The overheating on the Container market could last for years to come
The overheating on the Container market could last for years to come
The overheating on the Container market could last for years to come
The overheating of the container market could last for another year. This is what the Danish Sea-Intelligence states in a new analysis.
The agency states that retail stocks in the United States are still exceptionally low and that replenishment, particularly from China, will continue for the rest of the year. In addition, a solution for the heavy congestion in the main US container port, Los Angeles / Long Beach, is not yet in sight. Container ships have to wait there for almost a week on average.
Limited capacity
These two factors have an effect on container shipping as a whole. Which means that that the capacity remains limited and the rates high in other shipping areas. Sea-Intelligence does not rule out a further rate increase of another 25% for the trans-Pacific. According to the agency, US imports must remain at a high level this year to restore stocks to normal levels.
Nevertheless, there are indications that spot rates will start to decline in the coming months. “We expect freight rates to correct in the second quarter, but the timing is uncertain and we are not seeing an immediate relief from the market chaos with lingering cargo and port congestion. Shippers will have to count on high rates and surcharges for months to come,” said Sea-Intelligence.
Kim Kroese has a degree in media and management and is specialized in online marketing.
The overheating on the Container market could last for years to come
The overheating of the container market could last for another year. This is what the Danish Sea-Intelligence states in a new analysis.
The agency states that retail stocks in the United States are still exceptionally low and that replenishment, particularly from China, will continue for the rest of the year. In addition, a solution for the heavy congestion in the main US container port, Los Angeles / Long Beach, is not yet in sight. Container ships have to wait there for almost a week on average.
Limited capacity
These two factors have an effect on container shipping as a whole. Which means that that the capacity remains limited and the rates high in other shipping areas. Sea-Intelligence does not rule out a further rate increase of another 25% for the trans-Pacific. According to the agency, US imports must remain at a high level this year to restore stocks to normal levels.
Nevertheless, there are indications that spot rates will start to decline in the coming months. “We expect freight rates to correct in the second quarter, but the timing is uncertain and we are not seeing an immediate relief from the market chaos with lingering cargo and port congestion. Shippers will have to count on high rates and surcharges for months to come,” said Sea-Intelligence.