Situation

We are seeing a slight improvement in the situation in the Middle East, with some vessels now able to pass through the Strait of Hormuz. However, other violent occurrences show that it cannot be considered safe before valid agreements are reached. Meanwhile, rates on the FEWB trade have dropped slightly in recent weeks, and we have also seen some relief in terms of bunker prices. Nevertheless, this is not reflected in the bunker costs charged by shipping lines.

 Obstacles

The upcoming Labor Day holidays in China and Golden Week holidays in Japan at the beginning of May created an increase in cargo to be moved prior to these holidays. However, several carriers have announced blank sailings at the beginning of May in order to balance supply and demand. This could result in a shortage of available space on some sailings.

 Outlook

The usual peak season for Christmas cargo bound for Europe is expected to result in an increase in volume in the second half of May. Carriers will attempt to manage capacity, which might result in short-term price increases. This trend will continue into June and July.

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