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

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