Container Ocean Freight Rates Hold Steady on Main Routes

BIMCO
Thursday, August 16, 2012

Freight rates hold on to a healthy level on the main routes according to the latest BIMCO Market Analysis Report.

Excerpts from the report follow:

Freight rates hold on to a healthy level on the main routes, while new large vessels are put to work smoothly without adding extra downside pressure to the current balance, says the report.

The positive stories continue to show themselves in the container shipping segment, with freight rates holding up well and demolition activity staying strong. In the light of the slowly developing demand side, it’s very positive that the industry deals with the supply side issues to improve the fundamentals.

Growth rates in container volumes on the main trading lanes pose a continuous challenge as they struggle to improve. On Far East to US West Coast the first half year growth number for loaded inbound boxes is just 2.1%. Not impressive, but moving upwards as compared to the development seen one year ago, where imports fell from May till December. As regards overall traffic on Far East to Europe, volumes are down by as much as 2.1% in the first six months, mirroring the difficult economic situation that is felt across Europe.

On the high volume/short haul trading lanes, intra-Asia freight rates have fared much more stably as compared to the very volatile rates development on the main long haul trading lanes to Europe, Mediterranean (Med.) and US West Coast (USWC). This improved the comprehensive index as is clear from the graph below; the index is heavy on the long haul (50% originates from Europe/Med./USWC), while the four depicted intra-Asia routes comprise only 15% of the index.

Outlook:
Regardless of the slow development of demand, freight rates have travelled from a very poor state at the end of 2011 to a comfortable level on several significant trading lanes. Bearing that in mind, BIMCO expects the peak season to become a positive surprise, with rates holding up somewhat but potentially with a sliding tendency if deployed capacity reveals itself as abundant. BIMCO continues to expect the short term focus will be on balancing the demand for new tonnage with deployed capacity. Our forecast contains an improved market balance, as the supply side is helped by strong volumes of demolished tonnage which is removing significant number of smaller vessels up to 3,000 TEU.


 

 

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Container Ships

DP World takes over Rodney Container Terminal, Canada

DP World has signed a long-term lease agreement for the expansion and operation of the multi-purpose Rodney Container Terminal at Saint John, New Brunswick, Canada.

Boxship Capacity Crosses 20 million TEU Mark

This week, containership fleet capacity has passed the 20 million TEU mark, another milestone in the rapid rise to prominence of the sector, according to Clarksons Research.

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

Logistics

Boxship Capacity Crosses 20 million TEU Mark

This week, containership fleet capacity has passed the 20 million TEU mark, another milestone in the rapid rise to prominence of the sector, according to Clarksons Research.

MED AMERICAS will Replace MGE Service

CMA CGM is revamping it MGE service becoming the MED AMERICAS, stand-alone CMA CGM service with dedicated fleet of 11 vessels of 2,500 TEU, in a continuous effort to improve service coverage,

China Refineries Enters Global Oil Trade

During the last year, China’s “teapot” refiners are helping to boost China’s crude import demand and their influence is expanding, says Clarkson Research Services.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0693 sec (14 req/sec)