As we enter the last quarter of 2024, major developments on global routes are affecting freight rates and vessel availability. The market has stabilized with the recent return of large vessels to Europe and the US in September, providing ample space for freight. However, freight rates are expected to fluctuate in the coming weeks, with significant changes in the US, Canada and other regions.

Key highlights:

North America: While freight rates have fallen by $500-800/40HC on the West Coast, Canada is facing an upcoming worker strike, which will begin on October 1, 2024. This is expected to drive a rapid rebound in shipping costs in early October, with South American and Caribbean routes likely to follow.
Middle East: Freight rates are close to their lowest levels since 2018, with prices in the region’s base ports stabilizing around $800/40HC.
East Africa: Freight rates have fallen slightly, with market rates in Mombasa ranging between $2500-2850/40HC.
Europe and Mediterranean: Freight rates at European ports have fallen significantly, to $3500-4000 per 40HC. Meanwhile, freight rates at Eastern Mediterranean ports have remained stable at $3800-4000 per 40HC.

Looking Ahead:

As we head into October and the holiday season, shipping lines are expected to adjust their vessel deployments in anticipation of Christmas, New Year and Chinese New Year in January 2025. This adjustment could result in a gradual increase in freight rates as companies strive to maintain profitability.

Stay tuned for more updates as the market develops.