The Drewry World Container Index rose 3% this week, reaching $1,746 per 40-foot container, marking the second week of increases after a lengthy downturn. Spot rates on transpacific routes surged, with significant climbs notably from Shanghai to Los Angeles and New York, as carriers prepare for upcoming General Rate Increases.
In 2024, delays for containerships have reached levels not seen since the pandemic peak, with schedule reliability dropping to 51.4%. Maersk and Hapag-Lloyd aim to improve to 90% with the Gemini Cooperation in 2025. Port congestion in Asia and disruptions from Red Sea rerouting are contributing factors. Vessel bunching and winter weather challenges are causing delays.
A fire broke out on two LPG carriers during an alleged illegal ship-to-ship transfer off Bangladesh. Crewmembers escaped safely, but the vessels sustained damage. Cargo origin raised concerns, but investigation found no evidence of illicit cargo. Safety protocols are being reviewed after a series of vessel fires in the region.
The market for very large ammonia carriers (VLAC) is rapidly growing, with South Korea’s major shipbuilders taking the lead. Analysts project rapid growth as ammonia power technologies become commercially available, with ammonia anticipated to become a leading alternative fuel. Shipowners are preparing for the market by ordering large vessels, with South Korean shipbuilders leading the way.
Schedule reliability in the shipping industry saw a decline in November 2023 due to security challenges in the Red Sea and delays at the Panama Canal. Asian-based carriers, Evergreen and Wan Hai, showed significant gains while Maersk and MSC experienced declines. Late vessel arrivals also saw an increase in average delay.
