Container volumes on the Asia — Europe trade were up 20% in the first four months of the year, smashing previous growth expectations, writes Marcus Hand in Singapore.
The westbound trade between Asia and North Europe and the Mediterranean has grown by 20% year to date in April, according to a well-placed industry source, outstripping a forecast of 15% annual growth on the trade this year made by the Far Eastern Freight Conference.
At present the capacity increase for the year as whole is estimated at 16% meaning that, should volume growth continue at current levels, it will outstrip the increase in capacity.
The trade is seeing 20% growth before it enters the traditional peak season, which runs from July until the first week of October when there are week long holidays in China.
With shipping lines reporting much lower financial performances in the first quarter of the year they will be looking to capitalise on full ships to increase freight rates.
FEFC members have agreed a rate restoration of $300 per teu for Asia, excluding Japan, to Europe cargo from July 1.
A peak season surcharge of $135 per teu will be introduced on the Asia-Mediterranean trade from June 1 and on the Asia-Europe trade from August 1.
The westbound trade between Asia and North Europe and the Mediterranean has grown by 20% year to date in April, according to a well-placed industry source, outstripping a forecast of 15% annual growth on the trade this year made by the Far Eastern Freight Conference.
At present the capacity increase for the year as whole is estimated at 16% meaning that, should volume growth continue at current levels, it will outstrip the increase in capacity.
The trade is seeing 20% growth before it enters the traditional peak season, which runs from July until the first week of October when there are week long holidays in China.
With shipping lines reporting much lower financial performances in the first quarter of the year they will be looking to capitalise on full ships to increase freight rates.
FEFC members have agreed a rate restoration of $300 per teu for Asia, excluding Japan, to Europe cargo from July 1.
A peak season surcharge of $135 per teu will be introduced on the Asia-Mediterranean trade from June 1 and on the Asia-Europe trade from August 1.