Global Logistics Market Fluctuations in Week 47

At the end of November 2023, the Logistics market on Asian routes experienced unusual price increases. The European region faced delays due to the impacts of war, while North America saw a sluggish recovery. This posed challenges for shipping brands in balancing supply and demand, adjusting ship capacity, and offering competitive freight rates

3A Logistics continues to update the developments in the international container shipping and logistics market at the end of November 2023 as follows:

Overview of the Global Container Freight Index:

According to the Drewry World Container Index (DWCI), container shipping rates continued their downward trend in week 47 of 2023, reaching $1,384. This represents a 6% decrease from the previous week, a significant 42% drop from the same period last year, and 3% lower than the pre-pandemic average of 2019 ($1,420). This change is attributed to various factors including global shipping supply and demand shifts, macroeconomic influences, and potentially adjustments following the pandemic-induced freight boom.

*Chỉ số giá cước container thế giới Drewry WCI Tuần 47*

Asia – North America Route:

Freight rates from Asia to North America witnessed a significant drop to $1,745/FEU, down 7.23% from the previous week and 1.02% from the previous month. This decline could be due to reduced shipping demand following a period of strong growth or excess ship capacity. Demand is expected to rise again before the Lunar New Year, especially for consumer products. However, shipping companies announcing missed sailings in Q4 could indicate capacity adjustments in response to market demand changes.

1Asia - North America Freight Rate Update Week 432023 (1) — *Asia – North America Freight Rate Update Week 432023*

Asia – Europe Route:

Shipping rates from Asia to Europe continued to fall, reaching $1,220/FEU. This is a 5.13% decrease from the previous week, but a 26.56% increase compared to the previous month. This sudden rate hike from the previous month was due to the application of GRI increases at the start of November. However, rates then decreased significantly due to market adjustments. Market stability might also be affected by changes in service deployment and cancellations announced by shipping alliances.

Asia-North Europe Freight Rate Update Week 472023

North America – Asia Route:

The North America – Asia shipping route saw a minor adjustment in rates, now at $764/FEU, a slight increase of 0.39% from the previous week but a 0.65% decrease from the previous month. This indicates current market stability. Shipping companies are striving to optimize ship capacity usage through reasonable pricing in a challenging market with fluctuating supply and demand.

North America - Asia Freight Rate Update Week 47/2023 — North America – Asia Freight Rate Update Week 47/2023

Northern Europe – Asia Route:

Finally, the Europe to Asia shipping route experienced a significant rate increase to $369/FEU, up 3.36% from the previous week and 6.34% from the previous month, showing a slight market recovery.

North Europe - Asia Freight Rate Update Week 472023 — *North Europe – Asia Freight Rate Update Week 47/2023*

Overall, the international container shipping market in week 47 of 2023 shows a range of notable trends and fluctuations. Post-pandemic growth in freight rates on several routes indicates robust recovery. Shipping companies face challenges in balancing supply and demand, adjusting ship capacity, and offering competitive rates. This requires flexibility and quick response from carriers to maintain stability and efficiency. The Christmas shopping season typically leads to higher consumer spending and increased shipping demand, potentially putting pressure on carriers to enhance capacity and efficiency, while also driving price competition.