Capacity increasing after weeks of turmoil - but why did it take so long?
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.
Peter Sand, Xeneta Chief Analyst:
“It has been a long time coming, but carriers have finally responded to spiralling spot rates and supply chain disruption on major ocean container shipping trades out of Asia by deploying significantly more capacity this week. This raises an uncomfortable question from shippers – why has it taken until now for carriers to act when they have endured months of triple-digit freight rate increases and delays in getting containers on board ships?
“Offered capacity on Far East to US West Coast is up 10.5% from a week ago, US East Coast is up 12.1% and North Europe is up 11.9%. These are substantial weekly increases and the largest seen since the Strait of Hormuz closure at the end of February.”
Motivation for carriers:
“This is not an act of kindness by carriers - they are compelled to make their move on the back of spot rates which are now up 214% from Far East to US West Coast since the escalation of conflict in the Middle East at the end of February – the root cause of this supply chain crisis. Spot rates are up 176% into US East Coast, 115% into North Europe and 82% into Mediterranean. (....)