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