Situation

Following the Labor Day holiday at the beginning of May, we observed a sharp increase in demand for space in this trade. In addition to the usual peak season, other factors are also influencing the current market situation. Some shippers are trying to frontload cargo prior to Q3 to minimize the impact of expected further bunker cost increases compared to Q2. Other trades from Asia are also performing well at the moment, which puts additional pressure on vessel and equipment availability and increases rates.

 Obstacles

Although equipment is mostly available at origin ports, the space and equipment situation is very critical. The upcoming typhoon season in Asia will have a negative impact on schedule reliability. This may lead to delays and space issues if shipping lines need to omit certain ports of call (POL) in order to keep up with schedules.

 Outlook

With strong customer demand forecasted for June and July, we expect a strong peak season with increased rates and limited space availability in the coming weeks.

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