Situation

We are now in the midst of peak season, with the number of new bookings in June far exceeding initial market expectations. There are several reasons behind this surge: Some shippers tried to frontload their shipments to delay the impact of increased bunker costs from Q3, while others wanted to build up sufficient stock in case of further geopolitical disruptions. In addition, some shippers registered increased customer demand for products like household goods and outdoor articles.

 Obstacles

The main obstacle is finding sufficient space due to several blank sailings in May and June. Carriers have created roll pools of containers, and since some vessels have been delayed out of Europe, the pressure to accommodate bookings has increased. The situation has intensified as several major trades are reaching their peak simultaneously. This makes it difficult to find suitable ships to cover the increased demand, and carriers are starting to select trades which offer more favorable revenues after Q1 showed weak financial results.

 Outlook

The situation will remain the same in July and is expected to reach its peak in the middle of the month. We may start to see more available space toward the end of July, along with a short-term decrease in market prices. This trend will continue into August.

Main Ports: Far East to North Europe

^{Source: Market average rates for 40‘ containers according to www.xeneta.com}

Main Ports: Far East to Mediterranean