Good afternoon All
Having watched the UK and EU freight markets ride another rollercoaster on rates between Mar-12 and Jun-13 (USD 500/TEU to 1800/TEU and back down to USD 550/TEU today), and having also witnessed their failed attempts to prevent a slide in rates since January-13, it's clear that the lines fully understand that if true competition and a marketplace exists on Asia-Europe that they can't keep complaining that are losing money at current rate levels and therefore must implement ridiculous GRIs (most have posted a GRI of USD 900-1000/TEU, that's a USD 2000 increase on a 40ft box, so that'd be USD 3000/40ft).
The truth is that in a properly functioning market, the rate level is driven by a combination of supply and demand and that's healthy. What's been happening in the last 12 months or so is that vessel owners such as Maersk have been introducing or ordering mega-container ships (post Panamax) which can carry up to 18,000TEU and are more fuel efficient too.
So, actually they do get it - they need to reduce their lift cost per TEU via larger ships and better planning and organisation and become leaner. The smaller ships will then be sidelined to smaller lanes with the mega vessels occupying the 2 largest trade lanes - Asia-Europe and Asia-US.
All the bluster at the moment with USD 1000/TEU GRIs is a (vain) attempt to halt the slide in rates just a month or so longer until Asia-Europe peak season starts and then vessels will be fuller and rates will firm up.
http://www.lloydsloadinglist.com/freight-directory/news/yards-offer-bargains-as-boxship-ordering-gathers-pace/20018051839.htm?source=ezine&utm_source=Lloyd%27s+Loading+List+Daily+News+Bulletin&utm_campaign=d9abdcf86e-LLL_12_June6_12_2013&utm_medium=email&utm_term=0_1a5c244239-d9abdcf86e-256747097
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