Market Update: Facing Mixed Signals Amid Labor Strikes and Seasonal Demand
The shipping industry is navigating a complex landscape marked by shifting market dynamics, labor disruptions, and evolving seasonal trends. Recent events, such as the brief but impactful ILA strike on the U.S. East Coast, have caused ripple effects across global ocean freight routes, contributing to port congestion and vessel delays. Meanwhile, the seasonal peak in demand is influencing air freight, with rising rates but tempered market optimism. Across major trade lanes, carriers are carefully managing capacity and rates, as the industry braces for the continued uncertainty of the months ahead.
Ocean Freight
North Asia to East Coast North America (ECNA)
Rates have decreased due to shifting import patterns ahead of the ILA strike. Although the strike, which began on October 1st, lasted only three days, it led to significant backlog and potential vessel schedule disruptions for the rest of the month. Market participants are adopting a “wait and see” approach as terminals reopen. Bunching and port congestion are expected, which could result in vessel schedule delays.
North Asia to East Coast North America (ECNA)
Rates have decreased due to shifting import patterns ahead of the ILA strike. Although the strike, which began on October 1st, lasted only three days, it led to significant backlog and potential vessel schedule disruptions for the rest of the month. Market participants are adopting a “wait and see” approach as terminals reopen. Bunching and port congestion are expected, which could result in vessel schedule delays.
Europe to East Coast North America (ECNA)
Rates have increased significantly, driven by post-strike disruptions and vessel schedule delays. Market sentiment is mixed, with expectations of further rate increases through the end of October as space tightens.
Asia to Europe
Rates have continued to fall, exacerbated by weak demand and the Golden Week holidays. Carriers are using blank sailings to stabilize rates as negotiations for long-term contracts remain delayed. The market is anticipated to remain soft as participants await further clarity on carrier schedules and service levels.
US East Coast: Hurricane Milton
Hurricane Milton is expected to bring widespread flooding and significant destruction along Florida’s West Coast, particularly in the Tampa Bay area. While ports are generally built to withstand hurricane-force winds, storm surge and flooding are likely to cause equipment damage and containers being blown over. The Port of Tampa has already suspended all inbound and outbound vessel traffic as of Tuesday, October 8, and Gulf Coast ports will begin assessments 24-48 hours after the storm passes. With maximum sustained winds near 155 mph, Milton’s impacts are already being felt in Florida's freight markets, as the storm approaches landfall just south of Tampa.
Air Freight
Asia to North America/Europe
Air freight rates continue to rise in line with seasonal holiday demand. However, overall market sentiment is bearish due to muted post-peak demand, with many customers holding shipments until necessary. The ILA strike on the U.S. East and Gulf Coasts briefly impacted volumes, but no significant long-term rate spikes are expected as ports resume normal operations.
Recommended by LinkedIn
Need Help Navigating the Current Freight Market?
– The CargoTrans Team
In Other News...
Evergreen chief says transpac contract rates will rise in 2025 - Evergreen is to raise its transpacific contract rates for 2025, announced president Wu Kuang Hui on Friday, due to global supply chains being impacted by the impending dockers’ strike on the US east coast. Read More
Air cargo demand growth slows but October is a 'whole new ball game' - Air cargo demand growth slowed in September but there is an expectation that US port strikes will put extra pressure on an already busy market. Read More
India takes RMG market share from strife-ridden Bangladesh - Indian apparel industry stakeholders appear to have tasted some early incremental gains from the turmoil plaguing Bangladesh trade after the recent political upheaval that dethroned the government. Read More
Vessel bunching on USEC slow to clear, as ILA shapes new 'strategy' - The ILA has vowed to continue its “hell-bent” fight against automation as the effects of last week’s three-day strike disrupt supply chains. Read More
Hurricane Milton already impacting Florida freight markets - The impacts of Hurricane Milton are already appearing in freight markets in Florida. The storm is currently forecast to make landfall just south of Tampa as an extremely dangerous hurricane with current maximum sustained wind speeds near 155 mph. Read More
Have you met Captain?
Our End-to-End Visibility Platform
Visibility done right so that you can manage compliance, budget and expectations. Empowering you to confidently control your supply chain and deliver happiness to your customers.