Asia Ocean Freight Rates Spiralling Upwards

Asia ocean freight rates are spiralling upwards once more as market conditions start to resemble those that immediately followed the coronavirus pandemic.

Prior to Christmas, we saw the introduction of GRI's and received news of emergency surcharges incoming. However, with the situation in the Red Sea continuing to escalate the rates are continuing to rise rapidly.

Over the weekend, the ‘Maersk Hangzhou’ vessel was hit by a missile, and a further two missiles were intercepted by the US Navy. Four Houthi small boats then attempted to board the same 15,000 TEU ship in the Red Sea, before US military intervention led to three of the boats being sunk.

Maersk subsequently confirmed that all of their ships will be avoiding the region, which has been echoed by all major carriers bar one. The journey around the Cape Of Good Hope, which avoids the Suez Canal, is adding approximately 9-10 days to transit times, but does offer more certainty, as this route avoids shipments getting caught up in the conflict.

With most carriers extending their journey times on both legs of their Asia/Europe round trips, container equipment and available space is starting to come under pressure, and market conditions are beginning to resemble those that followed the pandemic.

The Croft Cargo team are monitoring the situation closely and will continue to do all we can to avoid disruption to customer's supply chains. However, with conditions developing on a day by day basis, we respectfully request that customers try to make fast decisions on quotes and bookings at this time, which will help to avoid losing out on available equipment and any upward movement in rates.

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