The suspension of bookings, announced on 20 March and blamed on a lack of space, was controversial, given the route’s status as a lesser utilised “backhaul”.
In an email to customers dated 12 April, Maersk Line warned customers that “strong space pressure” was expected to continue through April and May, implying that pressure would also apply to prices.
The suspension of bookings, announced on 20 March and blamed on a lack of space, was controversial, given the route’s status as a lesser utilised “backhaul”.
In an email to customers dated 12 April, Maersk Line warned customers that “strong space pressure” was expected to continue through April and May, implying that pressure would also apply to prices.
Meanwhile, the wider industry’s general restoration of freight rates showed little overall sign of letting up last week, although the key Asia-Europe component of the Shanghai Containerised Freight Index (SCFI) did slip US$26 to $1,744.
The World Container Index showed no signs of change on the Rotterdam-Shanghai backhaul, which held steady at $608 per feu, but that did not reflect Maersk’s reinstatement of backhaul services.
Ahead of yesterday’s transpacific General Rate Increase (GRI), the SCFI’s Shanghai-US west coast and Shanghai-US east coast components saw far bigger moves, with rises of $257 and $309, respectively.
Transpacific carriers had previously proposed a $400 increase to take effect on Sunday. Ben Gibson, a container rate derivatives broker at Clarkson Securities, said market participants still doubted that current demand for freight space was sufficiently high to ensure rate increases would hold.
“The increases follow the pattern already exhibited by the Asia-westbound routes, as carriers seek to restore profitability to the mainline trades,” he said.
“Our analysis follows some of the supply trends that have underpinned these rises, but there is a growing feeling in the market that such strength is unsustainable, given current levels of demand.”
The next round of GRIs on the Asia-Europe trade, $400-$450 per teu, is planned for 1 May.
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