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Tough start for Year of the Water Snake

Global – ‘€˜Far East-Europe freight rates are expected to come under pressure after the Lunar New Year,’€™ Alphaliner has stated in its latest weekly update. Due to enduring overcapacity, the French firm has painted a gloomy picture for the early months of the Year of the Water Snake.

In light of a widely-anticipated ‘€˜sharp fall’€™ in demand because of the upcoming holidays throughout Asia, many carriers are planning to cancel at least 15 sailings in Weeks 7 and 8, Alphaliner reveals. According to its calculations, weekly capacity will be reduced by 20% and 47% respectively in the two affected weeks.

The trade’€™s demand and supply balance is likely to suffer further as regular weekly sailings resume in March, Alphaliner has forecast. Saying excess capacity ‘€˜continues to be the main challenge’€™ for carriers on the Asia-Europe route, it offers a warning to liner operators with ‘€˜heavy exposure’€™ to this specific trade lane.

According to Alphaliner, 51 vessels of more than 10 000 TEU are due to be delivered in 2013 – the ‘€˜vast majority’€™ of which are planned for Asia-Europe trades. One bad omen has already surfaced, it adds, pointing out that Asia-North Europe forward rates on the Shanghai Shipping Exchange for the first half of 2013 are ‘€˜trending below current spot rates’€™.

 

For more information, visit: www.alphaliner.com

Source: Sino Ship News

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