Drewry: Asia-ECSA trade to stabilise

Drewry: Asia-ECSA trade to stabilise

28/10/2015

In its most recent container insight weekly report, the analyst Drewry said that new carrier groups are expected to tackle overcapacity in the Asia-east coast South America (ECSA) trade to try and restore abysmally low freight rates by reducing services.

Source: ITJ (International Transport Journal). Read news here

Picture: INCOTRANS® - International Business Advisors ©

 

Other related news:

 

"Drewry records strong NE Asia-Australia exports" (28/01/2014)

Source: ITJ (International Transport Journal). Read news here

 

The English analyst Drewry said in its latest report Container Insight Weekly that exports from northeast Asia to Australia remained strong in Q4/2013. This helped ocean carriers to profit from the economies of scale through the deployment of larger vessels. The analyst noted that vessel capacity also appeared to have been managed responsibly.

 

"Drewry: Asian trade to North America still promising"

Source: ITJ (International Transport Journal). Read news here

 

Even though there have been reports of a poor peak season from Asia to the west coast of North America (WCNA) this year, it is not yet backed up by statistical evidence. This suggests that the vessel capacity cuts that carriers have so far made were not only about preparing for the winter season, as the maritime analyst Drewry has pointed out.

 

"Cascading tonnage floods Asia-ECSA (South America's east coast) market"

Source: ITJ (International Transport Journal). Read news here

 

According to the British analyst Drewry, some ocean carriers’ plans to get rid of surplus 8,000 teu vessels on the Far East to Europe trade by employing them on the tradelane between Asia and South America's east coast (ECSA) appears to have backfired. The recent launching of MSC’s new Ipanema service in the middle of April, and the announcement of the subsequent deployment of much bigger 8,000 teu vessels by other shipping companies, has resulted in a massive 33% increase in capacity between April and July.

 

"MSC adds to pressure on Asia - ECSA trade"

Source: ITJ (International Transport Journal). Read news here

 

After the Geneva (Switzerland)-based Mediterranean Shipping Company (MSC) launched Ipanema, its new standalone Asia to ECSA service in April, it is now thought that the carrier is boosting the service's capacity with the phase-in of a number of 7,500 teu ships. Should this move take place, MSC will add to the pressure on this trade lane, which is already experiencing massive capacity increases this year due to carriers cascading down their ships from other trades. As some analysts assume, this might only be MSC's kick off for more larger vessels to enter this trade, as the company is still waiting to take delivery of a large number of new vessels.

 

"Coscon increases capacity on Asia-ECSA trade"

Source: ITJ (International Transport Journal). Read news here

 

Cosco Container Lines (Coscon) is taking slots on the multi-coloured Far East - East Coast South America 'NHX' service, which is jointly operated by NYK (four ships), Hyundai (three ships), PIL (three ships) and K Line (two ships). Coscon is already participating in the service as the carrier took slots on the 5,023 teu "Hyundai Privilege", which departed from Busan on 1 June.