Year ends with rising freight rates as further strike action looms in US, says Seal
The maritime and air transport landscape is volatile and challenging for Chilean shippers as they head into 2025, with labour tensions, tariff adjustments and strategic diversions on key routes redefining the market in a context of high demand and tight capacity.
This is the view of Seal, the country’s Specialised Customs and Logistics Services, reported in logistics news service MasContainer.
Seal said the threat of further strike action in the New Year by longshoremen at US East Coast ports has boosted cargo anticipation, pushing transpacific rates to the West Coast to levels higher than those seen before the 2024 Lunar New Year. Shipping lines have begun implementing General Rate Increases (GRI) in an attempt to strengthen prices at the start of December.
However, the impact of this strategy could be temporary. “Inventory build-up since the October strike and the narrowing of the arrival window to avoid disruptions on the East Coast make the increases difficult to sustain,” MasContainer reported. “Still, prices could pick up as we approach January, ahead of the start of the Lunar New Year.”
While Asia-Europe rates remained stable last week, the first days of December are already showing a significant rise. Prices to the Mediterranean are approaching US$6,000 per FEU, up US$1,000 since November.
SEAL noted that the increase is due in part to effective capacity management by carriers, who have adjusted their bookings to respond to anticipated pre-holiday demand.
“The Mediterranean is facing longer delivery times due to ongoing Red Sea diversions. Ensuring shipments arrive before the Lunar New Year is therefore crucial, as missing this window would mean long waits for new shipments,” it said.
Regarding airfreight, although the key weeks of the peak air season have begun, ex-China rates to North America and Europe have not shown significant increases. “This can be attributed to the strategic shift of capacity to ex-Asia routes to respond to increased e-commerce volumes, which has contained pressure on prices,” SEAL said.
On less-travelled routes, however, rates are on the rise. Transatlantic prices topped US$2.80/kg last week, up 33 per cent from a year ago, reaching their highest level since April 2023.
“The coming year promises to be challenging for global logistics. Between labour uncertainty, tariff fluctuations, and adjustments to transportation networks, companies will need to stay agile and turn to digital tools to manage volatility,” Seal concluded.
