Source: Market average rates for 40‘ containers according to www.xeneta.com
Trade Analysis: Far East Westbound
Situation
Demand started picking up toward the end of May, and our forecasts indicate that this trend will continue throughout June and July. While the traditional peak season for this trade lane began later than usual, it has still brought the usual rate increases and growing pressure on space and equipment availability in Asia. Combined with ongoing delays at European ports, this situation continues to weigh on service reliability.
n addiction we have to expect significant operational restrictions due to ongoing infrastructure works in Hamburg: several important rail connections will be closed until July 8 and will have a major impact on rail services to/from the port. These closures will also affect the port of Hamburg after the construction works and will have impact on other Northern German ports as well as Duisburg, Rotterdam and Antwerp.
Obstacles
Two main obstacles are currently impacting transit time reliability. First, severe congestion in Antwerp, Rotterdam, and Hamburg is delaying vessel turnarounds back to Asia. Second, the reallocation of capacity from European trades back to transpacific routes is adding further strain. These developments naturally lead to higher rates and reduced availability of space.
Outlook
Demand is expected to remain strong in July, especially in Northern Europe. In contrast, demand in the Mediterranean will begin to ease, as peak season in this region typically starts and ends earlier due to the summer holiday period. Short-term rate levels are likely to remain higher for the next two to four weeks.
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