...As demand begins to revive, fears of a new Asia-Europe rates war mount
The easing of lockdowns, especially across much of Europe, has helped demand for container freight gradually get back on its feet to take the first tentative steps toward recovery.
After a few months in which demand tumbled around the world, the re-opening of some shops, with more expected in the coming weeks, has resulted in a sudden jump in demand, especially as there are large numbers of vessels out of the market following the void sailing measures by carriers.
However, there are some concerns emerging on the Asia-Europe tradelane over a gap starting to grow in prices offered for container freight.
Some carriers have reduced rates in an attempt to boost cargo numbers, and this has created a dilemma. The lower rates have attracted more cargo, which has left some vessels at over 100% capacity with some cargo rolled. This has put already fragile supply chains under further pressure.
“If we can’t get our goods in time, our shelves will be empty. We have had some issues so far with all the void sailings, meaning that our previously comfortable margins for restocking are now being stretched paper-thin,” one shipper said.
On top of this, looking beyond the short-term boost from easing of lockdown restrictions, are the tremors of an economic slump that all but the most bullish analysts are bracing for.
This could have a significant impact on container freight should consumer demand change.
North American Market Focus
With demand on transpacific lanes still in the doldrums, rates have been struggling to hold firm and there have been some falls over the month, as the easing of lockdowns continues at a slow pace.
Despite the fact that there still have yet to be mass shutdowns at ports, the delays in container arrivals and the smaller volumes reaching ports are causing issues for back-haul traffic........MUCH MORE
