Freightos: Weekly Ocean Freight Index Update

Ocean freight rates from Asia to key global routes continued to decline this week, except for the 1% increase in the US East Coast lane due to the ongoing port congestion in this region. This downtrend is expected to persist as the market enters the off-peak season.

The Freightos Baltic Index, dated 15 October, reported the following week-on-week changes in booking rates:

Key takeaways: 

Port congestion in the US remains a critical issue this week, exacerbated by the aftermath of Hurricane Milton, which severely disrupted operations at major ports in western Florida. Meanwhile, other ports still face significant delays, with an estimated two-week timeline needed to clear the backlog caused by Hurricane Helene and compounded by a three-day ILA port strike. Vessels are currently waiting between two and four days for berthing slots, signaling considerable congestion, though not at crisis levels.

In contrast, shipping rates for routes from Asia to Northern Europe and the Mediterranean have fallen to lows not seen since April 2024, driven by weak demand. Importers, mindful of extended lead times and complications such as the Red Sea diversion, placed orders much earlier this year to meet year-end demand. This strategic shift has contributed to the current lull in activity. Industry experts suggest that the downtrend in booking rates is likely to continue, but a sharp decline seems unlikely, as shipping lines are already adjusting capacity to align with off-peak demand.

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