CONTAINER volumes failed to keep pace with overall gains as ocean shipping reversed a previous-year decline in the face of headwinds that threaten recovery, reports New York's FreightWaves.
Global maritime trade increased 2.4 per cent to 12.3 billion tons in 2023, according to the Review of Maritime Transport 2024 by United Nations Commission for Trade and Development (UNCTAD), which forecast growth of two per cent in 2024 and average gains of 2.4 per cent a year through 2029. But the report warns that soaring freight costs and operational challenges mostly from geopolitical conflicts weigh on shipping's long-term recovery.
Container trade that edged up 0.3 per cent in 2023 is expected to strengthen to 3.5 per cent in 2024, if the supply chain remains stable.
'A record of almost 250,000 port calls by containerships in the second half of 2023 were driven by growing trade and longer routes, causing some congestion, especially in Asia, which handles 63 per cent of global container trade,' UNCTAD said.
Disruptions to key routes through the Suez and Panama canals and resulting longer voyages pushed ton-miles up by 4.2 per cent.
Rerouting, port congestion and rising operational costs saw freight rates surge in 2024. The report cited the Shanghai Containerised Freight Index (SCFI) that by midyear had more than doubled from late 2023 on longer shipping distances, increased fuel consumption and higher insurance premiums.
UNCTAD projects global consumer prices could increase 0.6 per cent by 2025 if freight rates remain elevated.
While high-volume shipping mostly moves under charter and contract for primary transpacific and Europe-bound cargo, spot rates outside those routes also surged.
From January to July 2024, the average rate on the SCFI Shanghai-South America route more than doubled to US$9,026 per TEU, the highest level since September 2022, the report stated.
The Shanghai-South Africa route saw its average rate almost triple to $5,426 per TEU (highest since July 2022), while the Shanghai-West Africa average rate jumped 137 per cent to $5,563 per TEU (the highest since August 2022).
Major ports saw containership wait times as much as double in 2023 on record port calls, rerouted vessels and rising shipping volumes.
The report found that digital technology such as blockchain, AI and automation helped adopting ports, particularly in Asia, reduce waiting times, improve cargo tracking and speed transshipment.
SeaNews Turkey
Global maritime trade increased 2.4 per cent to 12.3 billion tons in 2023, according to the Review of Maritime Transport 2024 by United Nations Commission for Trade and Development (UNCTAD), which forecast growth of two per cent in 2024 and average gains of 2.4 per cent a year through 2029. But the report warns that soaring freight costs and operational challenges mostly from geopolitical conflicts weigh on shipping's long-term recovery.
Container trade that edged up 0.3 per cent in 2023 is expected to strengthen to 3.5 per cent in 2024, if the supply chain remains stable.
'A record of almost 250,000 port calls by containerships in the second half of 2023 were driven by growing trade and longer routes, causing some congestion, especially in Asia, which handles 63 per cent of global container trade,' UNCTAD said.
Disruptions to key routes through the Suez and Panama canals and resulting longer voyages pushed ton-miles up by 4.2 per cent.
Rerouting, port congestion and rising operational costs saw freight rates surge in 2024. The report cited the Shanghai Containerised Freight Index (SCFI) that by midyear had more than doubled from late 2023 on longer shipping distances, increased fuel consumption and higher insurance premiums.
UNCTAD projects global consumer prices could increase 0.6 per cent by 2025 if freight rates remain elevated.
While high-volume shipping mostly moves under charter and contract for primary transpacific and Europe-bound cargo, spot rates outside those routes also surged.
From January to July 2024, the average rate on the SCFI Shanghai-South America route more than doubled to US$9,026 per TEU, the highest level since September 2022, the report stated.
The Shanghai-South Africa route saw its average rate almost triple to $5,426 per TEU (highest since July 2022), while the Shanghai-West Africa average rate jumped 137 per cent to $5,563 per TEU (the highest since August 2022).
Major ports saw containership wait times as much as double in 2023 on record port calls, rerouted vessels and rising shipping volumes.
The report found that digital technology such as blockchain, AI and automation helped adopting ports, particularly in Asia, reduce waiting times, improve cargo tracking and speed transshipment.
SeaNews Turkey
