News / More carriers to cut back on Asia-Europe container capacity after summer peak

09/07/2018

More deepsea carriers have announced plans to cut capacity on the Asia-Europe trade in preparation for a slowdown in volumes after the summer peak season.

2M partner MSC today said it would suspend one of its Asia-Europe services after the end of China’s Golden Week holiday, which begins on ...

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A.Kout
July 09, 2018 at 2:59 pm
This is fully understandable and logic to us. In light of the drama the trade war between Mr.Trump and China etc we expect that from end of aug where the
peak season normally starts the availibilty of cargo will be reduced, which
immediately have an deep impact on rates and margins. Freight Forwarders
who have contracted for a longer period dedicated charters,(air),made larger ocean
allotments/allocations will be in deep trouble as industry shippers will automactically
use this as their tool to achieve and drop rates to a submarginal level.
We deeply doubt that the dedicted charters etc. can be adapted to
the market volume availability starting from end of Aug to end of Nov.2018.
Maybe we are totally wrong on this, however we are warning since months on this
possible upcoming situation, which can have a deep influence on balances of
freight forwarders for the BY 2018. regards A.Kout

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