Last week's steep dive in spot rates on Asia-Europe, down 32 percent to just USD 444 per twenty-foot container, is mainly a sign that the market remains fundamentally weak, Lars Jensen of analyst agency SeaIntel Consulting tells ShippingWatch.
"The general rate increase that was partially successful was only pushed through via the carriers' combined will to try to implement it. But it found no support from the underlying reality. If container carriers want to do something about this, they need to pull some capacity out of the market, and we're not really seeing this happen right now. Not to a degree that matters," he says, referring to the rate increase (GRI) in May when the carriers managed to raise the spot rate 150 percent, to USD 861 per teu.
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