GCTL8.com (FocusAsia Media Ltd)
LONDON, Feb 9 (FAM) – Container lines operating on Asia-Europe trades are “taking stronger measures” than usual to maintain the recent recovery in ocean freight prices by making major cuts to capacity in the weeks after Lunar New Year, according to ocean freight rates benchmarking specialist Xeneta. And it appears that lines’ efforts to prop up ocean freight prices have been successful – so far.
Since towards the end of 2016, the market has experienced a strong and sustained recovery, with container rates around 125% higher than they were around this time last year for Asia-Europe routes, Xeneta said. But with overcapacity still not fully addressed, there are still uncertainties if the market is to return to being “truly a seller’s market”, the company noted. But reports from its sources indicated that carriers “are taking stronger measures to deal with overcapacity to make sure the market stays up”, Xeneta said.