Caroz Market Update: Soaring FAK rates due to ‘organized’ capacity crunch

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

Stay ahead in the dynamic world of maritime logistics with our latest market update. Discover how ocean freight carriers are strategically counter attacking rate declines, the impact of equipment challenges in China, and the revival of the Panama Canal. Plus, gain insights into the urgent maritime distress call urging global action. Dive into the key developments shaping the industry landscape.

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CAROZ’s eye opener:

The recent announcement of FAK rate adjustments signifies a strategic move by carriers to stabilize rates amidst a downward trend. While some carriers aim to maintain current levels, others leverage demand dynamics and geopolitical crises for pricing support. Or do they do it to earn an extra penny anyway?

Simultaneously, China faces challenges with blanks and cancellations, exacerbating equipment issues in Ningbo and Xiamen. These constraints impact space availability, highlighting the need for agile supply chain solutions.

In Panama, the prospect of nearly full operational capacity offers optimism for smoother transits during peak seasons. The Panama Canal Authority’s efforts to restore normalcy by 2025 align with market expectations, contingent upon favorable rainfall patterns.

However, maritime distress persists, underscored by the hijacking of commercial ships. The open letter to the UN Secretary-General underscores the urgency for collective action in safeguarding maritime trade routes.

Want to know more?

Each monthly update we will highlight the developments within the Ocean freight market including the following topics:

  • Trending topic: Soaring FAK rates due to ‘organized’ capacity crunch
  • Rail & Air | Asia – Europe
  • Space & rate developments
  • Port developments & congestion
  • Schedule reliability
  • TEU per operator
  • How to mitigate the risks

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