In the month of June, China shipped a record 800,000 TEU to North Europe, while 1.36 million TEU were moved to North America. June 2024 was the eighth highest month on record, following the peak shipping volumes of late 2020 and 2021 during the Covid-19 pandemic.
Peter Sand, Chief Analyst at Xeneta, commented on the situation: “The conflict in the Red Sea has significantly altered the traditional seasonality of ocean supply chains. Concerned shippers have been rushing to import goods earlier in the year to avoid repeating the chaos of the pandemic years.”
Record volumes in June correlated with a sharp rise in average spot rates on trades from the Far East to the US and North Europe. Spot rates to the US West Coast and East Coast surged by 144% and 139%, respectively, while rates to North Europe increased by 166% between April 30 and July 1.
Sand added: “Shippers have been willing to pay a premium to protect their supply chains. The massive volumes shipped in May and June led to severe congestion at Asian ports and a dramatic spike in rates. Many shippers imported Christmas goods as early as May to mitigate risks, despite the high costs.”
