THE report warns that Asia-to-Europe shipping rates have fallen below those observed in 2019, reports UK's Seatrade Maritime News.
Furthermore, it highlights a substantial risk of rates on this trade route plummeting to levels last seen in 2016 unless significant capacity management measures are swiftly implemented.
"Although overall capacity across the four main trades from Asia to Europe and North America are expected to fall by 14-22 per cent in October mainly from blanked sailings, there has been very few actual service withdrawals with just three services permanently suspended to the US west coast so far," said the report.
Containership capacity has reached record levels of growth, standing at an average growth rate of 190,000 TEU per month since April.
"This pace of growth is the fastest rate ever recorded for the container markets and is set to continue for the next two years."
With vessel demolition rates at under 10,000-TEU per month, the growth rate has now easily surpassed the capacity growth booms of 2006-08 and 2014-15.
According to the Freightos Baltic Index (FBX), the westbound Asia to Europe spot rates had fallen to $1,517 per FEU by September 15 this year, down from $1,784 per FEU at the beginning of the month.
from: shippingazette