Following the imposition of ‘emergency’ bunker surcharges at the beginning of the month, there are clear signs that capacity is reducing ahead of the traditional 3rd quarter peak.
Norman Global Logistics have space allocations with most major carriers to protect our shippers during peak periods, the value of which is proven again this week, as our colleagues in China are reporting that space is getting “tight” on Asia-Europe services.
We would expect rates to soften again as the peak season subsides and possibly further ahead as additional capacity is added.
New-build deliveries have been tempered a little this year, but there is a staggering one million TEU scheduled for 2019, which includes 51 ships of at least 11,500 TEU capacity.
Nineteen of these units are over 18,000 TEU and are destined for the Asia to North Europe trade, which will further intensify competition for slots amongst the three major alliances and put downward pressure on rates next year.