Booming May Rates Conceal The Looming Capacity Bomb

Capt. John
  • The average container freight rates had fallen week-on-week by 2.6% between 25 January and early May.
  • Extra tonnage is needed for services from India to Europe or from Asia to US East Coast, which will reduce the over-capacity equation.
  • Vessel shortages for the European trades have already seen Maersk and MSC return to vessel sharing to help cope with the discrepancy.

Massive increases in container shipping rates since 2 May are the consequence of Asian port congestion, US import demand,...

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