All the indicators are that volumes will begin to surge in the coming weeks and even with no current space issues other than some limited congestion at Chinese ports such as Shanghai, the lines will be seeking higher freight rates.
After continued cargo growth through 2017, volumes and freight rates from China and Asia are expected to surge as the peak season starts to build ahead of China’s golden week which starts on October 2 and traditionally prompts a scramble by shippers to load cargo ahead of factory closures.
Far East/Westbound and Eastbound trades are set to grow by an estimated 6-7% in the first half of 2017 and more in the 2nd half as the traditional peak period in August combines with the spike of volumes prior to Golden Week.
Given these factors it is likely that the shipping lines will be expecting ocean freight rate increases over the next three months for spot and long-term rates.
“We can protect you from these impending freight increases by fixing your rates at today’s competitive prices.”
Some shipping indices are reporting spot rate increases of 17% last week as a result of peak season demand and the 1st July general rate increases.
Analysts predict that (with careful capacity management) if the GRI’s in July and August do stick Asia-Europe prices will hold firm and with demand continuing to exceed expectations will continue their upwards trajectory through the remainder of 2017.
“Because we negotiate rate and space agreements across all three shipping alliances, we can maintain your service levels during the coming peak season and protect you from freight increases by fixing your rates at today’s competitive prices.”