ocean containers

Why ocean container spot rates are spiking now

Ocean container spot rates have surged in recent weeks, marking a dramatic shift from the volatile pricing environment that characterized much of 2024. After a year of fluctuating rates and uncertainty, shippers are now grappling with rapidly rising costs, particularly on the crucial eastbound trans-Pacific trade lane.

The Drewry World Container Index posted on Thursday showed a 3% week-over-week increase to $3,905 per forty-foot equivalent unit, driven primarily by rate hikes on trans-Pacific...

https://www.freightwaves.com/news/why-ocean-container-spot-rates-are-spiking-now

Why the intermodal market is in a ‘long peak’ right now

Intermodal volumes aren’t slowing down. By mid-December, we’re well past the time when goods bound by train would arrive in retail stores in time for Christmas shoppers, yet railroads are still carrying near-record numbers of boxes. Tariff pull-forward, consumer demand and inventory building are all driving higher intermodal volumes, setting the market up for rate increases next year.

Call it a “long peak.”

Total intermodal traffic in North America saw a significant boost last month, increasing...

https://www.freightwaves.com/news/why-the-intermodal-market-is-in-a-long-peak-right-now

Gnosis Freight takes on private equity investor

Supply chain software provider Gnosis Freight said Monday it has accepted an investment of an undisclosed sum from private equity firm Vista Equity Partners.

The investment is from Vista’s Endeavor Fund, which provides growth capital and support to enterprise software and data companies with $10 million to $40 million in annual recurring revenue.

Charleston, South Carolina-based Gnosis provides visibility and tracking technology through its Container Lifecycle Management platform, which allows...

https://www.freightwaves.com/news/gnosis-freight-takes-on-private-equity-investor

Trans-Pacific container rates plunge again

Eastbound trans-Pacific ocean container spot rates plunged again this week as container ship capacity on the trade lane recovers and volumes reset at a lower level than they were pre-Lunar New Year.

The Freightos Baltic Daily Index spot rate for China to the West Coast of North America fell from $3,620 per forty-foot equivalent unit to $2,976 per FEU this week, a drop of 17.8%. The rate has come down more than 36% since March 1 as steamship line networks have adjusted and capacity has loosened...

https://www.freightwaves.com/news/trans-pacific-container-rates-plunge-again

Hapag-Lloyd CEO predicts early peak season for ocean shipping

Hapag-Lloyd’s annual report for 2023 and financial results for Q4 reveal exactly how challenging the ocean container market has been for the largest steamship lines. The report, which the German container ship line released Thursday, notes that Liner Shipping revenues dropped 48.5% to 17.7 billion euros ($19.2 billion) from 2022 to 2023, and earnings before interest, taxes, depreciation and amortization fell by 77.1% to 4.4 billion euros over the same period.

The ocean carrier grew its volumes...

https://www.freightwaves.com/news/hapag-lloyd-ceo-predicts-early-peak-season-for-ocean-shipping

Despite economic worries, more containers flow from China to US

There’s a seeming contradiction in the macroeconomic and trade data coming out of China these days: Despite contracting industrial activity, low consumer confidence and a worsening stock market rout, China is currently sending the highest volume of ocean container freight to the United States since May 2022.

(Indexed ocean container volumes from all Chinese ports to all U.S. ports by day of vessel departure. Chart: FreightWaves SONAR)

Part of the surge in shipments is due to the traditional...

https://www.freightwaves.com/news/despite-economic-worries-more-containers-flow-from-china-to-us

China’s outbound container volumes take another step down

Daily ocean container departures from China to all ports globally have taken another step down, according to data in FreightWaves SONAR Container Atlas, falling to minus-22% year over year on Nov. 23.

Ocean container departures from China mounted a recovery following Golden Week — the first week of October this year — but then slipped again as weak demand abroad and renewed COVID-19 lockdowns in Guangzhou took a toll on economic activity.

(Ocean container bookings by day of departure from all...

https://www.freightwaves.com/news/chinas-outbound-container-volumes-take-another-step-down

Subseasonal trucking market still soft and loose

The U.S. truckload market is still soft, with accepted contract shipments running approximately 5.5% lower than the year-ago period, and loose, as only 5.5% of contract truckload tenders are being rejected by carriers.

When market conditions are favorable to carriers, they reject more contracted freight and deploy their assets in the spot market, striving to maximize yield or revenue per loaded mile. When market conditions are unfavorable, carriers tend to reject fewer shipments and take what...

https://www.freightwaves.com/news/subseasonal-trucking-market-still-soft-and-loose

How will the European energy crisis affect freight markets?

Volatility in European power markets stemming from EU and U.K. sanctions against Russian energy — imposed in retaliation for Russia’s invasion of Ukraine in February — may soon cool off, but only after carving a slice out of the continent’s economy. 

On Monday, U.K. Prime Minister Liz Truss announced plans to cap household energy bills at the equivalent of $2,300 annually. Meanwhile, German Chancellor Olaf Scholz unveiled a 65 billion euro relief package to ease the pain of energy prices that...

https://www.freightwaves.com/news/how-will-the-european-energy-crisis-affect-freight-markets

Viewpoint: Congress passes ocean shipping reform

Trucks line up to enter Port of Los Angeles

On Monday, the House of Representatives voted 369-42 to pass the Ocean Shipping Reform Act. The bicameral legislation – which unanimously passed the U.S. Senate in March 2022 – will now head to President Biden’s desk for final approval.

Following the Congressional vote, the president released a statement saying he looked forward to signing the bill into law. His support is no surprise – in his State of the Union Address, President Biden called on Congress to address unreasonable ocean shipping...

https://www.freightwaves.com/news/viewpoint-congress-passes-ocean-shipping-reform

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