A recent article from The Loadstar reported that the Asia-North Europe and Asia-Mediterranean routes currently lack around 500,000 TEUs of capacity. Nonetheless, spot ocean freight rates between the Far East and Europe continue to be under pressure.

The vessel shortage is not affecting all alliances equally. The Loadstar article highlighted that the Ocean Alliance appears most exposed, particularly on its “Asia-North Europe NEU7 string”. Meanwhile, the Premier Alliance and Gemini Cooperation have maintained more consistent service levels.

In a recent social media update, Alphaliner flagged that a limited idle fleet and a near-total absence of large vessels available for spot charter have constrained the market. With few options to fill service gaps, carriers are operating under tight conditions.

This shortfall is made more pronounced against rising demand. According to The Loadstar, it reported that Container Trade Statistics data showed that shipments from the Far East to Europe increased by 9% year-over-year in July. Despite this growth, pricing for both spot and contract rates has continued to decline. Alphaliner attributed the disconnect to aggressive pricing strategies among carriers.

According to The Loadstar report, Vespucci Maritime CEO Lars Jensen, in a recent episode of the NYSHEX podcast, suggested that rates may still have room to fall.

As ShippingWatch reported, Alphaliner’s analysis showed spot market rates between Shanghai and Europe have fallen by 45% over the past ten weeks, even as Red Sea disruptions continue to absorb capacity. 

Alphaliner’s social post said that the current paradox of falling rates amid rising demand and constrained capacity implied a rate war may be taking place between leading operators.

Source: The Loadstar, Alphaliner, ShippingWatch