[171110.EN.SEA] CTS : Peak Season Slips Away With 3.9pc Rise Quarter to Quarter

DATA from Container Trade Statistics (CTS) indicate this year's peak season from Asia to Europe has proven a disappointment with shipping lines removing capacity well ahead of the slack season. 

Total cargo growth for the Asia to north Europe, west and east Med regions during the peak season in the third quarter was up 3.9 per cent compared to the previous quarter with the west Med being the worst performer.

A breakdown of the recorded cargo flow from Asia to North Europe in the third quarter amounted to 2,359,612 TEU, an increase of 6.6 per cent compared to the previous quarter.

Asia to the West Mediterranean, including North Africa, amounted to 648,665 TEU, down 4.8 per cent quarter to quarter. Asia to the East Mediterranean, including the Black Sea amounted to 558,408 TEU in the third quarter, up 3.5 per cent.

Ocean carriers had added 10 per cent more capacity in preparation for the peak season, pushing freight rates down, a report by London's Containerisation International said.

According to CTS, the average westbound freight rate to Europe in September was five per cent less than in July, although it was 14 per cent higher than the average for the whole of 2008.

The Shanghai Containerised Freight Index shows that by early November, the average all-in spot rate from Shanghai to North Europe had dropped to US$1,510 per TEU against $1,870 per TEU at the end of June. The corresponding rates to the Western Mediterranean were $1,469/TEU and $1,906/TEU, the report added.

Source : HKSG, 12.11.10.