Import container rates set to fall again leading up to China’s Golden Week holiday, starting on the 29th September, with bookings reported to be ‘disappointing’. The outlook thereafter is especially bleak, obliging carriers to take radical blanking action.
As a consequence of the void sailings from China, Europe and the US, container terminals and North Europe’s feeder and barge operators can expect a very lean time ahead.
Due to an “anticipated slowdown in demand”, MSC said that in one day they were blanking no less than 11 sailings from Asia to North Europe and five Asia-Mediterranean voyages between weeks 37 and 42.
The cancellations begin next week and include six weeks of consecutive blankings of MSC’s Asia North-Europe standalone Swan loop and the three of its Asia-Mediterranean standalone Dragon string.
MSC’s 2M alliance partner Maersk begins its Asia-Europe blanking programme in week 39, with the cancellation of its AE55 (MSC’s Griffin) loop, scheduled to sail from Shanghai on the 30th September.
It appears that Maersk is looking to balance the network in light of forecast reductions in demand and a reduced workforce to handle cargo operations.
As it stands, the 15,500 teu Maersk Canyon sailing from Asia to the Mediterranean in week 41 and the 23,756 teu MSC Ambra, deployed on the AE6/Lion loop scheduled to sail from Ningbo on 20th October are their final blank sailings.
Alongside this, the transpacific, carriers are being equally ruthless in their capacity management. However, the trade from Asia to the US appears to be more resilient than for Europe.
For example, Maersk and MSC is taking out three US west coast sailings during the Golden Week period. The US east coast, Maersk, MSC and VSA partner Zim will blank five voyages from Asia.
The disappointment for Zim is that the Maersk and MSC blankings include the Israeli carrier’s newly built LNG-powered 15,000 teu Zim Mount Everest, which is one of 10 sister ships ordered under long-term charter specifically to target the Asia to US east coast route.
The two biggest trade lanes are not alone in the significant revamping of carrier blanking. Virtually all services are experiencing the cancellation of outward loops from China, as the lines endeavour to prevent further rate erosion from softening demand.
Published on the 4th September, the weekly Ningbo Containerized Freight Index reported that across 15 of the 21 monitored export routes, rates have fallen in the past week, which has attributed to oversupply and sluggish demand.
The booming trade with India and Pakistan, where it says demand is continuing to rise and space is becoming tight on some sailing, is a bright spot for shipping lines.
This resulted in rates from Ningbo to India and Pakistan spiking another 12% last week, which is the fifth consecutive weekly increase for that trade.
If you have any questions about import container rates or are interested in getting the most up to date container rates, please contact your local CCi account manager on +44 113 271 1555 or info@carrycargo.com.
