[{"data":1,"prerenderedAt":114},["ShallowReactive",2],{"news-en-asia-europe-ocean-trade-is-a-nightmare-scenario-unless-youre-a-carrier":3},{"id":4,"title":5,"_locale":6,"body":7,"category":97,"date":98,"description":13,"excerpt":99,"extension":103,"image":104,"meta":105,"navigation":107,"path":108,"seo":109,"slug":110,"stem":111,"subtitle":112,"__hash__":113},"news/news/14.asia-europe-ocean-trades-a-nightmare-scenario-unless-youre-a-carrier/newsitem.en.md","Asia-Europe ocean trade is a nightmare scenario - 'unless you're a carrier'.","en",{"type":8,"value":9,"toc":93},"minimark",[10,14,17,20,23,26,29,32,35,57,60,63,66,69,72,75,78,81,84,87,90],[11,12,13],"p",{},"\"It's shocking,\" says a British forwarder. \"The speed and pace of changes are phenomenal and mimic the run-up to the peak of the pandemic.\"",[11,15,16],{},"The forwarder warned that box lines are scrapping FAK rate quotes when bookings are made and that contract capacity is being cut.",[11,18,19],{},"\"It's a nightmare. Demand is extremely high - we're seeing 10-20% growth year after year in our customer base. Either customers are restocking, or they need an extra two-week inventory buffer due to longer transits around the Cape.",[11,21,22],{},"\"Add to that the start of the traditional 'peak season' in May, which is now 'seasonal' again. All in all, it's a nightmare scenario for importers right now.\"",[11,24,25],{},"Scan Global Logistics also warned customers that westbound freight rates in Asia \"exploded.\"",[11,27,28],{},"\"A cocktail of sustained demand for capacity, empty sailing schedules and a year-round outlook that offers no positive prospects for the Red Sea crisis has put freight rates on a rapidly rising path,\" the company said.",[11,30,31],{},"Scan told customers that \"black clouds are hanging on the horizon - unless you're a container carrier.\"",[11,33,34],{},"Container lines are busy implementing peak season surcharges and GRIs \"on both long- and short-term contracts,\" according to Scan.",[11,36,37,44,45,50,51,56],{},[38,39,43],"a",{"href":40,"rel":41},"https://www.hapag-lloyd.com/en/services-information/news/2024/04/shipping-between-far-east-and-europe--a-price-announcement-is-av1.html",[42],"nofollow","Hapag-Lloyd",", ",[38,46,49],{"href":47,"rel":48},"https://www.msc.com/en/newsroom/customer-advisories/2024/april/price-announcement-far-east-to-europe",[42],"MSC"," and ",[38,52,55],{"href":53,"rel":54},"https://www.cma-cgm.com/news/4685/fak-rates-from-asia-to-north-europe?cat=tariffandsurchargeupdates",[42],"CMA CGM"," have all announced increased freight rates between the Far East and Europe, two from mid-May.\nBut the British forwarder revealed: \"Carriers are putting rates out - and then pulling them back because they've already been replaced by higher levels.",[11,58,59],{},"\"FAK and spot facilities and mechanisms for most shipping companies are now closed until June, or later - so you can't book, even if you're willing to pay higher prices.\"",[11,61,62],{},"He added that unrelated shipping routes are now also being affected: \"Asia-Latin America rates, for example, are now $9,000-$10,000 per 40ft and capacity is being diverted to that more profitable route.\"",[11,64,65],{},"Contract and spot rates are also beginning to diverge.",[11,67,68],{},"Scan Global said: \"This is reminiscent of rate development during Covid, we have a situation where contracted long-term rates and short-term rates are far apart.",[11,70,71],{},"\"In some cases, short- and long-term rates can differ by more than $3,000 per 40ft DC for the same trade. As an additional comment, carriers are increasingly choosing to prioritize higher-revenue cargo and load it in an attempt to mitigate the bleak financial results of Q4 23 and, to some extent, the mediocre results of Q1 24.\"",[11,73,74],{},"Part of the problem also lies in a container shortage. A Container Xchange customer said yesterday that, despite the fact that depots are not experiencing major pressure from inventory levels, container prices \"continue to rise and adjust approximately every 48 hours.\"",[11,76,77],{},"\"This increase is largely due to uncertainty about the situation in the Red Sea, but also to suppliers and sellers wanting to hedge their risks.",[11,79,80],{},"The company added that diversions around the Cape of Good Hope had likely absorbed \"a significant number\" of containers, while others were \"stranded at network locations.\"",[11,82,83],{},"\"Shipping these containers may not be economically feasible due to factors such as high transport costs, cheap storage at the location or containers approaching the end of their life.",[11,85,86],{},"Scan Global asked for \"understanding\" from customers and said it expected the situation to continue until May.",[11,88,89],{},"The British forwarder added: \"This has implications for the entire Far East. The new tonnage doesn't make a dent or is being deployed as a repositioning tool for containers - so that doesn't help.",[11,91,92],{},"\"This is just the beginning, or almost the beginning, of an explosion of capacity shortages and oceans going north faster - even pay-to-play can't save the day in this case.\"",{"title":94,"searchDepth":95,"depth":95,"links":96},"",2,[],"market-news","2024-05-08",{"type":8,"value":100},[101],[11,102,13],{},"md","/content/news/de-oceaanhandel-tussen-azie-en-europa-is-een-nachtmerriescenario-tenzij-je-een-vervoerder-bent/header.jpg",{"media_order":106},"header.jpg",true,"/news/asia-europe-ocean-trades-a-nightmare-scenario-unless-youre-a-carrier/newsitem.en",{"title":5,"description":13},"asia-europe-ocean-trade-is-a-nightmare-scenario-unless-youre-a-carrier","news/14.asia-europe-ocean-trades-a-nightmare-scenario-unless-youre-a-carrier/newsitem.en","Forwarders warn customers that demand on Asia-Europe ocean trade is starting to look a lot like the peak of the pandemic.","EX80_QwdFIibQJ4sGuezuvsK2NtdZePFecCRI0q9z4Q",1789381545932]