12 July 2024
Red Sea Situation & Impact on Global Shipping
Rising rates from Asia, particularly China, impact global shipping as spot rates reach record highs
Economic & Demand Outlook
Increased order volumes and early surge in demand on Transpacific route and Europe, with strong inbound volumes from Middle East and LATAM.
Supply & Capacity
Conflict in the Red Sea absorbs additional capacity, causing delays, congestion, and extended transit times; DHL secures extra loaders for Europe and US.
Schedules & Congestion
Port congestion at 18-month high in Asia, impacting major ports like Singapore and Port Klang; strike actions in German ports lead to omitted calls; Mediterranean ports, like Barcelona, face strain from routing changes and increased transshipment cargo.
Freight Rates
Asia spot rates, particularly from China, keep rising with the SCFI seeing a 12-week increase; rates from Shanghai to California nearly quintuple year-over-year, prompting weekly adjustments in PSS and GRI; Intra-Asia trades also experience significant rate hikes.
Read the full update and all previous entries on the Red Sea Blog: Go to DHL.com