Asia - Europe capacity crisis looks to improve.

Volumes are being eased and carriers have begun to re-introduce tonnage.

Feedback from forwarders has confirmed that the freeing up of space on ships has led to all-in spot rates from Asia to Europe being dropped below US$2,000 per TEU for the first time since the beginning of February.

Figures from the Shanghai Containerised Freight Index confirmed that average rates for services from Shanghai to Northern Europe dropped from $2,104 per TEU two weeks ago to $2,009 at the end of last week, while services between Shanghai and the Mediterranean, dropped from $1,988 per TEU two weeks ago to $1,927 per TEU at the end of last week.

IFW's article reported that China is now more open than it has been in the past six months; yet South-East Asia was still proving a problem.

Analyst AXS Alphaliner estimates that capacity on the Asia-Europe trade will increase by 22,000 TEU following the launch of a series of new services.

There is general concern that the industry is entering into a cycle in which rates and capacity availability veer from one extreme to the other, although it is common to see 'moderate' rate declines at this time of year, due to seasonal decreases in volumes.

Genesis will always keep customers informed with all the latest information concerning rates and capacity and if you have any further questions please do not hesitate to contact us on +44 (0) 132 725252