News / Brexit, VGM and carrier bankruptcy fears give Asia-Europe box trades a boost

31/05/2016

Fears of currency devaluations after a Brexit vote, supply chain disruption from new container weighing regulations and an aversion to financially troubled carriers are contributing to a demand spike from Asia to North Europe.

The Loadstar has received several reports of vessels operating the Asia-North Europe trade leaving Asian ports full in past few weeks, with containers having to be rolled over to the next sailings.

The current capacity squeeze has also had a noticeable impact on the container spot market, with the Asia-North Europe component ...

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jason
May 31, 2016 at 3:09 pm
What a load of rubbish.
Solas effecting global market rates.
Brexit effecting market rates .
What next ???

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- Mike Wackett
  June 01, 2016 at 7:29 am
  Hello Jason,
  Container shipping is no different to any other industry: it exists on the basic economics of the law of supply and demand.
  This is particularly the case with the greater emphasis on spot rates where any shift in the demand or supply curve, or even sentiment, will have an impact on market rates.
  This we saw in March when weak demand and an excess of supply dragged spot rates down to below $150 per teu.
  It follows that some demand positives, such as bringing forward cargo, will tend to push rates up.
  And if ships are full carriers have no need to undercut rates.
  
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