Amalgamated spot indicator, Drewry's World Container Index, has recorded a decline of 5.2%, reaching $1 479.48, per forty-foot equal unit (FEU).
The figure still reflects a 4% edge over the pre-pandemic rates of 2019.
From late August to earlier this week rates for shipping goods from Asia to North Europe and the Mediterranean have experienced significant downward pressure.
Lars Jensen, the founder of Vespucci Maritime consultancy, has reported a substantial 30% drop within this 30-day timeframe.
The sentiment in the container market continues to erode, with freight rates showing a persistent decline.
Regrettably, there seems to be limited optimism for a rate recovery in October, even in light of the carriers' efforts to regulate capacity by implementing blank sailings.
This assessment is featured in the most recent weekly report by Linerlytica.
The Asia-based consulting firm also points out that the planned capacity reductions during October’s Golden Week holidays in Japan pale in comparison to the capacity adjustments made during the Lunar New Year holidays in February this year.
These actions, according to Linerlytica, are insufficient to halt the rapid decline in rates.
Looking ahead, the prevailing trend suggests that ocean carriers are adopting a cautious approach.
Global forwarders are sounding the alarm about the anticipated increase in blank sailings during the fourth quarter on the trade routes connecting Asia to North Europe and the Mediterranean.
The continued expansion of shipping capacity, driven by the introduction of colossal vessels, is outpacing the existing demand, thus exacerbating the strain on trade lanes that are already oversupplied.
This warning comes from Container Xchange in a recent report.
Drewry reports that blank sailings already account for a significant 16% of mainline capacity.
The announcement of blank sailings, often made at the eleventh hour, is expected to result in reduced schedule reliability, as noted by Judah Levine, the head of research at Freightos.
This subdued outlook is also impacting the chartering sector.
London shipping consultants Braemar highlight that the availability of prompt tonnage is on the rise, and it is anticipated that operators will be vying for new benchmarks across all segments. – Asia Shipping Media
