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Ocean freight rates from Asia to Northern Europe and the Mediterranean continued to decline this week, driven by falling demand as the peak shipping season ended, the latest Weekly Ocean Freight Index from Freightos showed. 

The Freightos Baltic Index, dated September 3, reported the following week-on-week changes in booking rates:

Key takeaways: 

Ocean freight rates from Asia to the US East Coast increased by 2% this week, driven by rising concerns over a potential strike at US ports. Tensions between the International Longshoremen's Association (ILA) and USMX (United States Maritime Alliance) persist, with disagreements centering on wage increases and the contentious issue of port automation.

Industry experts report that East Coast ports have already begun scaling down operations. Even a limited strike would trigger a mandatory lockout across all USMX ports under their bylaws, exacerbating disruptions.

As reported earlier, a full-scale work stoppage on the US Gulf and East Coasts could cause severe congestion, with recovery from even a one-week shutdown projected to take 4 to 6 weeks.

Separately, Typhoon Bebinca struck Shanghai on Monday, forcing the temporary closure of ports in Shanghai and Ningbo. Vessel delays, which were already at 24 to 60 hours before the storm, are expected to worsen as recovery efforts continue.

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