Asia Update: Rates Have Continued To Rise

So far this month, ocean freight rates from Asia have continued to rise and current market conditions very much resemble the period that followed the outbreak of the coronavirus pandemic.

Finding space aboard vessels has continued to present major challenges, with a shortage of container equipment adding another level of difficulty. Schedules continue to be disrupted as severe port congestion is currently impacting several major ports in Asia.

The market has been flipped on its head since vessels were routed away from the Red Sea around the turn of the year. Just six months ago, demand was low, ships were not full, and rates were at rock bottom.

Since the introduction of longer journey times, rates have spiralled upwards and there is little evidence to suggest that vessels are about to return to the Suez Canal route, which could mean rates continue to rise.

However, another train of thought is that we are witnessing an early peak-season demand boom, and if this is the case then the rise of freight rates could slow down soon. Hopefully, this theory becomes the reality.

The Croft Cargo team are working very hard to manage the current conditions, but must ask customers to try and provide as much notice as possible ahead of future bookings.

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