The premature commencement of the peak season in Asia-Europe movements meant market participants stopped looking to secure cargoes earlier than usual.

Longer transit times due to Red Sea diversions forced shippers to front load their shipments in anticipation of logistical challenges like a lack of container equipment supply, irregular weather patterns and port congestion.

Platts Container Rate 1 (PCR0100) from S&P Global Commodity Insights, which covers North Asia to North Europe flows, fell by a staggering $5,500, or 65 per cent, quarter on quarter (QoQ) in Q3 to reach $3,000 per forty-foot equivalent unit (FEU) as of October 9, following eleven consecutive weeks of freight rate declines.

Front-haul rates into the Mediterranean faired similarly in the third quarter, as Platts assessed ex-Asian shipments on PCR0300 at $3,400/FEU on October 9—down by 56.9 per cent from the start of Q3 2024, when prices stood at $7,900/FEU.

Carriers had adopted a wait-and-see approach, given the new alliance collaborations like the Gemini Cooperation between Maersk and Hapag-Lloyd announced for 2025 were still a work in progress, S&P Global’s Mohammed Al-ansare wrote in an insights piece on its website.

Port congestion remained a significant issue in Europe, with delays of up to 30 days reported at Felixstowe port. This prompted carriers to seek alternative routes to avoid disruptions. Despite these challenges, some carriers remained bullish about the market's long-term prospects.

Back-haul container shipments out of Europe and the United Kingdom also softened over the quarter, as PCR0200 fell by 50 per cent from $400/FEU to $200/FEU on August 19 due to carriers' strategy to induce more east-bound box movements given weak demand.

Fibre2Fashion News Desk (DS)