Rates start to tumble from Far East to US East Coast following record-breaking capacity in October
The Xeneta Weekly Ocean Container Shipping Market Update provides data and intelligence including the latest freight rate and capacity movements across global trades with supporting insight from Peter Sand, Xeneta Chief Analyst.
Xeneta Analyst Insight: Rates start to tumble from Far East to US East Coast following record-breaking capacity in October
• Peter Sand, Xeneta Chief Analyst:
Far East-North Europe:
“Carriers tightened capacity on the Far East to North Europe trade from mid-October to early November, with offered capacity dropping by more than 10%. It had the desired effect with short-term rates moving higher on 19 October, but gravity always wins and a downward trend and has returned.
“Demand is easing somewhat in the final six or seven weeks of the year so gravity will get stronger. To avoid faster falling short-term market rates, carriers need to keep a close eye on deployed capacity, which probably means doing what they already did in October and many times before – blanking sailings." (....)