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Container Trade on Asia-Europe Rates Vulnerable to Newbuild Deliveries & Downturn

24th August 2020
'Box' boats rates: But how cargo demand evolves after the summer peak season is difficult to predict, says Alphaliner. Above an ocean going containership underway 'Box' boats rates: But how cargo demand evolves after the summer peak season is difficult to predict, says Alphaliner. Above an ocean going containership underway Photo: Jehan Ashmore

On the major East-West box trades, ocean freight rates might be surging just as the new vessel orderbook for container ships look bare but that does not mean the outlook for carriers will remain bright indefinitely.

According to the latest analysis by Alphaliner, rates on the Asia-Europe trade are particularly vulnerable to new vessel deliveries and a demand downturn later this year.

“The big carriers are currently enjoying strong cargo demand and healthy spot rates on the two biggest East-West trades,” it noted.

However, Alphaliner said how cargo demand evolves after the summer peak season was difficult to predict. “European and US importers might currently be refilling their stocks as they fear new waves of the COVID-19 pandemic, resulting in a flat market after the summer,” it added.

“The delivery of 86 ships over 10,000 TEU capacity is expected to put extra pressure on the Asia to Europe trade as the biggest ships are expected to be deployed there.”

For more including newbuild orderbook chart, LloydsLoadingList reports. 

Published in Ports & Shipping
Jehan Ashmore

About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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