From The Loadstar via gCaptain, February 5:
Asia-North Europe shippers have adapted their supply chains to the longer transit times around Africa, but now they need freight rates to settle at an acceptable level.
Moreover, container hub ports seem to be coping well with the arrival of off-schedule vessels.
All the major carriers, with the exception of CMA CGM, are diverting their Asia-Europe services around the Cape of Good Hope, rather than transiting the Suez Canal, with several temporarily adjusting their proforma networks and providing helpful revised ETAs to customers.
However, according to various reports at the weekend, the French line has now decided to no longer send its ships through the Red Sea and Suez Canal – albeit that this is yet to be officially confirmed by the company.
Between mid-December and mid-January, average container spot rates on the route skyrocketed, by some 200%, to about $5,000 per 40ft, with some shippers desperate to get their product shipped before next week’s Chinese New Year being asked to pay up to $10,000 per 40ft to guarantee equipment and shipment.
However, in the past few weeks, spot rates have started to ease: for example, the Ningbo Containerized Freight Index (NCFI) commentary reports “demand has declined” and that “carriers have slightly lowered freight rates”.
Indeed, Drewry’s WCI Asia=North Europe component fell another 6% last week, for an average of $4,661 per 40ft, although the spot rate remains around 170% higher than 12 months ago.
“Rates need to come down from these crazy levels, but I hope they settle at an acceptable level where the carriers still make a decent return,” a director of a UK-based NVOCC told The Loadstar last week....
....MUCH MORE
Earlier:That Time The Suez Canal Was Closed For Eight Years
