Alphaliner: Rate malaise spreads as overcapacity continues
The influx of capacity puts pressure on the rates in secondary trade lanes, where the average rate out of China has gone down 18 percent year on year, writes Alphaliner.
BY RITZAU FINANS
As a series of new ships have been delivered to the container freight routes from Asia to Europe, older ships on the routes have been moved to other routes, what is referred to as "cascading." This has put freight rates under pressure across the board, writes industry analyst Alphaliner on Tuesday.
According to Alphaliner, new capacity for a total of 1.28 million teu, twenty foot equivalent units, have been delivered to the market in the past 12 months, 622,000 of which have been added to the routes from Asia to Europe. Much of the pressure stems from the arrival of massive container ships, as 33 ships with a capacity of more than 10,000 teu have been delivered.
"The stagnant demand on the FE-Europe route led carriers to remove an equal amount of capacity from the trade, re-assigning smaller units to other trades and triggering a wave of vessel cascading across multiple tradelanes," writes Alphaliner.