26 June 2023

International Market Update – April to June

Oceania Rates & Services

Industry Oceania freight volumes are predicted to decline further in Q2 (April – June), with shippers foreseeing a 10% decline in demand against Q1 volumes. These reductions in demand have seen recent failed attempts from the shippers to execute a General Rate Increase in April and May. June rates continue to fall to unprecedented levels, the lowest on record for the South East Asia/Australia market. 

With Oceania volumes remaining low, many major carriers are responding by introducing increased blank sailings and rolling containers in line with demand. With NAC rates on offer from shippers, although the rates are slightly higher than the spot market, customers are forced to choose between service and price with many wishing to remain in the spot market to manage overall freight costs in times of low demand. These trends are expected to continue until demand increases.