On January 3, the Shanghai Containerized Freight Index (SCFI) rose by 44.83 points to 2505.17 points, with a weekly increase of 1.82%, marking six consecutive weeks of growth. This increase was primarily driven by the trans-Pacific trade, with rates to the U.S. East Coast and West Coast rising by 5.66% and 9.1%, respectively. Labor negotiations at U.S. East Coast ports are entering a critical countdown, expected to return to the negotiating table on the 7th; the outcome of these talks will be a key indicator for trends in U.S. freight rates. After experiencing price hikes during the New Year holiday, some shipping companies are offering discounts of $400 to $500 to secure cargo, with some even notifying major clients of a direct $800 reduction per container.
At the same time, the European routes have entered a traditional off-peak season, showing a downward trend, with the European and Mediterranean routes falling by 3.75% and 0.87%, respectively. As 2025 approaches, container freight rates are clearly reflecting anxiety over negotiations at North American ports, with rates from the Far East to North America increasing, while rates from the Far East to Europe and the Mediterranean are declining.
The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have been unable to reach a consensus on automation issues, casting a shadow over potential strikes at U.S. East Coast ports. Logistics operators point out that as both sides remain divided on automation, the closer it gets to the Lunar New Year, the greater the potential price increases could be. If negotiations with dockworkers are successful on the 7th, the threat of strikes will be removed, and market rates will return to reflect supply and demand changes. However, if negotiations falter and a strike begins on January 15, severe delays will occur. If the strike lasts more than seven days, the shipping market from the New Year to the first quarter will no longer be in an off-peak season.
Shipping giants Evergreen, Yang Ming, and Wan Hai believe that 2025 will be full of uncertainties and challenges for the global shipping industry. As negotiations with East Coast dockworkers reach a critical juncture, these companies have begun to draft plans to adjust vessel speeds and berthing schedules to mitigate the impact of potential strikes on their clients.
Additionally, industry insiders report that as the year-end approaches and factories begin to close for the holidays, shipping companies are starting to lower prices to stockpile cargo for the long Spring Festival holiday. For example, Maersk and other companies have seen online quotes for European routes in mid to late January drop below the $4,000 mark. As the New Year approaches, stockpiling prices will continue to decrease, and shipping companies will reduce services to cut capacity and support pricing.
Despite rising rates on U.S. routes, the influence of discounts from shipping companies has meant that their price increase plans have not been fully realized. However, concerns over a potential East Coast strike continue to provide support, particularly as West Coast rates have seen significant increases, largely benefiting from cargo shifts from the East Coast. Labor negotiations on the East Coast are expected to resume on the 7th, which will determine whether the upward trend in U.S. freight rates will continue.
Our main service:
·One Piece Dropshipping From Overseas Warehouse
Welcome to inquire about prices with us:
Contact: ivy@szwayota.com.cn
Whatsapp：+86 13632646894
Phone/Wechat : +86 17898460377
Post time: Jan-07-2025
