Container rates: Near the Chinese New Year and strike negotiations, freight rates immediately plummeted

In 2024, container freight prices continue to rise and remain high. shipping freight rates suddenly fell sharply after the strike talks. Labour disputes have been a source of tension in the shipping industry, causing disruption to operations and a consequent drop in freight rates. The decline in freight rates has raised concerns among industry stakeholders, as volatility in freight rates could affect the stability of the supply chain and the overall market. However, China has been closed in recent years, and the production of goods has stopped, which should also be a major factor leading to the decline of freight.

Despite the recent decline, spot freight rates have remained high for most of the year, driven by strong demand and supply chain challenges. The disruption caused by the pandemic, combined with a surge in consumer spending, had previously pushed freight rates to unprecedented highs. However, this is expected to start to change with the start of the alliance restructuring in February, which aims to optimize routes and capacity between the major players in the industry.

As the dust settles on the strike talks, the possibility of a rebound in freight rates looms. Some analysts say that the restructuring of the alliance and U.S. President-elect Donald Trump's tariff plan could put upward pressure on freight rates again. Trump's proposed tariffs could lead to increased shipping costs as airlines adjust to the new trade landscape and pass costs on to carrier shippers.

The container freight market is currently in a complex environment characterized by recent strikes and upcoming policy changes. Although freight rates are temporarily down for now, the interplay of alliance strategies and tariff effects could portend another rise in freight rates. Stakeholders must remain vigilant and adaptable to prepare for the next chapter of this evolving industry.