Market Update
The ocean freight market is experiencing peak season congestion, equipment shortages, and elevated prices due to early arrival and Red Sea diversions. Spot rates have surged, making long-term contracts unreliable. Nearly 70% of BCOs and forwarders have had containers rolled or pushed to the spot market or are facing contract renegotiations. Container prices have risen 45% in key Chinese ports, but this increase is not sustainable in the long term.
Regional Focus
– Asia Pacific showed remarkable revenue growth in 2023 and is expected to drive half of the world’s RPK growth this year, thanks to domestic market gains.
– International travel in the region remains subdued.
– India is set to become the world’s third-largest economy by the end of the decade, and the Australian Government is launching consultations on a new roadmap for Australia’s Economic Engagement with India.
Ocean Freight Rates
– COSCO’s next biweekly CAP direct sailing from China to Brisbane, Townsville, Lae, Port Moresby, and Darwin will have a fast transit time.
– FAK rates from NEA origins to AUEC are struggling at USD 1400-100/TEU, while FAK rates from NEA origins to AUWC have hit USD 800-1000/TEU due to delays in Singapore.
– Market rates to New Zealand vary, with A3 teams pulling rates above USD 1000-1300/TEU out of NEA origins.
Port Updates
– The Port of Tanjung Pelepas (PTP) and Northport reported record monthly throughput in May 2024, benefiting from the Red Sea crisis.
– PTP handled 1.078 million teu without congestion, while Northport saw a 26% increase year-on-year.
Association News
– Carmelita Hartoto was appointed as the 34th ASA chairperson, with the next AGM taking place in Bali next May.
Currency Update
– The AUD barely held 0.6600, while the NZD fell to 0.6120, due to the firmer reserve and commodity currencies.
Upcoming Events
– RBA and Bank of England interest rate decisions this week, with no changes expected but narrative important.
– European political turmoil and US impacts expected.
– Growth and inflation focus in the coming week.
I hope this helps! Let me know if you have any further questions or need any additional assistance.5