Liner operators are reducing Asia-Europe freight rates for the initial two weeks of January, aiming to secure market share in anticipation of the container shipping alliances' reshuffling set for February. On 27 December 2024, the Shanghai-North Europe rate experienced a marginal increase of 0.5% to US$2,962/TEU, following a three-week decline. Linerlytica noted the volatility in spot rates for the early weeks of 2025, marked by rate fluctuations as carriers vie for market share before the alliance changes in February.
With the upcoming reshuffle, MSC is set to operate independently, parting ways with its 2M partner Maersk Line, which will inaugurate Gemini Cooperation alongside Hapag-Lloyd. This move leads Hapag-Lloyd to exit THE Alliance, soon to be known as Premier Alliance. Despite these changes, MSC plans to collaborate with Premier Alliance on the Asia-Europe routes.
The EC2412 (December 2024) contract for Asia-Europe freight futures concluded at 3,445 points on 30 December 2024, marking a 4.4% increase from the previous week. However, the outlook for 2025 softened, with the EC2502 (February 2025) contract declining by 13% on a week-over-week basis, attributed to lower daily volumes.
Linerlytica highlighted the market's disregard for the late December rebound, focusing instead on the subdued rate increases in January, which might predict a sharper decline in February after the Chinese New Year. Despite robust capacity utilization, carriers continue to offer discounts for early January shipments, responding to Maersk's reduced online quotations for January to US$4,800 per FEU, prompting a competitive reaction that led to lower settlement prices for Asia-Europe freight futures.
Source: Container News