In June 2024, ocean container shipping demand from China to North America and North Europe reached unprecedented levels, driven by disruptions in the Red Sea that prompted importers to secure their supply chains early. According to Oslo-based Xeneta, 1.36 million TEU were shipped to North America and 800,000 TEU to North Europe, marking the eighth highest month on record for global shipping volumes. This surge was linked to concerns over potential supply chain chaos reminiscent of the COVID-19 pandemic, leading to a sharp increase in spot rates, with rates to the US West and East Coasts rising by 144% and 139%, respectively, and rates to North Europe surging by 166%.

Peter Sand, Xeneta’s Chief Analyst, said that shippers have been willing to pay premium prices to ensure the safety of their supply chains, with many importing Christmas goods as early as May despite high costs. This massive volume influx led to significant congestion at Asian ports and skyrocketing rates. However, Sand suggested that the peak in demand may have passed, as spot rates have since softened, indicating a potential decline in volumes for July and August, traditionally the peak season for shipping.

Source: gCaptain