Freight rates ease, but port congestion persists

We’re well and truly on our way to the end of the year. I'm not quite sure where the time has gone, but there's certainly no shortage of things happening in shipping!

Let's kick things off with freight rates. The Drewry World Container Index fell 2% this week, with weaker demand pushing rates lower across the Transpacific and Asia-Europe trades. Carriers are responding with more blank sailings and surcharges to support rates, but further declines are expected..

The Intra-Asia Index also fell around 3%, as rates out of China softened. Congestion is somewhat easing at some major Asian ports, including Singapore and Ho Chi Minh City, while increasing capacity is adding further pressure to rates.

Closer to home, rates into Australia have softened slightly, with some more competitive pricing starting to emerge. We're still seeing changes to service rotations and schedule adjustments, however, so while freight rates are easing a little, it doesn't necessarily mean things are getting any more predictable on the operational side...

But if you think port congestion is finally disappearing, think again!

MSC chief executive Soren Toft says congestion has become the “new normal” for container shipping. Linerlytica estimates more than 4.3 million TEU of capacity was tied up in congestion in August, surpassing the previous pandemic-era record.

The latest global congestion watch list certainly reinforces that view. The usual suspects are still featuring, including Shanghai, Ningbo, Qingdao, Singapore, Port Klang, Rotterdam and Antwerp. But there are a couple of other areas worth watching..

The return of more services through the Suez Canal is raising concerns about congestion at Red Sea ports, while the Strait of Gibraltar region (Algeciras/Tangier) is also featuring on the list. Khor Fakkan is another one to watch.

Algeciras is still dealing with the fallout from Spain's general strike, which halted container operations and left vessels waiting offshore. Operations have resumed, but terminals are working through the backlog. Valencia was also affected, with cargo operations suspended during the strike.

• Hapag-Lloyd acquires 25% stake in Maersk's Rotterdam terminal
• G7 launches global port security network to combat drug trafficking
• MOL containership profit triples, beating forecasts by 66%
• Xiamen Port launches green methanol bunkering with OOCL
• ICTSI reports higher throughput and net income
• HMM reports 370% increase in Q3 operating profit
• Hapag-Lloyd nearly doubles Q3 EBITDA and raises 2026 outlook
• Maersk hit by cyber breach
• Yang Ming reports stronger Q2 profit
• Panama Canal increases daily transit slots
• RCL reports higher Q3 profit and orders more ships

Lots of numbers to crunch this week, with a steady stream of financial results coming through from across the industry.

Today's picture is of the striking Maersk Biscayne alongside at Patrick Terminal. Doesn't she stand out!