Freight rates are reduced due to Chinese holidays and European imports

In recent weeks, the sea transportation market has shown a decrease in the level of freight rates. The trend was caused by holidays in Asia and a decrease in import demand in Europe.

Analysts do not observe the usual excitement associated with the “Golden Week” this year (in East Asian countries, this is the name for several holidays combined with weekends). 

Seatrade Maritime News writes about this with reference to Calvin Leung, CEO of DHL Global Forwarding Asia Pacific.

Usually, China celebrates the anniversary of the founding of the People’s Republic of China from October 1 to 7, so almost all port complexes and factories in the country are closed. In 2021 and 2020, freight rates increased on these days, but this year the holidays did not affect shipping in any way.

DHL analyzed trade between Asia and Europe: analysts concluded that the overall forecast for freight rates remains unchanged due to weak demand in Europe.

The DHL report also noted a decrease in port congestion on the US West Coast and in Asia, although congestion increased in other regions.

“We are seeing a reduction in congestion in the western US and Asian ports, although labor strikes in UK ports are causing some disruption. We are also still seeing vessel queues on the US East Coast, which has offset improvements in West Coast ports. Port congestion in Europe continues to be a concern as it leads to longer return times for vessels to Asia,” said Calvin Leung.