Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202340] The SCFI slipped to its lowest levels since May 2020, with further falls expected in the coming weeks as volumes remain lacklustre. Carriers are still unwilling to make decisive capacity cuts despite the rate slump and absence of cargo roll pools before the start of the Chinese Golden Week holidays on 1 October. Maersk in particular have been singled out for giving heavy discounts on its spot pricing even as it cont
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202339] The early end to the summer peak season has brought the container market back to reality, with the SCFI retesting fresh lows even before September is over. Further rate declines in October will follow despite the reduction in capacity next month with carriers unable to generate any significant cargo roll pools ahead of the Golden Week holidays in China. Severe rate discounting especially on the Asia-Europe route has
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202338] Container market sentiment continues to deteriorate, with freight rates still slipping with little prospects for a rate rebound in October despite carriers’ efforts to contain capacity availability through blanked sailings. The planned capacity cuts over the Golden Week holidays in October are still smaller than the capacity removed during the Lunar New Year holidays in February this year, and are insufficient to ste
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202337] Container freight rates are dropping at a faster rate than expected with the SCFI slipping below 1,000 again, giving up all of the gains made in the last 7 weeks. Weak peak season volumes coupled with oversupply across the main markets have weighed down heavily on rates with little chance of a reversal until November at the earliest. Carriers inability to curtail supply remains the biggest challenge, as capacity util
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202336] Freight rates have rebounded slightly following the 1 September rate increase that were applied on trades out of Asia to the US, Australia and India/Middle East but the gains are reversing as quickly as they are applied with carriers offering rate discounts. Asia Europe rates were severely battered due to continued capacity pressure with 3 ULCS units delivered over the past week alone as the pace of newbuilding deliv
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202335] Although freight rates will receive a minor boost this week from the 1 September rate hikes, market sentiment remains poor with the SCFI giving up all of its gains in August in a repeated pattern of early month rate gains followed by rate cuts as the month progresses. The transpacific rate gains have been more resilient than on Asia-Europe, but even there the momentum is dissipating quickly with the Panama Canal tran
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202334] Market sentiment has turned negative again, with carriers unable to retain the recent rate increases as the SCFI slipped by 1.2% last week. The setback will make it harder for carriers to push for the next round of rate hikes in September, with no signs of capacity management in place. The idle fleet remains low even as new ship deliveries continues apace. The mounting losses at Zim has forced it to rationalise capa
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202333] The SCFI extended its gains for the 3rd consecutive weak but there are signs that peak season volumes are already starting to fade and the recent rate rebound could soon run out of steam. Transpacific freight rates have led the recent gains on the back of rising demand and capacity cutbacks, with Asia-Europe rates also managing to retain most of their recent gains despite more shaky market conditions. However, Linerl
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202332] Maersk’s 2nd quarter results laid bare the failure of its integrator strategy to deliver while allowing its rivals to snatch away liner market share where earnings remain superior to any quarter prior to 2020. Although Maersk’s full year earnings guidance painted a dismal market outlook for the 2nd half of 2023, the liner market barometer has turned positive with the SCFI extending its gains for a 3rd consecutive wee
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202331] Freight rates have rebounded sharply on the back of the 1 August rate increases, with the SCFI rising by 6.5% at the end of last week. High capacity utilisation on the transpacific routes, especially to the West Coast will ensure rates remain elevated to North America with the ILWU Canada contract negotiations still not resolved. Asia-Europe rates will be less resilient, with carriers already under-cutting rates as t