Ocean freight rates from Asia to Europe soared ahead of the carriers’ June 1 general rate increases, fueled by growing congestion at major ports and a shift in vessel deployment toward the booming Asia-U.S. trade lane.
Severe delays at key port hubs on both ends of the Asia-Europe route are absorbing available capacity. At the same time, a spike in trans-Pacific demand is leading carriers to reallocate ships from Asia-Europe to China-U.S. routes—further straining capacity and driving up rates.
According to HSBC’s weekly transportation report, capacity on the Asia-Europe route is expected to drop by 17% in the week starting June 16 compared to late May. However, HSBC warns that this shift won’t be enough to meet the trans-Pacific cargo surge and could lead to supply gaps in other trade lanes.
Drewry reports that since late March, worsening labor shortages and low Rhine River levels have significantly increased waiting times at key European ports: up 37% in Antwerp, 49% in Hamburg, and 77% in Bremerhaven. Meanwhile, in Asia, both Shanghai and Singapore are dealing with mounting congestion due to a rush of U.S.-bound exports during a temporary 90-day tariff reprieve.
As capacity tightens, carriers are aggressively raising rates from Asia to Northern Europe and the Mediterranean, and have begun imposing peak season surcharges on certain Mediterranean lanes.
According to Xeneta, freight rates from Asia to Northern Europe jumped 23% on June 1 to $2,353 per 40-foot container (FEU), while Asia-Mediterranean rates rose 24% to $3,720/FEU. S&P Global’s Platts data shows a $600 week-over-week increase in North Asia–Northern Europe rates, bringing them to $2,400/FEU, and a $1,400 spike in Asia–Mediterranean rates, reaching $4,300/FEU.
Carriers are also raising backhaul rates, which had lingered below $200/FEU since January. New Europe-to-Asia rates range from $500–$530/FEU from carriers such as MSC, Hapag-Lloyd, and CMA CGM, while Cosco has set its price at a notable $1,500/FEU.
Source: joc.com