A survey into the capacity situation on the Asia-Europe route has revealed that ships of 4,800 to 6,000 TEUs have dwindled from 47 to 26 in a year. According to AXS-Alphaliner, an information sharing platform for liner industry, capacity supply on the Far East-Europe route has fallen in September compared to four months earlier.
Despite widespread perception that capacity increases have led to the rapid rate deterioration on the Asia-Europe trades, the survey shows that actual capacity has not increased in the September period compared to May. Only one new loop has been launched which was planned since last year, while two Asia-Mediterranean loops have been terminated and two other services merged into a single loop.
It says that all new 8,000 TEU plus vessels have been absorbed by a combination of factors: cascading, slow steaming and relocation to the transpacific trade. The extra capacity delivered by shipyards has been partly absorbed by slow steaming - a fuel saving measure.
The impact of slow steaming on the Asia-Europe route is estimated to absorb approximately four percent, or 140,000 TEUs, of additional shipboard capacity.
Despite widespread perception that capacity increases have led to the rapid rate deterioration on the Asia-Europe trades, the survey shows that actual capacity has not increased in the September period compared to May. Only one new loop has been launched which was planned since last year, while two Asia-Mediterranean loops have been terminated and two other services merged into a single loop.
It says that all new 8,000 TEU plus vessels have been absorbed by a combination of factors: cascading, slow steaming and relocation to the transpacific trade. The extra capacity delivered by shipyards has been partly absorbed by slow steaming - a fuel saving measure.
The impact of slow steaming on the Asia-Europe route is estimated to absorb approximately four percent, or 140,000 TEUs, of additional shipboard capacity.