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GLOBAL demand for ocean freight container shipping hit an all-time record in May amid soaring spot rates and severe port congestion, according to data released by Xeneta and Container Trades Statistics.
In May, 15.94 million TEU were transported by ocean, surpassing the previous record of 15.72 million TEU from May 2021, reports Ventura, California's gCaptain.
Year-to-date volumes are just under 74 million TEU, a 7.5 per cent increase compared to the first five months of 2023.
"More containerized goods are being shipped by ocean than ever before at a time when available capacity is impacted by diversions around Africa due to conflict in the Red Sea and severe port congestion in Asia and Europe," said Emily Stausboll, Xeneta Senior Shipping Analyst.
"This is a perfect storm of pressure on ocean supply chains which has resulted in the chaos of recent months."
The surge in demand is largely driven by volumes from the Far East, with China exporting an all-time high of 6.2 million TEU in May, accounting for 39 per cent of global container trade.
Average spot rates from the Far East to the US West Coast reached US$7,840 per FEU on July 9, a 200 per cent increase since April 30.
Rates to the US East Coast rose by 130 per cent to US$9,550 per FEU, while rates to North Europe and the Mediterranean increased by 148 per cent and 88 per cent, respectively, to US$8,030 and US$7,830 per FEU.
Ms Stausboll highlighted concerns among shippers, noting: "Given we are already seeing record-breaking volumes in May ahead of the traditional peak season in Q3, you can understand why shippers are so concerned.
"The spot market is still climbing, the conflict in the Red Sea shows no signs of ending, and the port congestion we are seeing in Asia and Europe will take time to de-pressurize."
https://shippingazette.com/news?news_id=9240700000688
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