Freight rates jump slightly amid carrier adjustments. Stability expected into the new year.
Rates for November have seen a slight jump, with all major carriers raising their prices for the first half of the month. This increase appears largely driven by a seasonal surge in bookings, as businesses prepare to resume shipments following the Christmas shutdowns, making November sailings particularly appealing. However, the sustainability of these rate hikes remains uncertain.
Given that there is limited evidence of underlying growth in demand, it is unclear whether rates will continue to rise. Instead, it seems likely that rates may level off as we move closer to the new year, reflecting a more stable demand environment once the holiday rush subsides.
Carriers face pressure to implement blank sailings amid overcapacity
Shipping carriers from China have significantly increased capacity on major export routes this week, raising concerns of potential overcapacity. Experts note that carriers deployed 19% more capacity in the third quarter compared to the second, even as import volumes showed a slight decline.
This imbalance is prompting analysts to caution that unless carriers adjust their operations—through measures like blanking more sailings or reducing services—capacity levels could remain misaligned with demand in the coming months.
Update on Chittagong Port transport strike and disruption
The 48-hour strike by transport operators at Chittagong Port, which began on 21 October, has now concluded following successful negotiations between the Chittagong Port Authority (CPA) and the Prime Mover Trailer Workers Union. The CPA has committed to addressing the workers’ demands promptly.
While the strike is over, shippers should expect continued delays as port operations work to clear the backlog of stranded containers and restore normal activity. The strike disrupted an estimated 3,000 to 4,000 TEUs daily, resulting in thousands of export and import containers missing their scheduled feeder and mainline vessels.
Capacity issues tighten pressure on shippers from India
Shippers from India are facing sustained freight rate drops on key export routes, with India-US east coast rates plunging below $3,000 per TEU, down from over $10,000 in July, and India-Europe rates halving to around $2,000 per TEU.
Capacity issues, like vessel shortages with carriers such as ONE, are still affecting schedules. Even with lower rates, disruptions in ship availability can delay shipments, hurting businesses that rely on timely delivery, especially for perishable goods or high-turnover products.
Ocean Freight Outlook: Risks and Realities in Shipping
If we look at freight rates over the past few years, we can see significant fluctuations across both spot and long-term contracts, reflecting a volatile yet ultimately softening market. Average spot rates initially surged but began to ease mid-year, driven by slowing demand and the entry of new vessel capacity. By late summer 2024, spot rates across major lanes were significantly lower than their 2023 peaks, offering some relief to shippers. Meanwhile, long-term contract rates held steady but started to narrow towards spot rate levels as market conditions stabilised.
This year’s rate trajectory underscores the impact of ongoing global shifts, including reduced consumer demand, regional instabilities, and the strategic rerouting of vessels to avoid high-risk areas like the Red Sea. The trend of decreasing spot rates, coupled with moderating long-term rates, sets the stage for a recalibrated contract landscape in 2025.
Source: Shanghai Containerized Freight Index
[Webinar] Ocean Freight Expectations for 2025: How to Be a Smart Buyer of Freight
Get ahead of the shifting tides in ocean freight costs with insights into global freight indexes, market trends, and strategies for 2025.
In a world where shipping costs are constantly in flux, understanding the market dynamics that drive freight rates is essential for any smart buyer. This webinar will dive deep into the world of ocean freight, covering the key index, the Shanghai Containerised Freight Index (SCFI). Serving as an essential benchmark for the cost of shipping goods worldwide—knowing how to interpret the index can make all the difference in making informed, cost-effective decisions for your supply chain.
Whether you’re familiar with the fundamentals or looking to learn more about how freight indexes work, this session will provide you with valuable context. We’ll cover:
Understanding Freight Indexes: Learn how freight indexes like the SCFI reflect current shipping costs by monitoring rates across various trade lanes.
Spot Rates vs. Contract Rates: Discover why certain indexes focus on weekly spot rates while others include contract data—and how each impacts your shipping expenses.
Navigating Market Trends for 2025: Understand how to interpret trends from 2021’s highs to today’s market realities to better plan for future changes in shipping costs.
Demand for air cargo from Asia to Europe saw an unexpected surge in October, largely driven by e-commerce growth following China’s Golden Week. This increase defies the usual seasonal slowdown, with momentum fuelled by online shopping promotions and new product launches.
Unlike the drop in China-U.S. air cargo volumes, impacted by tighter U.S. import regulations, Asia-Europe routes—particularly from Hong Kong—have sustained strong growth, catering to urgent, time-sensitive shipments. Early October data shows tonnage from Hong Kong to Europe trending above last year’s levels, indicating continued demand through year-end.
Unsworth’s London Heathrow office is now open
We’re thrilled to announce the opening of our Heathrow office, dedicated to expanding our Air Freight services. With this launch, we’ve also created an Air team that will elevate our offerings in this critical sector. To lead the way, we’ve welcomed two talented new starters who will be ensuring smooth and efficient air operations every step of the way.
This new office represents our commitment to strategic growth and meeting the diverse needs of our clients with even more flexibility, speed, and service.
If you are exporting goods to the EU that you originally imported into the UK from the EU, you may be paying import duty unnecessarily and negatively impacting your cashflow without reason. The good news is that specific customs legislation exists to remove this financial burden, allowing you to export your EU-origin goods to the Continent and Republic of Ireland without paying import duty.
Expert Advice: We provide guidance on the best reliefs and exemptions for your needs.
Application Support: We manage the application process for various reliefs.
Documentation Support: We ensure all customs paperwork is completed correctly.
Complete Compliance: We help you stay compliant with customs regulations.
Catch up on demand by clicking here and gain clarity on removing the need to pay import duty for EU goods returning to the EU. Our webinars provide:
Regulation on Deforestation-free products (EUDR)
In 2025, the EU is introducing one of the world’s toughest deforestation regulations—set to transform the way food and retail industries source high-impact commodities. With stringent controls on imports like soy, palm oil, cocoa, and more, the EU Deforestation Regulation (EUDR) aims to halt the tide of global deforestation driven by unsustainable farming. And the clock is ticking.
If your business sources or sells in the EU, now is the time to act. We can help with:
• Critical compliance steps you need to begin today to secure your supply chains and protect your business.
• Risk management essentials for adapting to new sourcing standards and ensuring competitive advantage.
• How to leverage sustainable sourcing for resilience, brand trust, and regulatory compliance.
The Unsworth team are here to help
No two logistics challenges are the same. We understand this and tailor our solutions to meet your specific needs. Our teams work closely with you to develop strategies that address your unique challenges effectively and efficiently.
Our expertise allows us to provide tailored solutions that address the complexities of the market. As shipping companies show signs of flexibility in contract allocation coverage and equipment release, our team can navigate these changes effectively, ensuring smooth operations for our clients. Our strategic approach includes offering guidance that allows businesses to plan and adjust their logistics strategies accordingly.
As Unsworth reaches a significant milestone—50 years in the freight forwarding industry—we are thrilled to celebrate our legacy of excellence, innovation, and client satisfaction.
From fluctuating freight rates to potential disruptions from strikes at US ports, we understand the challenges you're facing and the need to adapt quickly.
As a business involved in international trade, you may encounter situations where goods that were originally exported from the European Union (EU) or Ireland need to be returned. This is where Returned Goods Relief (RGR) comes into play.
