Rates from Asia to Australia:
There has been a sharp escalation in ocean freight rates from China, Taiwan, Japan and Korea to Australia over recent weeks.
Shipping lines announced a general rate increase effective from 15th April, then additional rate increases have been implemented from 1st May and again from 15th May, 2024, mainly to East Coast Australia ports. One major line has already announced another rate rise from 1st June 2024 but we will need to monitor the market to see if others follow.
These cost increases are certainly not normal as traditionally the cargo volumes drop in May and June as we approach the end of financial year.
That is definitely not the case in 2024, and the reasons are a little baffling but we do note that large volumes of unexpected bookings are also being seen on the Asia to USA and the Asia to Europe trade lanes.
In discussing the reasons with shipping lines, we are advised that most ocean carriers are heavily booked for May with strong demand already in June, and with the shortage of space and empty equipment following on from the Red Sea terrorist issues, longer transit times via Cape of Good Hope and resultant congestion at tranship ports, that maybe exporters and importer are concerned that later in the year the situation may get worse.
Rates from South East Asian/Indian sub-continent ports to Australia have also increased but at a much slower pace than from North East Asia.
It is noted that rates from Europe and USA/Canada have remained stable for the last three (3) months and we are expecting those rates levels will remain in place for the immediate future.