Shipping Outlook

Things across the supply chain are starting to shift again, with a bit more pressure coming through on both pricing and space.

Across the main trade lanes into Australia, rates are starting to creep up, but it’s coming from some carriers rather than across the board. Higher fuel costs and ongoing global uncertainty are playing a part, and with cargo volumes starting to lift, some carriers are trying to push through general rate increases (GRIs).

At the same time, space has become a little tighter. We are seeing some schedule changes and some reduced capacity.  This is making bookings more competitive than they were a few weeks ago.

For Fremantle, rates were fairly steady through April, but demand has picked up heading into early May. This is starting to tighten vessel space on some services, particularly towards the end of the month. As a result, bookings are increasingly needing to be made around 10 to 14 days in advance to secure space, depending on the service, particularly where cargo is moving via transhipment.

Globally, congestion remains a factor, but it’s shifting slightly across regions. Shanghai and Ningbo are still seeing heavy volumes, with over 600,000 TEU waiting at anchorage. Qingdao has seen a noticeable increase in congestion levels compared to previous weeks.

Singapore is also continuing to experience congestion, with a significant volume of containers waiting. Given this is a key transhipment hub for cargo into Western Australia, these delays are flowing through to overall transit times and second leg connections.

The continued ongoing uncertainty around vessel movements through the Strait of Hormuz, is still something the industry is continuing to watch closely.

On the local side, fuel surcharges for cartage continue to fluctuate week to week in line with fuel prices.

Airfreight is largely unchanged from a fortnight ago. Capacity remains tight on some routes due to schedule adjustments, which is again keeping pressure on both transit times and rates.

Overall, things aren’t dramatically changing week to week, but space is tightening on some routes, costs are edging up, and planning ahead, particularly for transhipment cargo, is becoming more important again.