Market Update: Freight Rate Increases Expected for November

We’ve received updated market information indicating that freight rates may exceed USD 3,000 per 40’ HQ in November. Please see the following explanation outlining current market conditions.

1. Peak Season Demand, November marks the traditional peak season for the Pacific trade lanes. Transit time from China’s main ports to Australian main ports is approximately 20 days. Shipments departing in late November are expected to arrive in Australia around December 20th, just before Christmas.
   Many importers are therefore advancing their bookings to ensure pre-holiday arrivals, while later shipments may shift to air freight to meet last-minute retail demand. Historically, freight rates in November are among the highest of the year.
2. Weather Disruptions, A severe typhoon struck just before the Golden Week holiday, causing vessel delays and port congestion. Many containers were postponed and are now being rolled over to sailings scheduled after the holiday period.
3. Blank Sailings, most carriers cancelled sailings during mid-October, creating additional congestion as cargo rolled over to later vessels. This backlog is contributing to limited available space in late October and early November.
4. Space Shortages and Rate Pressure, with fewer sailings and increasing demand, containers continue to be rolled from one vessel to the next. The resulting space shortage has allowed carriers to push rates upward to capitalize on market conditions.

We hope this update provides you with a clearer picture of the current freight market situation.

Additionally, carriers have announced a General Rate Increase (GRI) of USD 500 per TEU to Australia and USD 300 per TEU to New Zealand effective for the second half of November.

We will continue to monitor and update you as the situation develops.