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 Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Container Ships

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Logistics

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

Antwerp Port Achieves Highest Throughput

The port of Antwerp handled a freight volume of 148,344,168 tonnes during the first nine months of this year. That’s 3.7% more than the same period last year. Both

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1075 sec (9 req/sec)