Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have prepared the following report using practical efforts to ensure that the commentaries are accurate, generally using source intelligence and publicly available data.
FEBRUARY 2024 - SNAPSHOT - Rates
- Drewry's composite World Container Index (WCI) has decreased steadily in the past 4 weeks to $3,659.00 per 40ft container as at 22 February 2024. This after reaching a high of $3,964.00 per 40ft container at 25 January 2024 after 8 consecutive weekly gains.
- Despite the recent reductions, rate levels are still up 164.4% in the past 3 months since the seizure of the Galaxy Leader at which time the WCI was $1,384.00 per 40ft.
- Rate levels are up 93% when compared with the same week last year.
- The latest Drewry WCI composite index of $3,964 per 40ft container is the highest since October 2022 and is 158% more than average 2019 (pre-pandemic) rates of $1,420.
- Panama Canal
- After the Panama Canal Authority (PCA) revised up the allowance to 24 vessels from January onward, the PCA have confirmed they see no need to impose further restrictions until at least the end of the dry season in April.
- If rains arrive in May as expected, the canal plans to progressively increase daily slots, aiming to return to about 36 vessels per day, its normal number during the rainy season. If however rains are short of expectations, the authority could apply further restrictions to either daily passage or draft.
- Red Sea
- Carriers continue to avoid the Red Sea due to the ongoing disruptions. Freight rates peaked in late January and have started declining as demand eases post-Chinese New Year with new ships introduced adding capacity.
- Houthi rebels still continue attacks on vessels transitting the Red Sea. Houthis have launched at least 57 attacks on commercial and military ships in the Red Sea and Gulf of Aden since November 19, with the pace picking up toward the latter half of February. An environmental disaster has also unfolded as the result of a Houthi attack on bulk carrier Rubymar on February 18. The crew were forced to abandon the vessel after the attack, which has caused a 29 kilometre oil slick and the US military warned of the danger of a spill from the vessel's cargo of more than 41,000 tons of fertiliser.
- The US & UK, with support of a wider coalition group including Australia, Bahrain, Canada, Denmark, the Netherlands and New Zealand, continue attacks on Iran-backed Houthi targets in Yemen.
- By the first half of February 2024, container tonnage crossing the Suez Canal had fallen by 82 per cent. The drop in transits reflects the response by many shipping companies to the new security threat. Many have opted to divert ships to alternative routes, notably around the Cape of Good Hope. Ship tonnage entering the Gulf of Eden declined by over 70 per cent between the first half of December 2023 and the first half of February 2024. Meanwhile, vessel tonnage passing through the Cape of Good Hope increased by 60 per cent. By 18 February 2024, some 621 container ships have been rerouting through the Cape of Good Hope :
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