The global shipping freight rates seem poised to rebound. Following China’s National Day holiday, shipping volumes have begun to pick up, leading to increased demand. However, the shipping sector faces challenges with a shortage of vessels and operators reducing sailings. As a result, shipping companies are starting to raise rates on North American routes, with increases estimated at around 20%. Additionally, recent typhoons in the Asian region have slowed operations at several major ports, exacerbating congestion and tightening vessel availability.

After the National Day holiday, this week saw a rise in export volumes from China. However, the sluggish market demand over the past two months, coupled with a brief three-day strike on the U.S. East Coast, has impacted global vessel supply. Major shipping lines are adapting to these market changes and have begun announcing adjustments in their sailing schedules. Recently, several companies have raised their General Rate Increase (GRI) fees, with additional charges for 40-foot containers ranging from $1,000 to $1,500, reflecting a minimum expected increase of at least 20%.

The container shipping market appears to be facing multiple challenges simultaneously. Recent typhoons have severely affected numerous regions in Asia, slowing down operations at major ports and increasing congestion pressure. Industry experts warn that ongoing port congestion at key Asian terminals could result in future gaps in shipping capacity and container availability.

Domestic shipping operators confirm that the previously sluggish container market is now showing signs of improvement. Post-holiday, Shanghai has seen significant shipping activity, with some vessels waiting up to six days to dock. Ports in Ningbo, Qingdao, and Yantian are experiencing waits of two days, while ships in Manila, Philippines, now face delays of three to four days.

The latest logistics updates indicate that global shipping lines have adjusted their capacity in response to weak demand over the past two months and disruptions caused by strikes in the Red Sea and on the U.S. East Coast. Between weeks 40 (September 30 to October 6) and 44 (October 28 to November 3), a total of 100 sailings have been canceled, amounting to a 14% cancellation rate across key east-west routes, including trans-Pacific, trans-Atlantic, and Asia-Nordic Mediterranean lines.

Notably, 63% of the canceled sailings are on the eastbound trans-Pacific route, which typically connects Asia (including China, Japan, and South Korea) to North America (notably ports like Los Angeles, San Francisco, and Vancouver). Another 23% of cancellations involve the Asia-Nordic and Mediterranean routes, while 14% affect the westbound trans-Atlantic route.

Although the East Coast port workers’ strike has paused for now, the market’s reactions seem overly heightened. Domestic shipping professionals believe that adjusting freight rates in line with market demand is normal. However, the market continues to be influenced by the ongoing crisis in the Red Sea, affecting vessel scheduling. Ultimately, the key to changes in supply and demand for container shipping will depend largely on developments in Middle Eastern geopolitics.