Positive Outlook and Increasing Rates: Despite some challenges, the market expects to remain positive in the upcoming week, particularly for liftings by 40′ and 20’GP containers in China. However, the deficit in container availability for Asia-Europe trade routes (FAK rate fm NEA origins to AUEC) is expected to drive an increase in rates. Major carriers have also announced Rate Restoration from NEA origins, accompanied by an increase in their Instant rate through e-commerce platforms.

Stable Market Conditions and Tightening Space: The market for Australia and New Zealand (AUWC and AUNZ) is anticipated to remain stable. However, space constraints are expected to tighten throughout June, indicating a potential challenge for shippers. Although carriers do not intend to increase FAK rates from Southeast Asia origins to AUNZ, they have reached a bottom level for some direct call ports.

Capacity, Demand, and Rate Pressure: The gap between capacity and demand remains a key concern, exerting pressure on rates. While a surge in ocean traffic is not imminent, the market continues to face uncertainties regarding its future development. The ample ocean capacity currently available has led shippers and logistics providers to postpone capacity commitments. This lack of visibility, combined with the possibility of disruptions, adds to the market’s vulnerability.

Uncertainties and Impact of Macroeconomic Trends: Recent macroeconomic trends have further contributed to the uncertainty in the shipping market. Initially, it appeared that interest rate hikes had temporarily ceased. However, recent warnings suggest the possibility of one or two increases later this year, potentially dampening demand. Expectations for a recovery in the second half of the year have weakened since the beginning of 2023. Nevertheless, the market retains a sense of optimism due to the anticipated launch of new products this year.

Delays and Challenges in Port Operations: Delays at the DP World Brisbane Terminal have been a recurring issue, causing significant disruptions for importers, customs brokers, and freight forwarders. The ongoing equipment issues have led to container detention problems. However, shipping lines are expected to show some leniency in such circumstances caused by their contracted stevedore. Coordination between all parties involved becomes crucial to minimize the impact of these delays.

Ro-Ro Market and Rising Demand: The roll-on/roll-off (ro-ro) market continues to experience a boom, with high demand and limited vessel space driving up rates. SAIC Anji, the logistics unit of China’s largest carmaker, has recently expanded its pure car and truck carrier (PCTC) orderbook, further indicating the growth of this sector. However, long-haul ro-ro schedules face multiple challenges, resulting in congestion and handling delays in ports across Europe, China, South Africa, the US, and Australia.