Welcome to the Goudsmit UK March Market Update. This update provides an overview of key developments, helping you stay informed and prepared for whatever the market brings.
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Market Outlook
Shipping capacity to North Europe will decrease in the coming weeks due to weak bookings. As a result, carriers are cancelling some sailings and rerouting shipments to adjust to the changes. These shifts are primarily due to the impact of new shipping alliances, which are expected to take about two months to fully stabilize and show their effects.
Shipping alliances, which are partnerships between ocean carriers, help improve efficiency by sharing vessels, expanding networks, and reducing costs. However, these partnerships also influence global trade by affecting freight rates, transit times, and service reliability.
Recent changes, like the end of the 2M Alliance and the formation of new groups such as Gemini Cooperation and the Premier Alliance, are reshaping how logistics are managed. These transitions, driven by factors like larger vessels and varying goals among carriers, may lead to temporary uncertainty in capacity and service routes, but the goal is to improve reliability and coverage in the long term.
The early 2025 ceasefire deal in Gaza was a step toward stability and the eventual reopening of the Red Sea route, though the Middle East situation remains fragile. Container liners have adjusted their routes to minimize disruptions, hoping for prolonged stability, particularly after the restructuring of sailing schedules due to the Gemini Alliance (Maersk and Hapag Lloyd) starting January 2.
These new schedules incorporate Cape rounding as the ‘new normal’ and aim for an arrival performance rate of at least 90%, a significant improvement over the current global average of 50%.
If the Red Sea route does reopen, the process will be gradual, starting with smaller bulk and tanker vessels, while larger container carriers will follow later. However, disruptions such as congestion at European ports and blanked sailings from Asia will complicate the process, and it will take months for the system to stabilize. Shipping companies, prioritizing their financial interests, are not expected to fully resume operations until mid-2025, with normalization extending into the latter half of the year.
Exchange Rate
Worst GBP to USD exchange rate in February 2025: 1.2292
Best GBP to USD exchange rate in February 2025: 1.2683
Average GBP to USD exchange rate in February 2025: 1.2531
Port Operations
Ningbo port is currently operating normally, with full equipment availability and a vessel waiting time of approximately 2-4 days. There are no weather disruptions or capacity issues.
Airport Operations
Airport operations at Shanghai Airport, haulier services, and weather conditions are all normal, with available space and stable air rates.
Commodity Market
In February 2025, commodity prices remained generally steady. Neodymium maintained its price at $70.00/kg for the fourth consecutive month, indicating continued stability in the rare-earth market. The most significant increase occurred in cobalt, rising notably from $20.57/kg to $22.07/kg. Copper prices also climbed, moving from $9.49/kg to $10.03/kg. Nickel prices showed an upward movement, while samarium, zinc, and aluminium remained stable. Additionally, Al Alloy experienced a noteworthy increase, achieving its highest rate since August 2024, highlighting renewed demand.
Download the full commodity rates here.
Thanks for reading the Goudsmit UK Market Update. At Goudsmit UK, we specialise in providing high-quality magnets and engineered components tailored to meet your specific needs.
Our team of experts is dedicated to helping you find the perfect magnetic solutions for your projects. For more information about our products and services, contact us at info@goudsmit.co.uk or call +44 (0) 2890 271 001.
