Crazy low Asia-Mediterranean freight rates
Exciting time ahead for anyone importing goods on the Asia-Mediterranean trade lanes. There is going to be a significant drop in freight rates. The G6 alliance has confirmed its position to increase capacity by 21% which approximates to 2,200 twenty-foot equivalent unit (TEU) every week. This will be realized early September, which usually marks the onset of a busy freight season.
In a report by Alphaliner, the G6 EUM Loop update will realize seven ships in the 8,750-10,700 TEU range replaced by 13,000 TEU class units to operate alongside three 10,700 TEU vessels.
HMM will provide six 13,100 TEU ships, that were docked from the suspended G6’s Asia-North Europe Loop 6, and the Loop 4 service, where the South Korean carrier’s tonnage was replaced by partner vessels.
The seventh vessel will come from OOCL, the 13,208 TEU OOCL Brussels, after a larger ship takes its place on a North Europe service in early September. Furthermore, the EUM service will be the sixth dedicated Asia-Med loop on which 13,000-plus TEU vessels are now deployed.
Indeed, with the added capacity, there are strong calls for an alliance among the carriers at the major Mediterranean ports. However, there is no economic report for a significant increase in demand in these lanes. This will push carriers to lower their prices in hopes to increase volume.
Container spot rates on the route plunged to under $200 or 180 euros per TEU in early March but recovered at a quicker pace than the larger Asia-North Europe trade. On Friday, the Shanghai Containerized Freight Index (SCFI) recorded China-Med container spot rates at $951 (856€) per TEU, whereas, for North European ports, they stood at $932 (838€) per TEU.
In conclusion, anyone importing containers on the Asia-Mediterranean trade lanes can expect fantastic freight prices from September onwards. 45HC.com is in contact with all major carriers in the Mediterranean region and will offer updated prices to our clients.
If you would like to find out more about how this can help your business save money and prepare for a busy holiday season feel free to contact us at info@45hc.com to discuss further.