THIS week has had it all. First, I was taken out mid swim by someone doing backstroke in the next lane. Unlucky. The very next day, I scanned my Flybuys card and got $10 off my shop. Lucky! Balance has been restored.
And just like my week, shipping has had its share of highs and lows too. The biggest? A temporary truce between the U.S. and China. During President Trump’s visit to Beijing, both sides agreed to pause their reciprocal shipping levies for a year, easing trade tensions. Tariffs on Chinese imports will be trimmed, while China pledged to curb fentanyl exports, relax rare earth controls, and buy 12 million metric tons of U.S. soybeans through January.
Meanwhile, freight rates are keeping everyone on their toes. Rates remain elevated, with another rise on the World Container Index. Analysts expect the supply-demand balance to soften next quarter, easing rates. Closer to home, China-Australia prices have spiked, likely driven by congestion at major Chinese ports. Delays mean less capacity, and less capacity means higher prices.
And across the wider industry, two trends are particularly in focus. The industry is closely watching the record container ship order book and the slow pace of ship recycling. Only ten ships have been scrapped this year, continuing the low activity seen since 2021. Vessels trading well past their usual recycling age are creating additional challenges.
Let's see what else is happening out there:
Here’s a shot of the OOCL Panama making her way into Fremantle’s Inner Harbour. A regular visitor to the port, she operates on OOCL’s AAA2 service. Built in 2008 by Samsung Shipbuilding & Heavy Industries in South Korea, the vessel measures 260m in length and 32m across, with a carrying capacity of around 4500TEU, a versatile size that keeps her well suited for this route.
Happy Halloween to those getting into the spirit! On my recent trip to Melbourne, I was surprised to see how big it’s become. Meanwhile, here in Perth, it still feels a bit hit or miss. Wherever you sit, it’s the start of the weekend! Have a good one.