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Signs of rate war ending as liners make capacity cuts: Drewry
DREWRY's Container Insight Weekly saw the fall in spot rates in the first quarter as evidence of a fierce war for market share among ocean carriers.
Maersk Line suffered a 26 per cent drop in revenue per container for a seven per cent increase in volume, it said.
Other carriers, APL, Hanjin and "K" Line, weren't even compensated with larger volumes for their rate discounts,
Drewry said rate decreases were more severe than they might otherwise have been because of the carriers' "predatory commercial strategies" of the first quarter.
The London research house said that basic supply and demand fundamentals were better for carriers in the first quarter than in the previous three months and year on year.
In 2015, headhaul ship utilisation in the east-west trades averaged close to 90 per cent, aided by void sailings, reported IHS Media.
Asia-Europe freight rates have been trending upward since April, while transpacific rates have stabilised.
Ahead of the third-quarter peak season, carriers have announced some capacity reductions in both lanes to give a push to their next general rate increases, some of which are as requesting as much as another US$1,500 per TEU.
Maersk Line suffered a 26 per cent drop in revenue per container for a seven per cent increase in volume, it said.
Other carriers, APL, Hanjin and "K" Line, weren't even compensated with larger volumes for their rate discounts,
Drewry said rate decreases were more severe than they might otherwise have been because of the carriers' "predatory commercial strategies" of the first quarter.
The London research house said that basic supply and demand fundamentals were better for carriers in the first quarter than in the previous three months and year on year.
In 2015, headhaul ship utilisation in the east-west trades averaged close to 90 per cent, aided by void sailings, reported IHS Media.
Asia-Europe freight rates have been trending upward since April, while transpacific rates have stabilised.
Ahead of the third-quarter peak season, carriers have announced some capacity reductions in both lanes to give a push to their next general rate increases, some of which are as requesting as much as another US$1,500 per TEU.
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