The gradual softening shows how rates fall far slower than they increase during a market spike.
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 Emily Stausbøll, Xeneta Senior Shipping Analyst.
Xeneta analyst insight
Emily Stausbøll, Xeneta Senior Shipping Analyst:
“Spot rates on the major ocean container shipping trades out of the Far East continue to soften, edging down -1% into US West Coast, North Europe and Mediterranean while remaining flat into US East Coast. There are likely to be further declines at the start of August, but the gradual softening shows how rates fall far slower than they increase during a market spike.
“Some blank sailings are beginning to appear on trades from Asia to North America, but even if rates are starting to soften they are still at a very healthy level for carriers who will want to make sure they have capacity available to take advantage for as long as possible.
"No individual carrier wants to be the first to pull significant capacity when competitors can step in and take their volumes, which limits the scope for capacity management to reverse the spot rate decline. (....)