TRANSPACIFIC rates are under pressure and falling unless carriers can manage capacity out of eastbound trade to balance deliveries of newbuilds and an "already delicate" supply-demand balance said Paris-based analysts at Alphaliner.According to forwarders spot rates from the summer have fallen from US$2,800/FEU on China-US East Coast to close to $2,000/FEU and the mood is that pressure will not ease any time soon.
Hong Kong Association of Freight Forwarding (HAFFA) chairman Paul Tsui told London's International Freighting Weekly that carriers will struggle to increase general rate increases well into January.
"Then there may be a seasonal peak for two to three weeks before the Chinese New Year [February] and afterwards, the rate will go down once again."
Despite this year's global fleet tonnage at an all time low of 9.6 per cent and expected to continue into 2012 this will be offset by a slowing down of growth from 2010 level of 12.5 per cent.
Management of capacity is key to applying rate increases in 2011 said China Global Lines managing director Bryon Lee, adding "much will depend on the economic recovery of US trade, which is not looking optimistic."
Despite this year's global fleet tonnage at an all time low of 9.6 per cent and expected to continue into 2012 this will be offset by a slowing down of growth from 2010 level of 12.5 per cent.
Management of capacity is key to applying rate increases in 2011 said China Global Lines managing director Bryon Lee, adding "much will depend on the economic recovery of US trade, which is not looking optimistic."
Source : HKSG, 02.12.10.
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