Although container companies operating the major routes from Asia to Europe, on the Pacific Ocean and from Asia to the Mediterranean Sea officially deny a rate war from 2011 has resumed, it is clearly still on-going, SeaIntel concludes in a new analysis based on a mapping out of rate developments on six important routes. And the rate war is not just on-going, but has even intensified since May 2012, the analysis stresses.
“The week-on-week rate erosion has not only continued - it has accelerated. As the week-on-week rate erosion is a solid measurement of the actual pricing decisions taken by the individual carriers, the numbers clearly show that carriers’ willingness to lower rates has increased. This can only be interpreted as a rate war. Whether the rate reduction is an attempt to gain market share, or is an attempt to protect market share is irrelevant as the effect on the market is the same,” SeaIntel writes in its newsletter Sunday Spotlight.