Shipping companies are reporting that almost all major shipping routes are fully booked for late October sailings, with space shortages now extending into November. Industry experts are urging customers to secure their shipping space early as rates are expected to rise.
“The market has clearly changed direction,” says a shipping route expert from Yunquna. “We’re seeing full vessels and rising rates on multiple routes. We strongly recommend customers book their space as soon as possible.”
US Routes Face Pressure from Holiday Season
The situation is particularly tight on US routes. Both West Coast and East Coast services are nearly full for late October, with only limited space available from some carriers. The shortage is driven by pre-Christmas shipping and Black Friday e-commerce goods.
MSC has already announced a rate increase of $300 per container for next month. Market analysts point to several factors causing the space shortage:
- Concerns about US election impact on tariff policies
- Early Chinese New Year shipping
- Ongoing port automation issues
- Potential strike risks at ports
European Services Report Full Vessels
European routes are also experiencing space shortages as carriers announce November rate increases. Most vessels are fully booked for late October. In East China, shipping capacity is expected to decrease by about 28% in the first week of November due to blank sailings and delays.
Eastern Mediterranean routes are facing severe service disruptions, with rates likely to increase in early November. Western Mediterranean routes show slightly better conditions, though carriers are considering additional rate increases.
Strong Demand on Asian Routes
The Middle East and Indian Subcontinent routes are seeing significant rate increases, especially for India-Pakistan services. Middle East and Red Sea rates are following this upward trend. Many customers are booking early, concerned about further rate increases.
Southeast Asian routes are experiencing full vessels and rate increases across the board. Most carriers have no space available until the second week of November, with rates expected to continue rising.
South American Market Tightens
South American routes, both East and West Coast services, are reporting full vessels for late October. The space shortage is driven by Christmas and New Year cargo demand. Carriers are expected to implement rate increases in November.
Market Analysis
Unlike last year’s space shortage, which was mainly due to carrier capacity management, this year’s situation has multiple causes. Wu Jia-Lu, head of Industrial Research at CITIC Futures, explains: “Many shippers are rushing to book space before announced rate increases. The market is moving from low season to peak season.”
Spot rates have already started increasing compared to early October. Analysts expect rates to remain strong with possible further increases.
Expert Recommendations
Industry experts recommend that shippers:
- Book cargo space immediately
- Prepare for possible rate increases
- Plan for longer shipping times
- Consider alternative routing options
- Maintain regular contact with shipping partners
The current market situation suggests that space shortages and rate increases may continue through November. Shippers are advised to act quickly to secure their supply chain stability.
For more information, contact your local shipping agent or freight forwarder.
