There was more evidence in this week’s container port freight markets that peak prices on the main east-west deepsea trades have passed, reports Loadstar.
Major indices
All three major indices recorded single-digit declines on the back of lower utilisation of ships loading in Asia.
Meanwhile, pricing on the Asia-North Europe route was either flat or saw slight declines: the WCI and XSI were flat, at $8,260 and $8,474 per 40ft respectively; while the FBX dropped 2% week on week, to finish at $8,420 per 40ft.
Asia-Europe freight forwarding sources confirmed that space over the past fortnight had become easier to procure, suggesting that either demand has begun to wane, or that the large-scale capacity additions since the beginning of the year are finally beginning to make their presence felt.
The WCI’s Shanghai-Genoa leg saw spot rates decline 1%, to finish at 7,645 per 40ft, while the FBX’s Asia-Mediterranean trade was down 3% week on week, to $7,508 per 40ft.
Every major carrier – with the exception of Yang Ming – has seen capacity increase in the first half of the year, according to data from Alphaliner this week, with MSC leading the way, adding around 400,000 teu to its fleet since January, breaching 6m teu fleet-wide capacity.
There is a lot more to come: both MSC and CMA CGM have around 1.2m teu of capacity on order across this year and next, and Alphaliner noted “there is good chance” the French carrier will surpass Maersk to become the second-largest carrier within the next two-to-three years.
VHBS director Alexander Geisler wrote: “This prudence is legitimate, considering that spot cargo rates are weakening; the SCFI registering last Friday its second week of fall, after 13 weeks of uninterrupted rise.
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Source: Loadstar
