Summary of the key market trends for this week:

Sea

  • Ocean carriers are planning to add around 10% more capacity to the Asia-North Europe despite a downward pressure on freight rates and expected weaker demand post Chinese New Year.
  • Weekly capacity is expected to increase by 28,000 TEU to an average of 300,000 TEU from March.
  • This comes from adding new loops and container jumboisation.
  • Ocean Alliance is deploying ten x 13,000-14,000 TEU vessels supplied by Evergreen to its NEU7 loop and upsizing the vessels on the NEU6 loop to a capacity of 20,000 TEU’s.
  • The Alliance and 2M are also increasing capacity to a lesser extent.
  • SCFI rates softening ahead of CNY.

Air

  • Airports worldwide have reported strong levels of growth for 2018, increasing confidence levels for air freight for 2019 – cargo volumes have increased by up to 7.3% in Europe.

Road

  • Road transport rates are declining in continental Europe as hauliers inject more capacity into the market.
  • Prices for some hauliers are below 2017 levels, however this could cause issues given that the price of diesel has been on the rise proportionately to the drop in rates.