August ‘24 sea freight update

27 August 2024

After a record number of shipments in June, the peak season from Asia, along with the accompanying extremely high rates, seems to be behind us. Looking ahead to the coming weeks, however, we must take into account additional, unforeseen delays caused by a recent explosion in the Chinese port of Ningbo. On a positive note, we are seeing cautious growth in the Dutch export market. You can read all about it in our August sea freight update.

End of the early peak season

This was not just a busy summer period. According to recently released data from the Norwegian freight platform Xeneta, this was the busiest peak ever on the route from China to northern Europe. Last June, when the peak was at its highest, over 800,000 TEU were shipped.

The reason for this early peak season seems simple: shippers wanted to avoid logistical problems this summer, like those experienced in large numbers during the COVID crisis. To leave as little as possible to chance, many importers placed their bookings well in advance.

Although our team is still busy handling and forwarding this large volume of cargo, bookings are gradually returning to ‘normal’ levels. Likewise, rates on the Asia-Europe shipping route seem to be stabilising: extreme spot rates are fading into the background and regular sea freight rates have begun to fall.

Delays due to explosion in Ningbo port

At the beginning of August, a reefer container carrying dangerous cargo exploded at the Chinese port of Ningbo, one of the world’s busiest container terminals. The incident shut down the port for over 60 hours, significantly impacting shipments on this vital Asia-Europe trade route.

Unfortunately, the situation is exacerbated by a previous disruption in Asia caused by Typhoon Gaemi. Moreover, the Cape route continues to suffer from adverse weather conditions. Despite the extra capacity now available as the peak season has passed, this will again result in more roll-overs, delays and overbookings.

Dutch export market on the rise

Fortunately, it’s not all doom and gloom. The Dutch economy appears to be climbing out of the downturn that emerged earlier this year. According to recent data shared by Statistics Netherlands (CBS), after a previous contraction of 0.5% in the first three months of the year, growth of over 1% was recorded in the second quarter.

A significant growth that Dutch economists had not seen coming. Dutch industry, in particular, seems to be responsible for the sudden recovery, with more goods being produced for export, including chemical products, food and beverages, machinery and equipment. Together, they contributed to a 1.3% increase.

If you also regularly have export cargo and are curious about our options, contact Ritra’s Export team. Peter, André and Georgiana will be happy to advise you.