DHL releases global ocean freight market developments

The latest DHL Ocean Freight Market Update Report November 2024 is now available. Read the full analysis on DHL’s Logistics of Things here.

Below are highlights of the latest global ocean freight market developments in this monthly analysis by DHL Global Forwarding.

• Freight rates have declined for the past three months from their peak in July and are now rebounding post-Golden Week.
• This recent uptick in rates has been attributed to an increasing number of blank sailings for November and strong consumer demands.
• Niki Frank, CEO of DHL Global Forwarding Asia Pacific, noted that despite some contractionary macroeconomic indicators, ocean freight demand held up well through Q3.
• “We saw a lot of early shipments this year due to supply chain choke points, so we had an early peak season,” he explained. “But overall, volumes have been healthy, and we are seeing brisk demand since Golden Week at the start of October.”
• However, significant uncertainties persist, including:

1. The risk of strikes on the U.S. East and Gulf coasts if no new agreement is reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) by 15 January 2025
2. Proposed tariffs by US President-elect, Donald Trump, which includes a universal tariff of 10-20 percent on all imports to the U.S.
3. Frontloading expected due to early Chinese New Year at end of January
4. Prolonged Red Sea diversions

• “With President Trump’s victory in the U.S. elections, we have seen increased customer enquiries, especially if they are importing from China. However, it is still too early to say whether this is the trend or only individual customers,” added Niki.
• Considering additional factors such as growing ship supply and imbalances in backhaul capacity, the global freight market is not expected to return to pre-pandemic level in the immediate future.

 The DHL Ocean Freight Market Update Report is a monthly report by DHL Global Forwarding which tracks and analyses the latest developments of the global ocean freight market.