DECEMBER UPDATE

Sea Level: the ocean blog

12/15/2022 | 2 min

Every month we’ll provide you with critical updates on Global Ocean Freight, sourced from our own Market Intelligence solution, including expert analysis from our freight specialists.

Ocean Market Trends Europe – East Asia, December 2022

  • Contract rates on the Europe to East Asia backhaul have dropped 12.6% compared to November, despite continuing bottlenecks at European ports and inland terminals.
  • A falling shipping rates for exports, as well as an improving supply of imported components, contribute to the surprisingly robust business performance of many producers, despite rising energy costs.
  • This trade has been falling since June and further reductions are forecasted for January and February, as contract rates are rapidly narrowing the gap toward spot and are closing in on pre-pandemic rate levels.
  • The balance here has definitely shifted, and shippers for whom this trade is central can confidently approach upcoming tenders.

Ocean visibility: two critical elements

First, we are witnessing a change in market circumstances, gradually moving from a global shortage on empty containers and heavy congestion at ocean terminals toward overcapacity. This will result in ports being taken out of ocean service loops, changing transshipment locations, and departure timeslots being skipped (so-called blind sailings).

In both circumstances, we can expect to see considerable delays in ocean shipments and ongoing uncertainty in comparison with what you have booked. Even though empty containers have become more available, they are not always immediately where you need them. Using an effective ETA prediction tool will continue to be beneficial as early visibility is the best defense against delays and volatility.

Second, demurrage and detention are still major points of concern for ocean freight.

In the context of congested terminals, this creates an additional problem for detention charges. Even when our customer transports the empty container back to the sea terminal on time, a congested terminal may refuse to accept the redelivery of the empty container. As a result, the carrier will charge increased detention fees, and shippers have little to no control in this situation. Though we expect the pressure on terminals and hinterland connections to reduce gradually in the coming months, it will take some time to feel the effects.

PRODUCTS

Explore our digital freight solutions

Together our products work in harmony to increase transport efficiency along the full lifecycle of freight activities.

Freight Sourcing Hub

Transporeon Strategic Benchmarking

Transporeon Strategic Benchmarking
  • Persistent freight cost savings with up to 8% with our state of art benchmarking approach.
  • Get the most comprehensive overview of all markets and for all modes.
  • Profit from insights into latest market developments & forecasts.
  • Get a deeper understanding of rate developments & costs drivers.
  • Receive regular information with market overviews, developments, cost drivers.

Market Intelligence & Benchmarking

Transporeon Supply Chain Advisory

Transporeon Supply Chain Advisory
  • Know-How from more than 1,700 supply chain projects and 25+ years of experience 
  • Gain full global network transparency  
  • Achieve cost savings through supply chain optimization
  • Support for all phases, from conception to implementation into your supply chain
  • Deep knowledge of all modes of transport
  • Specialized Benchmarks with proven Market Intelligence methodology
Close Overlay

You deserve most relevant info

We want you to get the best experience on our Transporeon Website. To enhance the relevance of our information for you please answer this question:

What is your job?

Already customer?