182 views

HK port congestion likely to drive up freight rates

Container spot rates are at a new all-time high at the end of the second quarter.

Freight rates will likely increase in the second half of the year as port congestion is expected to worsen, particularly in major European and US ports.

According to Jefferies, this comes as the Yantian port returned to its full operations.

“Port congestion will be a freight rate driver in 2H21, which we expect will worsen especially in container ports at major European and US ports as Yantian port returned to full operations,” the report read.

Container spot rates rose to 1% week-on-week, a new historical high. This is 47.3% higher than the rates recorded in end-March.

“Yantian port vessel delays are easing with Maersk estimating 'upwards of 4 days delay' after resuming full operations since 24 June with 4 to 5-day delay in Nansha as cargo was diverted,” it added.

“However, we expect the global port congestion could worsen as the delayed journey will lead to further congestion in key European and US ports upon arrival.”

It added Maersk is already adjusting its Asia-US West Coast network with vessels slide up to three weeks, whilst Hapag Lloyd announced plans to skip Rotterdam due to congestion.

 

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Property sales fell by almost 21% in June
Over 6,290 sale and purchase deals for all units were received for registration.
High-street shop vacancy rises to 16.5% in Q2 22
Amongst core districts, Tsim Sha Tsui had the biggest vacancy rate.   High-street shop vacancy rose 1.3 percentage points from Q122 to hit 16.5% in Q2 22, data from CBRE showed.   The increase in vacancy was likely due to some landlords, who are under limited financial pressure, opting to leave units vacant rather than renting them out.   This practice was most evident in Tsim Sha Tsui and Mong Kok where vacancy rates were the highest, at 23.2% and 18.9%, respectively.   Whilst vacancy rose during the quarter, rents remained flat. According to CBRE, rents were unchanged from Q122 because “cash-rich landlords with strong holding power prevented some units from transacting at lower rents this quarter.”   In addition to rents being unchanged, leasing volume also increased in Q2, signalling an improvement in the retail property sector.   “Improved retailer sentiment underpinned an increase in transaction volume, although many deals signed this quarter involved short-term leases,” CBRE commented.