Fearing another container spot rate crash, ocean carriers have blanked several export sailings from Asia to Europe and Asia to the US, before the Chinese national holiday in early October, reports The Loadstar.
Void sailings
Drewry’s latest blanked sailings assessment puts the notified cancellation rate in September for scheduled sailings on the transpacific, Asia-Europe, and transatlantic at 10% to date.
Drewry said 51% of the blanked sailings notified to date were on the transpacific, 28% on Asia-Europe, and 21% on the transatlantic.
While spot rates from Asia to Europe and on the transpacific eastbound route have been declining steadily for several weeks, there is no evidence so far of heavy discounting by the major carriers that would cause freight rates to collapse.
Indeed, Drewry’s WCI Asia-North Europe component is still around 350% higher than 12 months ago, at $7,204 per 40ft, having declined 3% this week.
Nevertheless, The Loadstar sighted a short-term rate offer this week from Ningbo to Felixstowe of $5,000 per 40ft, valid for September, with another UK-based NVOCC advising that he had received an offer of $4,500 per 40ft from China to Southampton.
Meanwhile, transpacific rates are also holding up well, with the WCI’s headhaul spot rate to the US west coast edging down by just 2% on the week, to $6,248 per 40ft, with US east coast rates down by the same percentage, tot $8,591 per 40ft.
Spot rates on the trade lane remain elevated however, up year-on-year by 180% and 150% respectively, for Asia to the US west and east coasts.
Notwithstanding carriers deploying their capacity management tools on the transpacific, the looming threat of a US east coast dock strike in October, as well as the roll-out of new import tariffs, should underpin rates on the trade, despite softer demand and the undercutting of rates by new, small entrants to the market.
Elsewhere, on the transatlantic westbound North Europe to US east coast route spot rates remained stable, at around $2,000 per 40ft, with exporters starting to run out of time to ship their goods ahead of potential industrial action at the east coast ports.
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Source: The Loadstar
