Asia-US container rates rise, tanker rates ex-USG soften as Asia port congestion intensifies
Shipping container rates from Asia to the U.S. climbed this week as severe port congestion and seasonal demand caused global vessel reliability to drop to a five-year low.
Container shipping costs from East Asia to the United States reached their highest levels since mid-2022 this week, according to a report by Hellenic Shipping News. This price movement coincides with a significant decline in global vessel reliability, which fell to 56.4% in July. Sea-Intelligence data indicates that all 14 major ports in Asia experienced increased delays, with average vessel arrivals now running more than six days behind schedule.
The congestion across Asian maritime hubs is being exacerbated by consecutive typhoons affecting Ningbo and Shanghai, alongside additional Pacific hurricane activity. Robert Khachatryan of Freight Right Logistics noted that carriers are maintaining pricing power by strategically pulling capacity and implementing blank sailings. Furthermore, U.S. retailers are accelerating shipments to ensure holiday inventory reaches fulfillment centers by mid-October deadlines.
While container markets strengthened, liquid chemical tanker rates originating from the U.S. Gulf generally softened. Market analysts at ICIS reported that transatlantic routes are facing downward pressure as the summer season concludes. Although space for immediate departures remains limited, there is significant availability for September. Despite the general softening, steady contract volumes for methanol and caustic soda are providing a floor for rates on most lanes.
Trade routes between the U.S. Gulf and Brazil remain quiet following the renewal of higher Brazilian tariffs on various petrochemicals, leading traders to adopt a cautious stance. Conversely, the route from the U.S. Gulf to India saw an uptick in inquiries and confirmed fixtures for methanol and glycols. This regional demand has placed upward pressure on shipping costs for that specific trade lane despite broader market trends.
Helena Marsh — Energy Markets Editor. Helena covers crude, refined products and the trading houses that move them, with a focus on price formation in the Mediterranean and Black Sea.
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