Caroz Market Update: Container rates and Alliance changes

Each monthly update we will highlight one trending topic which has an effect on the global ocean freight market.

Spot container freight rates on major East-West trades are experiencing a decline with the upcoming Golden Week, but the pace is slowing. While certain routes see significant drops, long-term contract rates tell a different story, indicating potential changes ahead. As major alliances prepare for shifts and strikes lurk, it’s essential to stay informed. 

Download our Market Update for all the details via the button below!

CAROZ’s eye opener:

As we observe the current state of container freight rates, it’s clear that we are at an important moment in the global shipping market. Spot rates on major East-West trades are declining, yet long-term contract rates are rising, especially in specific lanes like Vietnam-Rotterdam. This difference highlights a critical insight: while short-term ups and downs may present challenges, planning for long-term contracts can protect your supply chain against future changes.

The upcoming shift in alliances further complicates the landscape. With the formation of the Gemini Alliance and the rebranding of THE Alliance members, we must prepare for new dynamics in capacity and service offerings.

The potential port strikes in North America could cause major disruptions, leading to delays, shipping backlogs, and higher costs. Limited capacity and longer transit times would drive up rates, while businesses face additional expenses for rerouting and faster shipping options.