Container spot rates are in freefall as carriers grapple with weakening demand and make last-minute cancellations ahead of China’s Golden Week holiday, impacting both major tradelanes and transatlantic routes. The loadstar source.
- Container spot rates plummet across major tradelanes as carriers cancel sailings due to weakening demand ahead of China’s Golden Week.
- Transatlantic routes experience a significant decline in spot rates, raising concerns of potential service suspensions.
- Forwarding agents anticipate further rate discounts, while carriers aim to disrupt supply chains and push rates higher by withdrawing excess capacity.
Demand Weakens and Rates Plummet
Ocean carriers are facing a sharp decline in demand, leading to the cancellation of sailings from Asia, resulting in short-term freight rates dropping across major tradelanes.
Transatlantic Troubles and Load Factor Strategies
Carriers operating on the transatlantic route are delaying sailings from North Europe to the US east coast to optimize vessel load factors, while spot rates fall to sub-economic levels, prompting concerns about potential service suspensions.
Rate Erosion
As spot indices reflect rate erosion, forwarding agents are offering Asia-Europe rates below index values, anticipating further discounts from carriers who are seeking to disrupt supply chains and push rates higher.
Capacity Reductions and Golden Week Impact
Vessel-sharing alliances have already withdrawn several scheduled sailings from China to Europe in preparation for China’s Golden Week, with the possibility of more blankings, causing capacity reductions during this period.
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Source-theloadstar
