Ningbo continue to create operational pressure.
Rates are expected to remain fairly steady as factories return to production and bookings ramp up.
And while rates have eased slightly, congestion certainly hasn’t disappeared.
Shanghai and Ningbo remain the biggest hotspot, with 136 vessels waiting and almost 860,000 TEU caught up in the congestion. Singapore, Qingdao and Port Klang are also showing elevated vessel queues.
So while Golden Week has slowed bookings, that operational pressure across key Asian ports is still very much there.
There is some good news from Germany, with the threat of indefinite port strikes now averted. The ver.di union has accepted a 12 month wage offer covering around 11,000 port workers, meaning further industrial action has been avoided, subject to formal employer approval.
So, what else is happening out there?
There has been a flurry of vessels in and out of the Inner Harbour this week. Today’s picture is of MSC Cancun IV alongside at Patrick Terminal. At 259m LOA and 32m wide, she’s been a regular caller at Fremantle.
Have a great weekend everyone!