- Asia-Europe ocean carriers fail to push up container spot rates as they head into the peak season, with a slippage for rates.
- The North Europe component declined by a further 1.9%, to $688 per teu.
- SCFI spot rates for Mediterranean ports fell 2.9%, to $705 per teu.
- Ocean Alliance will blank four headhaul sailings cutting 66,900 teu, matching four cancelled THE Alliances voyages, which will remove 67,700 teu of capacity.
- Maersk and MSC withdrew AE2/Swan loop, with Ocean and THE carriers getting benefitted.
- US west coast rates spike by 24% and rates for east coast ports jump 16%.
- US to defer implementation of new tariffs on Chinese imports resuming trade discussions between the two nations.
The Loadstar reports that container carriers head cautiously towards the ‘peak season’ owing to the fluctuations in spot rates.
Asia-Europe ocean carriers
Asia-Europe ocean carriers appear to have failed to push up container spot rates as they head into the usually lucrative peak season, despite withdrawing significant capacity.
The Shanghai Containerised Freight Index (SCFI) recorded another week of slippage for rates.
North Europe component
The North Europe component declined by a further 1.9%, to $688 per teu, and has now fallen more than 30% since the beginning of the year and around 20% below the level of a year ago.
And SCFI spot rates for Mediterranean ports fell 2.9%, to $705 per teu, as the route suffers similar weak demand issues.
Asia-North Europe carriers
Asia-North Europe carriers have announced radical steps that will see more than 130,000 teu of westbound capacity removed over four weeks of the peak season, as they battle to halt the slide in spot rates that can now make up over 60% of their business.
Alphaliner data about Ocean Alliance
According to Alphaliner data, the Ocean Alliance will blank four headhaul sailings in July and early August, cutting 66,900 teu, matching four cancelled THE Alliances voyages, which will remove 67,700 teu of capacity.
The 2M alliance has so far not announced any void sailings and may look to gain some market share from the prudent capacity management of their rivals.
Ocean and THE carriers benefitted
Members Maersk and MSC withdrew their AE2/Swan loop between September and December last year, only to see the Ocean and THE carriers benefit from the temporary cancellation.
A source from one carrier quoted time that Ocean Alliance carriers in particular had taken full advantage of uncertainty surrounding the reactivation of the loop.
Asia to US rates trending down
Meanwhile, on the transpacific, the SCFI recorded Asia to US rates also trending down after a massive GRI-induced jump last week, which saw US west coast rates spike by 24% and rates for east coast ports jump 16%.
This week, spot rates for the US west coast ticked down 4.1%, to $1,649 per 40ft, while US east coast rates edged down just 0.9%, to $2,764 per 40ft.
G20 summit
During the G20 summit in Japan last weekend, President Trump announced that the US was going to defer the implementation of new tariffs on Chinese imports and that trade discussions between the two nations would resume.
However, the trade has seen some new front-loading of cargo in anticipation of duty hikes and, according to Ethan Buchman, CMO of Freightos, this is set to continue for a while.
He added that it will take weeks before the bulk of front-loaded orders to get finished and shipped. Front loading may continue with importers getting caught out the last time a tariff came off deferral.
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Source: The Loadstar
