DHL – Ocean Freight Market Update, Sep 2024

The global capacity utilization in the ocean freight market was 2% higher in the first half of 2024 compared to 2023, despite a 10.4% increase in containership supply. Container ports saw strong volume gains, with the 10 largest ports reporting a 7.4% increase. Port congestion and diversions on the Cape route restricted capacity growth. Freight rates were volatile, with a widening gap between Asia-US West Coast and East Coast rates. Transpacific rate hikes were delayed, with US West Coast rates decreasing. Asia-Europe rates weakened due to excess capacity, while transatlantic rates increased moderately. Oceania rates rose rapidly due to limited capacity. Demand was predicted to grow by around 5% until September, but the mid-term outlook was uncertain. Carrier earnings rebounded in Q3, with Asian carriers outperforming European peers. India faced a port strike, while a potential rail strike in Canada was avoided. Uncertainty remained in the container market due to US-related factors, with disruptions limiting effective capacity in various regions.