Freight rates on the main maritime transport routes continue to rise due to the crisis in the Red Sea and the congestion of cargo that remains in Shanghai, the world’s busiest container port. According to the weekly global index by maritime consultancy Drewry, the average freight rate for a 40-foot container (FEU) has increased by 233% in the last year, reaching $5,117 (data from June 20). Compared to pre-pandemic rates, the increase is 260%.
The main explanation lies in the new peak demand that freight from China is experiencing and the limited capacity to meet it. This has caused spot rates (the price applicable to a specific shipment at a given time) for services between Shanghai and major European and North American ports to surge above $6,000: $6,867 for Rotterdam, $7,029 for Genoa, $6,441 for Los Angeles, and $7,552 for New York.
The crisis in the Red Sea continues to force shipping companies to restructure routes and capacities, with diversions through the Cape of Good Hope, but the rise in spot rates is also influenced by the start of the high season in Europe and the urgency of U.S. operators to ship goods from China before new tariffs are imposed.
Additionally, congestion in other major ports such as Singapore and Barcelona are contributing to delays in routes between Asia and Europe.
International Maritime Transport Grows in Volume
However, the rise in freight prices has not harmed the volume of goods transported. According to consultancy Clarksons Research, global maritime trade grew by 3% in 2023, reaching 12.4 billion tons. In Spain, however, a decline in traffic has been observed. The State Ports report on ports of general interest records a total of 543.3 million tons of cargo moved last year, a 3.3% decrease compared to 2022. General cargo contracted by 2.9%, down to 262.6 million tons. The volume transported in TEUs (20-foot standard containers) decreased by 4.5%, down to 16.38 million containers. However, December’s data showed an improvement over the same month in 2022, suggesting a positive trend for 2024.
The situation of international sea transport is complex, and no quick or simple solution is in sight. Therefore, it is essential to choose the sea transport option that best suits each shipment, considering all the factors involved: type of goods, quantity, origin and destination, urgency of delivery, budget, etc.
What Are the Shipping Options in Sea Transport?
At Startrans, we are experts in sea freight transport. We handle all procedures and advise our clients based on their needs. We cover all shipping options:
Full Container Load (FCL)
When the volume of goods exceeds 15 m³, this is the best option as it is not shared with other shippers. The cargo is sealed, and delivery is faster because the vessel does not stop at intermediate ports. We offer door-to-door or port-to-port service from any origin to any destination, considering the Incoterm (International Commerce Term) agreed between the shipper and the final customer.
Less Than Full Container Load (LCL)
If there isn’t enough cargo to fill a container, the best option is to share it with other shippers. This shipping option is more economical, as the freight is calculated per ton loaded , and it has a lower environmental impact by fully utilizing the space in the container.
Chartering
For large volumes of goods, we manage the hiring of suitable vessels. We design the comprehensive shipping plan, considering the cargo’s characteristics and the ideal route to guarantee the highest quality service standards. Chartering can be bareboat (vessel leasing), by time, or per trip.
Consolidation Service
When different goods need to be sent to the same customer or destination, it is necessary to consolidate them beforehand for joint transportation, which leads to cost savings.
Break Bulk or Bulk Fractioning Service
This option is available when sending separate pieces, large in size and weight, that cannot go in containers, such as industrial machinery, large pipes, ship propellers, or construction equipment. At Startrans, we offer the possibility of managing the cargo from the client’s facilities.
Ro-Ro Service
Ideal for transporting vehicles or rolling platforms with heavy or oversized cargo.
In addition, we specialize in special transports, such as tank containers, powder in liners, temperature-controlled goods, bulk liquids, and hazardous materials. Contact us and we will advise you on the best option to ensure your cargo reaches its destination safely.