As Week 05 begins, the freight market is navigating significant evolving global carrier alliances, is feeling the impact of the Lunar New Year public holiday, and continues to monitor the Red Sea region.
OCEAN CARRIERS REMAIN CAUTIOUS OF RED SEA ROUTINGS
Ocean carriers continue avoiding the Red Sea and Suez Canal despite Yemen’s Houthi militants pledging to limit attacks to Israel-affiliated vessels. The Houthi announcement, following the start of a 42-day Gaza ceasefire, has not convinced carriers to change course due to ongoing instability in the region.
Carriers continue rerouting ships around southern Africa via the Cape of Good Hope, adding up to 45 days to transit times between China and North Europe. While stability shows signs of improvement, experts caution that resuming Red Sea operations could upend schedules and create logistical challenges in the near term.
NEW CARRIER ALLIANCES LAUNCH IN FEBRUARY
Changes are coming for global shipping alliances in February 2025, bringing a mix of capacity growth and transitional challenges. The Premier Alliance is introducing an 8% BSA increase to ease East Coast bottlenecks, while Gemini Alliance’s 20% capacity boost could temporarily disrupt schedules during vessel reallocations. MSC is expanding its East-West network with added loops and port calls, and the Ocean Alliance’s ‘Day 9’ service should strengthen Transpacific routes. These changes are expected to improve capacity overall, though short-term disruptions may occur as carriers adjust to the new schedules.
LUNAR NEW YEAR IMPACTS SUPPLY CHAIN
The Lunar New Year starts tomorrow, Wednesday, January 29, 2025, and brings its usual impact on global supply networks. Productivity across China and East Asia slows significantly as factories and businesses shut down for the holiday. While official celebrations in China run from January 28, 2025 to February 4, 2025, many closures last weeks, leading to lower manufacturing output and fewer goods ready for export. This often results in shipping delays. After the holiday, factories work to clear backlogs, triggering a surge in shipments.
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