Booming May Rates Conceal The Looming Capacity Bomb

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,...