This week, Yemen’s Houthi attacks are exacerbating global supply chain issues, with persistent disruptions in the Red Sea increasing shipping costs and economic concerns worldwide. Additionally, dry van freight contracts have hit their lowest average in years amidst fluctuating market conditions. The Port of Los Angeles reports growth, capturing market share from rivals despite a decrease in overall cargo processing in 2023. The ongoing Red Sea conflict is shifting market sentiment among shippers and exporters in Asia, influencing shipping costs and container prices. With shippers showing high confidence for Q1 2024, the freight market is on the brink of a pricing rebound, though carriers remain wary of excess capacity. Meanwhile, geopolitical risks, including tensions on the Korean Peninsula, continue to pose significant threats to global shipping and supply chains. Read the full articles below for comprehensive insights.
Weekly Freight Report: January 26, 2024
January 24th, 2024
How Yemen’s Houthi Attacks Are Hurting the Global Supply Chain
Global trade disruption in the Red Sea, with Houthi attacks persisting despite international efforts, raises shipping costs and economic worries worldwide.
Dry Van Freight Contracts Fall to Lowest Average in Years
Contract and spot prices are narrowing, but a significant spread persists due to excess capacity and low spot rates, with some exceptions. The spread is aligning more closely with 2019 levels.
West Coast Ports Snag Market Share from Rivals, Los Angeles Port Chief Says
Port of Los Angeles saw 2% YoY growth in December with 742,519 TEUs, ending the year as the top container port. However, overall cargo processing in 2023 declined by 13% to 8.6 million units.
Red Sea Attacks Impact Market Sentiment of Shippers and Exporters in Asia
Red Sea tensions disrupt international trade, leading to rising shipping costs and container prices. Market sentiment shifts with expectations of increased container prices due to the ongoing crisis.
Will Shippers’ Confidence Change When Carriers Regain Pricing Power?
Freight market anticipates a pricing rebound as shippers express record-high confidence in Q1 2024. Carriers cautiously improve sentiment but grapple with lingering excess capacity challenges.
Shipping And Geopolitical Risk: Don’t Forget About Korean Peninsula
Geopolitical events, from Russia’s invasion to conflicts in the Middle East, reshape shipping markets. Potential future wars, including North Korea’s actions, could further disrupt ocean trade and impact global supply chains.
