The delayed but anticipated impact of the Suez blockage on Asia-Europe container flows and freight rates took effect this week, according to freight marketplace Freightos.
Carriers seeking to avoid or minimize delays caused by congestion growing at ports like Rotterdam – where a queue of waiting ships has formed – are skipping port calls and off-loading containers at alternate ports, speeding the return of empty containers to equipment-scarce Asian origin ports, but causing more difficulties for many European importers.
The surge of arriving ships in key Asian ports is causing delays there as well. Port congestion and delays at both origins and destinations are expected to make the container shortage in Asia worse over the next few weeks, before easing in early June.
Industry insiders at another large shipping company said, “The current Air and Sea freight market inbound and outbound from the Far East will be impacted by the Suez Canal block. This has will make the market more unpredictable then before. Please find below the latest market information from our Intermodal update team. Thought this is Sea freight the Airfreight market is also suffering lack of Space / Schedules / Carriers to support the demand of peak season and demand has pushed the rates up to all-time highs.
“The shipping lines are pretty ruthless in their approach within the current market environment, and are becoming adept at managing supply & demand, using market conditions to their advantage. The Far East to Europe market is currently paying less for space and equipment than the rest of the globe. Rates into NAM from Asia are around $10,000/40ft right now and are not expected to drop away any time soon. Similarly into Oceania and LATAM prices are double that of the FEWB to Europe trade lane, which puts European capacity at the bottom of the pile when carriers are looking to deploy their vessels, these other markets are more attractive financially.”
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