[240710.EN.SEA] Freight Rates Forecast To Remain Strong In Q3

LAST year was all about capacity. Headline after headline last year dealt with the idle ship fleet.

This year it is all about freight rates.

While transpacific rates were expected to rise following the successful contract negotiations between shipping lines and their major customers, fears were beginning to creep into the market regarding the Asia-Europe trade.

It appears now that these fears can be put to rest for the time being.

Maersk Line, citing the recent surge in demand on the Asia-Europe trade, has announced a $750 per TEU Peak Season Surcharge, which will come into effect on July 15.

But they are not the only ones to announce a PSS for the upcoming quarter; however, most have announced a PSS in the range of $200-$300 per TEU.

One thing is certain; carriers on the trade are definitely feeling more optimistic on the prospects for Asia-Europe this year, as are an increasing number of industry observers.

In the above chart we can see that the Asia-Europe Shipping Rate Index places rates at present as not only being well above last year’s abysmal levels, they are now the highest they have been in the past four years.

According to BNP Paribas analyst, Sarah Liu, rates on the trade are now at around US$1,800 to $1,900 per TEU, while load factors for the second quarter have been running at about 90-95 per cent.

Source : CSM, 02.07.10.